By RONNIE ELLIS
CNHI
FRANKFORT —
It perhaps wasn’t as tough as they anticipated, but tourism and parks officials underwent a grilling from lawmakers Wednesday about a plan to save $6 million in the parks budget by privatizing some services, selling alcohol at a few parks and golf courses, and reducing employee hours.
Still, Tourism Secretary Marcheta Sparrow and Parks Commissioner Gerry van de Meer fielded several tough questions from lawmakers on the Interim Joint Economic Development and Tourism Committee, including some for whom parks are an important employer and destination in their districts.
Since Gov. Steve Beshear’s administration has taken office, the state has suffered through almost continuous budget shortfalls. On top of that, state Auditor Crit Luallen’s examination of the parks a couple of years ago called for several management and financial improvements.
The parks department hired a professional consulting firm to study the system, looking for ways to improve the quality and services of the state parks while cutting costs. Some of its recommendations are to privatize restaurant services at some resort parks and golf courses; reduce hours and days of service in non-peak seasons, hire seasonal, temporary workers through a temporary employment agency, and reduce employee hours.
Sen. Robin Webb, D-Grayson, has two resort parks (Greenbo and Carter Caves) and two golf courses in her district and she’s skeptical about privatizing some operations.
“We tried privatizing some prisons and tried to privatize coffee in the (capitol) cafeteria, and those didn’t work out too well,” Webb said, referring to attempts in the previous administration to allow Starbucks to sell coffee in some state parks and restaurants.
She said the parks are community assets and personnel usually try to make services available in the local communities, including local high school golf teams to use parks courses for matches, and wonders if a private operator will continue those practices.
She asked how using temporary employment agencies would save money.
Tiffany Yeast, personnel director for the Tourism Cabinet, said doing so shifts the costs of unemployment insurance and workman’s compensation to the private agency. She also said parks managers will “have the final say” in employment decisions.
Webb wasn’t satisfied and said she “ultimately fears we’re going to replace the entire system,” but Sparrow and van de Meer said that is not the plan. Van de Meer said private vendors often have more experience and better buying power. He said allowing alcohol sales at park restaurants and golf courses located in already “wet” districts will produce more revenue from each and increase occupancy at the parks, adding still more revenue.
Right now, the department plans to call for proposals from private vendors to operate and sell alcohol at three resort parks — Lake Barkley, General Butler and Jenny Wiley — and three golf courses at other parks — My Old Kentucky Home, Audubon State Park, and Kincaid Lake.
Van de Meer estimated that could produce as much as $1.8 million in new revenue, an estimate he earlier called “conservative.”
Rep. Tim Moore, R-Elizabethtown, isn’t comfortable selling alcohol at parks and said the department risks losing some of its longtime family-oriented clients. Rep. Eddie Ballard, D-Madisonville, said he’s only heard positive feedback about that from constituents.
“I’ve had a number of calls but they’ve been mostly positive,” he said.
Rep. Jim DeCesare, R-Bowling Green, noted taxpayers subsidize the parks system with roughly $30 million and said they should do work toward generating more of their own revenues. Van de Meer said that’s low measure against other state parks system, and Rep. Don Pasley, D-Winchester, pointed to the consultant’s conclusion that the parks system has an $840 million economic impact statewide and about $600 million in the local communities where they are located.
“This General Assembly would run as fast as it could to pass an incentive package to bring an industry of that type to the state,” Pasley said.
Others like Will Coursey, D-Benton, worry about the impact of cuts in employee hours. They will be cut back to 37.5 hours a week — the same as other state employees — but some could be reduced as low as 30 hours in some winter months when the parks are on reduced schedules. Yeast said the 30 hours minimum was established prior to the announcement about furloughing state employees to find budget savings and said it will be re-evaluated now.
Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/ cnhifrankfort.
