TO:  MTC Members

FROM:  Dale Amick - Legislative Consultant, Missouri Travel Council  

[ CLICK HERE to open the Missouri Legislative Status Report ]

The Missouri House Appropriations Committee for Economic Development Wednesday voted 10-8 to cut 1.75 million dollars from the budget of the Division of Tourism.

Faced with a mandate to cut the Department of Economic Development's budget by 20 percent, the committee decided to reduce the Division of Tourism budget by a specific amount instead of a flat 20 percent.

The 20 percent level of cuts is necessary, according to House budget officials, in order to have a balanced state budget for the new fiscal year that begins July 1. Available state revenue is down and costs have risen for many mandated programs, forcing major budget cuts again this year by the legislature.

The committee defeated separate motions to cut the Division of Tourism budget by 2 million dollars, by one million dollars and by 1.9 million dollars.

The base budget from which the committee worked from was the governor's budget recommendation of full funding for the Division of Tourism (17.8 million dollars).

The committee gave Department of Economic Development officials latitude to recommend further cuts in department programs to reach the needed 20 percent cut level. However, the committee indicated the Division of Tourism budget could be reduced no further by the department.

Tourism proponents on the committee said the tourism funding cut was smaller than they expected given indications the administration officials wanted to slice the tourism budget by up to four million dollars.

Fighting the tourism cut, was Rep. Dennis Wood, who emphasized the need to keep the division at full funding in order to maximize the state return on its investment in tourism advertising.

The committee cut the Arts Council budget by two million dollars and eliminated funding for Amtrak passenger train service between St. Louis and Kansas City, among other cuts.

The committee's recommendations now go to the House Budget Committee for further review before going onto the full House.

Dale Amick
Legislative Consultant
Missouri Travel Council