Island's Chamber of Commerce hit with 82 percent state budget cut

Mr. and Mrs. Claus arrived by Coast Guard cutter last year and were feted by a parade on Main Street during the Christmas Stroll. INDEPENDENT FILE PHOTO Nantucket is an attractive tourist location, something that matters on the local level to fuel business revenue and also to the Massachusetts Executive Office of Economic Development. When a second budget ax recently fell, however, the island's quaint cobblestone streets and rich history could not save Nantucket from cuts striking the state's 13 regional tourism councils.

Funding by the EOED is administered through the Massachusetts Office of Travel and Tourism, which funnels monies to the chambers of commerce, visitor bureaus and other agencies. Betsy Wall, the executive director of the OTT, explained that originally there was a $4.5 million legislative line item in the state budget to be divided this year among the 13 offices for marketing purposes. That amount was below last year's allocation, but on October 29 Gov. Deval Patrick announced a deeper cut was needed and slashed the line item to $2.5 million.

Department of Public Works employee Ken Hammond fluffs the trees on Main Street Tuesday morning before putting a string of electrical lights on each one. While the Chamber of Commerce purchases the trees, the DPW puts them in tree stands and island school children decorate them. The Christmas Stroll is a Chamber of Commerce event that brings thousands of people to the island in early December. PHOTO BY MARGARET CARROLL-BERGMAN Last year's funding grant for the Nantucket Chamber of Commerce was $359,000. This year it would have received $132,000. The recent action brought the dollar number down to just $66,050.

No more than 20 percent of the grant may be used for administrative costs with the lion's share intended to promote the island as a leisure resort, explained Wall. The grant totals are based on the strength of each region's marketing plan, domestic visitor spending, room tax collections and the percentage of private funds raised through memberships, sales of products and ads and income from functions.

"It's regrettable," Wall said of the cuts. "It's because of economic realities. The way we will all get through this is with innovative approaches. Nantucket remains a highly desirable vacation destination, which is very important for the island and the state."

Nantucket's chamber director, Tracy Bakalar, said when news of the latest cut became known, she and her board had to make some tough decisions. Though they will still print their annual, glossy guidebook she calls their "showpiece," the publication will also be completely available online. Other publications, such as their calendar of events, will go online and only be printed as a paper brochure on demand.

One office staff position has been eliminated and benefi ts for the remaining six employees have been reduced. A salary freeze is in effect and though the chamber's health plan remains intact, its 401K program had to go. In addition, the staff, at its own suggestion, will take a one-week furlough between Christmas and New Year's Day, said Bakalar.

"It's the financial state of the state," said Bakalar. "Our staff are our best marketing tool, and we have so far avoided putting the burden on our members by increasing the dues and guidebook advertising costs."

She noted that the office's budget is being reworked, although core promotion of the island will continue.

"We just need to approach things differently and cost effectively. Like any other business, we are feeling the effects of a recession. We are looking at new revenue sources to raise additional funds," said Bakalar. "We will be focusing more on public relations efforts, which tend to be more valuable anyway. We are doing more cooperative advertising with the Cape and Vineyard in Boston publications. We are looking to fundraise for Christmas Stroll and we're hoping to get sponsorships and donations to support Nantucket Noel and the Stroll.

"We are a regular business. We have budget woes. It's the name of the game for any business, but it is still important for us to uphold our level of service with fewer marketing dollar support."

For now, said Wall, no future improvement to the funding crisis is on the horizon, so the regional tourism agencies will have to make do as best they can with what they receive.

"The state financial situation is dire, so these funds are not going to be restored in this fiscal year," said Wall. "It is by no means a suggestion that tourism and marketing dollars are not worthwhile investments, because they are, and the Nantucket Chamber of Commerce is a very important part of the state's tourism program." I INDEPENDENT FILE PHOTO PHOTO BY MARGARET CARROLL-BERGMAN