EL DORADO COUNTY, Calif. – The Lake Tahoe South Shore Chamber of Commerce, Tahoe Prosperity Center, and other “outside agencies” in El Dorado County (EDC) were surprised in February with the board of supervisors’ decision to completely cut their transient occupancy tax funding and roll it into the general fund—a decision that may have lasting repercussions on tourism and business in the area.

On February 11, the Board of Supervisors discussed an item on the agenda regarding the Discretionary Transient Occupancy Tax (DTOT), a 10% tax on hotels, motels, and vacation rentals, with an additional 4% in the unincorporated portion of the Tahoe area of the county. About 66% of the DTOT is generated in the Basin.

The board policy on the revenue gathered from this tax is to direct it towards impacts of tourism and economic development, with consideration for support of tourism and promotion activities, and continued support for grant fund allocations to support veteran programs.

---

---

However, the policy is also to prioritize impacts to county services and facilities and their funding before funding outside agencies. Since the 2021-2022 fiscal year, the Chief Administrative Office representatives stated that there have been overall decreases in the revenue DTOT brought in. For the 2024-2025 fiscal year, the DTOT brought in around $7 million, which was a decrease of $0.2 million from their projections.

As a result of these decreases, the board policy, and shortages in the countywide budget that would require cuts whether or not outside agencies were funded, four of the five board members voted to cut funding in favor of supporting public safety through those funds. District 5 Supervisor Brooke Laine was the only dissenting vote, proposing a more gradual set of cuts that went unsupported by the board.

---

---

“I am in support of the board’s priority to fund county services.  I voted against the motion because I felt just ‘pulling the carpet out from underneath the outside agencies feet’ was rather inhumane,” said Laine in an email to the Tribune. “I preferred a step-down approach that would give those outside agencies a more appropriate period of time (two years) to adjust their budgets accordingly.”

The budget cuts impact the EDC Chamber of Commerce, the EDC Chamber Film Commission, the El Dorado Visitor Center, Lake Tahoe South Shore Chamber of Commerce, Tahoe Prosperity Center, Wagon Train, 50 Economic Alliance Membership, Growth Factory, Greater Sacramento Economic Council, Arts and Culture, and Save the Graves.

Steve Teshara, director of government relations for the Tahoe Chamber, expressed his confusion and disappointment in the board’s decisions. “DTOT funds don’t grow on trees. If the county is eliminating funds from tourism, I don’t know if they can have a realistic expectation for how those funds are expected to grow,” said Teshara. “Because without actual promotion for visiting the county, those funds will decrease.” This past fiscal year, the Tahoe Chamber was allocated $78,950.

Teshara also expressed that it was a shame that they would likely need to discontinue projects such as Sample the Sierra, which promoted agricultural products, wineries, and breweries in the area. “We really appreciated the chance to know about these local outputs, and without county money, it may no longer be possible to showcase those.”

Heidi Hill Drum, CEO of the Tahoe Prosperity Chamber (TPC), expressed her sympathy to the board’s difficult decisions. Yet she was also shocked by the way that things played out. “It was really unexpected as well as a huge blow to us and the economic development department at the county,” said Hill Drum. “In the past decade, the DTOT has fluctuated, and we’ve made budget changes, but it’s never played out like this.”

This past fiscal year, the TPC was allocated $30,000. Hill Drum says that with that investment, the TPC brings millions of dollars back to the county. “We bring back more than what they invest. For example, we provide data collection and processing to the county that allows them to get housing and broadband grants.”

The TPC also maintains services that Hill Drum says aligns with the county’s goals on public safety, such as the ALERTWildfire cameras and housing in the Basin. Their board will meet in March to discuss what to do moving forward, but Hill Drum says that after cuts in funding from both South Lake Tahoe back in December and EDC, she’s unsure of how they’ll be able to partner with these entities moving forward.

“I really think there’s a need to align with the essence of what these tourism dollars are meant to do—to improve infrastructure, to invest in the community for locals and residents alike,” said Hill Drum.

While the basin generates much of this revenue, outside agencies down the hill are similarly hurting from the board’s decision. Laurel Brent-Bumb, CEO of the EDC Chamber of Commerce, attended the meeting to give her comment and advocate for the outside agencies. “These programs, from my perspective, are major revenue generators,” said Brent-Bumb. “The decision that the board made, however, feels like they’ve shot the dog that pulls the sled.” The EDC Chamber was allocated $279,398 in the past fiscal year.

Brent-Bumb expressed her deep sympathies to agencies like the Film Commission, Welcome Center, and Visitor Authority, which were all contracted by the county—and will all be terminated by June 30. “Film alone made $1 to $7 million of economic impact in the county and it’s really quite tragic to see that loss,” she said.

“Without these tourism programs, the impacts will be felt regionally. It’ll affect restaurants, gas stations, retail—anything touching people that travel through this county, or through San Francisco and Sacramento, which we also distribute tourism guides in,” Brent-Bumb said. “We may not see the impact right away, but it will be felt. I am not unsympathetic to the board’s decision, but eliminating something that generates revenue simply won’t help.”

While some, like Hill Drum, are hoping that the board will reconsider, Brent-Bumb doubts that they will be changing their minds—especially because the overall county budget is short, even with the cuts.

The EDC board of supervisors will be meeting on April 22 to discuss the next fiscal year budget.

Eli Ramos is a reporter for Tahoe Daily Tribune. They are part of the 2024–26 cohort of California Local News Fellows through UC Berkeley.