State Parks Surplus Not Connected to Lagoon Project, Official Says

Funding for the $8 million Malibu Lagoon Restoration and Enhancement Project, which is led by California State Parks, has nothing to do with the hidden $54 million surplus at the agency, officials said Friday.

That has not stopped opponents of the project from lashing out against California State Parks and reports that the agency has been underreporting the funds as it was cutting services and threatening to close 70 parks to save $22 million.

Roy Stearns, California State Parks Deputy Director of Communications, said the underreporting of millions of dollars goes back 12 years.

"[There is] absolutely no connection," Stearns said of the Malibu Lagoon Project. The Malibu Lagoon was not slated for closure.

As the lead agency for the Malibu Lagoon Restoration and Enhancement Project, which is well underway, California State Parks brought on contractor Ford E.C., Inc. to complete the work.

, Senior Environmental Scientist for State Parks, said the money for the project is through a Proposition 50 grant from the State Water Resources Control Board. Proposition 50 monies are allowed to be used for projects related to drinking water and wetlands rehabilitation, she said.

"We submit an invoice and the grant reimburses us," Goode said. "We’re never actually holding the money in our pockets."

Goode said a recent audit of a project that removed a berm in Topanga came back with no problems.

"We passed it with flying colors," Goode said.

Cece Stein, who supports the project and runs the Real Malibu 411, said she still believes in State Parks.

“This issue really has nothing to do with the lagoon. We stand behind State Parks and we stand behind the project,” Stein said.

Others in Malibu said the news about $54 million surplus is further evidence of a scam.

"Not only did they scam Prop 50 clean drinking water bond money to destroy our lagoon, they are scamming everyone else in the state with threats of shutting down 70 parks due to budget cuts," said Malibu resident Andy Lyon, who opposes the Malibu Lagoon Project. 

Lyon criticized the Malibu City Council for not doing more to stop to the project.

"This should send a clear message to anybody that thinks they have the lagoon's best interest at heart," Lyon said.

Marcia Hanscom of the Wetlands Defense Fund asked for a complete audit of the funding for the Malibu Lagoon Enhancement and Restoration Project.

"Since today's announcement about State Parks not revealing correct financial information in other instances, it's time to get clear answers on the Malibu Lagoon project financial situation. No one has been able to piece together a complete budget - a forensic audit and investigation is the public's only way to be assured of true transparency - which has been promised, but not forthcoming," Hanscom said.

She said the $8 million budget for the project does not seem to add up.

"In light of this State Parks scandal we call on the State Controller and Attorney General to now initiate a complete audit and investigation of the 10-year long budget and management of the Malibu Lagoon project," Hanscom said.

The California State Parks Foundation, which is an independent nonprofit, took donations to fight against the planned closures of several state parks.

"We are frustrated to learn about these hidden funds during the present state park crisis. We are angry on behalf of our members, our donors, our partners, but most of importantly on behalf of the people of California," the foundation said in a statement.

Read more about the investigation into California State Parks.