Economists like user fees. Those that benefit from an activity pay for it. If the park/road/etc suffers from congestion, cromulent user fees weed out those who aren't willing (and able) to pay. We also tend to like them when they replace revenue raised from distortionary taxes (i.e., income taxes reduce the incentive to work). So check out what I heard on the radio this week:
The Tennessee Department of Environment and Conservation requested more money for next year’s budget in part because both the department and Governor Phil Bredesen want to get rid of all fees at state parks.
The 3-dollar entrance charge per car, or 30 dollars per year, was instituted in 2001 as part of a national trend to collect access fees for state parks. T-DEC Commissioner Jim Fyke says attendance at state parks is estimated to be between 25 and 27-million people per year, and Fyke says attendance at the parks hasn’t changed since the fees were started.
One objection to user fees is that they are inequitable. Those with relatively low incomes should be able to enjoy the outdoors as much as rich people. But this isn't the case in Tennessee: "attendance at the parks hasn’t changed since the fees were started."
Bredesen says since there isn’t a major budget crisis this year, now is the time to get rid of the fees.
“I want state parks to be like libraries for all the people of Tennessee irrespective and so on.”
Currently 23 of the Tennessee’s 54 parks have entrance fees but 50-percent of T-DEC’s budget is made up of other kinds of fees.
The other 50% of the park budget will be, apparently, from the general fund. So ... a good portion of the park budget will be paid for with distortionaary taxes by people who never use the park. This is sometimes OK, I think, if there is no other way to raise the revenue for goods with public characteristics (i.e., goods that markets don't do a good job of providing). For example, some people don't want a strong national defense. While it is efficient to exclude them from paying it is infeasible because then everyone will claim to not want a strong national defense.
When is the best time to get rid of user fees?
- During a budget surplus? Answer: no.
- Never? Answer: yes.
AAARRRGGGHHH!
