Published: May 09, 2008 02:09 pm            

Deep in the red — 05/11/08

Audit reveals unacceptably high losses for state parks

When former Gov. Ernie Fletcher began his term in 2003, his new secretary of commerce — Ashland native Jim Host, the well-known and highly successful founder of Host Communications — vowed to make the state parks system self-sufficient, if not profitable.

Through more efficient management, more aggressive marketing and higher prices, Host was convinced he could reverse the years — no, make that decades — of losses for the park system long billed as “the nation’s finest.”

So was he successful? Not at all.

While Host returned to retirement in Florida long before the end of the Fletcher administration, the former governor’s term ended in January with the parks system losing far more money in 2007 than it did in 2003.

In fact, according to a new audit by the office of Auditor Crit Luallen, Kentucky’s state parks lost $31 million in 2007. And unless the Commerce Cabinet better manages and better markets the system, the audit said those losses are likely to continue to grow.

Yet, from our vantage point, the marketing of the parks system did improve during the Fletcher administration. The parks tied into the “Unbridled Spirit” campaign that marketed Kentucky as a whole instead of just a series of individual attractions.

The restaurants at the various resort parks underwent major facelifts and name changes to give them more of an individual flavor. The restaurant at Greenbo State Resort Park became Angler’s Cove and the restaurant at Carter Caves was renamed Tierney’s Cavern in honor of the park’s popular long-time naturalist John Tierney, now retired, who developed some of that park’s popular annual attractions like the Crawl-a-thon and the Weird Music Weekend.

A new amphitheater was built at Greenbo and new trails were blazed, making the park attractive to both those who enjoy hiking and those who love fishing. And beautiful, new golf courses were completed at Yatesville Lake and Grayson Lake, with both courses earning praise from Golf magazine.

The parks continued to offer more special attractions during the typically slow winter months. Things like mystery weekends and writing workshops have proven they can bring visitors to the parks in the midst of winter. We can remember when Greenbo used to close during the winter months. We’d like to avoid a return to those times.

Yet despite all the efforts to improve the parks, the red ink has continued to flow. In fact, according to the audit, 15,000 fewer rounds of golf were played at the state parks in 2007 than in 2000. This is despite the construction of five new golf courses, including the ones at Yatesville Lake and Grayson Lake. So much for the oft repeated line from the movie “Field of Dreams”: “If you build it, they will come.” Apparently, not always.

Of even more concern is the losses endured by the restaurants at the resort parks. In 2000, the audit said seven parks realized a profit on each meal served, ranging from 25 cents to $1.56. In 2007, only one park — Natural Bridge State Resort Park — realized a profit on the meals served at its restaurant, and it was only a scant 20 cents per meal. Overall, the parks went from realizing a profit of 3 cents per meal in 2000 to enduring a loss of $1.60 per meal in 2007.

Thus, despite all the efforts to improve the restaurants and give them a unique flavor, the losses mounted. From our view, that’s a management problem that needs to be addressed. Are the restaurants — which serve excellent meals, by the way — preparing too much food for their buffets, resulting in a lot of waste? Are there too many employees for the amount of customers? We don’t know — but someone needs to find out.

At the time Host said he wanted the state parks to at least break even, we expressed doubts that that was an achievable — or even a desirable — goal. Helping local economies by attracting tourism dollars is not the only goal of the state parks. The parks also preserve natural beauty and protect historic sites. And if raising prices to the point that most Kentuckians cannot afford to stay at a state park is what it takes to turn a profit, then we think that defeats one of the purposes of the parks. The parks should be for all Kentuckians, not just those with the financial means to stay at a resort.

In addition, many of the lodges at the parks are older and lack the plush amenities of rooms at newer lodges at parks in other states. For example, if you want to be pampered at a true resort, you are more likely to stay at the lodge at Shawnee State Park in Ohio than at Greenbo. It will cost a lot more, but that lodge offers more for its guests.

Kentucky’s state parks may still boast of being the “nation’s finest” but that slogan no longer fits. Nevertheless, the state parks still are wonderful places to visit, either for a week-long vacation, a few nights of camping and hiking, or just a nice meal at a restaurant with a great view.

But $31 million in red ink in just one year is unacceptable. A good follow-up to Luallen’s audit would be to establish a team of professionals to look at the parks system and recommend steps to cut the losses.

Luallen is right when she says that the parks are unlikely to ever make money or even break even, but that doesn’t mean huge losses should be tolerated.

        

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