Superior Mayor, Chamber CEO Talk Pandemic’s Financial Crisis

SUPERIOR, Wis. – Superior Mayor Jim Paine told FOX 21’s Dan Hanger on Tuesday why he doesn’t expect to furlough or lay off any employees during the pandemic, unlike the city of Duluth.  And we’re learning more about how the hit to the tourism industry is affecting the Superior-Douglas County Area Chamber of Commerce like it has never been hit before.

“It’s going to be a rough summer around here, it’s going to be a rough 2020, but we are getting through it,” Paine said.

Paine expects to get through it with a tightened budget and a potential hiring freeze for the city of Superior, but without furloughs or layoffs.

“The most important resources that we are offering to the people of Superior are our employees. They are the ones that are doing the work that citizens demand. It’s city employees that are filling the potholes, that are cleaning our water, that are maintain our parks,” Paine said.

Paine acknowledges there’s always a chance cuts could happen in the form of employees, but he says the city has a reserve of around $10.5 million that’s designed to handle an unexpected crisis like this one.

“I don’t know that we’re going to need it, but if we do need it, I’m going to be pretty grateful that it’s been there,” Paine said.

And on top of that, Paine says the city’s general fund is not reliant on uncertain revenue streams like tourism tax dollars, as is the case in Duluth.

“Government should be funded by taxes. That’s how it works. If taxes aren’t enough to fund the government you have, and this is strange saying this as a progressive, but then you got to shrink that government. You have to make sure the government fits the revenue you have,” Paine explained.

But it’s a different story for Taylor Pedersen – president and CEO of the Superior-Douglas County Area Chamber of Commerce.

“Tourism is a big part of our local economy, and I think it will really impact us as a community and as a region by the end of all of this,” Pedersen said.

Pedersen is expecting a 50-percent drop in revenue or more for the non-profit, which is why he has furloughed or partially furloughed his staff of seven and himself.

“If that’s the tough decision we need to make today to make sure we’re here tomorrow, to promote the community as a great place to vacation, a great place to live work and play, those are the decisions we need to make and our board of directors is behind that,” Pedersen said.

It’s an unprecedented time of uncertainty that has many of us looking forward to days of normalcy again — sooner than later.

“The Twin Ports is going to be one hurting community for an undetermined amount of time and we need to make these tough decisions today to make sure we’re here tomorrow,” Pedersen said.

“This is a very serious fiscal crisis, and while we’re OK today and it looks like we’ll be OK tomorrow, the future is tough to predict — and all options will always be on the table,” Paine said.

To help lessen the financial blow from the pandemic, Paine says he’s expecting a surplus from 2019 of $250,000 or more.  It’s a far different story in Duluth where dozens of employees are being laid off with a budget shortfall projected to be as high as around $38 million.