Thursday, June 11, 2009

CIB Leadership Mum On Cost Savings

The leadership of the CIB had plenty to say before Gov. Mitch Daniels' office released independent studies of its expenditures showing they are way out of whack with the costs of managing other facilities around the country and $13 million in savings could be realized through more efficient management. One of the studies suggested $3 million in savings could be found in personnel cost reductions. Here's the response the Star's Bill Ruthhart got from the CIB leadership inquiring about the studies:

CIB Executive Director Barney Levengood, provided with additional information about the two studies and asked whether the cuts were possible, would only refer to board President Bob Grand for comment.

Grand, who also was provided copies of the state documents, did not return phone calls seeking comment Wednesday. He previously said the $10 million in budget cuts the CIB already had identified were "cutting into the bone."

Pressed on how the recommended savings could be achieved, Ballard's office issued this statement:

"We will continue to evaluate future expense reductions and weigh those against our ability to identify, attract and deliver quality services to current and future conventions."
Another thought on the proposed new authority Gov. Daniels has proposed be established to run the CIB's facilities, along with other public facilities in Marion County. Because those other facilities that will be placed under the control of the new authority rely on property taxes for their support, unlike the CIB's facilities, does this not open up the door to the convention center and the sports facilities tapping property tax revenues for support? Once the operations of these facilities become commingled, that is a very likely scenario. With the use of creative financing, you may not even realize it's happening.

1 comment:

jabberdoodle said...

I have been wondering about the property tax usage myself. Yet, the legislation that created the CIB already gives them, with Council approval, the authority to tap property tax revenue.

What is troubling beyond trying to guess the 'real reasons' for the consolidation, is that the Indy Builing Authority does not have its budget reviewed at all by the Council. It simply tells the City and County, politely, what the lease rates will be for the coming year.

I'd still like to know why the ICVA gets a seat on the proposed board. Seems like that fellow knows where some bodies are buried to become that powerful.