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 Privatize new state park

By Bluegrass Institute for Public Policy Solutions

(Bowling Green, Kentucky) – Kentucky’s parks department has announced plans to consider opening a new state park at Herrington Lake. 

An economic analysis by the University of Kentucky estimates that the park will generate an annual operating deficit of $300,000. The purchase of land and construction of a lodge and campsites would cost an additional $15.2 million.

State parks already burden taxpayers with an average annual operating deficit of $29 million. Commerce Secretary Jim Host says he wants to completely eliminate the deficit. Yet if the parks department does not take a different approach, the shortfall will only grow.

“A new state park at Herrington Lake could be a great money maker,” said Chris Derry, president of the Bluegrass Institute, Kentucky’s free-market think tank. “However, if this new park is run by state employees – like the other parks – taxpayers will wind up paying the bill again.”

A report recently released by the Bluegrass Institute, “Mousetraps and Stale Coffee: Making the case for privatizing Kentucky‘s State Parks,” found that the commonwealth’s state parks consistently lose money.

The report looked at other government-owned parks in North America that had previously performed poorly. Officials managing their affairs ultimately decided that government should not be in the business of managing these parks and hired private operators. The results were fairly predictable: Taxpayer subsidies stopped, facilities improved and customers returned.

Kentucky is the only state where parks are completely operated by state government. Policymakers in Frankfort should begin applying the results-based practices that have succeeded at other parks around the world if taxpayers are to buy Herrington Lake park.

“Privatizing a new facility would put Kentucky parks on the road to better facilities and service,” said Joel Peyton, author of “Mousetraps and Stale Coffee” and an intern with the Bluegrass Institute. “The reform would be revolutionary and could result in unbridled profits for the parks system.”

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