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The state tourism office budget is about $15 million lighter than initially expected due to a federal funding loss.
July 28, 2023 02:47 PM
Hearing Tim Allen's voice telling people about the wonders of exploring Michigan's coastlines: it's Pure Michigan. But with only $15 million included in the 2023-24 fiscal year budget for the tourism campaign, some lawmakers are concerned that less money will mean nothing but pure problems for the state's travel economy.
This week, Rep. Ken Borton (R-Gaylord) sent a letter to Gov. Gretchen Whitmer, House Appropriations Committee Chair Rep. Angela Witwer (D-Delta Township) and Senate Appropriations Committee Chair Sen. Sarah Anthony to ask that the funding levels for Pure Michigan be increased.
During the 2022-23 fiscal year, the budget included $40 million for the Pure Michigan campaign. The funding included $15 million from the General Fund, $15 million from federal American Rescue Plan Act dollars and $10 million in options for private sector/partner contributions.
This year, the $15 million in federal funding was not included in the executive budget recommendation put forward in February or the Senate recommendation. The House recommendation reduced the funding to $10 million, and ultimately, the conference concurred with the executive and Senate recommendation. The $15 million from the General Fund and $10 million in options for private sector/partner contributions remained.
Borton said he didn't know the funding level for Pure Michigan was going to be changed until late in the budget process.
"That was devastating to me and to the people, in particular, of Northern Michigan. Business people that really depend on that promotion of Pure Michigan," he said in an interview. "A lot of them will ask their customers: 'How did you hear about us? You're here from Alabama. You're here from Texas. You're here from Tennessee' … and they'll say, 'We saw Tim the Tool-Man Taylor on TV, talking about Michigan, and we've never been here before.'"
In response, Borton is calling for the additional $15 million included in the budget last year to be restored in a letter that also was signed by Rep. Curt VanderWall (R-Ludington), Rep. Jon Roth (R-Interlochen), Rep. Cam Cavitt (R-Cheboygan) and Rep. Dave Prestin (R-Cedar River).
"The positive impact of Pure Michigan cannot be overstated, and it is disheartening to witness such a valuable program being stripped of its resources," he said in a statement. "The short-sightedness of Lansing Democrats in neglecting long-term growth and prosperity throughout the state is deeply concerning. If we want to attract more Americans to move to Michigan, we should be investing more into Pure Michigan, not the opposite. Pure Michigan will now be forced to scale back or even eliminate many of its planned initiatives, which will undoubtedly harm our state's economy."
A response from Whitmer's office highlighted the importance of tourism to Michigan and as a priority for her administration.
"Governor Whitmer has been on a mission to make Michigan a top place to live, work and play. That's why she's brought together lawmakers on both sides of the aisle to boost our state's economic competitiveness, increase investment in our pure Michigan outdoor economy and tourism and rebuild the infrastructure around our vibrant downtowns," Whitmer Communications Director Bobby Leddy said. "This work is critical to land major events that drive tourism, like the 2024 NFL Draft, and can lead to worldwide recognition, like when Detroit was recently named TIME's World's Greatest Places of 2022. Governor Whitmer looks forward to continue making investments in our bustling downtowns and growing our state's reputation as a place to be."
The Pure Michigan campaign began during the administration of Gov. Jennifer Granholm in the 2000s and was widely credited with injecting enthusiasm into the state's promotional efforts during difficult economic times. Gov. Rick Snyder embraced and expanded the campaign.
Although Whitmer supported funding Pure Michigan as a member of the Legislature, she seemed more reticent after becoming governor. In 2019, when the Republican-led Legislature passed a budget without her input, she line-item vetoed the program's entire $37.5 million appropriation. In 2020, she agreed to partial restoration at $15 million. For the 2021-22 fiscal year, federal aid was used to prop up the program to $40 million overall (there was just $10 million General Fund).
The $15 million from the General Fund included in the 2023-24 fiscal year budget for Pure Michigan is in line with the General Fund allocations in previous years. This year's budget also includes $10 million General Fund for convention and visitors' bureaus to promote hospitality, tourism and travel. Funding also was included to support infrastructure improvements and community enhancement projects at tourist destinations around that state, including sports stadiums, museums and music and performing arts centers.
The budget was crafted to prioritize diversifying the state's marketing strategy to encourage people to live and work in Michigan in addition to tourism, said a source speaking on background.
The state also is running the Pure Opportunity campaign through the Michigan Economic Development Corporation, a $15 million marketing campaign to attract people and businesses to the state. It launched earlier this year to tout the state's skilled labor pool, freshwater resources and climate change preparedness, while highlighting Michigan businesses.
In a statement, Nick Nerbonne, media, digital and industry relations director for Travel Michigan, recognized the importance of the additional approaches.
"The Pure Michigan advertising campaign, while the most widely recognized, is just one of many attraction and retention campaigns the MEDC leverages to promote Michigan as an ideal place to live, work, visit and build a future," he said.
Borton said he was concerned that without the additional $15 million for Pure Michigan, national advertising wouldn't be possible.
"I see it in the real world, how important that funding is," he said. "That's really going to hurt us."
There are no plans to discontinue national advertising through Pure Michigan, Nerbonne said in a statement.
"The campaign's fiscal year 2024 marketing plans are still being finalized, however we will continue to focus our world-class marketing campaign on key markets that will produce the greatest response from travel consumers, including out-of-state and in-state locations, while maximizing available tools and resources to build on our successes promoting Michigan as the top travel destination in the country," he said.
Despite the lack of federal dollars to use on Pure Michigan this year, Borton said that with the state passing a record $82 billion budget, he would have liked to see more money put into the campaign.
"Defunding Pure Michigan on any level is wrong. If anything, we should have been pouring more dollars into it," Borton said. "Whatever we need to do – a supplemental, whatever the case may be. Money put into Pure Michigan – it just has a proven track record that has a great return on investment."
Because tourism is important to Michigan's economy, especially Northern Michigan, Borton said he thought the full $40 million was needed.
"And I know the governor wants to increase our population," he said. "What better way to increase our population than to invite people into our area, especially in the summer, to see what a beautiful state it is and to have them think, 'You know what, maybe I could live here.'"
Borton said that his primary reason for raising the issue is to help the people in his district.
"I see dollars put into tourism as the best way to bring people into this state," he said.
Pure Michigan will continue to be an important outreach strategy for the state, Nerbonne said.
"Once planning is complete, the Pure Michigan campaign will continue to be a key component in growing Michigan's economy, along with complementary campaigns for attracting and retaining top talent, supporting small businesses and entrepreneurs, and attracting high-tech startups and business investment to Michigan from across the country and around the world."
By Elena Durnbaugh, Gongwer
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