Here's a morning coffee question for you: Why does the
Madison Chamber of Commerce receive public funding? I wondered about this
last year, when the city denied the Chamber's request for a 30% increase in funding from the sales tax kitty. I'm led to wonder again as I read at
KJAM that the City Commission last night heard Chamber Interim Director Julie Gross's request for a slight bump in city funding for the Chamber, from $62,300 to an even $63,000.
A little Googling reveals that a number of Chambers of Commerce receive no tax support for their operations:
Now as I understand it, a Chamber of Commerce exists to promote, well,
commerce. Its members pay dues for the organization to promote its interests. And sometimes (Scott Delzer's
memorable Freudian slip notwithstanding) the Chamber's interests will not coincide with those of the local authorities or the community at large. The
state Chamber of Commerce doesn't receive funding from the State of South Dakota (at least I hope not); why should a local Chamber receive funding from local taxpayers?
And if the local Chamber of Commerce does receive public tax dollars, does it not then have an obligation to open all of its meetings, operations, and records to public participation and scrutiny?
The City of Madison benefits far more from sales tax revenue gained, as a result of numerous events sponsored by the Madison Chamber of Commerce throughout the year, than what it requests in annual subsidy.
ReplyDeleteUnfortunately, our retail choices are dwindling which makes it tougher to keep people shopping at home, which generates more sales tax revenue to the City. The Chamber, LAIC, City and County should ask 20 moms to give their opinions on how Madison can grow and what we need in our community. No need to spend money on surveys. They'll tell you straight up.
As for access to records through the Chamber, you're better off asking for items like the housing study through the City via Freedom of Information laws.
My assumption is that the chamber is a vendor for the city of Madison. The city purchases a service that is rendered by the chamber (promote commerce). As a vendor to the city, it is not required to open it's meetings or books. It is required to show proof that it provided the city the service it rendered.
ReplyDeleteAs I understand it, the city money the Chamber gets is a cut of the extra penny sales tax on entertainment (eating out, hotels, etc.), right? So to pay for that $63,000 subsidy, the Chamber has to generate an additional $6.3 million in entertainment spending. If we accept the interpretation of the Chamber as a "vendor" of services—a novel interpretation, indeed!—then we should expect an even greater return on investment, since paying a vendor $63,000 to get $63,000 in return doesn't sound like a good business deal.
ReplyDeleteSo quantify this for me: suppose the city gave the Chamber no subsidy, and the Chamber had to support its activities entirely through memberships and donations. How much less spending would take place in Madison?
What!? The right-wing oriented, virtually a branch of the republican party, chamber uses tax dollars - and wants more tax dollars!? What's next? Will the chamber want a tax increase to justify further, future visits to the public trough!? If ROI isn't at least 20% don't return the calls.
ReplyDeleteMadison has to promote itself and personally I want to pay for successful campaigns. We have a pretty fantastic lifestyle in many ways. Cory's previous post about authenticity made me think of Warren Buffet who received a letter from an Israeli company. He had previously not purchased foreign investments, but the letter spoke to him and he flew them over and bought the company sight unseen. It seems to me we try to promote ourselves without considering that many small businesses would love the loyal and dedicated work force we have and fail to realize the slow pace, the safety, the schools, the old pickups, the Dick Wiedenmans (but fix the roof), Memorial Park, Masonic Temple, casual lifestyle, imperfect yards, inexpensive real estate, etc are the true story that would bring people here. Maybe what we see as imperfections are part of what's really good here. It's like we are the nervous date who thinks we have to be something we aren't or they won't like us. With more and better local jobs lots of positive changes would occur. It made me wonder if the previous generation of volunteer promoters understood that and spoke from the heart about our community and successfully brought people here that way. They do need an adequate budget to communicate the right things. John Hess
ReplyDeleteThe money the Chamber gets from the City is used only for marketing. Some of that is spent in Madison, but some also is used to promote hunting, shopping and other opportunities in Madison. Remember those TV commercials last Christmas?
ReplyDeleteAnd the board meetings of the Chamber are, I'm fairly sure, open to the public. Just check their website for dates and times.
Marketing is fine -- I'm still waiting for the return-on-investment analysis that shows that marketing pays for itself by generating over $6.3 million in additional business. The other big question that remains unanswered: what's different about our Chamber that requires it to seek public funding while other Chambers proudly tout their independence from public funding?
ReplyDeleteI really do wish you would check with sources and research this kind of information before you post it on your blog. Posting incorrect information reflects very poorly on Madison. It also makes it that much more difficult to encourage Chamber Membership for those businesses that may not yet be a Chamber member.
ReplyDeleteWell, Anon, I'm pleased you think the Madville Times is so influential... but what info are you referring to? What part of the Chamber funding or activities have my commenters or I mischaracterized?
ReplyDeleteI think anything posted on the internet is influential as it can come up in a search engine (how I found this sight by the way). It's my understanding that all Chamber meetings are open to the public. The funding they receive from the City is all for marketing purposes, not operations or events. I also believe that it is important for a Chamber of Commerce, Economic Development office and a City to work together for the betterment of any community that they want to see grow & thrive.
ReplyDeleteI think the difference with this particular Chamber vs. the one's you listed is this:
ReplyDeleteLas Vegas. Really? They obviously have plenty of Chamber members to supply those funds. I would assume most of the cities listed do. I also think, but could be wrong, that most states have different policies with regard to how their Chambers of Commerce might be run.
So how are Las Vegas, Chelsea, Tuscon, Southfield, etc. able to grow and thrive without public funding of the Chamber?
ReplyDelete