CVB ignored Public Records Law, spends millions of taxpayer dollars on salaries

White Paper further questions constitutionality of SB 242

It took a year longer than it should have, but Justin Winch of SmithStag LLC finally got access to the public records he sought: the New Orleans Convention and Visitors Bureau’s financial records from 2000 to the present. And what he found was alarming.

The New Orleans Convention and Visitors Bureau spends up to $4.5 million in taxpayer dollars – half the amount allocated by the citizens of this state to the organization already for “tourism marketing” – on salaries for its CEO and multiple Vice-Presidents and other executives.  There is no guarantee that the tax money generated by this bill would actually go to “tourism marketing”, for which the tax payers are already providing millions of dollars.

With the CVB heading back to the taxpayer trough in the form of SB 242 – a bill that would give an estimated $14 million in new taxpayer dollars – the declatory judgment in Mr. Winch’s favor couldn’t have come at a better time. A judge ruled in his favor only this Friday, declaring that the CVB was subject to Public Records law. A ruling that the CVB knowingly violated the Public Records Law with respect to Mr. Winch's May 21, 2012 inquiry could be forthcoming.

“The taxpaying public, and the legislators who will be voting on SB 242 have the right to know how these public dollars are being spent,” said Mr. Winch. “And from the records I saw, the greatest disbursements Mr. Perry and Mr. Moeller are making, are to themselves. The brazen shamelessness to go to the legislature for more taxpayer money when you’re already skimming millions upon millions off the top is astounding. Not to mention the fact that they ignored the law to try to hide it.”

But the CVB’s problems with the law don’t end there. A recent white paper written by SmithStag LLC calls into question the constitutionality of SB 242. The paper reads:

The Citizens of the State of Louisiana found that the French Quarter was so precious to them, that it deserved a Constitutional Amendment to provide for its preservation…

Nevertheless, Senate Bill 242 – The “New Orleans Visitor Tax” - ignores the Citizens of the State, who voted to require the French Quarter be safeguarded; the effects of Senate Bill 242 actually conflict with the Constitution of this State and furthermore attempts to add insult to crippling injuries that the Tourism Industry has already identified.

According to the CVB’s own study, “The French Quarter needs attention. Fixing the basics – safety and cleanliness is critical… code enforcement has been lax and resources or maintenance and preservation have been inadequate.”

“The state has a constitutional duty to preserve the French Quarter,” said Meg Lousteau, Executive Director of the Vieux Carre Property Owners, Residents and Associates, Inc.. “Just last week the ceiling fell in on the lower Pontalba. The city is already failing to fulfill its constitutional obligation, and now they’re going to dedicate more money to drive up tourism in the Quarter which will only catalyze historic structures’ decline into disrepair. This is irresponsible, unconstitutional, and unacceptable.”

"Why would we spend all this money on 'marketing'?" said Mr. Winch. "Where does this deserve to be ranked in terms of necessity? WIth all of the other problems our city is facing - crime, crumbling infrastructure, inadequate code enforcement, maintaining public properties - there has to be a higher priority for new revenue than marketing."

SB 242 is scheduled for consideration in the Louisiana House of Representatives tomorrow, Wednesday, May 29, 2013.

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According to the CVB’s own study, “The French Quarter needs attention. Fixing the basics – safety and cleanliness is critical… code enforcement has been lax and resources or maintenance and preservation have been inadequate.”

“The state has a constitutional duty to preserve the French Quarter,” said Meg Lousteau, Executive Director of the Vieux Carre Property Owners, Residents and Associates, Inc.. “Just last week the ceiling fell in on the lower Ponalba. The city is already failing to fulfill its constitutional obligation, and now they’re going to dedicate more money to drive up tourism in the Quarter which will only catalyze historic structures’ decline into disrepair. This is irresponsible, unconstitutional, and unacceptable.”

"Why would we spend all this money on 'marketing'?" said Mr. Winch. "Where does this deserve to be ranked in terms of necessity? WIth all of the other problems our city is facing - crime, crumbling infrastructure, inadequate code enforcement, maintaining public properties - there has to be a higher priority for new revenue than marketing."

SB 242 is scheduled for consideration in the Louisiana House of Representatives tomorrow, Wednesday, May 29, 2013.