Tourism and culture bill pared back significantly

The Montana Senate gave final passage Monday to Senate Bill 264, which would increase state financing of certain historic, cultural and recreation assets benefiting Montanans and tourists.

But the bill was pared back significantly in committee action a few weeks ago, reducing the funding increase from $29 million over the next two years to $3.1 million, and eliminating entirely what was initially proposed as a $14.8 million increase in state tourism promotion.

The bill, proposed by dozens of tourism, cultural, historic and recreational groups, could face further cuts during budget negotiations in the House, its sponsor, state Sen. Bob Keenan, R-Bigfork, said Tuesday.

"SB 264 started out as a golden eagle and is now kind of a canary on life support with just a little bit of money in it," Keenan said. "It does create a potential pathway to start the work that so many groups want in preserving Montana's cultural heritage."

If the amended bill is approved, future legislatures could add money to the programs, he said.

But, with budget battles expected to continue as the bill heads to the House of Representatives, Keenan projected, "the long-term prognosis for the bill is marginal."

A broad-based tourism, culture and recreational group recommended the bill and advocated it as the state's first significant increase in tourism spending in 30 years.

As written, SB 264 would have diverted 60 percent of the revenue that now goes entirely to the state general fund from two tax measures established in 2003, the 3 percent accommodations, or bed tax, and the 4 percent rental vehicle tax. The bill would not have affected the 4 percent lodging fee, or bed, tax that the Legislature approved in 1987. It now provides about $15 million a year for tourism promotion and support of state parks and culture.

Keenan had argued that the timing was ripe to increase state promotion, since U.S. tourists are expected to take advantage of lower gas prices to travel considerably more this summer. Gayle Fisher of Great Falls, director of the 13-county Central Montana Travel Region, said other states like California are doubling their already larger travel promotion budget.

Tourism backers sought first big spending increase in 30 years.

Montana drew nearly 11 million out of state visitors last year, who spent nearly $4 billion, directly supporting 38,800 jobs and generating an estimated $276 million in local and state tax revenue, state projections showed.

But, Keenan noted Tuesday, SB 264 was sent to the Senate Finance and Claims Committee in March, which was assessing a variety of spending bills.

"Everybody realized SB 264 would be a big hit on the general fund, so (it) needed to be part of overall budget discussions, negotiations and the will of the Legislature," he said, adding that it was up against other large spending measures, including the state pay plan and the Medicaid expansion bill.

The committee, with urging by the governor's budget office, lopped a lot of the increased spending from the bill, Keenan said.

"In addition, a lot of legislators didn't want to spend additional money on advertising and promotion," he said. "They were willing to spend some money on hard assets, such as cultural, historic and recreational sites, but did not want to increase promotion."

Instead of diverting $29 million over the next two years, including $14.8 million for state tourism promotion, the amended bill now would spend $444,000 apiece over two years in seven areas:

•The Montana Fish and Game Department for renovation, replacement and enhancement of state parks.

 •The Montana Commerce Department to distribution between the state's seven tourism regions and local convention and visitors bureaus.

 •The Montana Historical Society to preserve and secure Montana's historical heritage.

 •The Montana Historical Society to rehabilitate state owned heritage buildings.

 •The Montana Arts Council for programs supporting economic development, education and cultural tourism.

 •The Montana Heritage Preservation and Development Commission to preserve, protect and enhance historic properties.

 •The Montana Fish and Game Department to administer a grant preserving non-state-owned properties.

Fisher said she is "disappointed at the level of the cuts," but appreciates the regional and local tourist groups getting at least some increase. Her preliminary calculation showed the Central Montana Travel Region and Great Falls Convention and Visitors Bureau would split about $20,000 a year.

She questioned the decision to eliminate all increased spending for state tourism promotion.

"The cost of advertising and promotion keeps going up, so Montana could be losing ground against other states that it competes against in attracting tourists.," she said.