Times are tough, and everyone’s looking for ways to cut costs.
It’s understandable, then, that some people are floating the idea
of eliminating the city’s financial support for the Chamber of
Commerce. It’s understandable but misguided. Simply put, it’s a bad
idea.
Times are tough, and everyone’s looking for ways to cut costs. It’s understandable, then, that some people are floating the idea of eliminating the city’s financial support for the Chamber of Commerce. It’s understandable but misguided. Simply put, it’s a bad idea.
The Morgan Hill Chamber of Commerce receives about $106,000 per year from the city, a significant portion of its budget, but an amount that has been reduced over the last few years as the city faces revenue shortfalls in the current recession.
The reductions were fair and understandable; completely eliminating the Chamber’s funding is shortsighted.
The Chamber serves an important economic development function in the city. It doesn’t serve only its member businesses, who pay dues to the organization, but the entire community. It helps create a positive image of our town with signature events like the Taste of Morgan Hill, the Friday Night Music Series, and its newest event, the No Bull BBQ Cookoff, a smash hit that debuted this May.
These events draw visitors to our lovely city; those visitors spend money at local businesses and generate sales and motel tax revenue that fund services that we all use.
It’s also important to remember that the Chamber’s stipend from the city comes from redevelopment agency funds, not general fund dollars. Eliminating the chamber’s annual city funding would not benefit the general fund, which pays for most city services.
The funding from the city is split into three different avenues.
n $50,000 for regional tourism via a partnership with the Gilroy Visitors bureau – this enables the chamber to get leverage of their dollars and get national as well as international exposure that would be impossible on their own.
n $37,500 for local tourism efforts spearheaded by the Chamber to promote tourism specifically for Morgan Hill.
n $18,500 for economic development efforts in a partnership with the cities’ economic development (BAHS & RDA) focused toward retention of current employers in Morgan Hill as well as efforts to promote Morgan Hill as a location for new employers to consider in their relocation plans.
All of these are spent on direct costs specified in the contracts with the city and are not spent on general chamber operating expenses.
The chamber’s important role in promoting business and Morgan Hill’s positive image in the region is well worth the small sum the city pays. Most other cities agree, providing similar support to their local Chambers of Commerce. Let’s not cut off our nose to spite our face. Keep funding the Morgan Hill Chamber of Commerce.
