Alliance Makes Cuts Due to Government Cutbacks

By Desiree Parker Tuesday, July 12, 2011

The Greater Williamsburg Chamber and Tourism Alliance has eliminated two staff positions, cut various programs and continued a hold on staff raises in an effort to tighten its belt after another year of reduced revenues from localities.

In 2011, all three localities cut back on the amount of money they give to the organization, and they cut the Alliance’s funding again for fiscal year 2012 by $270,000, with James City County leading the pack with a more than $200,000 reduction. Most of the government funding comes from hotel room tax revenues, which have been lower over the last several years.

In order to compensate for these cuts, the Alliance had to tighten its belt. In a letter sent to members at the end of June, Alliance President Dick Schreiber announced that the organization would cut the Director of Communications position, which means eliminating a current employee, and it would not fill a recently vacated position. The Alliance will also reduce memberships in some trade organizations and stop attending some trade shows, as well as reducing administrative expenses while looking for other sources of revenue. Staff will not get raises for a third year, and various other activities will be cut.

“It is never easy or comfortable to have to make decisions such as these,” Schreiber wrote. “However, just as with all businesses, it is sometimes unavoidable. We have shared these decisions with the Finance Committee and Executive Committee which have agreed they are the best course we can follow at this time.”

When considering what areas to reduce, the Alliance set some parameters on what programs to protect. They chose to maintain special emphasis programs that “serve as the core of our tourism program,” which includes marketing the area as a prime location for sports groups through the Sports Williamsburg Committee, marketing shoulder seasons including Christmas, Arts in September and Gardens in April, and the 150th anniversary of the Civil War.

“These are Alliance initiatives that we believe are vital to the future of tourism in the Historic Triangle,” Schreiber wrote.

The organization will also continue its Business After Hours program, Speed Networking, quarterly networking breakfasts and other events for business members, as well as maintaining the new advocacy program developed by its Economic Progress and Government Affairs Committees.

Based on the Alliance’s 2009 tax records for 2008 (the most recent year available for public scrutiny), the income generated by member dues, fundraising events, special projects and other income amounted to roughly $775,000, which was not enough to cover employee salaries ($716,200) and top executives ($346,800) without some use of taxpayer funds.

According to the same records, Schreiber’s salary combined with other compensation after a nearly $62,000 raise in 2008 was approximately $268,200, which was nearly nine percent of the organization’s total income that year. Since then, the Alliance’s budget has only shrunk, meaning that percentage has only grown (read a more detailed story on this issue here).

“Unfortunately, the severity of the reductions requires actions that affect staff,” Schreiber wrote. A Sales Manager position will remain unfilled, with the duties to be distributed among staff.

“I am particularly saddened to have to announce the elimination of the position of Director of Communications,” Schreiber wrote. “Linda Stanier has held that position for two years and has brought a level of commitment that again was most recently witnessed in this past week’s Rand McNally Best of the Road activities.

“She has devoted much personal time to hosting writers and has taken some of our activities from paper to on-line. She has always performed at the highest level. “

Stanier’s duties will also be absorbed by staff, according to the letter.