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Re: E-M:/ Another idea for parks
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Enviro-Mich message from Christopher Graham
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Hi, Mr. Gear --
Thanks again for good ideas. Actually, a State Parks Foundation was
formed about 10 years ago or so. Governor Engler appointed a Board
to get it going, but it did not take off -- for reasons that I do not
know.
In any case, it already is possible to donate on a tax free basis to
Michigan's Parks via this Foundation, and it is likely relatively easy
already to do some of the other arrangements you suggest, through
it.
I will ask for the details about the Foundation and let you know
them.
Chris.
At 10:44 AM 3/26/2006, jmgear wrote:
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Enviro-Mich message from jmgear <jmgear@acd.net>
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I think there's a huge untapped reservoir of support for parks that
you're overlooking -- the money that park supporters in Michigan have in
their retirement funds (401(k), 457s etc.) and in the reserve funds of
groups they belong to.
Park financing is always framed as if the only way to raise money is
either to get a direct appropriation or to use the conventional finance
system of tax-free bonds to raise money.
We know that the state doesn't have any money to make direct
appropriations.
And bonds, as we typically conceive of them, are designed for sale in
commercial markets, which requires paying commercially attractive rates
of return and also paying big dollars to guys who like to wear snappy
suits to handle the bonding.
Thus, the bonds are designed to be attractive to capital investors who
care nothing about how their investment is used, caring only about how
well it pays. Parks have a hard time playing because you can't both
pay the rates of return demanded by the investors and spend the money on
preserving the parks.
SUGGESTION: Create a program that lets anyone in Michigan (or,
heck, outside of Michigan) direct some of the money they are putting away
for retirement into a fund [under their IRA/401k or 457 plan] that is
used 100% to support state parks.
The fund would essentially be long bonds, paying a low, but guaranteed
rate of return--i.e., bonds where the people know that they won't be
getting a competitive interest rate. But, in return for sacrificing
some interest points, people will be rewarded by knowing that they are
investing in the preservation of something that will make their state
better now, their retirement years richer, and will enable their children
and grandchildren to enjoy that same investment.
The same motivation that causes millions of people like me to pay more
for fair-trade coffee, clothes not produced in sweatshops, and to
voluntarily pay fees to offset the carbon they emit by driving (see
terrapass.com)--the desire to use our money to create a better world
rather than just maximize consumption--can be harnessed if you offer me
(and people like me) a way to direct a share of my retirement investments
toward supporting state parks, even though I would sacrifice something in
capital return on my investment.
I wouldn't give you 100% of my retirement investments, but I could easily
see moving 1-5% of my 401/457 money into something that provides such a
high psychic rate of return.
$90M over five years is only $18M per year, or $1.80 per Michigander per
year (rounding to 10 million of us).
And certainly many Michigan nonprofits (Elks, Eagles, Sierra Club,
Audobon, bike clubs, hunting groups, you name it) and churches have
reserve funds (endowments, building funds etc.) I bet a number of
these would be willing to accept a lower return on some of their money in
return for bonds that offer high security and the chance to support
Michigan parks.
If groups and individuals equal to only 1% of Michiganders --that is, a
total of 100,000 people or groups with investable assets -- are
willing to invest $900 in one go or just $180 per year over five years,
then you made your goal. For people paid weekly, $180 is just under
$3.50 per week. You could also accept rollovers from established
IRAs, etc. If people would make a single year's IRA investment with
you ($3-4000), you would need to attract far fewer people. Many
groups could afford to buy a lot more than that, and would appreciate the
safety..
We know people in Michigan like to give money to support worthwhile
things in Michigan--witness the specialty license plates for
universities, lighthouse preservation, etc. Those are people who
are simply GIVING the money away. These park bonds, in contrast,
would preserve the original investment, thus providing a supersafe,
federally tax-exempt (albeit low return) investment.
Just a thought ...
Christopher Graham wrote:
Mr. Gear --
As a member of the State Park Citizen's Advisory Committee, I can assure
you that your suggestion was not only heard by staff and members of the
Committee, but that we already were working on that idea and many other
related ideas.
...
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Environmental
and Conservation Issues and Michigan-based Citizen Action.
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Christopher L. Graham, ASLA
(734) 975-7800 (O)
email
grahamz@umich.edu
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ENVIRO-MICH: Internet List and Forum for Michigan Environmental
and Conservation Issues and Michigan-based Citizen Action. Archives at
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Postings to: enviro-mich@great-lakes.net For info, send email to
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