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Whitmer supports opt-out system for state park passes

Whitmer supports opt-out system for state park passes
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Gov. Whitmer acknowledged her support in her 2025 budget recommendations for legislation that would automatically charge vehicle owners a fee for entry to state parks.

Another legislation claiming to be Enacted by the People of Michigan sponsored by one is introduced House Bill 5428, which would automatically take from vehicle owners a $10 entry fee for the recreation passport, regardless of whether they visit state parks.

Vehicle owners who do not want to pay the fee would have to request a refund from the Michigan Department of Natural Resources, within 30 days of the charge.

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2025 Recommended Budget Book

Background:

The Michigan Recreation Passport program has played a crucial role in funding and maintaining state parks, recreation areas, and boating access sites. Residents opt into the program during vehicle  registration, paying an annual fee that allows them access to these natural treasures.

While the program has achieved notable success, the opt-in structure presents some challenges.

Low Participation Rates:

The opt-in nature of the program leads to lower participation rates, with approximately 36% of residents utilizing the recreation passport. Many residents may not be aware of the program or may choose not to participate actively.

Missed Opportunities for Revenue:

The current system misses opportunities to generate additional revenue that could further enhance and expand the state park system.

Inertia and Default Bias:

Economic research suggests that people are more likely to stick with default options.

The opt-in system might be contributing to an unnecessary barrier to participation due to the cognitive effort required to actively enroll or not changing their enrollment status due to past year choices.

Proposal:

To address the deficiencies in the current structure, it is proposed to transition from an opt-in to an opt-out system for the Michigan Recreation Passport.

Under this new model, residents would be automatically enrolled in the program during vehicle registration, with the option to decline if they choose not to participate.

Increase Participation:

The opt-out system takes advantage of default bias, leading to  higher participation rates estimated at 60% of all residents.

This would expand the program’s impact and allow more residents to contribute to the conservation and enjoyment of our state parks.

Streamline Enrollment:

Shifting to an opt-out model simplifies the enrollment process, reducing administrative burdens and increasing efficiency for both residents and the State of Michigan.

Enhance Revenue Generation:

By capturing a larger share of the population through the opt-out approach, there is an anticipation of increased revenue of $21 million that can be directed toward vital improvements and innovations within the state park system.

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