The city of Jackson is struggling with budget woes and considering laying off as many as 35 police and firefighters. Yet, it runs a miniature golf course that turns a tidy profit every year – bringing in a $314,500 surplus from 2005-06 through 2008-09.

But should the city of Jackson be in an enterprise that competes against other privately run entertainment?

“I think the government should not run miniature golf courses,” wrote Bill Chrysan, owner of Putterz Golf & Games in Ypsilanti, in an e-mail. “They don't pay property taxes.  All of the maintenance is paid for with tax dollars.  Most zoning laws and requirements are not enforceable on government entities. In short it's not right.  We have enough competition without having to compete with governments.”

Although the city of Jackson made money on miniature golf, it has not been as lucky making money at other recreation opportunities. According to the city's budget, Jackson lost about $132,000 in 2008-09 by operating its two pools. The city also lost another $7,500 on its golf center.

James Hohman, policy analyst for the Mackinac Center for Public Policy, said government should stay out of running businesses.

“Same reason that chimps shouldn’t drive. Just because some can do it doesn’t mean that it should be encouraged,” Hohman wrote in an e-mail. “There’s also competitive reasons not to do so: Lack of property taxes, favoritism on liquor licenses, enforcement issues, availability of taxpayer bailouts tilt the playing field against legitimate business.”

According to MIRS Capitol Capsule (subscription required), the Michigan Lodging and Tourism Association (MLTA) is "hoping to send a clear message to lame duck legislative leaders — don't you leave town without funding Pure Michigan."

The private trade group wants public funds to advance their industry, and to this end they've launched a billboard campaign:

Businesses advocating for government funds is nothing new, but it is interesting that the MLTA will use private funds (donated by the Outdoor Advertising Association) in order to pressure lawmakers to get them taxpayer dollars for advertising. The industry goes the long route instead of just paying for the advertisements themselves, which they have refused to do.

As Michael LaFaive previously reported: "In the industry's own 2007-2011 strategic planning report, titled 'Michigan Tourism Strategic Plan,' the authors write:

There is absolutely no industry support for a broad-based industry self-assessment approach to generate sufficient monies to fund Travel Michigan. Last year, TICOM (Tourism Industry Coalition of Michigan) created a special task force to explore such an approach. Without exception, representatives from a variety of tourism industry segments indicated their members and/or Boards would strongly oppose such an approach."

The group also cites a study that says the Pure Michigan funding "pays off in the long run." But apparently the MLTA isn't confident enough about the long run to put up their own money. Instead, the group is simply attempting to rob taxpayer Peter to pay industry Paul.

A more honest billboard would read: "Hey Taxpayers…Fund Our Advertising Now!"