Report: California Parks Violated Payroll Rules

Dozens of employees at California’s Department of Parks and Recreation were inappropriately paid for working outside their job classification, according to an audit by the State Controller’s Office released Tuesday.

The Sacramento Bee reported these “out-of-class” work assignments may have cost taxpayers tens of thousands of dollars beyond the misuse of funds at the department that has been previously reported.

The audit was triggered by a Sacramento Bee investigation, published in July, that revealed a secret vacation buyout program offered to employees at parks headquarters in Sacramento. This program cost taxpayers more than $271,000, which would have been sufficient to save a half-dozen parks from closure as a result of state budget cuts.

The Controller’s Office opted not to probe the vacation buyout further, saying prior investigations by internal auditors and the Attorney General’s Office had been adequate. However, it did find that an additional three people received vacation buyout payments, for a total of 59. The amount of money paid to these additional three employees is not revealed.

The audit focuses primarily on other revelations involving parks employees allowed to work in positions above their usual pay grade, often done to temporarily fill a staff vacancy.

Auditors found 203 employees over a three-year period were assigned to these “out-of-class” assignments at state parks. It remains unclear whether all of these were improper, because the department did not follow required record-keeping procedures before approving the assignments.

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California Park Donors Demanding Money Back

Donors in California, angry over state mismanagement of park funds, are demanding the return of hundreds of thousands of dollars they gave to keep Northern California’s largest state park operating.

California Watch reported that the Coe Park Preservation Fund, based in Scotts Valley, donated $279,000 earlier this year to prevent the closure of rugged, 87,000-acre Henry W. Coe State Park, about 30 miles south of San Jose.

“We’re going to ask for the return of the $279,000 back to the Coe Park Preservation Fund,” said Dan McCranie, treasurer of the group’s board.

If the money is returned, the group plans to offer refunds to its donors.

The state, however, says it has no obligation to refund the money. “As it stands, there is no legal mechanism to actually return the money,” said Richard Stapler, spokesman for the state Natural Resources Agency, which oversees the California Department of Parks and Recreation.

But in an email, Stapler wrote that the agency does not rule out the possibility of a compromise. “We are very eager to speak with the Coe folks,” he said.

On Sept. 25, Gov. Jerry Brown signed AB 1478, which prohibits the parks department from closing or proposing the closure of any park from now until July 2014.

Last year, the parks department announced plans to close Henry W. Coe State Park, along with 69 other parks, after the state cut the department’s budget by $22 million. Nonprofit groups, municipalities and county governments around the state responded by coming up with millions of dollars to keep many of those threatened parks open, at least temporarily.

Yet, the department was actually sitting on a hidden surplus of almost $54 million. About $20 million was in the state Parks and Recreation Fund, which comes mainly from fees paid by park goers. Another $34 million was found in a fund for off-road vehicles and can only be spent on parks that allow them. The Sacramento Bee reported on the funds in July, and three of the department’s top officials resigned or were fired.

California Park Donors Demanding Money Back

Donors in California, angry over state mismanagement of park funds, are demanding the return of hundreds of thousands of dollars they gave to keep Northern California’s largest state park operating.

California Watch reported that the Coe Park Preservation Fund, based in Scotts Valley, donated $279,000 earlier this year to prevent the closure of rugged, 87,000-acre Henry W. Coe State Park, about 30 miles south of San Jose.

“We’re going to ask for the return of the $279,000 back to the Coe Park Preservation Fund,” said Dan McCranie, treasurer of the group’s board.

If the money is returned, the group plans to offer refunds to its donors.

The state, however, says it has no obligation to refund the money. “As it stands, there is no legal mechanism to actually return the money,” said Richard Stapler, spokesman for the state Natural Resources Agency, which oversees the California Department of Parks and Recreation.

But in an e-mail, Stapler wrote that the agency does not rule out the possibility of a compromise. “We are very eager to speak with the Coe folks,” he said.

On Sept. 25, Gov. Jerry Brown signed AB 1478, which prohibits the parks department from closing or proposing the closure of any park from now until July 2014.

Last year, the parks department announced plans to close Henry W. Coe State Park, along with 69 other parks, after the state cut the department’s budget by $22 million. Nonprofit groups, municipalities and county governments around the state responded by coming up with millions of dollars to keep many of those threatened parks open, at least temporarily.

Yet, the department was actually sitting on a hidden surplus of almost $54 million. About $20 million was in the state Parks and Recreation Fund, which comes mainly from fees paid by park goers. Another $34 million was found in a fund for off-road vehicles and can only be spent on parks that allow them. The Sacramento Bee reported on the funds in July, and three of the department’s top officials resigned or were fired.

California OKs Parks Funding, Stops Closures

California Gov. Jerry Brown has signed several bills to keep state parks open and ensure greater spending oversight after a scandal in which parks officials hid $54 million.

According to a report in the San Jose Mercury News, the bills establish a two-year moratorium on parks closures, provide about $30 million in funding and give the parks new fundraising tools.

AB1478 by Assemblyman Bob Blumenfield, D-Woodland Hills, splits $30 million to help state parks that already are at risk of closure stay open, complete overdue maintenance and provide $10 million to match donations from private groups and local governments as a way to keep parks from closing.

The top parks official resigned this summer after it was revealed that some employees kept $54 million hidden in department special funds for more than a decade, even as 70 parks were threatened with closure. Blumenfield said rogue bureaucrats lied to all Californians and noted that hundreds of individuals and organizations made donations to save the parks.

“My heart goes out to parks advocates who feel burned by this fiasco,” Blumenfield said in a news release. “They heroically raised millions to help keep parks open. … This bill was designed to ensure that a lot of good will come from their hard work.”

Brown also signed AB1589 by Assemblyman Jared Huffman, D-San Rafael, which gives the parks department new fundraising tools, including allowing Californians to donate to the department by checking a box on their income tax returns.

The new laws also give the State Park and Recreation Commission more authority to oversee the Department of Parks and Recreation.

 

Calif. Parks Get 2-Year Moratorium on Closures

In the fallout from the state parks funding scandal, the California Senate on Thursday (Aug. 30) approved a two-year moratorium on park closures and allocated $30 million in surplus funds to keep facilities operating, one-third of which would match private donations targeting specific parks.

According to a Los Angeles Times report, the bill was introduced after parks officials admitted in July that some agency employees had stashed away $54 million even as the agency was cutting services and threatening to close parks.

The scandal resulted in the resignation of the department’s director, the removal of other staff, and complaints from private groups that had been raising funds to keep their local parks from closing.

Assemblyman Bob Blumenfield (D-Woodland Hills) introduced the bill as “a concrete step to make things right.” The bill now goes back to the Assembly for final action.

In addition to funding parks that had been threatened with closure, AB 1478 provides $500,000 for audits and investigations of park finances, and $240,000 for the parks commission to exercise closer oversight over agency operations.

“Many of us feel betrayed by the parks scandal,” Blumenfield said. “For over a year, we were told that parks would close and Californians rallied to raise funds to keep them open. This accomplishment cannot be soiled by rogue bureaucrats who lied and concealed millions all along.’’

 

Funds From Scandal May Help California Parks

There may be a “silver lining” to the California state parks fund scandal, an advocate and fundraiser for the Palomar Mountain State Park said on Thursday (Aug. 23).

The North County Times reported that state lawmakers are considering using some of the $54 million in hidden state park funds uncovered last month to match private donations that flowed in for parks slated for closure last year, according to the advocate and a letter from the California State Parks Foundation.

The disclosure of the hidden park funds followed warnings from the state that 70 parks would be shuttered July 1 because of lack of money — a move that never took place.

The fund scandal led to the resignation of top parks officials last month.

“There could be a silver lining from all this,” said the advocate, Rick Barclay, chairman of the nonprofit Friends of Palomar Mountain State Park, referring to the possible use of some of the previously undisclosed money. “It’s good for Palomar.”

Barclay said lawmakers could approve Assembly Bill 1478 within the next week. If approved as written, that bill would designate $10 million for dollar-to-dollar matches for all contributions to parks that signed deals with the state for the 2012-13 fiscal year, according to the foundation’s letter.

Another $10 million would be directed to parks “that remain at risk of closure,” the letter said.

 

Calif. Senator Questions AG’s Park Probe Role

A lawmaker on Wednesday (Aug. 15) questioned whether the attorney general’s office is fit to investigate the state parks department, which is embroiled in numerous controversies.

During a Senate budget committee hearing, Sen. Bill Emmerson, R-Hemet, said lawmakers should consider an outside investigator, The Associated Press reported. His concern arose after it was revealed that lawyers for the attorney general’s office and parks department were made aware of hidden money months before top officials said they learned of it.

The attorney general’s office has not said what it did with that information. Spokeswoman Lynda Gledhill declined to give details because the investigation continues.

The governor’s finance director, Ana Matosantos, said administration officials acted quickly upon learning about the surplus in July.

“As soon as the agency and the governor learned of the circumstance, within 48 hours, that information was publicly reported,” Matosantos told lawmakers. “The broader issue about what exactly occurred at parks, who knew what at parks, when? This is all subject to investigation.”

Marc Le Forestier, director of legislative affairs for the attorney general’s office, said the investigation should be completed mid-October.

Democratic lawmakers said they plan to propose a moratorium on park closures for two years and want to give the Parks and Recreation Commission more oversight authority. But Emmerson said it would be difficult for lawmakers to craft legislation to address the department’s problem without knowing what happened.

“I’m concerned about the organizations that are supposed to be doing oversight having done so with the type of strong effort that they should have,” he said. “I’m concerned about the ability for us to get the kind of information we need.”

New Probe Ordered for California Park Scandal

California lawmakers ordered an accelerated audit of the embattled parks department on Wednesday (Aug. 9), adding to a growing list of probes examining state finances in the wake of an accounting scandal.

The Los Angeles Times reported that the review, to be conducted by the state auditor, will examine a hidden $54-million surplus discovered in parks accounts last month and an unauthorized program allowing employees to trade in unused vacation time for more than $271,000 in cash.

“It’s a victory for transparency in state government,” said Assemblywoman Beth Gaines (R-Rocklin), part of a bipartisan group of lawmakers who had pushed for the audit.

The parks money, which had been stashed away for at least a dozen years, was found as the state was soliciting donations to keep as many as 70 parks open amid a budget crisis. Some local governments that forked over money to keep parks open have demanded it back, and lawmakers are concerned that the accounting scandal will create a rift between the state and a community of parks supporters.

“This is a disaster for our efforts to build partnerships and create strategies to support our state parks,” said Assemblyman Jared Huffman (D-San Rafael). “There’s only one way to fix it, and that is to act as quickly as possible to restore public trust and confidence.”

http://www.latimes.com/news/local/la-me-state-parks-20120809,0,3921757.story

 

 

Stashed Funds to Help Calif. Parks Stay Open

In the wake of a discovered $54 million surplus of state parks funds, the governor of California pledged Friday (Aug. 3) to work with the state Legislature to direct millions of dollars in state funds to keep parks open, fix serious park maintenance problems and match donor contributions, it was announced.

Gov. Jerry Brown also thanked all Californians who have contributed time and money to save state parks, the Murietta Patch reported.

“Much remains to be done to keep our parks open,” said Brown, in a news release. “The disclosure that the parks department had millions in additional revenues is mixed — it’s better to have more money than less, but it’s totally unacceptable for parks personnel to squirrel away public funds. I extend my deepest appreciation for the donors who have come to the aid of our parks in this time of need. I ask for their patience as we take all necessary steps to make sure this never happens again.”

Specifically, the news release stated, Brown called for the $20 million from the State Parks and Recreation Fund (SPRF) to be used to:

• Make critically needed maintenance fixes to keep parks from closing — for example, fixing water and waste treatment facilities that, if left as-is, will cause park closures.

• Establish a matching fund for contributions, so that donors know every dollar they give will go further.

The State Parks and Recreation Fund is one-time funding that can only be used for one-time costs, the news release stated.

The governor is also seeking a $10 million appropriation from Proposition 84 funds for immediate maintenance projects.

“We are grateful for our generous, committed donors. I can’t thank them enough,” said California Natural Resources Agency Secretary John Laird, in the news release. “The good news is we will have more to spend on parks this year. The bad news is the problem is much bigger than that. State parks will still have over $1 billion in deferred maintenance and ongoing costs.”

To ensure more sound and accountable financial reporting, the Department of Finance is requiring all departments to follow new procedures to reconcile and confirm balances between the Controller’s Office and the governor’s budget. In addition to implementing these new procedures, the Department of Finance’s Office of State Audits and Evaluations is conducting a thorough audit of all Parks fiscal actions, the news release stated.

Investigations into the parks funds are ongoing. On July 20, the California Natural Resources Agency announced that the parks department had not reported $20 million in the State Parks and Recreation Fund, and $34 million in the Off-Highway Vehicle Fund, to the Department of Finance, the governor’s office said.

The Attorney General launched an investigation at the request of Brown, who ordered a full parks department audit by the Department of Finance. The governor also accepted the resignation of then-Parks Director Ruth Coleman, appointed a new acting interim director and directed the dismissal of three senior parks employees, the governor’s office said.

Of the $54 million total, $20 million is eligible for appropriation by the Legislature for management, protection, planning and acquisition, the governor’s office said.

Scandal Puts Calif. Parks Agreements in Limbo

For months, the city of Benicia, Calif., has been working with the California state parks department on an agreement to keep the Benicia State Recreation Area open.

According to the Bay Citizen, San Francisco, the park was one of 70 parks around the state slated to close after the state cut $22 million from the parks department budget last year.

But two weeks ago, an investigation revealed the department has been sitting on a $54 million surplus for several years. The director of the agency, Ruth Coleman, quickly resigned, and its chief deputy director, Michael Harris, was fired. The agency’s chief counsel, Ann Malcolm, also left.

“Now, we don’t know who is going to sign (the agreement),” said Mario Giuliani, economic development manager for the city.

Across the state municipalities like Benicia and nonprofits like the Benicia State Parks Association, which are working to sign agreements with the parks department to keep parks open, don’t know what will happen to those efforts.

“Up in the air,” is how Bob Berman, board vice president of the Benicia State Parks Association, described the status of the Benicia agreements.

According to the state parks department, it has signed deals with nonprofits and government agencies to keep 42 parks open. However, it has not finalized agreements that would prevent more than 20 others from closing, including the two in Benicia.

State park officials said they hope to complete those deals.

“We are going to continue working with them in good faith for potential agreements,” said Roy Stearns, a spokesman for California state parks department.

Under its proposed agreement, Benicia had planned to pay the state $15,500 a year to keep water flowing to drinking fountains and a native plant garden, collect trash and maintain two portable toilets at the recreation area.

But now the city wants to make those payments in quarterly installments, hedging its bets in hopes of seeing some of the department’s budget surplus.

“We want to be in a position where we can recover some of that money,” said Mayor Elizabeth Patterson, acknowledging that it will take time for the state to determine how the surplus can be spent. “It does take a while to get some action from the legislature and the governor.”

In some cases, the proposed agreements would not restore all of the services the state has provided. In Benicia, the gates to the state recreation area’s parking lot would be closed, but walkers, runners and bicyclists would have access to the park.

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