Gavarone backs bed tax compromise

SANDUSKY — State Sen. Theresa Gavarone, R-Bowling Green, said she supports new compromise language that increases the options for how bed tax revenues can be spent but leaves the decision in the hands of the local tourism board. The new proposal, part of the Ohio Senate's budget bill, seems to be closely monitored by Shores & Islands Ohio and for local tourism businesses such as Cedar Point and Kalahari. They had expressed outrage over a previous proposal to allow Erie County commissioners to redirect two-thirds of the bed tax money away from the local tourism agency. Gavarone noted the issue isn't over yet, as a state senator could still introduce the original language backed by the county commissioners. A decision apparently will be made soon, as work on the next budget must be completed by the end of June. How'd we get here? The original proposal, revealed in May, called for allowing commissioners in certain counties, including Erie and Ottawa, to spend up to two-thirds of bed tax money on public safety, capital improvements and economic development. Currently, Shores & Islands Ohio — the tourism bureau for Erie and Ottawa counties — gets $4 million of lodging tax revenue. The new proposed amendment states that a convention and visitors bureau in certain Ohio counties, such as Erie County, can spend bed tax money on public safety, economic development or infrastructure, "provided the services or project impact tourism." Hearing from officials Gavarone said she backs the new language and believes it is more acceptable to tourism interests in her district. She's also sympathetic to the argument that using bed tax money reduces the tax burden for local taxpayers in Erie County. "There (are) a lot of unique needs that come about due to a massive influx of tourists to that area," Gavarone said. Decisions on budget matters must be made soon, as the state's new two-year budget starts on July 1. Many important budget decisions were made at the last minute in House-Senate conference committees. Erie County's commissioners — Pat Shenigo, Matt Old and Steve Shoffner — argue that the big annual influx of tourists imposes important costs on local governments and that it's only fair to use bed tax money to cover some of those costs. But they've been criticized by the city of Sandusky, the Greater Sandusky Partnership, Shores & Islands Ohio, Cedar Point, Kalahari, local hotel interests and many local businesses for allegedly failing to listen to local tourism officials before trying to push a change in the law through the Ohio General Assembly. A new statement issued by the commissioners this week pledges to listen to local businesses and provide a transparent process as the discussion moves forward. It also criticized Shores & Islands Ohio for an allegedly bloated payroll of $1.5 million a year, which it said is a "doubling of payroll in less than five years." "We don't believe that the most effective government agencies are the ones with the most employees," the press release states. In a statement issued after consulting members of his board, Larry Fletcher, the CEO of Shores & Islands Ohio, said that commissioners are represented on his organization's board and have plenty of opportunity to weigh in on budget matters. "The composition of the Shores & Islands Ohio board of directors includes a commissioner from both Erie and Ottawa County along with the economic development directors from each county," Fletcher said. "With others who represent major attractions and small businesses, this body provides the opportunity for continuous oversight of the Visitors Bureau's budget and activities, and discussions about methods of improving the organization's effectiveness and efficiency," he said. Fletcher said his organization still believes it isn't being properly consulted about the bed tax discussions in Columbus. "Those who represent the Shores & Islands Ohio organization view the recommended modification (this amendment) as a step in the right direction, as it preserves the method by which county lodging funds are allocated to and managed by the visitors bureau," Fletcher said. "However, we still have concerns that, just as was the case with the introduction of the original amendment language, this perceived compromise was developed without appropriate transparency or stakeholder consultation." The visitor bureau board "would have been an appropriate starting point for discussing the local interests that are now being debated at the state level, and look forward to having that opportunity in the coming months," he said. Show up to forum Those at Greater Sandusky Partnership released a statement Thursday, indicating that it looked forward to a dialogue on tourism. The partnership "looks forward to a dialogue with county leadership to determine the best way to leverage the incredible economic activity generated by our tourism industry. This dialogue is overdue, as over one thousand community stakeholders have signed an online petition urging county commissioners to come to the table rather than working unilaterally without transparency or dialogue," the statement said. It continued, noting how the partnership will host a forum at 5:30 p.m. on Monday, June 23 at the Mylander Pavilion at the Jackson Street Pier. "We will work with business leaders, elected officials and the community in order to develop a shared strategy for investing resources generated by tourism in order to grow our economy and improve quality of life," the statement said. The event is free, but people planning to attend are asked to register at greatersandusky.com/forum.