Fuzzy Math -Part 2

Problem - How to fund the increase funding for the Chamber, that has been approved by the Hardin County Budget Committee? (Long overdue and election issue with business community.)

Budget Committee Recommendations: Fund with state mandated River Resort District tax sharing funds that are earmarked for "Tourism Related" activity. Require Chamber to note all disbursed funds as "Tourism."

Facts: The Chamber is a not-for-profit civic organization.

Not-for-profit contributions are governed uniquely and exclusively by Chapter 0380-2-2 of the Rules of Audits of the Comptroller of the Treasury and Section 5-9-109, Tennessee Code Annotated, and any and all other laws which may apply to county appropriations to nonprofit organizations.

BOTH governing documents state:

T.C.A. 5-9-109(d) - Appropriations to nonprofit organizations other than charitable organizations may be made only when notices have been published in a newspaper of general circulation in the county of the intent to make an appropriation to a nonprofit but not charitable organization, specifying the intended amount of the appropriation and the purposes for which the appropriation will be spent.

Auditor’s Handbook - Chapter 0380-2-2 (6) of the Rules of the Comptroller of the Treasury - For appropriations to nonprofit civic organizations, notices shall be published in a newspaper of general circulation in the county of the intent to make an appropriation, specifying the intended amount and purpose.

Smoke and Mirrors: County reaction of past neglect and shunning of the Chamber of Commerce - Increase meager funding significantly. Requested $40,000 - Fund $20,000. But the question is, where does the County Budget Committee and the Chief Financial Officer find the funds? I know. Use some of the River Resort District, earmarked funds. Yay, that’s what we’ll do.

River Resort District Tax Sharing Revenue -

(iii) Notwithstanding any other provision of law to the contrary, of the revenue retained pursuant to an election under the provisions of subdivision (a)(3)(F)(i), . . fifty percent (50%) shall be used exclusively for either the promotion and support of tourism in the jurisdiction or the promotion and support of tourism in conjunction with other jurisdictions so electing Tennessee River resort district status.

Budget Committee - No need to meet advertising requirement, because the funding is coming from tourism, not T.C.A. 5-9-109(d). Does this method of funding restrict the Chamber in any way? Well, yah.

Double - Duh - The statute does not speak to source of funding as option to the requirement to "For appropriations to nonprofit civic organizations, notices shall be published . . ." or "the intent to make an appropriation, specifying the intended amount and purpose.

When challenged, Chairman Budget Committee - all you need is eleven (11) votes on the Commission and you can pass anything!!!! Well, O.K., there. Nothing like a good example.