Snapshot State Funding for Outdoor Recreation

Outdoor recreation is one of America’s biggest industries. The outdoor recreation industry, which includes public, private, and non-profit organizations that enable people to enjoy the outdoors, accounted for 1.9% of U.S. GDP last year, surpassing industries such as mining, utilities, farming and ranching, and computer and electronics products. At the state level, the outdoor recreation economy grew an average of 24.3% across all states from 2020-2021.

The outdoor workforce is diverse and growing. Outdoor recreation provides a wide array of employment opportunities and lifelong careers in fields including business strategy, communications and branding, biology, engineering, guiding and outfitting, retail sales, and advanced manufacturing. Jobs are also created in other sectors as companies and workers relocate to areas with ample outdoor opportunities. In Utah, tech sector companies consider the outdoors their top recruiting tool. 

Investments in outdoor recreation provide multiple benefits. In addition to the jobs created, investments in outdoor recreation also increase rural prosperity, improve public health outcomes and quality of life, increase property values, and promote environmental stewardship and conservation. According to Headwaters Economics, counties with outdoor recreation economies are more likely to attract new residents with greater wealth and have faster-growing wages than their non-recreation counterparts.

Outdoor recreation has bipartisan support. States have implemented multiple funding mechanisms for outdoor recreation in recent years, utilizing bonds, general appropriations, lottery proceeds, vehicle registration fees, oil and gas royalties, taxes on temporary lodgings, real estate transfers, and more. In addition, 17 states have created offices of outdoor recreation, including Arkansas and Maryland in 2021.

Significant federal funding is available to state and local governments. States can access federal funding for outdoor recreation projects from multiple sources, including the Land and Water Conservation Fund and the Outdoor Recreation Legacy Partnership Program. Funded at $900 million annually, the Land and Water Conservation Fund provides grants to states for the acquisition and development of public outdoor recreation areas and facilities, such as parks, trails, campgrounds, bike paths and boating areas. The newly revived Federal Interagency Council on Outdoor Recreation is expected to encourage additional collaboration between the federal government and states.

Colorado has long used lottery proceeds to support outdoor recreation. Since 1992, Great Outdoors Colorado has invested over $1.3 billion in lottery revenues to fund 5,500 projects in all of the state’s 64 counties. Lawmakers also approved the “Keep Colorado Wild Pass” in 2021, an opt-out purchase of a state parks pass included for $29 when residents register a vehicle (SB 249). Money raised will support the state parks system, search and rescue teams, avalanche awareness education, wildlife conservation efforts, and local accessible outdoor opportunities. 

Georgia and Texas support their state and local parks by designating a portion of an existing sales tax on sporting goods. Georgia's Outdoor Stewardship Act, passed in 2018, sets aside up to 80% of state sales tax revenue from purchases at outdoor recreation stores to fund land conservation, trail improvements and restoration—the state’s first source of dedicated funding for these purposes (HB 332). This year, 15 projects received a total of $28 million. The Texas program dates to 1993, though the legislature acted in 2019 to permanently ensure all revenues from the sales tax go to the parks and wildlife department (SB 26), nearly $100 million in fiscal year 2021. Voters in both states approved the necessary constitutional amendments by wide margins.

Michigan’s Natural Resources Trust Fund relies on royalties from the sale and lease of state-owned oil, gas and mineral rights. Since its creation in 1976, the oil and gas industry has contributed over $1.1 billion to state and local parks, waterways, trails and nature preserves.

New Mexico lawmakers enacted SB 462 in 2019 creating the Outdoor Recreation Division and an associated Outdoor Equity Fund to provide outdoor experiences to low-income youth. In 2022, 48 organizations received grants totaling nearly $800,000, half of which support tribal, rural and land grant communities. Funding comes from the state as well as private sector sponsors. Colorado has a similar program (2021 HB 1318). 

Utah imposed a state transient room tax of 0.32% in 2018 (HB 264) on rentals of lodging accommodations that are less than 30 consecutive days. Revenue is deposited in the outdoor recreation grant fund. In 2022, the legislature supplemented the fund with an additional $5 million, contributing to the largest grant cycle yet—$11 million to 85 projects that build or restore outdoor recreation infrastructure.