LVCVA approves $206.6M budget
It’s 43 percent under current spending plan
A slimmed-down Las Vegas Convention and Visitors Authority will move forward in the POST-COVID-19 world after the authority board on Wednesday voted unanimously to approve a $206.6 million general fund budget for 2020-21.
That’s 43 percent less than the budget that ends June 30.
The LVCVA, funded primarily by taxes on hotel rooms, is anticipating room-tax revenue to be $116.3 million next year, nearly half the amount expected to be collected in the current fiscal year.
With hotel rooms closed as nonessential businesses for about 11 weeks to prevent the spread of the coronavirus outbreak, the LVCVA’S primary revenue source has been decimated.
Another key revenue source, the rental of space for conventions, conferences and meetings, also is being pinched by capacity protocols established by the Centers for Disease Control and Prevention that recommend against meetings of groups in excess of 250 people in the foreseeable future.
Dozens of conventions have been canceled or postponed through 2020, although two big ones — the Specialty Equipment Market Association, a major automobile aftermarket exhibition, and CES in January — remain on the calendar. LVCVA President and CEO Steve Hill said more conventions are on the books for 2021 than ever before, but how and whether they’ll happen is another story.
The approved budget shows several instances of scaled-back spending as the city rebuilds its POST-COVID economy. Among the changes:
Salaries and benefits will nearly be cut in half, from $60.4 million in the current year to $36.7 million next year. The number of full-time-equivalent jobs is being trimmed from 538 to 412, with the number already cut by 44 this year.
Advertising will be cut from about $100.3 million to $65 million next year.
Several special events the LVCVA traditionally funds have been zeroed out for next year but overall, the budget is higher than last year. Hill said while several events are in the budget, that could change if some end up being canceled. Out of the funding mix are the Life Is Beautiful festival and Big League Weekend, although a reserve fund is available for reconsideration later. Higher amounts have been set aside for some new big events planned at Allegiant Stadium, including the revamped Las Vegas Bowl ($1.6 million) and the Pac-12 football championship ($1.3 million).
The budget preserves funding to complete the $980.3 million West Hall expansion and its $52.5 million underground people-mover project. But money for the two-year renovation of the existing exhibition halls in the main Convention Center building has been shelved.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @Rickvelotta on Twitter.