TOURISM FUNDING PLAN SIGNED INTO LAW; FALLERT, STAPLES CHAMPIONED LEGISLATION THAT WILL SUPPORT EFFORTS IN A FAIR MANNER

A unique approach to funding tourism promotion in the state of Missouri, sponsored by two Southeast Missouri legislators, was signed into law Wednesday.

Under the measure, the Missouri Division of Tourism budget can increase beyond the current level of about $6 million if the division is successful in promoting tourism in the state and generating more tax dollars from visitors.

Lt. Gov. Roger Wilson, serving as acting governor while Gov. Mel Carnahan is on vacation, enacted the measure which was passed this session.

The bill, sponsored by Rep. Herb Fallert, D-Ste. Genevieve, and handled in the Senate by Sen. Danny Staples, D-Eminence, earmarks a portion of growth in some state sales taxes for the division. In turn, the agency is to turn back to the state part of its funding from general revenue sources.

"It's up to the troops within the tourism industry to get the ball rolling on this," said Fallert, who chairs the committee that deals with tourism in the House.

Staples, who chairs a similar panel in the Senate, added, "If we have growth in general revenue, this will be an A-plus for tourism in the state of Missouri. Tourism is the second largest industry in the state right now, with the smallest budget in the state."

Staples noted that a tourism dollar turns over six times, which makes it only right that the industry be able to reap some benefit from the revenue it produces.

"Missouri has been really low in spending and has been keeping our state attractions a secret with its advertising programs," added Staples. "Now, with House Bill 188, we should start turning that around."

Fallert said the best part about this bill is that it enables the tourism division to get additional money "the old fashioned way - we earn it. If the tourism industry doesn't do its job, it could end up with less money. But if the industry does its job, we won't have to worry every year about whether funds will be cut or not."

This is a new approach to funding since a portion of the growth is earmarked, but Fallert said this is not the kind of earmarking many legislators have become wary of in recent years.

Said Fallert: "Although it is some sort of an earmarking of funds, in a way it is, but it is not a handout of funding for tourism. Instead, it is a tool where we can use this to promote tourism in Missouri."

A key part of this plan is that it will give the division enough money to begin targeting markets and having adequate funds to properly promote Missouri as a place to visit.

Once the state funding base starts to grow, Fallert said he hopes the tourism division will be able to provide matching funds to cities and counties to use in promoting events and sites that are tourism related.

Fallert noted that this is the first dedicated funding source the agency has had since it was established in 1967. He added that Missouri ranks behind many other nearby states in advertising for attractions.

Staples said by the year 2004 when this measure is scheduled to expire, the division should have $15-20 million for promotion.

Like Fallert, Staples likes this approach to generating additional funding. "I would never have thought of this concept; somebody came up with a tremendous idea. I was certainly happy to handle the bill in my committee and to handle it on the Senate floor."

Staples said he is having legislation drafted to introduce next year that would require the additional promotional money to be spent equally promoting all 10 of the tourism regions in the state. Staples said it is only fair to provide a way to see that all attractions in Missouri are equally promoted.

Too often, Staples complained that state tourism promotion funds are devoted to things like theme parks, leaving attractions in other parts of the state without proper promotion.

"I want to be fair about it, and this is the only fair way to do it," said Staples.

Under the law, 17 types of sources of sales tax revenue, such as receipts on hotel and motel rooms, restaurants, ride tickets, and amusement parks, are designated as supported by tourism.

It figures an average of the previous two state fiscal years' growth in these types of revenue, and then sets that pace as the standard of growth for each of the next 10 years. Then, 3 percent of that growth figure is subtracted for inflation and kept in general revenues.

Half of the resulting growth figure is then earmarked for the Division of Tourism, up to $3 million a year. The rest go for general revenues.

The ultimate goal of the legislation is to phase out state general revenue funding for the Division of Tourism.

Bob Smith of Lebanon, chairman of the State Tourism Commission, stressed that the new revenue is not a tax increase, but revenue that is already going to come to state government.

"It is a seriously competitive business and we are committed to making it grow," said Smith. "We want to use this money to make the state's economy grow."