The state of North Carolina faces a huge problem. As budgets become tighter, there is a risk that the state may be forced to close down its parks which are seen as some of the expendable items in the state’s planning. There is a need to find alternatives to address the concern and ensure that the park system is self- sustaining. The Property and Environmental Research Center (PERC) based in Bozman, Montana has a model that offers North Carolina an alternative that could work in helping the state overcome this problem and avoid having to shut down its parks.
How the PERC Model can Help North Carolina Achieve a Balanced Budget
The PERC model offers an option for states to partner with private agencies and to raise money for the maintenance of parks without having to turn to the state budget (Meyer, 2015). The key is to allow private businesses to set up and run facilities within the parks and then collect fees from them. The rationale for allowing individuals and businesses to establish spots such as camping sites inside the parks and pay revenue to the government to be used for maintenance (Uyarra & Côté, 2010). The model means that the state would not have to spend taxpayers’ money on parks but can channel the funds to other programs.
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Scope of Application
The PERC model is applicable to most of the parks in North Carolina. It would be prudent to consider the nature of activities for each individual park which would then inform the structuring of the specifics for each facility. Apart from that, the traffic for each park should also be considered, with the state aiming to maximize on those areas that have the highest number of visitors (Uyarra & Côté, 2010). However, the size and location may dictate the possibility of setting up privately run activities within the parks. For example, those within the urban areas might not attract people looking for activities or the thrill of nature but just to relax and pass time (Bowman & Kearney, 2013). Therefore, they might have a limited scope of private establishments. The larger and out- of- town parks, on the other hand may be more suited to having camping and other facilities that will generate more revenues for the state.
The Duration of Seeing the Benefits
Undoubtedly, the process of establishing the public- private partnerships for North Carolina’s parks is a long- term undertaking that will take quite an amount of time before the state can start enjoying the full benefits. The parks that already have privately- run facilities can earn revenue for the state but there are others that will have to wait for businesses to set up their establishments (Uyarra & Côté, 2010). However, the state can be assured of a constant flow of revenue in the future once the plan comes into fruition. What is of importance is to provide the necessary support for the businesses to ensure that they can run successful operations which will then assure the state of funds to run and maintain its parks. If well run, the program can even earn a surplus for the state.
Charging User Fees
Apart from the levies charged on operators in the parks, the state can also earn money from the charging fees for those getting into the parks. The rationale is that people should pay for the benefits that they enjoy (Bowman & Kearney, 2013). As the number of people visiting the parks increases, the cost of maintain the parks also increases. However, that also means that the revenue earning potential of the parks increases too. The amount of money that the state would be charging per user needs not be too restrictive. An article in the Carolina journal estimates that the operating cost per visitor averages $2.30 meaning that a fee of about $3 per head would be enough (Konieczny & Curry, 2015). The money earned would also allow the state to conduct marketing for its parks to drive even more traffic there and increase the revenues earned. Apart from that, the state would also be in a position to modernize the existing facilities at its parks as part of attracting more people there (Konieczny & Curry, 2015). The most important aspect of it all is the fact that all that would be done without having to put a strain on the finances of the state.
All in all, the PERC model can be applied in North Carolina to help the state run and maintain its parks while still managing to have a balanced budget. The state can partner with private providers who would set up their businesses inside the parks and pay revenues to the state for their continued operation. Apart from that, the state can also levy user charges for entry as well as entry to the parks within North Carolina. Applying the two measures would free up funds to be used for other purposes and ensure that the state runs a balanced budget.
References
Bowman, A., & Kearney, R. (2013). State and local government Boston: Cengage Learning.
Konieczny, C., & Curry, S. (2015). State park system could pay its own way . Carolinajournal.com . Retrieved 23 November 2017, from https://www.carolinajournal.com/opinion-article/state-park-system-could-pay-its-own-way/
Uyarra, M., & Côté, I. (2010). Charging for nature: marine park fees and management from a user perspective AMBIO , 39 (7), 515-523. http://dx.doi.org/10.1007/s13280-010-0078-4
Meyer, W. (2015). A Tale of Two Parks PERC – The Property and Environment Research Center Perc.org . Retrieved 23 November 2017, from https://www.perc.org/articles/tale-two-parks
