State Dedicated Beach Preservation Funding Examples. Nicole Elko, Ph.D. November 16, 2015
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1 State Dedicated Beach Preservation Funding Examples Nicole Elko, Ph.D. November 16, 2015
2 Outline Why invest in the coast? State Funding Models NJ, FL, DE, LA, TX, SC Other funding models County/Municipal Suggestions for discussion Food for thought
3 (Houston & Dean, 2013)
4 (Houston & Dean, 2013)
5 (Houston & Dean, 2013
6
7 Why invest in the coast?
8 Funding Models Without dedicated funding sources at all levels, your state does not have a comprehensive beach management program.
9 State Funding Models State Dedica ted? Source FL yes Real Estate transfer fee NJ yes Real Estate transfer fee DE yes State tourist tax (1%) + general bonds % state cost share Annual funding 50% $30 M* 75% $25 M* 100% $2 M + LA no* Wetlands Trust Fund 100% $13-25 M TX no CEPRA (sporting goods sales tax) + general fund 75% $5.5 M SC no General revenue varies $3 M
10 New Jersey Funding Model Jersey Shore Partnership
11 New Jersey Beginnings Devastating Halloween Storm of 1991 caught NJ unprepared Article in regional paper inspired state senator to work toward a dedicated funding source Partners in Senator s firm incorporated the Jersey Shore Partnership Mission: to guarantee state and federal funding to protect New Jersey s 127 mi of shoreline from storms
12 Coalition Building Privately held companies with big stake in infrastructure gas, electric, water, oil companies Mayors All four shore counties Leaders in tourism industry Other local politicians Engage the public surveys At least $20M
13 NJ Funding Source Strategy A Dedicated source, but not A new source going into general fund a new tax Education by experts Foster $19B tourism industry Guarantee federal investment After several unsuccessful ideas Enactment of annual $15 million beach protection fund from realty transfer fee Increased to $25 M (1992)
14 Lessons Learned Sustain momentum no apathy! Must be locked in, not voted on annually Avoid state raiding fund Challenges: Changes in administration Economic downturns Opposition groups Constant education to promote value of beach preservation every year Don t take it for granted
15 NJ Post-Sandy: Public Survey $25M not enough after 22 years with no increase Pre-mitigation strategies popular SLR, storminess, development pressures increasing Launched public campaign to increase to $50M With support of DEP Not a handout, protect their investment
16 NJ: Increasing to $50M Alerted legislators and gained support Drafted a resolution Distributed everywhere Notifications to legislators, mayors on status of bill Regular meetings with must-see list of legislators (>30) Paper petition >1,000 signatures Senate appropriations chair, Keep pushing
17 State Funding Models State Dedica ted? Source FL yes Real Estate transfer fee NJ yes Real Estate transfer fee DE yes State tourist tax (1%) + general bonds % state cost share Annual funding 50% $30 M* 75% $25 M* 100% $2 M + LA no* Wetlands Trust Fund 100% $13-25 M TX no CEPRA (sporting goods sales tax) + general fund 75% $5.5 M SC no General revenue varies $3 M
18 Florida Funding Model Florida Shore and Beach Preservation Association
19 Florida Beginnings Early 1970 s, beach project funding from general fund Fight for $ every year (better luck if federal) Late 1970 s, FL Governor forms Statewide Task Force Long-term beach project funding Who? Reps from all coastal counties even Panhandle Influential business leaders
20 FL Team Strategies for Success Appropriately appointed political vehicle Statewide legislative support Task Force Report published Draft/sponsor bill Solid engineering and education by experts Media, public to understand value of beaches
21 FL Funding Source Strategy Not A new source going into general fund a new tax FL Documentary Stamp Tax Realty Transfer Fee reallocated Self-adjusting sales tax Property values decrease w distance from the coast Beaches benefit entire state
22 Eventual Success 1998: Fla. Stat. Ch Enactment of a $30M annual dedicated fund The Ecosystem Management & Restoration Trust Fund $10 million in fiscal year ; $20 million in fiscal year ; $30 million in fiscal year and each fiscal year thereafter
23
24
25 State Funding Models State Dedica ted? Source FL yes Real Estate transfer fee NJ yes Real Estate transfer fee DE yes State tourist tax (1%) + general bonds LA no* Wetlands Trust Fund (mineral revenues) TX no CEPRA (sporting goods sales tax) + general fund % state cost share Annual funding 50% $30 M* 75% $25 M* 100% $2 M + varies $13-25 M 75% $5.5 M SC no General revenue varies $3 M
26 Louisiana 1989 Act 6 of the Louisiana Legislature passed R.S. 46: constitutional amendment approved by the citizens of Louisiana Established the Coastal Wetlands Conservation and Restoration Trust Fund (aka Wetlands Trust Fund) Source: % of the state s mineral revenues Amount: varies from $13 million -$25 million annually dependent up on oil and gas price and availability. *NOTE: State dedicated fund for ALL coastal restoration projects
27 Texas 1999: Coastal Erosion Planning and Response Act (CEPRA) Depends on legislature for biennial appropriation Source has changed 3x: General revenue Oil spill response $ % of TX Parks and Wildlife Department s dedicated fund Sales taxes on sporting goods 2009: Proposed legislation failed Tax on imported oil for the state s coastal protection fund (used for oil spill response) Increase from 1.3 to 3.5 cents for beaches
28 State Funding Models State Dedica ted? Source FL yes Real Estate transfer fee NJ yes Real Estate transfer fee DE yes State tourist tax (1%) + general bonds LA no* Wetlands Trust Fund (mineral revenues) TX no CEPRA (sporting goods sales tax) + general fund % state cost share Annual funding 50% $30 M* 75% $25 M* 100% $2 M + varies $13-25 M 75% $5.5 M SC no General revenue varies $3 M
29
30
31 County & Municipal Funding Models Interviews
32 State & Local Funding: Florida Dedicated State Funding Source $30M annually Doc stamp (Real estate transactions) State ranks projects based on criteria State reimburses locals (or escrowed) Local funding sources County: Bed Tax dedicated to beach nourishment (1/2 of 3 rd %) Municipalities: Taxing districts
33 Nags Head, NC $37M beach nourishment project Largest locally-funded project in U.S. Population: 2,835 (2013)
34 Local Funding: Nags Head, NC $18M: County Share (cash) Source: 1% County occupancy tax Additional 1% county O tax (5%) to repay fund $18M: Municipal Share (special obligation bond) Source: Town share of O tax ($10M ) Source: Ad valorem tax increase($8m ) 2 cents/$100 property value townwide 16 cents in special beachfront district $ 1M: Town s general fund
35 North Topsail Beach, NC Population: 800 Mathematically impossible to fund projects locally, cobbling together $ 3% municipal OT = $800,000 No county OT $ (general fund) Phase I: Ad valorem tax increase (14 ) for private note to back a special obligation bond Phase II: Federal funding (USDA) County sales tax funds SC beach preservation act
36 Occupancy Taxes Hotel bills
37 Total Hotel Taxes: New Hanover County, NC State Sales Tax 4.75% County Sales Tax 2.25% County Occupancy Tax 3%* Municipal OT 3% TOTAL TAXES: 13% * 3/5 for beach nourishment
38 Total Hotel Taxes: Charleston County, SC State Sales Tax 5% County Sales Tax 1% County Infrastructure Tax ½ % County School District Tax 1% State Accommodations Tax 2% County A-Tax 2% Municipal A-Tax 2%* TOTAL TAXES: 13.5%
39 Total Hotel Taxes 18.27% New York City 17.76% Nashville 17% Houston and Indianapolis 16.75% San Antonio, TX and Columbus, OH 16% Atlanta, GA
40 Successful Funding Models Catalyst to provide inertia Political vehicle All Coastal Counties Advocacy group/coalition to sustain momentum Collaboration with state resource agency Funding source to generate known $ ~targets users Defined taxing regions Repeated attempts Educational materials focused on economic benefits
41 Invest in the Coast! Thank you!
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