Committee boosts Explore Fairbanks and Fairbanks Arts funding after debate over bed-tax split

The finance committee approved two grant changes April 18 that increase borough support for tourism and arts programs.

Assemblymember Mark Guttenberg moved an amendment to increase funding for the Fairbanks Convention and Visitors Bureau (operating as Explore Fairbanks) to restore a historic 65% split of projected room-tax revenue. The initial proposal would have raised the Explore Fairbanks allocation by $665,000, but Assemblymember Roach successfully moved an amendment to the amendment, cutting the increase to $332,500. The committee voted to adopt the amendment as amended.

Mr. Guttenberg, a member of the Explore Fairbanks board, said the agency brings money into the borough through bed tax and that the funds would be used primarily for advertising to fill more lodging beds. Opponents, including Assemblymember Kress and Ms. Wilson, raised concerns about Explore Fairbanks' large fund balance and the possibility that extra funding could be spent on grants rather than marketing.

Separately, Assemblymember Krauss moved and the committee approved a $45,000 increase to the Fairbanks Arts Association's recurring cultural-activities grant to fund a communications coordinator and adjust for inflation. The administration and several members said they expected the arts organization to report back on use of funds.

Both grants were folded into the grants department's budget, which the committee approved as amended and forwarded in the budget package.