DNR outlines parks funding, ARPA projects and accessibility investments as visitation surges

Chief Ron Olson, chief of the Michigan Department of Natural Resources (DNR) Parks and Recreation Division, told the House Appropriations Subcommittee on Agriculture, Rural Development and Natural Resources that state parks are seeing sustained increases in use and that the agency is relying on user-generated revenue plus ARPA and private funding to address long-running infrastructure needs.

Olson said the DNR recorded 38 million state park visitors in 2023 and that camping and lodging revenue, recreational passports and oil-and-gas royalties remain the division’s primary funding sources. "We're in the lifelong memory business," Olson said, describing parks’ role in public health, tourism and local economies.

The nut graf: DNR officials asked the subcommittee to recognize that most park funding is restricted and user-driven; they outlined how ARPA dollars, private grants and an endowment for a new Genesee County park will be used to rehabilitate water and sewer systems, electric service and other aging infrastructure that cannot be sustained from routine operating revenue.

Olson gave a budget overview showing the department’s overall appropriation and how parks funding is distributed among restricted funds, an endowment corpus and a small general-fund contribution. He said the park improvement fund (camping, passport revenue) supplies the majority of state park operating funds, supplemented by a park endowment (royalties from gas and oil leases) and by concessions and rental fees. Olson described the recreational passport program’s growth since 2011, noting the fee rose from $10 to $14 through a statutory CPI escalator.

On capital needs and ARPA, Olson said the department received $273 million through the American Rescue Plan Act to address long‑deferred repairs across the park system and listed major projects that will use those funds. He said the agency has a multiyear list of projects and must obligate the ARPA dollars on a schedule that pushes some work into 2026. Olson cited examples: a $14 million restoration of a historic conservatory, $23 million recently invested at Belle Isle (aquarium and fountain work), and site-specific repairs ranging from eroded water pipes to overloaded electrical systems. He showed images of a corroded galvanized water pipe and described a $3 million upgrade to RV wastewater systems at Holly Recreation Area.

Flint state park project and endowment Rep. Green asked about the new park in Genesee County near the city of Flint. Olson said the DNR leased five city parks to create a state park and partnered with Genesee County Parks for day-to-day maintenance. He described a unique endowment arrangement: the Charles Stewart Mott Foundation provided $14 million and the state provided about $23 million; those funds are held by the Flint Community Foundation to create perpetual revenue for the park. Olson said Phase 1, a roughly $15 million river project to restore fish passage by removing spillways and a remnant dam, is winding up and Phase 2 upland improvements were out to bid with higher-than-expected costs; he expected the next upland work to begin in late spring or early summer with upland improvements completed by fall.

Accessibility, stewardship and partnerships Olson described accessibility investments funded partly by a $3.5 million Kresge Foundation grant and said the department has built model accessible features such as kayak launches and ramp systems; the state also has about 20 track chairs for backcountry access funded by grants and donations. He said the DNR works with many public‑private partners — examples included Blue Cross Blue Shield, North Face, a beer brand (Lake and Trail) that donates proceeds, Rivian (electric vehicle charging donations), and a prison nursery program that grows native plants for restoration projects. He highlighted other partnerships such as a National Guard engineer battalion that provided labor and equipment in exchange for training opportunities, yielding the equivalent of roughly $1.8 million in labor value.

Visitor metrics, fees and staffing Olson said the system includes about 103 state parks and roughly 1,100 boating access sites administered by the state (with other sites managed locally). He told the committee that camping nights totaled about 1.3 million and that park visitation rose 43% from 2019 to 2023, with 2021 being a record year for some lodging metrics. He reiterated that Michigan’s annual recreational passport remains low compared with other states he cited (Arizona, Texas, Florida) and that the passport’s CPI escalation has increased it from the initial $10.

Funding tradeoffs and construction timing Olson said some ARPA and grant-funded projects have higher-than-anticipated bids because of unforeseen conditions (for example, additional underground concrete beneath the Hamilton Dam) and supply-chain impacts. He told the subcommittee the department prioritizes projects using criteria such as public‑health needs (water/sewer), safety (electrical), geographic spread and road/traffic condition assessments.

Ending: Olson closed by stressing parks’ economic and social value and offered to provide members with more detailed project lists and updates on pending bids and timelines.