New Haven Independent

Alarm Sounded On Tourism $$$

by Leonard J. Honeyman | June 10, 2009 7:42 AM | Permalink | Comments (31)

As Arts & Ideas revs up this week, civic boosters worry pending state budget cut may imperil next year’s fest — and torpedo the city’s tourism efforts.

Gov. M. Jodi Rell wants to cut $23 million statewide in the budget that starts July 1 for tourism advertising and support. A competing Democratic version of the budget pushed by the legislature would restore the $2.7 million total the state gives to New Haven venues including the arts festival, Shubert Theater, Amistad and the convention and visitor’s bureau.

The two sides are continuing to haggle over the budget in a special session, while back in New Haven Ginny Kozlowski watches with a fretful eye.

Kozlowski is president of the Greater New Haven Convention and Visitors Bureau (CVB). She spoke about the approaching storm clouds in an annual report Tuesday to the city’s Economic Development Commission. (She’s pictured above at Tuesday’s meeting alongside Commissioner Kevin Ewing.)

Meanwhile Tuesday, Gov. Rell held a photo-op promoting summer “staycations” in Connecticut — even as she’s proposing cutting the Commission on Culture and Tourism’s budget by more than half. “I don’t want to cut anything if I don’t have to, but cuts have to be made,” she said when asked about the discrepancy. (Click here for Christine Stuart’s report.)

At New Haven’s development meeting, CVB’s Kozlowski presented an upbeat report overall on her group’s activities. More rooms were rented in the tourism district last year than in 2008, although the percentage went down from 60 percent to 54 percent because three new or renovated hotels with more rooms were available.

The 19-town district comprises towns from Durham and Wallingford in the north, to Killingworth in the east and Milford in the west.

In coming weeks, the tourism picture is bright with events such as the AAU Regional Championships on July 1; International Festival of Arts and Ideas starting this weekend and the Pilot Pen tennis tourney in August.

But what’s going on in Hartford may hurt the local tourism efforts beyond that, Kozlowski warned.

The governor’s budget has no money at all for the festival for the next two years. The festival got $950,000 this year, a cut of $50,000 from last year’s state funding. The Democrat-controlled General Assembly’s budget plan for the upcoming year includes $900,000 for it.

If Rell’s cut comes to pass, it may cause the two-week festival to shrink so much as be to be not worth putting on at all, Director Mary Lou Aleskie said in a telephone interview Monday.

In a recent interview, Kozlowski said Rell’s taking all state funding from next year’s tourism efforts would throw the baby out with the bathwater. Tourism returns $9.30 for every dollar invested in it, she said. It supports 170,000 jobs in Connecticut and is responsible for $14 billion in activity in the state.

The state levies a 6 percent occupancy tax on hotel bills in the state, money that used to be returned to the municipalities and then was returned to the five regional tourism districts. Now, it goes to the state’s general fund. It is up to the state to dole it out to tourism groups to help steer tourism-type business to the state, she said.

That business can be anything from a couple on a second honeymoon weekend to a national convention with thousands of participants. For example, her presentation Tuesday showed the upcoming AAU games had booked about 2,250 room nights.

The amount the state has been sending back to the tourism regions has been declining, from $900,000 for each region in fiscal 2008 to a proposed $750,000 for each in the present fiscal year, according to the original legislative budget. The governor had proposed $427,000 for each district for this year, dropping to $56,000 in the next fiscal year, Kozlowski said. The governor has since cut even that amid a budget crisis.

The state took in $89 million in the hotel occupancy taxes last year, Kozlowski said. She said that figure did not include room rentals at the two Indian casinos.

“The governor’s counterproposal eliminated all money for regional tourism, statewide tourism marketing money all arts grants and line items,” she said.

Kozlowski said the state provided 85 percent of the operating revenue for the convention and visitors bureau.

The General Assembly ‘s budget still contains $750,000 for the local tourism district, $427,000 for the Amistad Freedom Schooner that calls New Haven home, as well as $50,000 for the Amistad Committee for the Freedom Trail, according to a budget provided by the legislature’s Office of Fiscal Analysis. The Shubert Theater would get $427,000 and the Arts Council of Greater New Haven would receive nearly $107,000 under the assembly’s plan.

Local tourism businesses also will share in a $2 million statewide culture, tourism and arts grant and a $1.5 million basic cultural resources grant, under the state legislature’s proposal.

In the governor’s budget, none of these line items would be funded.

Jeffrey Beckham, a spokesman for the state Office of Management and Budget, acknowledged that the Rell administration seeks to “suspend” tourism funding for two years in the interest of avoiding a tax increase.

“Once we moved through the budget, those items were given a lower priority,” he said. “Clearly those [tourism] efforts have had a rationale in the past, and will have in future,” he said, but other concerns trump it in the governor’s mind. The governor’s concept, he said, was “not to impose additional taxes on people.”

Emily Shepard, an analyst with the Office of Fiscal Analysis, said the impasse between the Democrat General Assembly and the Republican governor must eventually be broken.

“This is subject to negotiations that need to happen. This was the original position, and could end up being totally different,” she said. She said that although the fiscal year ends this month, it is possible that the impasse could last beyond that.

“The state comptroller’s books don’t close until September,” she said.

Beckham, the OPM spokesman, said it was possible that there “could always” be a compromise between the governor and legislature on tourism funding.

The committee that puts on Arts & Ideas is using its reserves to put on this year’s two-week-long festival, said Aleskie, its executive director. Because the festival is presented when the state budget is still being finalized each year, the festival committee lays out money for it and is then reimbursed by the state, she said.

The state’s $950,000 infusion in the current fiscal year is about 28 percent of its operating budget, but that money was used to reimburse the festival group for last year’s edition. She said in addition, the organization has experienced a 25 percent decrease in funding exclusive of the state pullback.

“We have to think and redo our structure because state funds make the festival as big as it is,” she said. The festival has a $19 million annual impact on New Haven and Connecticut, she said. For example, many of the vendors and artisans come from across the state and people travel from all around the world to attend and participate.

The size of the festival is vital to its success, because it is the size and reputation of the festival that keep international governments interested. For example, the government of Ireland is paying for two groups to come and perform, she said.

“It is unbelievable that they [the state] would cut that out. This is a public and private investment that has been paying dividends to the state for 14 years,” she said.

It is possible that, without state funding and the other income for which state funding is a catalyst, the festival could become so small that the international interest and financial support could wane and then the festival committee would have to determine if it is worth putting the festival on at all. “We don’t have a philanthropist waiting on every corner,” she said.

She said she doesn’t believe that that the governor and the region’s state legislators would allow that to happen.

In addition, other states are not suspending tourism spending, as the state administration wants to do, Kozlowski said.

Long Island’s two counties, Nassau and Suffolk, alone spent $2 million on tourism advertising last year. “Just turn on New York television, and you see ads from Michigan, which spends $60 million a year on tourism promotion, and other places,” she said. The “I Love NY” campaign is one of the most successful in the region, she said.

Kozlowski said the tourist market is quite competitive and lucrative. For example, the seven days of AAU competition are expected to bring in more than $2 million for tourist venues such as hotels and restaurants and 3,500 young athletes and their families from as far away as Virginia and Ohio.

“It’s a buyer’s market in travel,” she said, “but if you market your destination, people will come.”

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Comments

Posted by: Walt | June 10, 2009 8:41 AM

Can'r figure why the hotels, restaurants and others who, per the above claim, earn $19 million from the Festival, come up with funds to replace the deleted State support?

Why should Joe Doakes, thru his State or local taxes be bearing this load?

Why should I be paying via taxes, toward this operation, when I have no interest in any of the Festival's extensive offerings?

When we had the Pop Concerts years ago, they were not only fully financed by ticket sales, but also earned $$$$$ for area charities, and were not a drag on government budgets.

Posted by: Streever | June 10, 2009 9:33 AM

Montreal, Canada, has a robust "culture department" that runs the museums & art galleries around the city. It also organizes festivals, musical events, etc. I know Walt & others may not see this as a good use of taxpayer money, but it brings a lot to Montreal, making it a sucessful & profitable city for it's business owners & residents.

Cultural tourism improves quality of life & the economy, and is a worthwhile investment. Vote Rell out.

Posted by: William Kurtz | June 10, 2009 9:53 AM

Unfortunately, we don't have the luxury as individuals to pick and choose what activities taxes support based on our 'interest.' I almost wish we did, as there is a wide variety of foolish and inhumane activities I have no desire to support, but allowing me to make those kinds of choices isn't exactly good public policy, is it?

Posted by: jawbone | June 10, 2009 9:54 AM

Walt,
Come on down for Buckwheat Zydeco or Mavis Staples. Both are free concerts on the green for Arts and Ideas. I think you'll have a great time and it might put to rest your bad feelings about the Festival's offerings (which I have read about in your previous posts). Sure, there is a lot of stuff that is either over my head or unaffordable, but there is also a lot of great offerings that are free and of worthwhile quality.

Posted by: Walt | June 10, 2009 12:55 PM

Jawbone

Never heard of either of them..
\
Listened today. You, are right re Zydeco. Think I would enjoy his show.

Doubtful re Staples although not bad instrumental until interrupted by singing.

Not pertinent to main question as I see it.

Why cant those who suck in the $19 million pay the expenses?

Same quesrion to Streever.

Posted by: lance | June 10, 2009 1:28 PM

23 million for advertising? that's crazy. with websites, youtube, and facebook the state could get by with a 2 million dollar ad budget and get more results, if the right person is running it.

and a 1/2 million for the amistad is a waste of money. there was slavery 220 years ago, i know we get it. there's already a statue downtown recognizing it.time to move on.

Posted by: Tessa Marquis | June 10, 2009 2:43 PM

Walt is a dodo if he has never heard of Buckwheat Zydeco or Mavis Staples!

That aside: Come to Captain Kidd's Treasure Hunt and Pirate Day in Downtown Milford this weekend (June 13th). It is FREE. (Yes, I meant to shout). In fact, for the past three years all of the Downtown Milford Business Association events have been free or funded by the local businesses. Not by City or State or Federal money. But of course, that means we will not be presenting free outdoor movies this summer, or several of the other events.

More to the point is the way Jodi Rell takes her StayCations in Virginia. Liar Liar Panties in a Twist. If she cared about families in Connecticut she would not be trying to cut family and child health & education services, as well as educational and safe entertainment.

Posted by: jawbone | June 10, 2009 2:59 PM

All right then. I'll look for a guy named Walt at the zydeco concert.
I don't have any comment about the taxes/expenses issue. I just hate to see it make you grumpy about what is an otherwise delightful festival that my family enjoys every year.

Posted by: Bill Saunders | June 10, 2009 3:20 PM

There is something really fishy about the way all this money passes around through the non-profit system.

Remember these guys (A&I) are selling a $20 environmentally sensitive water bottle to fund their free events.

So, where does the rest of the money go??
"
1).High priced Administrators.(Aleskie makes 165K)
2).Hand-outs to other non-profits.

Jodi Rell should eliminate all state funding for this festival -- it amounts to little more the cultural welfare for the rich and connected.

Also remember, those economic impact numbers are a blatant lie, concocted by paid pollsters.

This festival is a multi-million dollar embarrassment, and gives arts funding. and the notion of community a bad name.

Posted by: cedarhillresident | June 10, 2009 4:14 PM

I have a way to raise money, like they did in the good ole' days. Dunk tank with the city officials or the pie in the face. I would pay $20.00 for 3 balls to try to dunk Johnny!

Posted by: Streever | June 10, 2009 5:38 PM

Bill,
I love Ideat Village, but I think you should make clear your gripe with A&I.

While I do think the festival is not as exciting or international as it used to be, I think that's a response to the bickering & complaints which citizens put forth. They were upset that the International Festival didn't showcase/promote local talent. While I understand their desire to have 1 more showcase of local talent, I think we lost the value of inviting international musicians, artists, and entertainers to our city.

The Festival should have a full return in funding so they can once again spend money on high quality local firms & employees & bring visitors from near & far to experience the truly international showing they once had, instead of the current slimmed down offerings & venues.

Posted by: Bill Saunders | June 10, 2009 7:33 PM

Streever,

How long do we have to support this dying elephant before it gives up the ghost?

Everybody sees that this elephant is dying, except you and Chris Arnott.

A&I's past two high-priced executive directors carpetbaggers have shown zero creativity in remedying that prognosis. And this is behavior you want to reward with even more life supporting cash?

The gripe is a simple reality check.

Arts & Ideas spents millions.
Ideat Village spends thousands.

Arts & Ideas has been shrinking.
Ideat Village continues to grow and evolve.

Arts & Ideas needs government hand-outs.
Ideat Village raises its budget through affordable community events.

Arts & Ideas has high-priced administrators.
Ideat Village is all community volunteers.

Somewhere in between these extremes is a festival more vibrant than either, that really embraces the great talent that is already in the region.

We just need to let the elephant die.

What would Obama do?

Posted by: jack | June 10, 2009 10:50 PM

the State is broke,it can either cut programs or raise taxes. I say get rid of the artsy-fartsy crap and put the money toward essential services.

Posted by: jeffreykerekes | June 11, 2009 9:52 AM

Cedarhill:

We might be able to fix the STATE budget problem with that one :-). I'm good for $20 for that event :-)

Posted by: Mister Jones | June 11, 2009 2:15 PM

Walt--you pine for the old Jaycees Pops Concerts at the Yale Bowl--so do I, I was there--but those days are gone. The big summer stadium shows have moved to other venues, designed and built for that purpose, with tickets often costing $100+ and without complaining Westville neighbors. While I'd love to see Clapton or the Dead down the street at the Yale Bowl, where they played circa 1973, I'm not holding my breath.

Posted by: Whatsername | June 11, 2009 4:12 PM

"I say get rid of the artsy-fartsy crap and put the money toward essential services."

Just so you know, the lack of funding towards the CT Commission on Culture and Tourism ALSO means that grants, such as the Under-served Youth Grant, are also no longer funded. In the past, that grant has helped provide access to arts programming (whether in the schools or in after-school/summer programming) for low-income youth.

And, honestly, that "artsy-fartsy" statement is just offensive to artists, too. But perhaps you'd prefer a world without art entirely.

Posted by: JZ | June 11, 2009 7:31 PM

I love art, but I don't see why the state (and state tax payers) have an obligation to partially pay for A&I. The festival is nice and like the majority of our friends, we enjoy an event or two most years. However, it's not worth the million or so in state funding in tough economic times.

While I agree with the sentiment that festivals and civic activities are important, I don't think the cost justifies the end product in this case. A&I is not Spoleto and New Haven is not Charleston. If the funding is cut, why not scale the festival way back to one great concert on the green and a family day?

Sometimes organizations and the people they support become so entrenched that change can't happen.

Posted by: jack | June 11, 2009 10:44 PM

WHATSERNAME You have me all wrong,I adore the arts.I attended a fundraiser for the local artist festival just last week.I will attend all of the events and donate more of my money.This how it should be. Artist should find patrons,not depend on the charity of the taxpayer, when tens of thousands in the State are barely getting bye.I have attended A&I over the years,and yes maybe artsy-fartsy was the wrong term.I should have said mediocre and boring.I would not have bought a ticket to attend.If an average person would not buy ticket to attend something,why should their hard-earned tax money be used to subsidize it,especially when its Directer is paid more than three times the yearly wage of the average working person.I won't even get into what should be core subjects in the schools and what should be electives.

Posted by: robn | June 14, 2009 10:11 AM

BS,

A non-profit is a business which , instead of paying profit out to owners or shareholders, puts any profit back into the organization. Since they're usually heavily reliant on grants and donations, they're accountable to those entities for meeting their mission statement.

You are certainly right that salaries should be examined to see if they are in proportion with the overall organization budget and the organizations mission statement. For instance, Blue Cross Blue Shield is a 501c3 non-profit and its CEO earns $2.5M (yeah thats million). Sounds obscene, but I'm not sure I can judge because its revenues are $200M and its an awful lot of responsibility.

That kind of information can be found in the organizations 990 form filed with the IRS (I'm pretty sure that 990's list the top ten paid positions.)

BTW..congradulations on Ideat Village...but I caution you that you might want to look into the tax status of the organization if money is being exchanged.

Posted by: robn | June 14, 2009 10:30 AM

JACK,

I'll give you two reasons why taxpayers should subsidize the Arts.

1) Equity
Taxpayers subsidize all sorts of things that don't serve everybody, but contribute to the greater good. For instance, you may not own a car, but food is shipped to you on the roads built with taxpayer dollars. Generally, Arts funding is about the smallest line item on any governments budgets, so cutting it is a bit stingy.

2) The Greater Good
Art can be inspiring. Supporting a small group of people who go to the root of the creative act can stimulate the general public to think differently and creatively and this is good for everybody. We got to the moon with science based upon creative problem solving and thinking out of the box. This was stimulated by an energetic and creative culture.

Posted by: Bill Saunders | June 14, 2009 4:09 PM

Robn,

Is that what a non-profit is??

I thought it was a sort of private club that uses the shield of 501-c3 to justify its self-serving mission.

Posted by: robn | June 14, 2009 7:57 PM

Wow BILL,

Be more bitter...and feel free to ignore my well intentioned advice about tax status...you and the IRS can work it out.

Posted by: Bill Saunders | June 14, 2009 8:56 PM

Robn,

How am I being bitter???

I do not have my hand out for gov't arts money because I am philosophically against it.

Some would call it being a purist.

Posted by: robn | June 15, 2009 8:48 AM

BILL,

I think that you're being bitter because you're ranting about what you perceive as exclusivity with classic right wing tropes such as "private club" and "handout". Thats just my perception.

If you want to criticize the A&I salaries and attendance, thats fair, but its unfair of you to continually slam all of the people who have volunteered time and money over the years to support it (and other non-profit ventures in town) by pretending that your festival is unique in its community volunteer support.

My suggestion about your tax status was supposed to be helpful.

Posted by: Bill Saunders | June 15, 2009 4:01 PM

Robn,

I think you are really trying to put words in my mouth.

What I am criticizing is a top heavy arts administration that has become out of touch with the community at large.

Posted by: robn | June 15, 2009 6:36 PM

BILL,

The words are yours.

You used "private club" and "self serving" to generically describe 501c3s (non-profits).

You've called government arts grants "handouts".

You've written that monetary transactions in the non-profits are "fishy".

You've written "Arts & Ideas has high-priced administrators...Ideat Village is all community volunteers," incorrectly implying that nobody volunteers for A&I.

Next time try sticking to your salient point instead of dissing lots of hardworking volunteers and condemning a broad catagory of businesses.

Posted by: bill saunders | June 15, 2009 9:39 PM

Boy, Robn you sound like the one with the axe to grind.

Private Club,fishy, handouts,self serving -- sure sounds like I hit a nerve.

The non-profit 'system' is, and always has been controlled by the moneyed-elite. Non-profit status is about a tax structure, it is not necessarily about philanthropy.

Secondly, my point about we are all volunteers was not to imply that A&I has no volunteers, what is says is NOBODY GETS PAID ANYTHING. The hierarchy is completely horizontal. Everybody is treated the same, and have the same opportunities to participate.

Frankly the corporate structure is counter to the very nature of community building that art and creative expression are supposed to be about.

For instance:

I have a friend, a very talented artist, who tried to register for City Wide Open Studios before the June 1 deadline. He is not very computer savvy, and had difficulty filling out the online application, and does not have a credit card.

So, he went down to Artspace to pay the fifty dollars in person.

He was told that they could not take cash, and that he would need to register and pay online.

Open Studios?

Am I making my point yet?

Posted by: robn | June 16, 2009 3:53 PM

BILL,

Just because you run a perfectly fine small one week festival for free doesn't mean its wrong for others to make a living year round serving their community.

By the way...if you're so philosophically opposed to A&I, why don't you reschedule your festival to some other time of the year instead of riding their coattails?

Posted by: Bill Saunders | June 17, 2009 2:17 AM

Firstly Robn, our festival runs for two weeks.

Secondly, there is no coattail riding. Our events stand on their own. In fact, much of the time that we have free events going on, A&I has nothing.

I genuinely feel sorry for the performers who travel great distances only to perform at 6:30 to twenty people. By the time our concert started tonight at 7pm, there was already a bigger crowd in Temple Plaza.

Lastly Robn, have you been to Ideat Village recently?

As a seemedly wise man once said:

"Art can be inspiring. Supporting a small group of people who go to the root of the creative act can stimulate the general public to think differently and creatively and this is good for everybody. We got to the moon with science based upon creative problem solving and thinking out of the box. This was stimulated by an energetic and creative culture."

Posted by: robn | June 17, 2009 8:35 AM

BILL

I have been to Ideat Village recently and I think its a good thing. What I think is unfortunate is that such a significant percentage of your comments indicate that, to a great extent, you define yourself by negativity toward paid arts administrators (disclosure...I'm not one of those, but my significant other and I have volunteered for all sorts of things in town including arts and social services). Whether your negativity is justified or not, the criticism bleeds out into general negativity toward a whole system of non-profits including paid people and volunteers (including me). So maybe I take it a bit personally when you generalize.

Posted by: bill saunders | June 17, 2009 11:38 AM

Robn,

Think what you like of my criticisms of paid arts administrators. Mine is not a lone voice in the woods -- it's a valid, commonly held viewpoint amongst artists in the community. A forum like this is a great place to get this debate into the public.

Glad you've been down to some events recently.
We have a great Gypsy Jazz band in Temple Plaza this thursday nite (rain or shine).

It should be a great night of serious music, unlike the loud rocknroll we are usually known for.

Alarm Sounded On Tourism $$$

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