COBI 2015 - Office of Tourism

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Office of Tourism (UOT) exists to brand and promote Utah's great experiences and destinations to visitors and citizens in an inspiring way and to support and enhance economic vitality and quality of life in Utah.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $22,685,700 from all sources for Office of Tourism. This is a 0.3 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $4,308,200 from the General/Education Funds, a reduction of 5.1 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Film Commission Strategic Plan$0$200,000

OngoingOne-TimeFinancing Source

$0$200,000General Fund, One-time

Create a strategic economic development plan for digital media and film.

Southern Utah Welcome Center O&M$36,300 ($36,300)

OngoingOne-TimeFinancing Source

$36,300$0General Fund

$0 ($36,300)General Fund, One-time

This pays for future O&M on a non-state funded building authorized in S.B. 9.

Tourism Marketing Performance Fund$0$18,000,000

OngoingOne-TimeFinancing Source

$0$18,000,000GFR - Tourism Marketing Performance

The Tourism Marketing Performance Fund (TMPF) captures revenue from predefined tourism related sales tax growth. The money is spent primarily on advertising with the goal of increasing Utah tourism as indicated by certain performance measures. The annual amount increases by $3 million annually as long as certain measures are met.

Tourism has provided the following measures to detail their performance: total tourism revenue spending in the state, tourism generated tax revenue, Sales Tax Revenue Generated by Tourism Marketing Performance Fund NAICS Codes, and travel spending growth. Details are shown below. Total Tourism Spending

Statute

Statutory authority for the Office of Tourism is provided in UCA 63M-1-1404.

The Office of Tourism is the tourism development authority of the state. It is responsible for:

promoting travel throughout the state.
increasing the economic contribution of tourists visiting the state.
advertising, promotion and publicity related to the attractions of the state as a whole.
coordinating entities involved in tourism and travel promotion.

Intent Language

HB0003: Item 58

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Governor's Office of Economic Development Office of Tourism, in Laws of Utah 2014, Chapter 10, Item 10 shall not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to contractual obligations and support: $350,000.

HB0003: Item 58

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Tourism Marketing Performance Fund in Laws of Utah 2014, Chapter 282, Item 51 not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to advertising and promotion: $5,500,000.

HB0003: Item 58

Under Section 63J-1-602.4 of the Utah Code, the Legislature intends that appropriations provided for the Motion Picture Incentive Fund shall not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to $5,000,000.

Office of Tourism funding is utilized mainly for staff and an advertising budget. The Office's base operations budget comes from the General Fund. In the 2005 General Session the Legislature created a Tourism Marketing Performance Fund with a performance based funding mechanism linked to increases in sales tax revenue for 21 tourism related industries. Under the mechanism appropriations from the General Fund would decrease annually. There is a small appropriation from Transportation Fund to fund Welcome Centers statewide.

Welcome Centers are located at the gateways to Utah. They provide free travel information and restrooms. Several of the Welcome Centers have kiosks with Internet access.

Display By:

Program

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Programs	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Administration	950,300	1,043,000	1,063,700	1,158,800	1,265,800	200	1,266,000	(104,200)	1,161,800
Operations and Fulfillment	2,490,200	2,565,200	2,746,400	2,590,800	2,880,300	28,200	2,908,500	(374,200)	2,534,300
Marketing and Advertising	6,966,200	6,968,700	9,134,200	11,201,000	15,000,000	2,078,900	17,078,900	921,100	18,000,000
Film Commission	1,522,100	3,035,400	2,190,400	1,533,200	773,200	595,300	1,368,500	(378,900)	989,600
Total	$11,928,800	$13,612,300	$15,134,700	$16,483,800	$19,919,300	$2,702,600	$22,621,900	$63,800	$22,685,700

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	4,017,600	4,004,500	4,054,900	3,981,400	4,031,700	0	4,031,700	100,500	4,132,200
General Fund, One-time	0	0	0	5,000	510,100	0	510,100	(334,100)	176,000
Transportation Fund	118,000	118,000	118,000	118,000	118,000	0	118,000	0	118,000
Dedicated Credits Revenue	224,500	226,200	239,000	266,500	259,500	0	259,500	0	259,500
GFR - Motion Picture Incentive	2,206,300	0	0	0	0	0	0	0	0
GFR - Tourism Marketing Performance	6,950,000	7,000,000	9,000,000	12,000,000	15,000,000	0	15,000,000	3,000,000	18,000,000
Beginning Nonlapsing	5,401,000	6,830,300	4,538,300	2,815,500	0	2,702,600	2,702,600	(2,702,600)	0
Closing Nonlapsing	(6,830,400)	(4,538,300)	(2,815,500)	(2,702,600)	0	0	0	0	0
Lapsing Balance	(158,200)	(28,400)	0	0	0	0	0	0	0
Total	$11,928,800	$13,612,300	$15,134,700	$16,483,800	$19,919,300	$2,702,600	$22,621,900	$63,800	$22,685,700

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	1,984,800	1,871,100	1,885,500	1,860,100	1,973,900	(127,900)	1,846,000	52,600	1,898,600
In-state Travel	40,800	40,900	46,500	35,800	51,500	7,500	59,000	0	59,000
Out-of-state Travel	75,400	66,700	94,900	77,300	85,200	9,800	95,000	0	95,000
Current Expense	6,033,800	5,974,000	8,584,700	10,308,500	2,523,000	11,691,700	14,214,700	6,008,700	20,223,400
DP Current Expense	93,500	103,400	85,500	62,200	28,000	11,500	39,500	2,000	41,500
DP Capital Outlay	0	108,500	0	0	0	0	0	0	0
Capital Outlay	5,500	0	10,000	0	0	0	0	0	0
Other Charges/Pass Thru	3,695,000	5,447,700	4,427,600	4,139,900	15,257,700	(8,890,000)	6,367,700	(5,999,500)	368,200
Total	$11,928,800	$13,612,300	$15,134,700	$16,483,800	$19,919,300	$2,702,600	$22,621,900	$63,800	$22,685,700

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Revised	FY16 Approp
Budgeted FTE	24	23.50	25	24	24	24	24
Actual FTE	24	22.90	22.40	21.70	0	0	0
Vehicles	4	4	4	4	4	4	4

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.