Florida State Park feeding frenzy

[bucky]

I am currently playing the game for spots next winter and doing pretty well at it but a question came to mind.
How much money does FL make on the money our credit card payments that they get to hold for 11 months? The amount of interest has to be staggering.

[bucky]

I'm not fussing, just stating that that is a huge amount of money upfront that could be invested and should be. After the first year it's all gravy. We used to invest money from the business over the weekend and made bank on it. I'm sure their Comptroller knows how to maximize assets.
I'm also pretty sure that credit card fees are drastically reduced for state and local governments. As is electricity etc.
All of that being said if it had been up to me when we retired I'd have been your neighbor in FL, but you can't separate a Mama from her cubs.

[tegu69]

We were looking to find a few spots in January of next year and can't find any(within a three hour drive). They need more camping spots, not "harvesting trees" and cattle grazing.
S Parks

[jgolden]

Wow, earned interest on the "Float", those were the days....

[lizzie]

This question just blew me away. Florida doesn't make any money off the "interest" from your credit card reservation. Check with ReserveAMerican to find out more about that. Does anybody realize what Florida State Parks have been going through for the past few years? The Governor wants to them to not only be self-supporting but also to make money for the General Fund. He visualizes "resorts" and/or leasing of park lands for agriculture and/or industry. The long time head of the park system (who came up from ranks as a Ranger), was suddenly demoted before Christmas. A former accountant for DEP was appointed in his place but she abruptly resigned last week. The starting salary for a park ranger is less than $25,000 per year and they have not had a raise in nearly 10 years. The parks operate on the dedication of their staff and volunteers, lots of volunteers. They have managed to dodge the "resort" bullet through the support of local communities and conservation advocacy groups. If you like Florida State Parks please do no fail to complete the surveys available at every park. lizzie

[Walaby]

With CC processing fees up to 3.5 percent or so (all depends on type of card etc..), there's no way any sort of short term savings account type of interest would ever pay for cost.

If you think the interest earned is staggering, you would be shocked beyond belief by the cc processing fees businesses have to pay.

Not to mention as wildtoad says, they like use your deposit as a cash influx, to pay current bills, and refunds come out of future receipts, as necessary.

Mike

[2012Coleman]

Take a look at the interest rate/income on your savings account sometime, and you'll have your answer.

Oh and thanks for supporting Florida tourism! Your part of the reason that I don't have to pay state taxes! 😛

[westernrvparkow]

The fees credit card processors charge would far exceed any interest income any business could earn on a deposit. On top of the fees, there are costs involved in keeping the records of those deposits. At the government level, there are reporting and compliance hoops that have to be jumped thru. Deposits are very much a net cash loser, they are nothing but a cost of doing business.

[DutchmenSport]

I've never thought about it. I make my reservations to ensure I get a specific spot (anywhere, any state) for the dates I want. In order to do that, yes, I may have to pay several months ahead of time. It's like paying for a new television for a Christmas gift and Christmas is 2 months away. So you pay for the television with your credit card, but you don't give the gift for 2 more months. Have I lost money? Should I have waited the day before Christmas to purchase the television and run the risk there may be none available if I wait till then? Do I think about the interest the store is receiving from my purchase, 2 months before I actually want or need it? No! I make the purchase, and that's it! Final! Done! Forget it!

[Tom_N]

User fees are never enough to pay all the expenses of a state park. The taxpayers pickup the majority of the expenses/costs.

[DownTheAvenue]

bucky wrote:
I am currently playing the game for spots next winter and doing pretty well at it but a question came to mind.
How much money does FL make on the money our credit card payments that they get to hold for 11 months? The amount of interest has to be staggering.

Your idea would only be valid if you were purchasing a commodity rather than a service. With a commodity, the state would hold your money for that 11 months, then exchange that money with their vendor for the item you purchased, then give you that item.

[magnusfide]

wildtoad wrote:
I doubt they hold anything other than a spot for you. I suspect they spend it then take any refunds out of current receipts.

Double ditto. That money is put to use for maintenance, salaries & benefits and other needs. State Parks are still one of the best bargains for recreation. I don't begrudge them one cent. We even volunteer to help around the parks. We meet a lot of nice people who appreciate the state parks like we do.

[wildtoad]

I doubt they hold anything other than a spot for you. I suspect they spend it then take any refunds out of current receipts.