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After over $300 million in renovations, Kentucky State Parks still losing money

06:29 PM EDT on Wednesday, May 7, 2008

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(WHAS11) - Kentucky taxpayers have spent hundreds of millions of dollars renovating Kentucky State Parks over the past dozen years.

   

But according to a new audit, that hasn't translated into more visitors. 

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In fact, despite the improvements and more marketing, the audit says Kentucky’s State Park system is losing millions of dollars.

 

State officials say it's a lack of money to promote the state resort parks.  But it might also be that Kentucky has simply built too many lodges, golf courses and restaurants. 

 

Whatever the case, state tourism officials are stuck in tight budget times, with figuring out how to draw more visitors or consider shutting or scaling back some state parks:

 

General Butler State Park in Carrollton is in better financial shape than many other state resort parks.  The number of meals served is up and lodge rentals are steady.  But the number of golfers has dropped by 50%.  And General Butler isn't alone.  According to a new audit, the entire state park system is losing money, $31 million last year.  Big losses despite $316 million in renovations and new construction since 1995 that State Auditor Crit Luallen and others sold as a way to lure more visitors.

 

General Butler is one of 17 Kentucky State Resort Parks.  That's more than any other state.  State Commerce Secretary Marcheta Sparrow says the park system may be "overextended"

 

While the state auditor has charts showing the downward trend of rooms rented, golf rounds played and meals served at state parks, Luallen says it's not too many facilities but lack of marketing that's the problem. There's just $480,000 for advertising state parks this year.

 

Ironically there is some hope that higher gas prices might actually help Kentucky State Resort Parks rebound.

 

Several state officials we talked to admit that political pressure has sparked construction of golf courses and perhaps some park lodges in remote areas that would never be justified by private developers.

 

As part of its report, the auditor's office has recommended a review of the parks systems prices and marketing.  Commerce Secretary Sparrow says she's already doing that.

 

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