Jack Roberts

The Need for Federal Assistance to Park Districts

by Jack Roberts

The Illinois Association of Park Districts vociferously oppose the tax freeze proposed by former Illinois Governor Richard Ogilvie, many legislators, and taxpayers. This seems out of line in today's society which clamors for tax reduction. The paradox here revolves around this same society's demand for increased services from units of local government—particularly park districts.

This is just one aspect of the financial dilemma many Illinois park districts, particularly those downstate or in rural areas, are finding themselves in today. There simply isn't any local money for major improvement programs, and today's taxpayer, statistics reveal, votes "no" on the majority of referendums to pay for new swimming pools, improvements, and other recreation complexes.

It seems increasingly apparent that the U.S. Government must step into the picture. The federal government, must revise its regulations, make application for federal funding easier to comply with, and develop a better information service to park districts regarding its funding programs. Park districts should also be allowed to participate in revenue sharing.

The example used to illustrate the problems faced by many small park districts will revolve around the experience of the Harrisburg Park District, established in 1934.

Park districts, as permitted by the Illinois Park District Code, do have the authority to levy taxes for operational, recreational and other purposes.

Section 5-1 of the code permits districts to levy a .10 rate for general operating purposes. In Harrisburg, this amounts to $24,000 a year if all taxes are collected.

Under Section 5-2, boards may levy a rate of .075 for recreational purposes without a referendum. This allows only about $18,000 in Harrisburg.

The financial plight of most districts would be alleviated if they were included in the federal revenue sharing plan. At the moment, they are excluded. Another hindrance for many districts is that many federal grant programs require 50-50 sharing. Most small districts, for example, might have difficulty providing $100,000 in a $200,000 project.

A third area of concern in Illinois is the abolition of the personal property tax. It is, at least superficially, the tax detested by most persons. If this happens, Harrisburg will lose about eight percent of its general revenue money.

If park districts could be included in the sharing of Illinois income tax monies this problem would be alleviated. Too often, it would appear, lawmakers have focused on cities and counties, overlooking the plight of park districts, as well as that of school districts, and conservation districts.

Perhaps it's time for local districts to lobby their own representatives and senators, and, at the same time, inform their Congressmen and Senators about their need to be included in the federal revenue sharing.

Many park districts in Illinois are taking advantage of the portion of the Code that permits districts, by board action alone, to issue general obligation bonds up to one-half of one percent of the assessed evaluation of the district. (The Harrisburg Park District did this in 1971 when one-half of one percent of the evaluation then $24,000,000) would yield $120,000. Indebtedness for pool bonds outstanding cut the amount available to $60,000.)

Using this $60,000, the district sought federal funding from any source available, finally determining that the U.S. Department of Housing and Urban Development (HUD) was the most logical choice. Negotiations with HUD representatives began in 1970 and the final application was given to the Chicago office in June, 1971. Finally, in late summer of last year, the application was approved for funding on a matching basis, of $128,000 to purchase property and make improvements at three park locations.

Again, the figure, $128,000 sounds like a lot of money. But, take into consideration that almost $20,000 of this is tied up on property acquisition, leaving $100,000 for construction. Have you contracted a home lately? Built a pool? Unfortunately, $100,000 is peanuts in the construction game.

It took a great deal of time and effort to complete the HUD application and the ensuing work

Illinois Parks and Recreation - 12 May/June, 1973

that followed. Without the help of the Southeastern Regional Plan and Development Commission, it is likely that Harrisburg wouldn't have received the grant.

There are several sources of funding. The ones that could have the most impact are HUD, the Bureau of Outdoor Recreation (BOR) in the Department of the Interior, and the Economic Development Administration (EDA) in the Department of Commerce. The Harrisburg Park District has been in contact with all three agencies in its attempt to garner grant funds.

Obviously, in rural areas, property is available. Funds to develop are a high priority in many southern Illinois areas. Property isn't as expensive in downstate Illinois as in Highly developed areas.

HUD's funding is in a new program called the "Legacy of Parks Program" which is a combination of its former open space and urban beautification programs. It is a 50-50 type program which permits property purchase and development. Inkind services may count toward the local government unit's 50 percent.

Economic Development Administration (EDA) would hold the most promise financially for park districts, since many grants are made on an 80-20 basis or, in some cases, a full grant is made for a project. Harrisburg tried unsuccessfully in 1972 for an EDA grant. For some reason, the park district wasn't funded. Virutally no recreation or park programs were funded in the Midwest Region.

Under EDA, a proposal is placed on a list of priorities for the state, dependent on how much federal money the state is allowed. Then, when monies are available, projects are chosen. If your project is chosen, then a formal application is made. Usually projects chosen are those which begin very quickly—60-90 days. This means that the engineering work must be done prior to a district's being chosen. Here again, small districts would find themselves up against a wall. Engineers make money. This means that an allocation, dependent on size of project, must be invested by the district prior to being accepted by EDA.

Another relatively new source of money will be the Farmers Home Administration (FHA) under the Department of Agriculture. Under new legislation, the FHA may make 50-50 type grants for park development. A potential roadblock here was covered by Congressman Kenneth J. Gray, who wrote on Oct. 30, 1972:

"I would also suggest that you study the provisions of the Rural Development Act. It will be administered by the Farmers Home Administration and although they will tell you they have no money for parks, the law is broad enough to cover such as this when funds are available."

Shortly after the legislation was approved I contacted the Saline County FHA administrator and was somewhat rebuffed by his almost blatant disinterest in funding park programs, saying water resource development was their priority. Perhaps sufficient information on the law wasn't available. On the other hand, perhaps staff at FHA need new direction in the recreation area. This may become a key souce of funding in the future.

After serving almost six years as a park commissioner, having an opportunity to study a small, rural district's financial structure, I recommend strongly that park districts receive federal revenue sharing, and that they be allowed a portion of the Illinois State Income Tax. If a tax freeze is approved, it will lay about 15 inches of ice on many park districts, some of which will find a cutback in programs necessary. This comes at a time in America when the leisure phenomena is bursting out at the seams.

Secondly, it appears imperative that the federal government must provide more than half of a grant for an improvement project. Perhaps an 80-20 sharing system on grants, or, even a 90-10 system would be most feasible. The days of approval by voters of big referendums are apparently gone. A replacement must be found.

(Editor's Note: Jack Roberts is President of the Harrisburg Park District Board of Commissioners.)

Illinois Parks and Recreation 13 May/June, 1973