House budget writers plan to reduce state funding given to the High Point Furniture Market that the semi-annual trade show uses to attract new buyers and exhibitors.
The market was hit with a 1 percent cut to its $875,000 annual marketing appropriation at a time when local representatives had been seeking a $2.6 million increase in order to keep the market healthy and fend off a rising rival in Las Vegas.
"No, not acceptable," said Rep. Laura Wiley, a High Point Republican. "The furniture market is not the place to be cutting funds. It is an economic engine for not only the Piedmont area but the entire state."
Although the furniture market has gotten increasing attention from the legislature in the past several years, an ongoing economic downturn has depressed tax revenues and the amount of money budget writers can spend. At the same time, needs have grown in sectors such as mental health and transportation.
Money set aside in the transportation budget to help move market visitors to and from showrooms was not cut, said Rep. Nelson Cole, a Rockingham County Democrat who oversees transportation appropriations in the House. But the marketing funds were in the Commerce Department budget.
Money for the market is treated like other grants the departments make to nonprofits, all of which received a 1 percent cut this year.
"How many nonprofits put billions of dollars back into the economy," Wiley asked.
A 2007 study by High Point University suggested the furniture market had a $1.1 billion annual economic impact on the region.
"It's a lost opportunity," said Denise Turner, a lobbyist with the Greensboro Partnership who was on hand when the cut was unveiled. "There are very few things in our state that could generate that kind of economic impact. The state is risking that opportunity."
The full House is expected to vote on the budget next week. It will then be the Senate's turn to craft a spending plan before the two chambers and the governor's office craft a final deal.
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