Indianapolis Capital Improvement Board to tackle $20 million deficit

By Scott Olson, The IBJ

solson@ibj.com

Members of the Capital Improvement Board are expected Tuesday to address budget challenges driven by a weak economy and $20 million operating deficit for Lucas Oil Stadium.

The cash-strapped CIB also manages and operates the Indiana Convention Center, Conseco Fieldhouse and Victory Field, as well as provides some funding for the Indianapolis Cultural Development Commission, Arts Council of Indianapolis, Indiana Black Expo and Indiana Sports Corp.

"We put together a budget, and we're in the middle of evaluating what we're going to do," said Bob Grand, CIB president. "With the significant economic decline, we've got a lot of questions to address."

Grand declined to speculate on what funding decisions might be made.

CIB expects a $20 million operating deficit for the stadium this year. Anticipated expenses of $27.7 million far outstrip the $7.7 million CIB expects to collect from its share of revenue from stadium events.

CIB had an operating budget of $74 million in 2008. Through the years the organization amassed tens of millions of dollars in reserves, but last year drew out about $25 million to shore up its operating budget. After drawing down an anticipated $20 million this year, the surplus could shrink to as little as $5.6 million.

City officials believe the key to narrowing the shortfall will be luring more events to the stadium, from concerts and trade shows to corporate stockholder meetings.

CIB and the Indianapolis Colts split revenue from outside events, which should become more numerous once the Indianapolis Convention Center expansion is completed in 2010.  

The board has flat-lined a total of $1.4 million in grants for the Arts Council, Black Expo and Sports Corp. in its 2009 budget, and could cut them if necessary.

The city's Cultural Development Commission, which has drawn $12.5 million in grants and public money to promote Indianapolis' artistic side, also could learn how much support it will receive from CIB.

"We've been in negotiations with them about their needs," Grand said.

For 2008, CIB had an overall budget of $108 million. About $60 million of its revenue comes from taxes, including portions of local hotel, car rental, cigarette, and food and beverage taxes.

Board members will convene Tuesday at 2 p.m. in Room 101 of the Indiana Convention Center.