3 | The Economic Impact of Local Parks NATIONAL ANALYSIS Operations spending estimates for local park systems are derived from the Survey of Local Government Employment in 2013 and the IMPLAN economic input-output model. This survey, conducted by the United States Census Bureau, provides an estimate of the number of individuals (head count) employed by local governments in park and recreation departments. Using the number of employees, the IMPLAN model provides an estimate of total direct output, which is treated as operations spending for the park systems. The relationship between total spending and employment is based on national averages for entities operating in the park and recreation industry and closely related activities. We derive estimates of local and regional capital spending by park agencies from data available in NRPA’s PRORAGIS database. In addition, we obtained budget records for more than 400 local park systems through Internet searches. In total, we had direct information on the ratio of capital spending to operating spending for 1,169 park systems. We applied the observed ratio of capital to operating spending to our estimates of operating spending to determine an estimated total for capital spending for all local and regional public park systems in the nation. Note that this approach leaves out a component of capital spending. The capital spending observed from PRORAGIS and our document searches showed to be representative of major capital purchases and developments. According to data in PRORAGIS, there are capital items, such as small equipment and vehicles, purchased through ordinary (annual) budgeting. Since the capital spending data does not specifically include these recurring capital expenditures, the study’s estimates of total capital spending among local and regional public parks are likely understated. More importantly, we report the impacts of capital spending separately since they are nonrecurring in nature. However, in any given year, one can reasonably assume that there will be substantial total capital spending among the nation’s local and regional public park systems. Economic input-output models provide estimates of direct, indirect and induced effects of new spending. Direct effects are the spending by local and regional park systems, whether for operations or capital spending programs and include spending for equipment, utilities, goods, services and personnel costs. Indirect effects capture the spending associated with the park systems’ vendors. For example, a park system contracts with a local company to spray for mosquitoes. The pest control company, in turn, hires employees, purchases pesticides and contracts with a bookkeeping service. The bookkeeping service rents office space, hires workers, and purchases office supplies and so on. The model adjusts for spending that leaves the study area. In this study, the model would adjust for imports of materials and goods purchased from foreign sources. For example, some portion of the value of fuel used in park equipment will represent purchases of imported oil. The model estimates the total effects on output, labor income, value added and employment. Output is essentially a measure of the value of transactions. Labor income includes salaries, wages and benefits. Value added is the measure most closely equivalent to gross domestic product (GDP) and includes property income, dividends, corporate profits and other measures. Employment is the number of headcount jobs. The databases used to build the economic input-output model account for full- versus part-time employment in the relevant sectors of the economy.
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