FY2019 Tourism Budget Proposal & Process:
Illinois state government provides more funding for local tourism than any other state. Therefore, the state budget is extremely important to the hospitality industry, and something we work very hard to protect and grow.
The Governor's budget proposal was released on 2/14/18. It is important to understand that the Governor's proposal is just that, a proposal. The specific budget line items for tourism expenditures and other items are detailed in legislation that will be introduced sometime, but not necessarily at the same time as the budget address. Usually, this legislation or package of legislation is introduced by the leaders or appropriation chairs of the same party as the Governor.
In recent years the "counter proposal" on the budget from the legislative Democrats has come much later in the session, and only introduced when it is ready to be voted on. Hence, the period between the Governor's budget proposal and the enactment of a budget passed by both legislative chambers and signed, vetoed, or amendatorilly vetoed by the Governor is critical. This time between proposal and enactment is when IHLA members and your lobbyists have an opportunity to secure legislative support for increasing key tourism line items.
Tourism line items are tied directly to statewide hotel tax receipts. On 2/14/18, the Governor's Office of Management and Budget (GOMB), projected total hotel tax receipts of $290M, just $10M more than in FY2018. This is the smallest projected increase in hotel tax receipts since the "great recession". As a result, the Governor's proposed tourism appropriations for FY2019 were not increased over FY2018. Going forward, if our industry can demonstrate that revenues will generate more than $290M in FY2019, we can argue for an increase in tourism funding.
New Bill Introductions
HB4246
Creates the Local Government Convention Expense Control Act. Provides that public funds shall not be expended by a unit of local government for expenses connected with attendance by an employee or contractor of the unit of local government at a convention or gathering of personnel. Excludes public funds expended (1) at any convention or gathering of public safety personnel or (2) pursuant to a contract entered into before the effective date of the Act.
HB4248 (Companion to HB4246)
Creates the Local Government Convention Expense Control Act. Provides that on or after the effective date of the Act, public funds shall not be expended by a unit of local government for expenses connected with attendance by an employee or contractor of the unit of local government at a convention or gathering of personnel. Excludes public funds expended (1) at any convention or gathering of public safety personnel or (2) pursuant to a contract entered into before the effective date of the Act. Amends the State Finance Act. Provides that, for contracts entered into on or after the effective date of the amendatory Act by units of local government, school districts, community college districts, or local taxing bodies, State appropriations shall not be expended to rent or pay for access to physical space for booths, hospitality suites, or other physical space at a convention or gathering of personnel. Excludes appropriations for physical space expenditures at any convention or gathering of public safety personnel.
HB4698
Provides that the Department of Public Health shall establish a food allergy awareness program that requires each food service establishment in the State to either: (1) display, in a prominent location accessible by the food service establishment's consumers, a poster that concerns food allergy awareness and is approved by the Department, or (2) make available, upon request, a comprehensive list of the foods that the food service establishment serves and a list of the allergens contained within the foods that includes information on the risk of cross-contamination for the foods. Provides that a food service establishment that makes available a comprehensive list shall update it as is necessary. Provides that the Department shall maintain a website that lists the food service establishments that have violated these provisions and the number of violations for each food service establishment.
HB4757
Provides that moneys that are required to be deposited into the Tourism Promotion Fund from the proceeds of the tax imposed under the Hotel Operators' Occupation Tax Act shall be deposited directly into the Tourism Promotion Fund. Provides that, if the available proceeds from the Hotel Operators' Occupation Tax Act after certain other deposits have been made is less than the amount required to be deposited into the Tourism Promotion Fund, then the amount of the deficiency shall be transferred from the General Revenue Fund to the Tourism Promotion Fund in the next calendar month. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Makes changes concerning grants from the Local Tourism Fund.
SB2483
Provides that not less than 75% of the amounts collected by a municipality within DuPage County pursuant to the municipal hotel operators' occupation tax and municipal hotel use tax shall be used to promote tourism within that municipality. Provides that the remainder of the amounts collected may be used by the municipality for economic development or capital infrastructure.