We just got back from a couple of nights at Whitewater State Park in S.E. Minnesota. We found out that the MN State Parks have switched to a system where all sites must be reserved, but there is no reservation fee if you are reserving a site on the same day you are going to occupy it. They made the reservation for us at the park office when we arrived, but since there isn't any cell service in the park, we would have been out of luck if we had arrived 15 minutes later. There isn't any way to tell if a site is reserved or not since they no longer have the little tags on the pole at the end of the campsite. So theoretically (or maybe not so theoretically) if we had arrived after the office closed and simply chosen an empty site, some one could have shown up at 10:00 PM, produced a reservation slip, and asked us to move.
As some one who enjoys having a lot of flexibility when traveling, I have very mixed feelings about this. On the one hand, now we can call from the road or from home and be guaranteed that there will be a spot for us when we arrive. But on the other hand, I kind of like showing up, driving around and going through the little ritual of choosing "The best" campsite. I suppose this system does away some paper, and eliminates the need for the ranger to drive around the campsite checking to make sure everyone has their sticker properly displayed. I will have to see how it works out in the long run. My guess is that at some point, they will institute a reservation fee even if you are reserving on the same day.
My neighbor used to work for the DNR, and she has talked about the funding cuts they have had in the past 15-20 years. I think that between 2002 and 2010 the amount of money they got from the general revenue fund dropped something like 30%. As a result, maintenance has been delayed, grass is mowed less often, some parks open later in the year and close earlier etc. They also rely more on volunteers for some jobs.
We paid $31.00 / night for a site with electricity but no water. They aren't making a "profit", but the money to keep the parks maintained and looking nice has come from somewhere. The increased fees aren't a big deal for us, but I feel sorry for folks who have less disposable income, especially young families with children who may be missing some opportunities to learn about the outdoors.