High Point Market Authority bracing for cuts

Its budget may shrink as a result of state cutbacks

Heath Combs -- Furniture Today, July 24, 2009

HIGH POINT — High Point Market Authority officials reported at a board meeting Thursday that the group may face a big drop in funding from North Carolina due to cuts in the state budget.

The state has not yet passed a budget and has been operating under stop-gap funding since July 1. Its fiscal year ended June 30.

North Carolina faces deep cuts as it works to close a $4 billion budget shortfall.

The Market Authority budget for its previous fiscal year, which ended June 30, was $5.2 million. Much of that money comes from the state, but the group also gets funding from other sources, including a showroom tax.

The market's transportation funding may be cut by $300,000 to a total of $900,000, said Market Authority President Brian Casey. That amount comes from the North Carolina Department of Transportation and pays for items like shuttle service.

The state's contribution to the authority's marketing budget could decrease by about 40% to $831,000 from $1.4 million. Market entertainment, among other items, is paid for from the authority's marketing budget.

Because of ongoing budget pressures, the Market Authority has been finding ways to sharpen its operations with less funding, according to Casey. "We're just having to find ways to work smarter."

Casey added that the exact impact state cuts might have on the Authority's budget won't be known until a state budget is passed. "Funding could invariably go up as a vote has not been taken yet," Casey said.

The Market Authority has done more e-marketing than ever before and also is working with more social media, said Kimberley Wray, vice president of marketing.

Transportation routes continue to be evaluated to determine where cost savings can be made, said Tammy Covington Nagem, vice president of operations.

Casey said that despite the budget shortfall, the state is showing that it still recognizes the importance of the market by providing significant financial resources.

Premarket, which typically takes place about a month before market, continues to gain support even as it overlaps with the Las Vegas Market this year, said Kevin O'Connor, chairman of the Market Authority board and president and CEO of Samson Marketing.

O'Connor said that premarket may lose a few West Coast retailers who will attend Las Vegas, but that majors who've attended the event in the past are planning to return.