Annual appropriations. Fees, donations, and other funding sources. The Federal Lands Recreation  Enhancement Act (FLREA) authorizes the Park Service to collect  and use recreation fees, including entrance fees and amenity fees for  certain equipment and services, such as campgrounds. Donations. Park Service’s Total Funding Did Not Keep Pace with Inflation for Fiscal Years 2005 through 2014, Even with Increases in Fees and Donations

According to our analysis of OMB MAX data, total funding for the Park  Service increased in nominal dollars from $2.7 billion in fiscal year 2005  to $3.1 billion in fiscal year 2014 (15 percent), as shown in table 1. For fiscal years 2005 through 2014, the largest component of funding for  the Park Service was its annual appropriations, which comprised 88  percent of its total funding on average, with fees, donations, and other  funding sources comprising the remaining 12 percent. Even after adjusting for inflation,  funding from these sources increased by 39 percent during this period. Revenues from Recreation Fees Grew 26 Percent, and a Small Number of Parks Account for a Large Proportion of These Fees

According to our analysis of Park Service data, revenues from recreation  fees increased from about $148 million to about $186 million (26 percent)  during the period we examined, as shown in figure 4. Revenues from recreation fees are comprised largely of entrance fees  and amenity fees for equipment, services, and facilities, such as  campsites. 6), ranging from $19.5  million in fiscal year 2011 to $94.7 million in fiscal year 2014. Park Service Has Initiatives Under Way to Increase Revenues from Fees and Donations, but Certain Factors Complicate These Efforts

The Park Service has efforts under way to increase revenues from  recreation and commercial service fees along with philanthropic  donations. As a result, Park Service officials told us that increasing revenues  from franchise fees can be challenging. The Park Service’s efforts to increase revenues from commercial service  fees also have been affected by limited competition for some concessions  contracts. Fundraising. Public Outreach. Several Factors Hamper the Park Service’s Ability to Increase Donations

According to Park Service officials, several factors hamper the agency’s  ability to increase philanthropic donations. One factor they cited is the  types of projects that need funding are not always attractive to donors. Our past  work on federal user fees has highlighted the importance of regularly  reviewing these fees. However, unlike the annual interagency pass,  FLREA does not permit Park Service or the other agencies that charge  recreation fees to increase the price of the senior pass. Without the  authority to adjust the price of the senior pass, the Park Service is limited  in its ability to increase revenue from this recreation fee. Without guidance  to periodically review fees and direct the park units to provide information  on deviations from the fee schedule, the Park Service may not ensure  that its entrance fees are set at a reasonable level and may be missing  opportunities to more effectively manage its fees. Fish and Wildlife Service, and the U.S. Forest Service—to adjust the price  of a lifetime senior pass. Recommendations for Executive Action

To help improve its management of recreation fees, we recommend that  the Secretary of the Interior direct the Director of the Park Service to take  the following two actions:  revise its guidance on recreation fees so that the agency periodically  reviews its entrance fees to determine whether the fees are  reasonable, and direct that park units provide information to headquarters on why they  are choosing to not increase entrance fees or increase them by an  amount less than the fee schedule. In  addition, beginning in 2016, Interior indicated the Park Service will require  park units to provide information on their decisions to not increase  entrance fees. GAO staff who made major contributions to  this report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

Our objectives were to examine (1) general trends in funding for the  National Park Service (Park Service) for fiscal years 2005 through 2014;  (2) the trends in the Park Service’s revenues from recreation and  commercial service fees and donations from philanthropic sources for  fiscal years 2005 through 2014; and (3) the Park Service’s efforts to  increase fee revenues and donations, and factors, if any, that may affect  these efforts.
Why GAO Did This Study

The Park Service manages 409 park units that cover 84 million acres. Park Service funding is generally composed of annual appropriations along with revenues from recreation fees, commercial service fees, and philanthropic donations. GAO was asked to review the Park Service's collection of these fees and donations.
This report examines the Park Service's (1) overall funding trends for fiscal years 2005 through 2014; (2) trends in revenues from fees and donations; and (3) efforts to increase revenues and donations, and factors that affected these efforts. To conduct this work, GAO analyzed budget data for fiscal years 2005 through 2014 on the Park Service's overall funding and fee revenue and donations. GAO also reviewed laws, examined Park Service reports, and interviewed agency officials and stakeholders, such as nonprofit partners and concessioners.

What GAO Found

The National Park Service's (Park Service) total funding did not keep pace with inflation for fiscal years 2005 through 2014, even as fees and donations increased. Total funding increased in nominal dollars from $2.7 billion to $3.1 billion (15 percent) during this period, but declined by 3 percent after adjusting for inflation. Annual appropriations, which comprised about 88 percent of total funding on average, declined 8 percent after adjusting for inflation. Fees, donations, and other funding sources, which accounted for the remainder, increased 39 percent after adjusting for inflation.
Revenues from fees and donations grew for fiscal years 2005 through 2014 to varying degrees. Specifically, revenues from recreation fees, which include entrance and amenity fees for facilities such as campsites, increased from about $148 million to $186 million (26 percent). Revenues from fees from concessions operations, which comprise the vast majority of commercial service fees, nearly tripled from almost $29 million to $85 million. Meanwhile, cash donations from philanthropic sources fluctuated, ranging from $19.5 million in fiscal year 2011 to $94.7 million in fiscal year 2014.
The Park Service has efforts under way to increase revenues from fees and donations, but certain factors limit these efforts. For recreation fees, the Park Service updated its fee schedule, and several park units increased entrance and amenity fees. However, the Federal Lands Recreation Enhancement Act (FLREA) does not give the Park Service and other agencies that charge recreation fees the authority to adjust the price of a lifetime senior pass, which has been $10 since 1993. GAO's guide on user fees states that federal agencies should regularly review fees and make changes if warranted. Without the authority to modify the price of the senior pass, the Park Service is limited in its ability to increase revenue from this fee. In addition, Park Service guidance on recreation fees directs the agency to ensure its fees are set at a reasonable level, but does not call for periodic reviews of these fees, and the agency has no plans to do so. The agency also does not require park units to provide information on decisions to not change their fees or deviate from the fee schedule because decisions about raising fees are left to the park units. As a result, the Park Service is missing opportunities to ensure that its entrance fees are reasonable. To increase commercial service revenues, the Park Service increased minimum franchise fees that concessioners pay, and some park units have developed leasing programs. Several factors, such as limited competition for some concessions contracts, complicate efforts to increase these fees. For philanthropic donations, the Park Service has launched fundraising and public outreach campaigns in conjunction with its centennial anniversary in 2016 and has modified fundraising policies to increase donation opportunities. According to agency officials, several factors hamper the agency's ability to increase donations, such as projects that need funding are not always attractive to donors.

What GAO Recommends

Congress should consider amending FLREA so that the federal agencies that charge recreation fees can determine whether to adjust the price of a senior pass. GAO also recommends that the Department of the Interior direct the Park Service to revise its guidance to periodically review entrance fees and direct park units to provide information on their decisions to not increase fees. Interior concurred with the recommendations.