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This Bill changes ATIA's State funding matching formula from 50/50 to a 90/10 split.
Full Text:
SENATE BILL NO. 144
"An Act relating to matching funds in state tourism marketing contracts with trade associations."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
Section 1. AS 44.33.125(a) is amended to read:
(a) Subject to appropriations for the purpose, the Department of Commerce, Community, and Economic Development shall, on or before April 1 of each fiscal year, contract with a single qualified trade association for the purpose of planning and executing a destination tourism marketing campaign during the next fiscal year. The contract may be awarded only if the qualified trade association provides matching funds equal to at least 10 [50] percent of the costs of the marketing campaign described in the contract. The marketing campaign may promote distinct segments of tourism, such as highway tourism, seasonal tourism, ecotourism, cultural tourism, regional tourism, and rural tourism. Before the contract is executed, the marketing campaign plan must be approved by the department..
The Alaska Travel Industry Association has historically operated under a variety of matching formulas - for the last couple years we've been at 50/50.
Senate Bill 144 (the Senate version of House Bill 147) changes the matching formula to a 90/10 ratio with the State requiring industry to match 10% of the State's contribution. This is an absolutely crucial "Must Pass" piece of legislation for ATIA's future viability.
ATIA raised over $5 million in marketing funds used to meet the match requirement in both FY06 & FY07. However, taxes targeted at the industry will increase dramatically this year and it is unrealistic to expect the same level of voluntary participation by heavily taxed sectors of the industry - therefore ATIA expects to reach only $2 million in funds from our cooperative marketing programs in FY08.
Without passage of this legislation, regardless of what the legislature ends up appropriating, ATIA would only be able to use the $2 million we raise from our Cooperative Marketing Programs for the 50/50 match, resulting in a completely inadequate $4 million Statewide Tourism Marketing Program.
However, if the legislature continues to fund us at the current $5 million state contribution, with this bill's passage our cooperative marketing programs would raise enough to achieve a $7 million combined budget.
Finally, were the legislature to increase funding dramatically, an enacted SB 144 would enable us to potentially match up to $18 million in State funding and achieve our goal of a $20 million marketing budget.
SB144 will ensure that ATIA can use the State's Destination Marketing contribution up to $18 million with a match generated by our cooperative marketing programs. With a 90/10 ratio, all sectors of the visitor industry will be able to maintain their viability and increasing state contributions will result in sustainable industry growth.
That's why SB 144 is absolutely, positively "must pass" legislation for this legislative session. We're asking all our members to call, write and e-mail their State Senator and request that they vote for SB144!
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