Local governments’ subsidies for area Chambers of Commerce, which help small businesses with various services, are getting more scrutiny from local officials, with some cutting them back, according to a report over the weekend by the Salt Lake Tribune.
The article asks whether Chambers of Commerce deserve taxpayer money, and what role should public entities play in supporting organizations whose purpose is to advance private-business interests.
In Utah, many are expressing frustration with the cushy deals Chambers of Commerce are getting from cities. The South Salt Lake Chamber, for example, receives $50,000 a year from the city, plus free office space. “Obscene is the word for it,” says former Mayor Wes Losser, who points out that entrepreneurs, not taxpayers, should support the business association. In his role, he penciled in a zero in his budget for the Chamber every year. Other cities in Utah also are getting 35,000 to $60,000 per year in funding.
Chamber supporters say that these government payments help support economic development and sustain area businesses in a tight economy. Chamber initiatives encompass such efforts as supplying training for small businesses, publishing business directories, sponsoring community events and serving as the welcome mat for new businesses. “If we’re able to help the businesses become stronger and stay here and be profitable, it will ultimately mean more revenue to the city,” Stacey Liddiard, president and chief executive of the South Salt Lake Chamber, told the Tribune.
Other Chambers are being responsive about taxpayer funding. In South Jordan, Utah, the chamber said that it will no longer seek a city subsidy; instead, the group is offering a fee-for-service contract to help local businesses. Before the change, taxpayers provided 44% of the chamber’s budget. “We don’t want a subsidy,” says Paul Pugmire, acting president of the South Jordan chamber, told the Tribune, as part of the chamber’s plan to be self-sustaining.
Should cities be supporting local Chambers of Commerce? Or are there better ways to support local businesses?
Photo: Associated Press
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