LVCVA reviews 36% budget decrease for 2020-21
The Las Vegas Convention and Visitors Authority could survive two years even if it received no revenue, the organization’s board of directors was told Tuesday.
LVCVA President and CEO Steve Hill and Chief Financial Officer Ed Finger introduced the organization’s $160.6 million 2020-21 budget in a telephonic meeting. That’s a 36 percent decrease from the 2019-20 budget.
The proposed budget considers spending $65 million for advertising, also 36 percent less than last year.
A contract the LVCVA has with R&R Partners for advertising services, due to expire in July, is expected to be extended at the board’s June meeting.
A public hearing on the budget is scheduled for May 27.
Under the proposed budget, salaries and benefits would be slashed from $60.4 million to $36.7 million with 482 funded jobs trimmed to 314. Last month, Hill informed the board that 80 positions were expected to be eliminated and 270 workers are being furloughed. Health care benefits will be left intact for furloughed workers. Hill said employees would be able to apply for federal and state CARES Act and unemployment aid. Executive salaries have been cut and bonuses eliminated.
A voluntary separation program is in place for workers nearing retirement or wanting to change careers.
Although a hiring freeze is in place, the LVCVA was already in the process of hiring a chief marketing officer. On Tuesday, Hill announced that Kate Wik, formerly senior vice president of marketing strategy at MGM Resorts International, will fill the position. She’ll have an annual salary of $315,000.
Other elements of the budget include $13.1 million for general government purposes (down 37 percent), $30.1 million for operations (down 33 percent) and $40.7 million for marketing and special events (down 32 percent). The budget zeroes out a $100,000 contingency fund.
Hill said budget adjustments would probably be made over the year as the LVCVA determines what conventions and special events currently on the calendar may be affected in the future.
The board also voted unanimously to transfer a $27 million post-employment benefits reserve fund to the LVCVA’s operating budget. Statutes no longer require the LVCVA to carry the reserve fund.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
