After Scathing Audit, It's Time to Yank Funding From VisitDallas

If history is any indication, the city audit of VisitDallas released publicly last week will soon be forgotten and little changes will be made, but we cannot afford to let the opportunity pass us by to utilize these troubling findings to make a significant impact. Firing the organization's chief executive officer, turning over some of its funding to a different private group and reallocating the remainder of its funding to areas of greater need are necessary.Formerly known as the Dallas Convention and Visitors Bureau, VisitDallas is a nonprofit organization tasked with marketing Dallas and promoting it as "a business and leisure destination." The 73-page audit document details a five-year period (fiscal years 2013-17) during which VisitDallas received more than $146 million in city tax dollars and $20 million in state funding, together accounting for more than 92 percent of its budget during that time.The audit describes a dysfunctional organization that displays no respect for taxpayer funds or even its own policies and procedures. VisitDallas has been able to operate this way because its 50-plus member board of directors and our city government turned a blind eye and failed to hold it accountable.Phillip Jones, the organization's chief executive, earned a staggering total compensation of $670,317 in fiscal 2016, according to an internal revenue service filing, including a $210,000 bonus. For comparison, our city manager, who essentially serves as chief executive of Dallas and manages its more than $3.6 billion budget and 13,000 employees, earns $395,000 annually.As outlined in the audit, Jones is also provided with access to a "long-term rental home" in Austin at a cost of $12,000, a rental car and a seemingly endless expense account. He had meal expenses that "appear high," according to auditors, purchased gifts without proper documentation, bought items "for personal enjoyment," and spent more money on hotel rooms and transportation than is allowed by his organization's internal policies.Of the 141 expenses examined by the auditors, 33 percent either lacked adequate documentation, weren't compliant with tax laws or violated VisitDallas' policies. Twenty-seven percent of bonuses and 21 percent of raises given by Jones to his employees also violated the organization's policies. VisitDallas pays $250,000 annually for a suite at the American Airlines Center, while the AAC's executive vice president and general manager serves on its board.There's no excuse for this clear mismanagement of taxpayer funds. It's time for Jones, who has been leading VisitDallas since 2003, to immediately lose his job without further compensation and for the city to work toward selecting another private group to manage the group's funding. The city is currently deciding whether to privatize operations of the convention center. It makes sense for that same entity to market the center and book conventions.Most important, it's long overdue to reallocate some of VisitDallas' funding. The organization and its approximately 80 employees had a $41.5 million budget in fiscal 2017, more than double the fiscal 2012 budget. For reference, this year the city budgeted $35.2 million for code compliance and its 390 employees, and $34.1 million for libraries and its 406 employees.The largest percentage of VisitDallas' budget is paid with hotel occupancy taxes. State tax code unfortunately restricts the use of those funds "to promote tourism and the convention and hotel industry," but with the legislative session underway, now is the ideal time to contact your state representative and senator. Ask them to support allowing Dallas and other municipalities to spend those funds in areas of greater need.VisitDallas in fiscal 2017 received $16.7 million in hotel occupancy taxes. That amount of annual funding would help put a dent in our lack of affordable housing units by incentivizing developers to include them in their multifamily projects. Dallas desperately needs these housing opportunities to ensure that our police officers, firefighters and teachers can actually afford to live where they serve, and to reduce the number of middle class families fleeing to the suburbs.When the city surveyed residents last year, the top issue identified as a "major problem" was homelessness, yet the city hasn't done much to respond to that feedback. Dedicating some of the hotel occupancy tax funds to successful programs aimed at helping our fellow citizens recover from homelessness would create a dedicated revenue source that our peer cities have used to make a positive impact in their communities.It should be an easy sell to lawmakers. Let's spend those precious tax dollars on efforts that will make lives better for the people who live here and are struggling instead of conventioneers merely passing through.Sam Merten is a member of the Opportunity Dallas board of directors and the City of Dallas Citizens Homelessness Commission. He wrote this column for The Dallas Morning News.  Continue reading...