October 2021 - Parks & Recreation - 16

FINANCE FOR THE FIELD
FINANCE FOR THE FIELD
How Does Your City Interpret Equity? (Part Two)
The market/benefit equity and demand perspectives
By John L. Crompton, Ph.D.
L
ast month's column (tinyurl.com/66uw6tmp) described the
compensatory equity and equality operationalizations of equity,
but many communities adopt neither. Rather, they embrace
market/benefit equity or demand as their guiding principle for
allocation resources.
Market/Benefit Equity
This
interpretation of
equity is
similar to the private-sector market
mechanism used to allocate goods
and services (i.e., those who receive
a service should pay the cost
of providing it). The number of
services sought by different beneficiary
groups that could be provided
by a park and recreation agency
If a neighborhood desires
to have a higher level of
service than the norm, then a
special taxing district may be
established to enable those
residents to pay for it.
invariably exceeds the resources it
has available, so priorities have to
be identified.
If a neighborhood desires to have
a higher level of service than the
norm, then a special taxing district
may be established to enable those
residents to pay for it. More commonly,
it suggests that, whenever
possible, a full-cost recovery pricing
policy should be adopted for
recreation services.
Two mechanisms are available
for equitably prioritizing
which
services should be offered. First,
when users pay a break-even price
for all recreation services, they
prioritize services with their wallets.
Advocates of this
mechanism
argue it is a fairer (more equitable)
and more responsive mechanism
than the alternative, which is an
administrative and political process
that frequently is cumbersome and
controversial. The administration
option too often results in inequities
whereby some services are underresourced
or
discarded,
is
given
to
while
others are over-resourced. Thus,
priority
" wrong "
services, in " wrong " quantities and
delivered to " wrong " groups.
When a recreation service is subsidized,
it is likely to result in people
demanding an unreasonably
high supply of it for two reasons.
First, some who use the service
would not do so if a break-even
price were charged. Second, those
who benefit from a program correctly
perceive that increasing its
supply occurs at little or no cost
to themselves. Investments in one
service means those investments
Many organizations
embrace market/benefit
equity or demand
as their guiding
principle for allocation
resources.
16 Parks & Recreation | O CTOBER 2 0 2 1
| PARK S ANDRECRE AT ION . OR G
http://www.tinyurl.com/66uw6tmp

October 2021 - Parks & Recreation

Table of Contents for the Digital Edition of October 2021 - Parks & Recreation

October 2021 - Parks & Recreation - Intro
October 2021 - Parks & Recreation - Cover1
October 2021 - Parks & Recreation - Cover2
October 2021 - Parks & Recreation - 1
October 2021 - Parks & Recreation - 2
October 2021 - Parks & Recreation - 3
October 2021 - Parks & Recreation - 4
October 2021 - Parks & Recreation - 5
October 2021 - Parks & Recreation - 6
October 2021 - Parks & Recreation - 7
October 2021 - Parks & Recreation - 8
October 2021 - Parks & Recreation - 9
October 2021 - Parks & Recreation - 10
October 2021 - Parks & Recreation - 11
October 2021 - Parks & Recreation - 12
October 2021 - Parks & Recreation - 13
October 2021 - Parks & Recreation - 14
October 2021 - Parks & Recreation - 15
October 2021 - Parks & Recreation - 16
October 2021 - Parks & Recreation - 17
October 2021 - Parks & Recreation - 18
October 2021 - Parks & Recreation - 19
October 2021 - Parks & Recreation - 20
October 2021 - Parks & Recreation - 21
October 2021 - Parks & Recreation - 22
October 2021 - Parks & Recreation - 23
October 2021 - Parks & Recreation - 24
October 2021 - Parks & Recreation - 25
October 2021 - Parks & Recreation - 26
October 2021 - Parks & Recreation - 27
October 2021 - Parks & Recreation - 28
October 2021 - Parks & Recreation - 29
October 2021 - Parks & Recreation - 30
October 2021 - Parks & Recreation - 31
October 2021 - Parks & Recreation - 32
October 2021 - Parks & Recreation - 33
October 2021 - Parks & Recreation - 34
October 2021 - Parks & Recreation - 35
October 2021 - Parks & Recreation - 36
October 2021 - Parks & Recreation - 37
October 2021 - Parks & Recreation - 38
October 2021 - Parks & Recreation - 39
October 2021 - Parks & Recreation - 40
October 2021 - Parks & Recreation - 41
October 2021 - Parks & Recreation - 42
October 2021 - Parks & Recreation - 43
October 2021 - Parks & Recreation - 44
October 2021 - Parks & Recreation - 45
October 2021 - Parks & Recreation - 46
October 2021 - Parks & Recreation - 47
October 2021 - Parks & Recreation - 48
October 2021 - Parks & Recreation - 49
October 2021 - Parks & Recreation - 50
October 2021 - Parks & Recreation - 51
October 2021 - Parks & Recreation - 52
October 2021 - Parks & Recreation - 53
October 2021 - Parks & Recreation - 54
October 2021 - Parks & Recreation - 55
October 2021 - Parks & Recreation - 56
October 2021 - Parks & Recreation - Cover3
October 2021 - Parks & Recreation - Cover4
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/october-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/september-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/august-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/july-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/june-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/may-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/april-2021
https://ezine.nrpa.org/nrpa/ParksRecreationMagazine/march-2021
https://www.nxtbookmedia.com