Budgeting for the Backcountry: Utah’s Trailblazing Investments in Outdoor Recreation

September 13, 2024

In the 2021 General Session, the Legislature separated the Divisions of State Parks and Outdoor Recreation which were previously a single line item housed in the Department of Natural Resources. The following year, the Office of Outdoor Recreation in the Governor’s Office of Economic Opportunity was combined with the new division to complete a single piece in the budget for all things related to recreating in the great outdoors. The purpose of this post is to highlight the significant investments and focus the Legislature has made for Outdoor Recreation in recent years.

The graph below shows the budgets for the two divisions before and after the separation of the State Parks program from Outdoor Recreation:

As can be detected in the chart, starting in FY 2022, a significant effort was made by the Legislature to expand financial resources for both State Parks and Outdoor Recreation. While State Parks have the benefit of a single point of entry which is used to collect user fees, the broad scope of outdoor recreation provides a unique financial challenge for improving trails and other types of costly infrastructure.

The Division of Outdoor Recreation’s (DOR) budget includes two line items:

  • Operations: $17.0 million (80% restricted funds)
  • Capital: $60.0 million (70% restricted funds)

DOR is tasked with the providing, maintaining, and coordinating motorized and nonmotorized recreation, and is charged as being the recreation authority of the state. Specifically, the division regulates Off-highway Vehicles (UCA 41-22) and enforces the State Boating Act (UCA 73-18). Another key responsibility of DOR is to plan and develop a recreational trail system throughout the state.

The division also administers several different grant programs, funded by both state and federal sources. Detailed information about each these grants is available in this summary table: DOR Grant List.

State funded grants along with the FY 2025 appropriations include:

  • Utah Outdoor Recreation Grant (UORG) — $10.2 million
  • Recreation Restoration Infrastructure Grant (RRI) — $1.5 million
  • Outdoor Recreation Initiative (Recreation Coordinated Investment Initiative) — $33.6 million
  • OHV Recreation Grant (OHVR) — $3.7 million
  • Utah Boating Grant — $0 (new program in FY 2024, see grant list)

Funding for the division’s operations, capital projects, and grants comes from a variety of sources including Sales Tax, General Fund, and user fees. The division currently uses revenue from the following major accounts:

  • Outdoor Adventure Infrastructure Restricted Account (UCA 51-9-902): collects 1% of state sales tax;
  • Outdoor Recreation Infrastructure Account (UCA 79-8-106): collects transient room tax;
  • Boating Account (UCA 73-18-22): collects registration and license fees, fines, motor fuel tax from fueling boats; and
  • Off-highway Vehicle Account (UCA 41-22-19): receives registration fees, out of state user fees, special license plate contributions, and .5% of motor fuel tax.

Investment in Outdoor Recreation has many benefits for Utahn’s quality of life and helps in the preservation of the state’s natural resources. As described in this post, the budget for DOR is balanced between a general tax base and user groups who benefit from the state’s investments and regulation of specific activities. Another function of the Division is law enforcement, which helps ensure that tourists and residents are safe while enjoying the diverse landscapes that can only be experienced in Utah.

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