As a result, commissioners asked for an amendment to a funding contract they entered into with the CIC. According to the CIC’s budget approved in January, the county agreed to contribute approximately $320,000 for this year.
That money was given to the CIC earlier this year. However, the amendment to the contract, approved by members of the CIC on Monday, has changed that funding to $288,000 and will go into affect on May 1.
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Clark County Commissioner Melanie Flax Wilt said they are asking for similar cuts regarding community partners they have entered into contracts with. The exception being the Small Business Development Center due to that entity having a total contract of $5,000 with the county, she added.
The county has also implemented furloughs for 56 employees and Flax Wilt said she agreed to reduce her own salary for the time being, but did not speak on the other two commissioners during the meeting.
“This is not something that we wanted to do,” Flax Wilt said of the cuts during the special meeting on Monday.
A large source of revenue for the CIC comes from local government funding. In addition to the county, the City of Springfield is expected to contribute $11,200.
Flax Wilt said the county can restore funding that it has cut from the CIC if sales tax revenue picks up later in the year.
The CIC originally approved a budget for this year that projected revenues of $990,448 and expenditures of $978,926. The organization promotes economic development in Clark County and is connected to the Chamber of Greater Springfield.
However, the figures presented in the budget are estimates based on a number of different variables. Those include private donations that the agency hopes to collect during fundraising efforts, which can vary.
Current fundraising efforts have been put on hold due to the pandemic and it is unclear what long term impact the crisis will have on the CIC, especially for the rest of year, said its chair Tom Sothard.
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Sothard said they will have to continue to cut back expenses. They have already reduced some costs due to the cancelling of presentations as well as business travel associated with the CIC due to COVID-19, also known as the coronavirus.
A state stay-at-home order has also cut some of the organization’s operating costs. The economic impact seen to many businesses across the state will also have an effect on the CIC’s revenues.
“If this goes on longer, it will have a more drastic effect on us. Again this is something that is new to everyone,” Sothard told the News-Sun.
However, the crisis is not impacting all businesses or industries the same. Some companies that are considered essential have seen a greater demand for their products.
Sothard said what impact this will have on the CIC’s operations depends on how fast the economy can bounce back once the pandemic begins to subside.
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