National Parks Yield Big Returns for Montana

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1 National Parks Yield Big Returns for Montana Protecting Parks for Future Generations August 2005 National Parks Conservation Association Northern Rockies Regional Office Helena, Montana

2 National Parks Fuel Montana s Emerging Economy Montana s national parks play no small role in the economic growth and vitality currently enjoyed by much of western Montana. Known around the world for their powerful beauty and abundant wildlife, Glacier and Yellowstone have long attracted visitors and related businesses to nearby communities. But eclipsing the economic significance of that role is the parks magnetic attraction for residents who boost existing businesses and drive the creation of new businesses, jobs, and income. This makes national parks more valuable economic assets than ever. Montana s emerging economy reflects the passing of the old truism that people follow jobs. Today, it is often true that people choose where they want to live, bringing jobs, businesses, entrepreneurship, and income with them. In this new economic reality, the biggest beneficiaries are those areas that people find most attractive. Studies show that, for newcomers and long-time residents alike, national parks and surrounding public lands afford scenic beauty, recreational opportunities, and a special identity that attract and hold residents. 1 These residents enliven local economies with their energy, creativity, investment, and demand for goods and services. Glacier and Yellowstone national parks attract more than 60% of summer visitors to Montana over half of all Montana s visitors each year. 3 Montana s parks are important anchors in the state s most vibrant economies. A comparison of national park gateway communities with similar communities that are not near national parks shows that gateways outperform their peers by most economic measures. 2 In Montana s Greater Yellowstone region, 1 in 4 businesses is owned by someone who first came to Montana on vacation. 4 Protecting our national parks is an essential investment in Montana s economic future. Unfortunately, that investment is not being made in full. Steve Caldwell Livingston Management Consultant City Commission Member In terms of economic development, funding our national parks is an outstanding investment of public resources. A growing number of people can choose where they live based on quality of life. Access to public lands, especially outstanding areas like Yellowstone, is important in attracting people who buy homes in the area, invest in businesses, and so on. Tourism is important, but this area s economy benefits in more pervasive and durable ways by attracting full-time residents. Reinvesting to ensure the continued attractiveness of our national parks shows a commitment to the future of communities like Livingston. Montana s National Park Communities Thrive Montana s national park gateway communities are developing vital, well-balanced economies. Ranked among 138 non-metropolitan counties in the eight states of the Rocky Mountain west: Balanced employment composition (a measure of economic diversity) #1 Flathead County #4 Gallatin County Most small businesses generated, #1 Gallatin County #3 Flathead County Top quality public lands #8 Flathead County #10 Park County 5 World-Class Assets 1

3 Montana s National Parks: In Need of Renewed Investment Montana s national parks are a treasured asset. They are a point of pride for residents and central to the quality of life enjoyed here. Glacier and Yellowstone national parks anchor large tracts of protected wildlands and wildlife habitat. They draw tourists to the state and generate jobs. The parks attract people, businesses, and prosperity to Montana s communities. Like parks across the country, Glacier and Yellowstone are fraying at the edges due to decades of underfunding. Each year, the park system as a whole operates with a shortfall of over $600 million, leaving parks unable to meet basic standards and legal mandates. 6 Beyond these annual funding shortfalls, the parks face a mounting backlog of deferred maintenance and construction. In March 2005, the Congressional Research Service estimated this backlog at between $4.5 and $9.7 billion. 7 The National Park Service stewards the crown jewels of our country s natural, historic, and cultural heritage. Chronic underfunding leaves these treasures at Education and Safety Shortfalls Ninety percent of Americans say educational benefits draw them to national parks. Yet, in Yellowstone, visitor safety and education rank among the most underfunded park functions. 10 Visitor Safety Operated with 29% needed funds, 39% needed staff Visitor Education Operated with 18% needed funds, 25% needed staff Interpretation Operated with 50% needed funds, 75% needed staff A rarity only a few years ago, over 900 bear jams clogged Yellowstone s roads in That year, there were 54 permanent law enforcement rangers, down from 62 in Photo: Yellowstone National Park risk. Funding decisions made over the next several years will determine, in large measure, whether the national parks we leave our children will continue to serve them as an enduring legacy and an economic boon. Bicyclist surveys damage to Going-tothe-Sun Road, Glacier National Park. A recent $50 million federal appropriation will help repair the historic highway. But up to $100 million more is needed to implement the park s rehabilitation plan. Photo: Karen Nichols Tight Times for Montana s Parks 9 Glacier National Park Deferred maintenance/ investment backlog = $400 million Velinda Stevens Kalispell CEO, Kalispell Regional Medical Center Yellowstone National Park 2003 operating shortfall = $23 million (35% of budget) We have the ability to attract and retain an outstanding medical staff because this is such a nice place to live. And you know those things that make it a nice place to live clean air, water quality, Glacier National Park, the wildlife all the reasons that people live here, they want to keep. Our challenge is to make sure we protect these qualities for the long term. World-Class Assets 2

4 National Parks Drive Tourism and Create Ripple Effects in the State s Economy Montana s economy is not simply nor primarily a tourist economy. Still, the most obvious economic impact of Yellowstone and Glacier parks may be their effect on Montana tourism. They are the most recognizable icons on Montana s landscape of attractions, each noted by 25% of nonresident summer vacationers as the primary reason for their visit. 12 The presence of these visitors and the dollars they spend create a larger effect in Montana s economy. Benefits Begin Close to Park Boundaries In Montana s gateway communities, within roughly a 30-mile radius of the parks, park visitors spend about $226 million each year. This spending creates: $96.9 million in personal income 5,840 jobs $113.5 million in value added (the value added by the region to the goods or services produced) 13 Photo: Karen Nichols Glacier National Park is a huge attraction for visitors to the Flathead Valley. You might not expect a business like ours to benefit, yet we see a 20 percent increase each summer. From eyeglasses to office supplies, I think many businesses unrelated to tourism experience this kind of summer bump, making business easier year-round. Mark Thompson, Kalispell Manager, Pearle Vision Effects Ripple Out through Western and Central Montana Glacier and Yellowstone visitors travel to and through other parts of the state. Summer park visitors alone spend more than $858 million on goods and services in Montana each year, mostly in the western and central regions. Summer visitors tend to stay in Montana longer if they visit a national park. Of more than 5.5 million summer visitors to Montana in 2001: - 38% visited no parks (average 4 nights in Montana) - 62% visited Yellowstone, Glacier, or both parks (average 5 nights in Montana) 14 A Big Impact in a Small State Economy Tourism is an important part of Montana s economy, estimated to account for 12 percent of the state s economic base (industries that bring dollars into the economy). Park visitors contribute substantially to that base, making 75 percent of all expenditures by Montana s summer visitors. 15 Each dollar spent in, around, or because of a national park in Montana has 60 times the impact on the state economy than one spent at a park in California. In Colorado or Arizona, each dollar of tourist spending has only 12-15% of the impact of a tourist dollar spent in Montana. As important as the tourism draw of national parks is to the economic health of these states, parks are even more significant here in Montana. 16 Half of all commercial airline passengers flying in and out of Montana are visitors. Without them, Montana could not maintain its current level of airline service. 17 Map: Montana Natural Resource Information System World-Class Assets 3

5 Beyond Tourism Broader Economic Advantages of Proximity to National Parks Livingston, Gardiner, Whitefish, Columbia Falls, Cooke City, Red Lodge, West Glacier, West Yellowstone, Bozeman, Kalispell, and other gateway communities provide access to, and visitor services for, Montana s national parks. These communities reap economic benefits from the parks and adjoining public lands that go well beyond tourism. The quality of life that makes long-time Montanans proud to call these places home attracts new residents and the entrepreneurship, businesses, and income they bring. Both Bozeman and Kalispell ranked among the American City Business Journal s top ten 2005 small-sized U.S. cities for small business. Bozeman, at the top of the list, boasts 5,262 small businesses per 100,000 residents, and a two-year growth rate of 10.7 percent. To Livingston business owner, Steve Caldwell, this success comes as no surprise. I was drawn to Livingston because of the exceptional recreational opportunities on public lands in this area, especially Yellowstone Park. Like many other entrepreneurs, the nature of my business allows me to live just about anywhere, so quality of life became a major factor in my decision to live here. A survey of business owners in Montana s Madison, Gallatin, and Park counties suggests they place high value on these qualities in deciding to locate and keep their businesses in the area. Those who had lived in the region longer than five years rated quality of life values (such as scenic beauty, public lands proximity, and recreational opportunities) even more highly than did newcomers. To long-time residents and newcomers alike, these values were significantly more important than traditional measures of business climate such as tax structure and cost of doing business. 18 Tom Krustangel Whitefish Owner, Montana Tom s Chocolate I don t know that anyone can adequately explain what led them to Montana. There is a magic here. I know the first time I set eyes on Glacier Park, I was absolutely awestruck. I had never seen anything so magnificent in all my life. I vowed right then and there to come back. And sure enough, it took a few years, but now I have a successful business and I m right where I want to be. Proximity to National Parks Supercharges Economic Performance The economic advantage of these park gateway communities can be gauged by comparing the performance of counties that differ primarily in their proximity to national parks. Throughout the west, Flathead and Gallatin counties have 64 peer counties of similar size and character. Nine of these, including Flathead and Gallatin, are national park gateway communities (or national parks peers ). The remaining 55 peer counties are not park gateways (or non-parks peers ). 19 Chart courtesy of Roger Parchen, Art & Images Creative Resources, Missoula, Montana (modified from original) 70% Gallatin Co. Flathead Co. National Parks Peers Non-Parks Peers Similar patterns are seen among gateway counties with smaller populations, such as Carbon, Park, and Madison. In the last two decades, these counties have outpaced their non-park peers in key measures of economic performance. World-Class Assets 4

6 Economic Change in National Park Gateways Larger population centers like Bozeman and Kalispell are not the only ones to benefit economically from their proximity to national parks. Nearby counties such as Carbon, Madison, and Park are experiencing an influx of people, business, and money that parallels the growth in their larger neighbors. Across these communities, similar patterns of economic change are emerging. Traditional industries are becoming less important but their relative decline has not left economic disaster in its wake. New jobs and labor income have come primarily from Betsy Robinson Bozeman Owner, Wild Things Unlimited I can t overstate the importance of a healthy, wellmaintained park. Yellowstone is why I, and most people I know, live here. rapid growth in services (especially health and business services), retail trade, construction, and the finance, insurance, and real estate sectors. Growth has been particularly strong in areas directly linked to the expanding population. 20 It s hard to imagine how different the economy and our communities would be without the park, and that means we all have a stake in making sure that Yellowstone receives adequate funding. There s just no other way to protect this vital asset. Dale Sexton, Livingston Owner, Timber Trails Investment income (dividends, rent, interest) and transfer payments (such as Social Security benefits) have grown in importance in these park gateways. This reflects changes in the national economy that are magnified in areas that are highly attractive to people choosing where they wish to live. In national park gateway counties across the west, labor earnings declined from 71% of all personal income in 1977 to 59% in Transfer payments and investment income make up the difference. 21 Economic Change in National Park Gateway Counties in the West: Rapidly Growing and Declining Sub-sectors (gains of more than $70 million and 40%) Health services Special trade contractors Finance, insurance, real estate, non-depos. Business services Wholesale trade Engineering & management services Eating & drinking places Automobile dealers & service stations General building contractors Miscellaneous retail Food stores Hotels & other lodging places Social services General merchandise stores Railroads Heavy construction U.S. military Lumber & wood products $618.4 $264.8 $197.9 $188.9 $165.4 $127.2 $129.3 $103.4 $99.4 $96.3 $79.2 $76.9 $76.0 $69.7 -$7.3 -$14.5 -$ $ % 76% 141% 102% 46% 46% 51% 47% 54% 49% 39% 55% 119% 59% -11% -10% -21% -23% Notes: Counties included in this analysis are Flathead, Gallatin, and seven other western counties of similar size and character, also near national parks. Change in these sub-sectors is measured in terms of labor earnings in inflation-adjusted 1996 dollars. Chart courtesy of Roger Parchen (modified from original) World-Class Assets 5

7 Insufficient Funding and Reinvestment Threatens Montana s National Parks At the same time as Montana s parks are growing in economic importance, the ramifications of decades of underfunded daily operations and deferred investment in park assets are beginning to hit home. Shortages affect nearly every area of park operation, impairing the parks ability to meet their legal mandate and provide safe and educational experiences for visitors. Natural Resource Protection Less than 30 percent of Yellowstone s 121 known geothermal areas have been thoroughly inventoried. The park has only one staff geologist. On Glacier s west side, lake trout invasions have caused native bull trout populations to plummet by 90 percent. There is no staff fisheries biologist. Glacier park staff monitor over 1,200 infestations of noxious weeds. Insufficient funding limits their ability to control the spread of these invasions. Yellowstone maintains one ornithologist on staff to monitor, inventory, study, and educate about the park s bird life and habitat. Cultural and Historic Resource Protection Historic structures such as Glacier s Many Glacier Hotel need extensive repairs. Only 37 of 337 historic structures in the park are in good shape. There are 951 historic structures in Yellowstone, yet the park s ability to fight structural fires fails to meet national standards. Only two percent of each park has been surveyed for archaeological and historic sites, and only a fraction of those sites are protected. Yellowstone has one staff archaeologist. Glacier has none. Road and Equipment Safety Glacier s Going-to-the-Sun Highway borders on catastrophic failure, and will cost $150 million to rehabilitate. Yellowstone could save 50 percent a year in major road repair costs if it could afford to implement its preventive maintenance program. Of 870 units in Yellowstone park s vehicle and equipment fleet, nearly half exceed mileage or age standards, and there is no comprehensive preventive maintenance program. 23 Gerlie Weinstein Cooke City Owner, Alpine Motel In our business we try hard to help people have a memorable visit to Yellowstone so they want to return. I want people to remember Yellowstone for its beauty, fantastic features, and amazing wildlife not the problems that can result from lack of park resources. If Yellowstone is at risk, so is my business. The park needs full funding to protect its unique resources and provide first-class visitor experiences. That, in turn, supports businesses that support the park. According to a 2005 nationwide survey of likely voters: 47% would be unlikely to return to a national park where the visitor center, roads, restrooms, and campgrounds were in poor condition % find interpretive rangers important to them and their families to answer questions, give ranger walks and talks, and lead campfire programs. 25 Yet, underfunding means only 6% of Yellowstone visitors get a formal educational experience. (In Glacier, it s 8%.) 26 Photo: Yellowstone National Park World-Class Assets 6

8 Visitor Safety and Education In 2003, Glacier park staff identified a need for 64 fulltime equivalent (FTE) employees to provide adequate law enforcement, visitor safety, and resource protection. Only 36 FTE staffed Glacier s visitor and resource protecton programs that year. With three million visitors each year and eight developed areas with overnight accommodations, Yellowstone has no 24-hour law enforcement presence. Also, emergency medical services and search and rescue are performed as needed by park rangers, instead of by dedicated staff. On a busy summer day, 2,000 visitors use Glacier Park s west entrance. The main interpretive center is the tiny Apgar visitor center, a converted cabin with no modern equipment for exhibits and audio-visual presentations. 27 Protecting Montana s Economic Assets Like parks across the country, Montana s national parks are badly underfunded, and have been so for years. A continued legacy of funding shortfalls and deferred investment threatens their ability to serve as recreational, cultural, and economic anchors for Montana s communities. This situation must be and can be rectified. Trends in Park (Under-) Funding Between 1995 and 2004, Congress appropriated only 45 percent of the funds needed to cover the annual cost-of-livingadjustments it mandated for National Park Service employees. 28 For all national parks in the Rocky Mountain West, annual base (operating) funding increases have dwindled from an average of $3.8 million between 1994 and 2001 to $670,000 per year since Funding increases for environmental monitoring, restoration, and preservation have dropped from about 33% of all base funding increases in the 1990s to roughly 4% in recent years. Counter-terrorism accounted for 44% of all base funding increases in Glacier National Park earned a C+ grade for planned actions to address its maintenance backlog. By 2009, the Park Service plans to address only 32.5% of the backlog in five asset categories, which do not include several important and expensive categories such as paved roads, archaeological sites, and natural resources. 31 Photo: Karen Nichols Yellowstone National Park Operating Budget FY2002 Funding Shortfalls In fiscal year 2002, Yellowstone s operating budget fell nearly $23 million (35 percent) short of covering functions critical for daily operations. 32 Percentages shown on chart are of total FY2002 operating budget. FTE, or Full-Time Equivalent, measures staffing requirements. Maintenance Funding Shortfall 28% ($2,188,672) Staffing Shortfall 26% (27 FTE) 13% 21% Facility Operations Funding Shortfall 27% ($3,402,188) Staffing Shortfall 22% (36 FTE) Visitor Experience and Enjoyment Funding Shortfall 56% ($9,535,059) Staffing Shortfall 40% (102 FTE) 18% 23% 25% Management and Administration Funding Shortfall 31% (4,323,779) Staffing Shortfall 30% (47 FTE) Resource Protection Funding Shortfall 24% ($3,292,573) Staffing Shortfall 31% (59 FTE) World-Class Assets 7

9 What Can You Do to Support Full Funding for Montana s National Park Legacy? Yellowstone and Glacier national parks attract an impressive share of visitors to Montana, with significant economic impacts to the state s communities. But the more important impact in a state forging a new economic identity is that our national parks are an essential part of what encourages people to live here, build businesses, invest in communities, and create economies that are bright spots on the Montana landscape. The long-term health of Montana s national parks is intricately connected to meeting the needs of the entire national park system. The park funding problem will not be fixed overnight, but Congress and the president, working together, can eliminate it over time. Here s what you can do: 1 Support full funding for our parks. Write Montana s U.S. Congressional delegation and urge them to support park funding. Senator Conrad Burns 187 Dirksen Senate OB Washington DC (FAX) from burns.senate.gov 2 Senator Max Baucus 511 Hart Senate OB Washington, DC (from MT) (FAX) from baucus.senate.gov Representative Denny Rehberg 516 Cannon House OB Washington, DC (FAX) from Volunteer to help. Contact NPCA and add your name to a growing list of Montanans who want to help with park funding. National Parks Conservation Association Northern Rockies Regional Office P.O. Box 824 Helena, MT pborneman@npca.org 3 Involve your business or organization. Join Americans for National Parks, the national coalition for park funding. Steven Bosak National Parks Conservation Association th Street, NW, Suite 300 Washington, DC sbosak@npca.org 4 Stay informed. Learn more about park funding issues, legislative proposals, and NPCA s efforts by visiting the NPCA website at Paul Wachholz Kalispell Founder, Wachholz and Company Real Estate I think it s very important to keep Glacier National Park in its natural state. That s the essence and the beauty of it. We need to provide adequate funding for the park in order to keep it special. And we need to restore and maintain the Goingto-the-Sun Road and the old buildings. We can have a beautiful Glacier Park long into the future. But with all the pressure of growth and change in Montana, we have to make this choice deliberately. It s a matter of deciding what our priorities are and stepping forward with the commitment to make what we want a reality. A 2005 survey of likely voters shows that including a national parks donation checkbox on federal tax returns could raise as much as $650 million annually out of 3 Likely to donate 1 out of 4 Likely to donate $20 or more Photo: Karen Nichols World-Class Assets 8

10 Notes 1 R Rasker, B Alexander, J van den Noort, R Carter. Prosperity in the 21st Century West: The Role of Protected Public Lands. Sonoran Institute, July R Rasker, A Hansen. Natural Amenities and Population Growth in the Greater Yellowstone Region, Human Ecology Review, Vol. 7, No. 2, 2000, JM Shumway and SM Otterstrom. Spatial Patterns of Migration and Income Change in the Mountain West: The Dominance of Service-Based, Amenity-Rich Counties, Professional Geographer, 53(4) 2001, pp J Lathrop. Business Perspectives on the Flathead Economy, Conservation, and Glacier National Park. Study conducted for National Parks Conservation Association, January (Available at www. npca.org/healthycommunities.) D Snepenger, J Johnson, R Rasker. Travel-Stimulated Entrepreneurial Migration, Journal of Travel Research. Summer 1995, L Swanson. The Flathead s Changing Economy: Assessing the Role of National Parks in the Economies of High Amenity, Non-metropolitan Regions of the West. O Connor Center for the Rocky Mountain West, The University of Montana, Missoula, (Available at Nonresident Visitor Survey. Institute of Tourism and Recreation Research, The University of Montana, Missoula. 4 Snepenger et al State of the Rockies Report Card. Colorado Springs: The Colorado College, Endangered Rangers: A Study of the Severe Staffing Shortages Crippling America s National Parks. Washington, DC: National Parks Conservation Association, March Congressional Research Service. March 2005 Congressional briefing. 8 D Kloepfer. Waterton-Glacier International Peace Park, State of the Parks: A Resource Assessment. Fort Collins, Colorado: National Parks Conservation Association, State of the Parks Program, Glacier backlog estimated by park staff, Yellowstone operating shortfall from Yellowstone National Park Business Plan. National Park Service, Yellowstone National Park, July Travel Industry Association of North America survey, Also Yellowstone National Park Business Plan. 11 Personal communication, Yellowstone National Park staff. Also, Yellowstone National Park Law Enforcement Status Report, Nonresident Visitor Survey. 13 Extrapolated from D Stynes and D Propst. National Park Service, Economic Impacts of Visitor Spending by Parks, 2003 estimates. Michigan State University, East Lansing Nonresident Visitor Survey. Also 2003 Montana Nonresident Seasonal Travel Comparisons. Institute of Tourism and Recreation Research, The University of Montana, Missoula, July Personal communication, Paul Polzin, Bureau of Business and Economic Research, The University of Montana, Missoula. Also 2003 Montana Nonresident Seasonal Travel Comparisons. 16 Extrapolated from public data on gross state product. 17 Montana Tourism and Recreation Industry Fast Facts. Montana Department of Commerce. 18 Snepenger et al. 19 Swanson. 20 ibid. 21 ibid. 22 ibid. 23 Examples from Kloepfer; Yellowstone National Park Business Plan; T McEneaney. Yellowstone Bird Report, Yellowstone National Park, 2003; The Case for Restoring Bull Trout in Glacier National Park...And a Framework to Do It. Collaborative report of Flathead Valley Chapter of Trout Unlimited, National Park Service, National Parks Conservation Association, Rocky Mountains Cooperative Ecosystem Study Unit, U.S. Fish and Wildlife Service, and The University of Montana, Zogby International results from national survey. Utica, New York, June ibid. 26 Endangered Rangers. 27 Examples from S Frye. Law Enforcement Needs Assessment, Glacier National Park (internal memo). Glacier National Park, June 2003; Yellowstone National Park Business Plan; Kloepfer. 28 Cost of Living Adjustments and Unfunded Mandates (internal analysis). National Parks Conservation Association, Fall FP Holmes and B Hurlbutt. National Parks, 2005 State of the Rockies Report Card. Colorado Springs: The Colorado College, ibid. 31 ibid. 32 Yellowstone National Park Business Plan. 33 Zogby International results from national survey. Utica, New York, April For More Information Contact the National Parks Conservation Association Tony Jewett, Senior Director Northern Rockies Regional Office, Helena P.O. Box 824 Helena, MT (FAX) northernrockies@npca.org Steve Thompson Senior Program Manager Glacier Field Office Whitefish, Montana sthompson@npca.org Tim Stevens Program Manager Yellowstone Field Office Livingston, Montana tstevens@npca.org World-Class Assets: National Parks Yield Big Returns for Montana Writing/Design Michele L. Archie and Howard D Terry The Harbinger Institute Huson, Montana, and Kawaihae, Hawaii Cover Photographs Iceberg Lake cirque, Steve Thompson Bison and Glacier park red buses, Howard D Terry Mountain goat, Glacier National Park Ranger with visitors and family walking, Yellowstone National Park Copyright 2005 National Parks Conservation Association World-Class Assets 9