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Bylaws changes put spotlight on county's tourism bureau

Regarding recent changes approved at the Butler County tourism bureau, Harmony borough council President Jim Hulings summed things up well, saying, “(The bureau) is going the wrong way.”

Despite changes to the organization’s bylaws having been approved with a 92-15 margin, some of the recent developments strike some people as unnecessary or troubling.

Hulings sees the bylaw changes as shifting power away from members of the agency and consolidating it in the hands of a few people at the top. He also expressed disapproval of the bylaw changes that remove language vowing compliance with the state’s Sunshine Act, which is intended to impose transparency on governmental bodies and other organizations spending public money.

The tourism bureau’s executive director, Jack Cohen, who backs the bylaw changes, says he believes the agency was never subject to the Sunshine Act, but has nevertheless complied, even though it was not required to do so.

The tourism agency was created by Butler County and operates on a budget primarily funded by a bed tax approved by county officials. In the most recent year, the bed tax produced most of the agency’s $1.3 million annual budget. How can that not impose the transparency model spelled out in the Sunshine Act?

Before the bed-tax funding, the agency had a negligible budget and few people thought about how tourism dollars were spent. But with a $1.3 million tax-funded budget, most people expect oversight, transparency and safeguards to prevent misuse of funds.

The bylaw change removing the requirement that checks over a certain amount require two signatures was seen as a red flag warning by people who are familiar with basic financial safeguards followed in other organizations. Most small nonprofit organizations, with budgets far less than $1.3 million, know that requiring two signatures is a basic procedure to make it more difficult for a single individual to misuse money.

The tourism bureau argues that the changes are for efficiency and convenience. But when spending $1.3 million a year in tax dollars, convenience is not the highest priority. Two signatures should be required for spending more than a few hundred dollars, even if it means a little inconvenience for Cohen or others.

Legal opinions differ on whether or not the agency falls under the state’s Sunshine Act. It’s true that the act’s wording suggests that organizations performing only an “essential government function” be subject to the act. But the spirit of the law is clear — transparency and accountability when spending public money.

The tourism agency was created by county government and is primarily funded by a county-imposed bed tax; it should be subject to the Sunshine Act.

Even if, as has been said, the current administration and board of the agency are trustworthy, rules and bylaws should be in place just in case some future executive or board members are tempted to take shortcuts or misuse money.

Cohen insists the safeguards are in place. He says an accountant tracks transactions in monthly reports to the board, and an annual audit report and a federal form 990 are submitted to the county commissioners.

Even so, the increased attention and ongoing debate over the changes should shine some overdue attention on this group spending $1 million-plus of tax money every year.

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