The state Department of Parks and Recreation spent months scrambling around for money to keep parks open earlier in the year before $54 million was found hidden in its coffers.

As it turns out, the department’s shortfall was also partially the result of an arrangement it has with wealthy donors who receive access to primo recreational venues, like Hearst Castle, but don’t pay the required event fees. That policy has cost the cash-strapped parks department at least $610,000, according to a review of documents by The Bay Citizen.

A privileged few individuals and organizations were allowed to use the San Simeon estate for parties and fundraisers for free, sometimes in exchange for smaller donations to the nonprofit Friends of Hearst Castle. It normally costs $11,100 to rent the castle for a three-hour event, or twice that if more than 50 people attend. Donors saved money, the nonprofit support group received nice contributions and parks threatened with closure were out of luck.

The Bay Citizen reported that the fee-free Hearst events were business as usual conducted with the blessing of Nick Franco, superintendent for the state Department of Parks and Recreation's San Luis Obispo Coast District, who gets to make the call on who has to pay but admitted that politics has a lot to do with the arrangement.

Former Governor Arnold Schwarzenegger’s wife, Maria Shriver, hosted fundraisers there for her Best Buddies charity from 2004 to 2008 but got a free pass on the fees. Best Buddies finally started paying the fee in 2009. And former state School Superintendent Jack O’Donnell stretched a celebration of his 60^th birthday party across two nights in October 2011, after leaving office, but also didn’t pay the fee. Instead, he wrote two checks, totaling $15,000, to the Friends of Hearst Castle.

No fees were paid for four other castle events in 2011, with donations made to Friends of Hearst in two instances. There is no record of donations to Friends of Hearst in lieu of paying park and recreation fees before 2011.

Friends of Hearst Castle is one of the independent cooperating associations that have formed ties with the state in recent years to assist agencies in providing programs and services. The associations were particularly helpful this year when park closures looked imminent, helping to raise money and bridge the gap exacerbated by a budget shortfall.

One of these beneficent organizations, the Coe Park Preservation Fund, recently requested that its $279,000 contribution earlier in the year be refunded, in light of the park department’s new-found surplus.

–Ken Broder

To Learn More:

Hearst Castle Waived Event Fees as Neighboring Parks Struggled (by Stephanie Snyder, The Bay Citizen)

Underfunded Parks Department Hiding Millions; Director Resigns (by Ken Broder, AllGov California)