Georgia State Parks & Historic Sites Announce Restructuring

The Georgia Department of Natural Resources (DNR) has announced a restructuring of state parks and historic sites as a result of a nearly 39% reduction in state appropriations and 24% projected loss of revenue. Reorganization will include:

· Reducing services and access at five state parks.

· Reducing operational days and/or pursuing community support at 12 state historic sites.

· Eliminating 12% of the workforce and implementing furloughs.

· Increasing fees for accommodations, recreational activities, interpretive programs and parking.

· Pursuing alternative operation of lodges and golf courses.

· Limiting swimming pool operations.

“These decisions were heart-wrenching but were made using a business case analysis,” said DNR Commissioner Chris Clark. “We are exploring every avenue to manage budget reductions and revenue shortfalls, to properly care for our state parks and historic sites, and to minimize the impact on Georgia citizens and communities.”

The reorganization enables the agency to uphold its mission of protecting Georgia’s natural and cultural resources while also providing opportunities for recreation and education. The DNR is aggressively exploring ways for state parks, historic sites, golf courses and lodges to become more self-sustaining, while exploring opportunities for private operations of lodges and golf courses.

“Outsourcing agreements will be used only if they maintain affordable and high-quality services that are more cost-effective than our own operations,” said State Parks & Historic Sites Director Becky Kelley. “If outsourcing agreements are not possible, if our efforts do not reduce our dependence on state appropriations, or if state revenues continue to decline, further cuts and potential closures of lodges and golf courses are possible.”


Details of the restructuring efforts include:

· Beginning July 1, Bobby Brown, Hart, Providence Canyon and Sprewell Bluff state parks will have reduced services with limited facilities, no on-site manager and no emergency services. Neighboring parks will provide oversight. Boat ramps at Bobby Brown and Hart will remain open, but camping will become seasonal. The yurts at Bobby Brown will be relocated to other parks. The five cottages at Hart will close, as will the visitor center and group shelter at Providence Canyon. The only change at Sweetwater Creek State Park will be a reduction in days of operation at the visitor center, from seven to four days per week.

· At 12 state historic sites, hours of operation will be reduced with management transferring to nearby state parks. Possible operating agreements with local communities are being explored and future closures are possible. The impacted sites include Dahlonega Gold Museum, Chief Vann House, Etowah Indian Mounds, Fort Morris, Hofwyl-Broadfield Plantation, Jarrell Plantation, New Echota, Pickett’s Mill Battlefield, Robert Toombs House, Traveler’s Rest, Jefferson Davis and Lapham-Patterson House. Changes begin July 1.

· Ninety-five full- and part-time employees will be separated from their current positions (of these, 32 full-time employees will be offered part-time positions). In addition, 81 vacant positions will be eliminated and 23 staff members will be relocated to other sites or have reassigned duties. The agency is making every effort to provide assistance to employees impacted by layoffs. The DNR will also implement furloughs beginning July 1.

· On May 20, parking fees at state parks increased to $5 daily and $50 annually. Last year, the ParkPass program generated nearly $3 million for maintenance and construction. Officials hope to generate an additional $1.2 million with the increase. Additionally, state parks and historic sites will begin charging for many services that used to be free, such as interpretive programs and guided hikes.

· Earlier this month, the DNR announced that swimming pools will open only at High Falls, Victoria Bryant and Magnolia Springs state parks and at George T. Bagby, Little Ocmulgee and Red Top Mountain lodges. The lodge pools are open to cottage/lodge guests only, while the High Falls pool is privately operated. The pool at Magnolia Springs will operate with support from Jenkins County and, since the pool at Victoria Bryant is able to generate a profit, it will remain open.

· Operations at all park golf courses and lodges will be adjusted to minimize expenditures and maximize revenue generation. Impacts of these adjustments are not fully determined at this time, but closures may occur.

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Prepackaged Bankruptcy Wouldn't Help Big Three Automakers, Says Bankruptcy Expert

If the Big Three automakers can't come up with a plan for Congress by Dec. 2 on how they'll use $25 billion in federal funds, one proposed alternative is for the companies to undergo a so-called "prepackaged" bankruptcy. But bankruptcy expert Frederick Tung of Emory University School of Law says he finds it hard to see how a prepackaged bankruptcy could help.

"With a prepackaged bankruptcy, the management of the company has already worked out details of the restructuring with constituencies, which includes bondholders, banks, suppliers, unions and employees, and other interested parties" says Tung. "But it doesn’t look like automakers have worked out anything with anyone; all they've done is gone to Capitol Hill and asked for $25 billion."

Under a prepackaged bankruptcy, says Tung, the automakers would have two questions to work out before they file for bankruptcy: What operational fixes will they make, if any? How will they reduce their debts?

"The latter process is simply a negotiation among all the debt holders to try to get them to take less than full payment," Tung says. "On the operational side, it doesn't sound like the management of these companies think they need to make any changes to the path they're on. It doesn't seem like they've talked to any of their creditors to make any adjustments on their debt. So if they don't have a deal beforehand, they can't do a prepackaged bankruptcy."

The other major question, says Tung, is how are automakers going to get the cash to run the business going forward? "Without that piece, bankruptcy is not only not helpful, but in my opinion would likely put the company into a free fall."

Are they playing chicken?

“I would have thought that automakers would have taken a more constructive tone with Congress," says Tung. In his blog entry on theconglomerate.org, Tung says automakers "seem to be playing chicken with Congress, on the 'too-big-to-fail' theory." Congress apparently didn't buy it.

"Needless to say, that's a dangerous game," Tung writes. "Especially during the interregnum, the specter of political gridlock looms large."

Tung teaches and writes in the areas of corporate and securities law and bankruptcy, both domestic and international. Professor Tung has served as a lecturer in law at Peking University. He also practiced corporate and bankruptcy law with Gibson, Dunn & Crutcher in Los Angeles and San Francisco.

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