Washington’s State Recreational Boating Activities, Revenues and Expenditures, and Organizational Structure Fara Daun, J.D., Sr. Research Analyst Joint Legislative Audit & Review Committee The Washington State Legislature directed the Joint Legislative Audit and Review Committee (JLARC) to conduct a study of state recreational boating activities in Washington, with a focus on funding and organization. The Legislature also directed JLARC to examine approaches other states have taken to funding and organizing their state recreational boating activities. Members will be able to discuss with the senior researcher the findings of the report [http://bit.ly/eQhJTr]. Learn how other states organize their recreational boating activities, funding sources and services provided.

1. Activities SupportingRecreational Boating in Washington National Association of State Boating Law Administrators Spring Workshop March 3, 2011 Fara Daun, JD Joint Legislative Audit & Review Committee

2. Presentation Overview Background about JLARC, this study, and Washington The 50-State Survey New information about state recreational boating in Washington with comparisons among 33 states Activities Revenues & Expenditures Structure of State Recreational Boating Activities State Activities Supporting Recreational Boating in WA 2

3. Washington is Rich in Both Marine and Inland Waters State Activities Supporting Recreational Boating in WA 3 With more than 264,000 registered recreational vessels, Washington ranks 19th in the US Report Page 1

4. Who Is JLARC? The Joint Legislative Audit & Review Committee (JLARC) is a joint (bicameral), bi-partisan committee of 16 legislators. Joint Committee equally divided between House and Senate Legislators Bi-partisan—There is no majority on the committee Governed by statute and an Executive Committee Staffed by the Legislative Auditor and a professional nonpartisan staff State Activities Supporting Recreational Boating in WA 4

5. What Does JLARC Do? Fundamentally, we answer questions for the Legislature The reports we issue may have many different titles E.g., assessments, evaluations, sunset reviews, analyses, studies, audits However, ALL assignments are conducted using a performance auditing process The most important thing about performance auditing is the process used to answer questions and make conclusions about those answers State Activities Supporting Recreational Boating in WA 5

6. Why Is That Important? JLARC must adhere to Generally Accepted Government Auditing Standards (GAGAS) Work must be objective and independent Findings must be based on evidence Conclusions must be tied to criteria Agencies do a confidential “technical review” Agencies also submit a formal written response that is included in final report Report is confidential until presented to JLARC Legislators cannot change the report results outcome State Activities Supporting Recreational Boating in WA 6

7. Why This Study? Advocates asked the Legislature for a very large study and the fiscal note was too high JLARC was asked to cover what Legislators saw as the main issues within our regular budget Advocates raised two main issues with JLARC Wanted the “Oregon model” (but had misunderstandings about what that meant) Believed that all boating-related revenue should be used for boating and did not believe they were receiving any benefits from dollars deposited to the state general fund. State Activities Supporting Recreational Boating in WA 7

8. State Activities Supporting Recreational Boating in WA 8 Study Examines the 2007-09 Biennium and Answers 4 Questions What state activities support recreational boating? What are the revenue sources and expenditures for state recreational boating activities? What is the organizational structure of state recreational boating activities in Washington? How does Washington’s approach to funding and organizational structure compare to the approaches other states have taken?

9. National Survey Provided Basis for Comparing Washington and Other States State Activities Supporting Recreational Boating in WA 9 Activities Organization Registration Funding Report Page 17

10. JLARC Received Survey Responses from 33 States 10 Response received No response received WA NH ME VT MT ND OR MN MA ID WI NY SD WY RI MI CT PA IA NE NV OH DE IL IN UT WV CA CO VA MD KS MO KY NC TN OK AZ AR NM SC GA AL MS LA TX FL AK HI Source: JLARC survey of state boating administrators. State Activities Supporting Recreational Boating in WA Report Page 17

11. What Are State Recreational Boating Activities?

12. What Is a State Recreational Boating Activity? In Washington: No definition in statute No definition in administrative rule Bigger than the US Coast Guard contract How would you approach developing a comprehensive list of state recreational boating activities in your state? State Activities Supporting Recreational Boating in WA 12 Report Pages 3-4

13. JLARC Developed a 2-Part Test Is the activity a STATE Activity? Is the activity administered or operated by at least one state agency? Is it funded with state funds? Do non-state dollars have to pass through a state agency? Does federal law require state oversight or other state involvement? Is the activity PRIMARILY concerned with RECREATIONAL boating? State Activities Supporting Recreational Boating in WA 13 Report Pages 3-4

15. Aquatic invasive species enforcement

16. Sewage and bilge pump-outs, floating restrooms, or other sanitary facilities

17. Clean Vessel Act programs

18. Clean Marina programs

19. Derelict vessel removal programs

20. Derelict gear removal programs

21. Oil and fuel spill prevention/education programs

23. Marine law enforcement emphasis patrols for:

24. Boating under the influence

25. Life-jacket or personal flotation device compliance

26. Accident investigation

28. Marinas

31. Recreational boating accident reporting

32. Boater safety education courses

33. Navigation aids

34. Vessel safety inspections

35. Other boating safety or boater education programsBoater Safety & Education

36. States Averaged 18 State Recreational Boating Activities State Activities Supporting Recreational Boating in WA 15 9 - 15 16 - 20 WA 21 - 30 NH ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI

37. Percentage of Boating Activities for Which the BLA is Responsible State Activities Supporting Recreational Boating in WA 16 5% - 42% 43% - 62% WA 63% - 100% NH ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI

38. What are Boating-Related Revenues?

39. What Are Boating-Related Revenues? In Washington: No definition in statute No definition in administrative rule Immediately apparent that there were many sources of revenue being used for boating How would you approach identifying boating-related revenues in your state? State Activities Supporting Recreational Boating in WA 18 Report Pages 3-4

40. JLARC Developed Criteria Tied to the Boat and the Boater JLARC identified revenue as “boating-related” if it was related to a recreational vessel’s Ownership Sale Transfer Use Excluded “generally-applicable” revenues from calculations Sales & Use Tax Business & Occupations Tax State Activities Supporting Recreational Boating in WA 19 Report Page 7

41. States Averaged 12.6 Sources of Boating-Related Revenue State Activities Supporting Recreational Boating in WA 20 4 - 10 11 - 14 WA WA 15 - 21 NH 30 ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 19-21

42. 14 States Receive General Fund $Boating $ Go to General Fund in 25 States State Activities Supporting Recreational Boating in WA 21 $ from GF - yes $ from GF - no WA NH Rev to GF ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 21

43. Revenues and Expenditures Go To and Come from Different “Funds” State Activities Supporting Recreational Boating in WA 22 Revenue Source #1 Revenue Source #2 General Fund Revenue Source #3 Revenue Source #4 General Expense #1 General Expense #2 General Expense #3 Restricted Expense #1 Restricted Fund #1 Restricted Expense #2 General Expense #4 Restricted Expense #3 Revenue Source #3 Revenue Source #5 Dedicated Fund #2 Revenue Source #6 Dedicated Expense #1

44. $70.9 Million of Boating Revenue from 30 Sources Was Deposited to 14 Funds 23 General Fund-State $41,632 Recreation Resources Acct $11,351 $5,366 General Fund-Federal $4,607 Derelict Vessel Removal Acct $2,067 Parks Recreation & Stewardship Acct (PRSA) $1,403 Freshwater Aquatic Weeds Acct $1,227 Aquatic Lands Enhancement Acct (ALEA) $1,004 Resource Management Cost Acct $826 Aquatic Invasive Species Prevention Acct $550 Freshwater Aquatic Algae Control Acct $300 Boater Safety Certification Fee Acct $286 Wildlife Acct-State Washington 2007-09 Total: $70.9 M ($ in Thousands) $275 Aquatic Invasive Species Enforcement Acct ($13) Marine Fuel Tax Refund Acct State Activities Supporting Recreational Boating in WA Report Pages 8-9

45. 24 Boating-Related Revenue Sources Recreational Boating Activities States With More Activities Are Likely to Have More Boating-Related Revenue Sources 35 30 25 20 Number of Activities and Sources 15 10 5 0 OK MT ND IN NB VT ME NH CA RI AK VA SD WI IA NJ NC NY UT MD ID AR KS KT MO CT TX FL AL OR NM OH WA WA State Activities Supporting Recreational Boating in WA Report Page 22

46. In 2007-09, Washington Spent $54 Million on State Recreational Boating Activities

47. Boating-Related Revenues Support Most Recreational Boating Expenditures State Activities Supporting Recreational Boating in WA 26 Source: JLARC analysis of LEAP and agency financial data. Report Pages 10-12

48. Most Recreational Boating Expenditures Are for Infrastructure and Access 27 ($ in Millions) Environment $11.6 M 21% Boater Safety & Education $2.9 M 5% Infrastructure & Access $30.0 M 56% 18% Marine Law Enforcement $9.5 M Total: $54.0 M Source: JLARC analysis of LEAP and agency financial data. State Activities Supporting Recreational Boating in WA Report Page 11

49. Challenges in Looking at the Fiscal Data

50. 29 Challenging to Make Meaningful Funding Comparisons Between States State Activities Supporting Recreational Boating in WA States using the same revenue sources to support boating may look very different 17 of 33 responding states receive no General Fund dollars Same revenue sources may be deposited to different kinds of accounts in different states State’s General Fund Funds dedicated to boating Some boating-related revenues may be distributed directly to local government Report Page 21

51. 30 There Are Limitations on the Fiscal Data State Activities Supporting Recreational Boating in WA We could not collect accurate, comprehensive expenditure data across states As expected, survey respondents appeared to know more about the sources of revenue than the types of funds into which they were deposited Terminology is not the same from state to state BLA is usually not a fiscal analyst position Report Page 21

52. How Are State Recreational Boating Programs Structured and Organized?

53. Survey Examined Agency Type and Centralization JLARC asked each state to identify the lead agency for recreational boating Each state identified the agency that housed their State Boating Law Administrator as the Lead Agency Some Lead Agencies were “multi-type” agencies Authority in a multi-type agency covered at least 3 areas State Activities Supporting Recreational Boating in WA 32 Report Page 23, Appendix 9

54. Single Agency States Identified Only 1 Agency with Boating Responsibilities State Activities Supporting Recreational Boating in WA 33 Multi-Type Agencies WA NH ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 24, Appendix 9

55. Moderately Centralized StatesIdentified 2 – 4 Agencies State Activities Supporting Recreational Boating in WA 34 Multi-Type Agencies WA NH ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 24, Appendix 9

56. Decentralized StatesIdentified 5 or More Agencies State Activities Supporting Recreational Boating in WA 35 WA NH ME VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 24, Appendix 9

57. No Correlation Between Organization Style and Activities or Revenue Sources JLARC analyzed whether there was a relationship between how centralized a program was and: How many activities it engaged in How many revenue sources it reported JLARC found no relationship State Activities Supporting Recreational Boating in WA 36 Report Page 24

58. What Kind of Office Houses the Boating Law Administrator? State Activities Supporting Recreational Boating in WA 37 Parks & Recreation Law Enforcement WA Boating NH ME Other VT MT ND OR MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 24, Appendix 9

59. Boating Programs with Law Enforcement BLAs Differ From Other Programs States where the Boating Law Administrator is housed in a law enforcement unit are less likely to engage in environmental or infrastructure and access activities. Consequently they may have a narrower scope of activities than other states State Activities Supporting Recreational Boating in WA 38 Report Pages 24-25

60. How Do StatesCoordinate on Cross-AgencyIssues?

61. Interagency Working Groups State Activities Supporting Recreational Boating in WA 40 Interagency Boating safety Aquatic Invasive Species Oil/Fuel Spill Sanitation 1 group WA 2 groups NH ME VT MT ND 3 groups OR 5 groups MN MA NY ID WI SD WY MI RI CT PA IA NV NE NJ OH IL IN DE UT CA CO WV VA MD KS MO KY NC TN AZ OK NM AR SC GA AL MS TX LA AK FL HI Report Page 25

62. Washington Is Less Centralized but Has More Interagency Coordination Than Most Other States

63. Seven State Agencies Are Involved in State Recreational Boating Activities 42 Parks & Recreation Total: $26,289 $6,606 $15,434 $1,969 $2,280 Recreat. & Conserv. Total: $9,160 $50 $9,110 Fish & Wildlife Total: $8,727 $2,845 $4,659 $1,223 Natural Resources Total: $6,540 $788 $5,752 Category Total Ecology Total: $2,313 Access & Infrastructure $29,991 $2,313 Marine Law Enforcement $ 9,501 Environment $11,571 Licensing Total: $956 Boater Safety & Education $ 2,925 $956 Grand Total $53,989 State Patrol Total: $3 $3 ($ in Thousands) Note: Difference between sum and total due to rounding. Source: JLARC analysis of LEAP and agency financial data. State Activities Supporting Recreational Boating in WA Report Pages 13-14, Appendix 5

64. Washington’s Organizational Structure Includes Local Governments Over $15 million in grants to local governments and organizations 43 Environmental Boating $2,907 Infrastructure & Access $6,240 Boater Safety & Education $21 Marine Law Enforcement $5,843 ($ in Thousands) 2007-09 Biennial Total: $15,011 Source: JLARC analysis of LEAP and agency financial data. State Activities Supporting Recreational Boating in WA Report Pages 14-15, Appendix 3

65. State Agencies Collaborate on a Range of Boating Activities Agency Boating Committee (ABC) Boating Safety Council Invasive Species Council Boating Programs Advisory Committee Oil Spill Advisory Council (repealed 2010) Pacific Oil Spill Prevention & Education Team Clean Vessel Environmental Advisory Committee State Activities Supporting Recreational Boating in WA 44 Report Pages 15-16, Appendix 8

66. ABC Committee Coordinates Across Four Agencies Staff-level committee created in response to the “Ross Report” Recreation & Conservation Office Parks & Recreation Commission Department of Fish & Wildlife Department of Natural Resources Focus is on statewide and cross-agency issues. Two examples are: Currently developing Overwater Structures Standards boat.wa.gov website State Activities Supporting Recreational Boating in WA 45 Report Page 15, Appendix 8

67. Boat.wa.gov Provides Washington Boating Information in One Place 46 State Activities Supporting Recreational Boating in WA Report Page 16

68. Final Thoughts In a decentralized structure, boating program gains experts, especially in highly technical areas, that it might not otherwise have because boating represents only a tiny piece of what they do Because boating is tied to all kinds of other, non-recreational, issues with complex requirements, revenues and expenditure tracking is always likely to be complex State Activities Supporting Recreational Boating in WA 47

69. State Activities Supporting Recreational Boating in WA 48 Thank You Contact: Fara Daun Joint Legislative Audit & Review Committee 360-786-5174 Daun.F@leg.wa.gov www.jlarc.leg.wa.gov