State lotteries have been used to support bonds in Oregon and West Virginia. Texas recently approved a bond for state parks backed by a sales tax on sporting goods. Alabama has issued park bonds supported by a one percent per pack cigarette tax. Prohibited by state constitution from incurring debt, Indiana has established a Recreational Development Commission, a quasi-governmental entity, which issues revenue bonds. Virginia has created the Fairfax County Park Authority which issues revenue bonds that are publicly placed and backed by park facilities revenues.
Revenue bonds accomplish several purposes.
First, they provide a large amount of money up-front to address major capital needs. Second, they can be issued at below-market interest rates without the full faith and credit obligation of the issuing entity because they are backed by a dedicated revenue source. Third, the bonds appropriately share the costs of major, long-term projects with future generations of citizens who will benefit from them as much as the present generation, thus preventing the entire cost burden from being placed on the shoulders of current taxpayers. In our view, the major question surrounding the enactment of a federal park revenue bond program concerns not whether such a program should be enacted, but rather how it can be accomplished from the standpoints of practicality and workability as well as consistency with federal budget requirements. We recognize the technical complexities of establishing such a program.