Schaumburg Bureau President on Taxpayer-Financed Trip to Copenhagen
September 29th, 2009 | by Brian Costin Published in Blog, Corporate Welfare, Features | 16 Comments
Originally, when Mayor Daley announced that the Olympics would be tax free I was in support of the effort. Too bad Mayor Daley has broken his promise not to use taxpayer funds for the Olympics.
Mayor Daley Olympic position on February 7th, 2009 via the Chicago Tribune.
Mayor Richard Daley today insisted that no tax money would be used to pay for the city to host the 2016 Summer Olympic Games and said funding from the private sector and federal dollars for security and infrastructure would cover the costs.
Mayor Daley breaking his tax-free Olympics commitment on June 26th, 2009 via the Sun Times.
Daley’s pledge last week to sign the agreement — essentially an open-ended guarantee against losses — angered aldermen who believed they were kept in the dark about the matter.
I can’t say I’m not surprised at least on the bait-and-switch from Mayor Daley.
Unfortunately, the fever for taxpayer-financed sporting events hasn’t escaped the suburban political scene as well. It looks as if some taxpayer-financed organizations are looking forward to the taxpayer gravy train that the Olympics would bring. A Daily Herald article says the Woodfield Chicago Northwest Convention Bureau’s President, Fran Bolson, is going to Copenhagen in support of the bid. This despite a recent Chicago Tribune survey showing that 84% of Chicago area residents oppose the Olympics if taxpayer funds are used to cover the losses.
With more than $50 million at stake for Northwest suburban businesses, the president of the Woodfield Chicago Northwest Convention Bureau is going to Copenhagen to show support for the Chicago 2016 Olympic bid.
Fran Bolson, the bureau’s President and a Naperville resident, will leave for Denmark Wednesday, Sept. 30 so she can be there for Friday’s big announcement.
The Woodfield Chicago Northwest Convention Bureau’s support for a taxpayer-financed Olympics shouldn’t be a surprise considering their support for sports socialism in the past. The Bureau has actively championed the sports socialism & corporate welfare at the foreclosed Hoffman Estates Sears Center, taxpayer subsidized Schaumburg Flyers at Alexian Field, and Arlington Park Racetrack.
Also the Bureau gets a lion share of its budget from the taxpayers. In just the last 6 years the taxpayers of Schaumburg alone have contributed over $1.5 million dollars to the Woodfield Chicago Northwest Convention Bureau. This doesn’t include revenue from the dozens of other municipalities and the State of Illinois that contributes taxpayer funds to the Bureau.
From the Village of Schaumburg Annual Treasurer’s Reports, the Village of Schaumburg paid $248,872 in 2003; $237,589 in 2004; $205,168 in 2005; $261,181 in 2006; $267,630 in 2007; and $297,260 in 2008 for a grand total of $1,517,700.
This taxpayer-financed trip to Copenhagen by Fran Bolson was made possible by area taxpayers.
The continued practice of throwing millions of local taxpayer dollars to organizations such as the Woodfield Chicago Northwest Convention Bureau amounts to nothing more than a direct subsidy to the hospitality and entertainment industry (corporate welfare) at the expense of the taxpayers and other industries. Instead of politicians allocating advertising funds for a select few and not others, such as the manufacturing & commercial industries, is both unwise economically and ethically questionable.
Government will always look to the glitz and glamour of entertainment events, such as the Olympics or Conventions, in an attempt to justify government boondoggles such as the Schaumburg Convention Center & Hotel, which the Woodfield Chicago Northwest Convention Bureau has actively promoted. Mrs. Bolson should remember the Schaumburg Convention Center & Hotel, that she says the Olympics will help fill, costs area taxpayers $15.7 million per year in increased property & sales taxes. 16 days of Olympic glory doesn’t justify a lifetime worth of debt and taxes for area residents & visitors. We should not be paying for an expensive field trip to Copenhagen when we all know that the Olympics is going to cost Chicago, Cook County, & Illinois taxpayers dearly.
Shouldn’t we be looking for ways to cut wasteful government spending, and reducing the highest sales taxes in U.S. history, rather than dreaming up additional ways to sink the local economy with additional tax burdens for sporting events?
With the amount of confidence that I have in the promise-breaking Mayor of the corruption-ridden City of Chicago, I am left with no other choice but to support the Chicagoans for Rio campaign.
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October 1st, 2009 at 3:36 PM (#)
You’re an idiot. The concept of delegate expenditures with windfall revenue streams are beyond your comprehension. You don’t know what you’re talking about.
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Brian Costin Reply:
October 1st, 2009 at 3:54 PM
All economic activity has “windfall revenue streams”. If you buy food at the grocery store all of the supermarket workers, all the businesses that provide the food, all the farmers that grow the food, will then have revenue to then spend elsewhere in the economy. Government has no special ability to generate “windfall revenue streams” that the free market can’t also (and does) provide. The only difference is that government forces its citizens to support their corporate welfare boondoggle projects. Honest Business-people can’t hold their customers hostage like the government does.
You can talk all you want about “windfall revenue streams” but lets also talk about the destructive nature of taxes that will be used to pay for the Olympics if they do indeed come to Chicago. The “windfall tax destruction” that happens downstream in the economy when people get taxed to the gills, as we are in Cook County, should not be discounted.
Just checking, was there a referendum for the people of Chicago to vote if they wanted taxpayer funds to be used for the Olympics? Or did Mayor Daley lie about a tax-free Olympics to get us this far in the process only to do a flip-flop after the point of no return?
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October 2nd, 2009 at 9:23 AM (#)
On another note…I appreciate your efforts on the red light program….But you don’t know what you’re talking about regarding delegate expenditures resulting from travel, tourism, conventions, tradeshows, leading to revenues from things such as (a very short list of examples) airport landing fees, taxi cabs & limo’s, restaurant revenues, hotel rooms, florists, caterers, printers and sign makers, security firms, decorators and contractors, not to mention integration backwards to the suppliers of these industries themselves, etc. etc. Ancillary revenue streams resulting from these activities including your own local convention center and hotel community not to mention local, county & state government taxes generated as a result of increased business, high occupancies and tourism attendee & visitor compression for events like this are designed to be revenue generating & self sustaining justification. As far as the GWCVB’s trip to Copenhagen goes, the economic benefit goes well beyond these 16 days you mention. There will be immeasurable pre/post economic benefit leading up to, during and after that you can not fathom. You don’t know anything about the nuances and complexities of THIS industry…AND I would rather be a part of the party in Copenhagen than be part of the Libertarian funded bullshit banter of half truths, innuendo and outright lies you’re spewing about this issue designed to confuse, irritate and upset the pubic and it’s no wonder nobody takes you seriously. Again, nice job on the red light program. That’s all you get.
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Brian Costin Reply:
October 2nd, 2009 at 9:57 AM
Thanks for the Kudos on the red light cameras.
With a statement like “You don’t know anything about the nuances and complexities of THIS industry” it shows you have extreme biases in favor of “THIS” industry.
I do have an economics degree and I am astutely aware of how money flows through an economy. I am also aware that when government redistributes and reallocates the economy through tax and spend policies that there are winners and losers. The Tourism Industry would be one of the ones that would benefit the most, but you seem not to care about what those increased taxes do to other industries and people.
Why do you want to force people to subsidize this one industry? Are other industries and the people’s freedom not important to you?
Perhaps you don’t care about the increased taxation of the people because you are one of the people who will benefit from this redistribution/reallocation of other peoples money. Perhaps you work for the Woodfield Chicago Northwest Convention Bureau, or one of the entities that it encourages tax-financing for, or you work for the government itself.
It’s funny you criticize the Schaumburg Freedom Coalition is Libertarian funded. This web-site is 100% funded by myself, all $7 per month of it for website hosting. As for the word libertarian, it comes from the root word of liberty and we are proudly funded through liberty (voluntary funding) instead of government funded (coercive taxes) alternative.
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anthony anderson Reply:
October 2nd, 2009 at 10:09 AM
No…I don’t work for the Village of Schaumburg or the GWCVB. I saw you on someone else’s page on Twitter, clicked on your page and started puking. It’s a moot point anyway since Chicago got bounced in the first round of IOC voting…so on to more important issues you need to pontificate on. It might cost you $7 a month for the website…but if you expect anyone who happens to stumble on this website might believe that YOU are not funded from another source is laughable. Good luck.
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Brian Costin Reply:
October 2nd, 2009 at 10:20 AM
Anthony-
You may claim that you don’t work for the Village of Schaumburg, but you’re submitting to this website from a computer & server owned by the Village of Schaumburg and the taxpayers of Schaumburg.
Your IP address is 69.222.168.98.
http://ws.arin.net/whois/?queryinput=69.222.168.98
It’s disturbing that the Village of Schaumburg would allow someone using their own taxpayer-financed computers & likely a taxpayer-financed employee to post anonymous propaganda on a blog, and then lie about who they are.
Why is the Village of Schaumburg allowing the use of Taxpayer resources to bash taxpayer watchdog groups, promote corporate welfare and taxpayer-funded jaunts to Copenhagen?
All the more reason to cut wasteful government spending such as the taxpayers money that goes to the Woodfield Chicago Northwest Convention Bureau and cut taxes.
If that were to happen the WCNCB would have to go back to making their money honestly through voluntary contributions or commerce like everyone else.
December 1st, 2009 at 5:32 PM (#)
“All the more reason to cut wasteful government spending such as the taxpayers money that goes to the Woodfield Chicago Northwest Convention Bureau and cut taxes.
If that were to happen the WCNCB would have to go back to making their money honestly through voluntary contributions or commerce like everyone else.”
Brian…I have not had the chance to meet you however, I find these comments offensive. I would be glad to speak to you about some facts regarding the tourism industry, and commerce. And by the way, how do you know what I do or don’t do through voluntary contributions?
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Brian Costin Reply:
December 1st, 2009 at 5:47 PM
Fair enough, I don’t technically know if the WCNCB financed your trip to Copenhagen through taxpayer dollars or voluntary contributions. I would love to meet with you to clear this up and share views on the tourism industry and commerce.
I have no problem with the WCNCB existing and promoting local businesses. What I object to is the forcing of taxpayers to subsidizing one industry above all others. The WCNCB should only accept voluntary contributions from non-government subsidized entities. Once the WCNCB starts accepting large sums of money from government organizations and commingles it with other contributions it rightfully opens itself up to criticism.
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June 5th, 2010 at 10:24 AM (#)
I don’t understand what you are saying as bureaus are supported by hotel tax dollars not local community dollars so how are Schaumburg tax payers paying for this? Are they evacuating their homes and all sleeping in hotels? I don’t get what you are saying.
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Brian Costin Reply:
June 8th, 2010 at 9:51 PM
Schaumburg residents work at local hotels. They also use local hotels for family events such as weddings. Local businesses use hotels for meeting space. They are all affected by the hotel tax.
Let’s keep this money in the pockets of the taxpayers. “Never take a dollar from a free citizen through the coercion of taxation without a very legitimate purpose. We have a solemn duty to spend that dollar as carefully as possible, because when we took it we diminished that person’s freedom.”
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Susan Aronoff Reply:
June 8th, 2010 at 10:01 PM
Schaumburg residents can only work at hotels if out of towners find a reason to come to Schaumburg – and please remind me why anyone would with so many more scenic and attractive Chicagoland options would choose Schaumburg? By the freeway? With the chain stores and generic malls?? They have jobs if and only if out of towners come and deposit their money into Schaumburg and pay your high hotel tax. It is a small portion of this tax that goes to the bureau again for the third time PAID FOR BY OUT OF TOWNERS> WEddings are so nice but those large catering bills are not part of the hotel tax! Hotel tax is only assessed to SLEEPING ROOMS. Brian, do you know what you are even talking about? I am happy you live in Schaumburg and that I dont have to!! Isnt it the place with coast to coast Olive Gardens?
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Brian Costin Reply:
June 8th, 2010 at 10:28 PM
Schaumburg’s hotels are currently assessed at least a 14% room tax per night. The food and beverage tax is 12%. The WCNCB is Primarily a Taxpayer funded organization that lobbies for higher taxes and corporate welfare. Look no further than their endorsement of the hotel tax, telecom tax, amusement tax, and property tax exemption for the publicly owned convention center in Schaumburg that is losing $27 million per year.
I have no problem with a WCNCB that obtains donations voluntarily from organization that are served by it, but they people of Schaumburg and our visitors shouldn’t be forced to pay for it through a hotel tax.
They should raise their money voluntarily through donations, not taxation.
June 9th, 2010 at 6:14 AM (#)
The small portion of the hotel tax that goes to the Bureau is approved by the hotels who want to see SOME of the large amount of money their guests are taxed go into the promotion of filling their rooms. When they are successful, Schaumburg reaps more hotel tax of which they keep the majority of that educates your students, fixes your streets. Is the alternative not have self assessed hotel tax money go into the promotion of travel? Goodluck as EVERY CITY around Schaumburg is represented by a Bureau who are more than happy to go to trade shows, advertise and steal your business. Doesnt schaumburg have a new convention center? Do you wish it to have no sales force behind it? That would be one pretty big empty eyesore look no further than the BANKRUPT Sears Center to see how a facility does with no Bureau representation.
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Brian Costin Reply:
June 24th, 2010 at 12:58 PM
The taxes are not voluntary. There is no choice for individual hotel owners to opt out of the Bureau’s Hotel tax.
If the Bureau is such a good idea we can eliminate the tax and individual hotel owners can opt in through membership. Or if individual hotel owners don’t think the bureau is doing a good job they can keep that money and do advertising on their own. I don’t buy into the myth that only government sponsored enterprises such as the WCNCB can do effective marketing.
A number of cities opted out of WCNCB because they didn’t see a value in it including Hoffman Estates.
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June 24th, 2010 at 1:08 PM (#)
Of the total hotel tax assessed to a Schaumburg hotel visitor, 6% of it goes to the State of Illinois and and I can promise you there is no “opt-out” option.
MOst hotels pay a membership fee in addition of what the village/city pays. So when the municipality assesses 6-7% ON TOP of the state’s hotel tax, do you think the hotelier want a SMALL portion of that to go to the marketing of the destination or to fix a pot hole on a neighborhood street?
The purpose of the bureau is to market the DESTINATION. I can promise you no one comes to Schaumburg for the hell of it. They come to Schaumburg because they were lured to the destination for its location, amenities, transportation options, etc. THEN THEY pick a hotel. Hotels KNOW this which is why they assure that a portion of the local hotel tax goes to destination marketing.
However, you seem to know what make a hotel successful and how they market themselves…NOT. If I gave you a butter knife, are you also a surgeon?
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Brian Costin Reply:
June 24th, 2010 at 1:36 PM
I think the Hotelier should make those decisions not me or any other politician. They can only make that decision on the value of the WCNCB if they are free to do so.
Why not reduce the taxes on hotels and let the customers and hotel owners decide how they want to spend their money rather than politicians having the hubris in believing they are superior marketers of private products.
Let’s not forget high taxes discourage people from coming to Schaumburg, high hotel taxes discourage visitors from staying in our hotels.
A low tax rate is the best advertisement that a government can provide.
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