NOVEMBER 2010 - Association of Marina Industries

23News From WashingtonBy Larry InnisPresident’s Bi-Partisan CommissionAnnounces Draft Recommendations toReduce DeficitThe leaders of the president’s deficit commission sparkedcriticism from both political parties this week for its proposalsto cut Federal programs. The obvious proposed cutsto programs like social security, such as raising the retirementage; the elimination of all earmarks, like a $1.9 millionsavings for the elimination of the Pleasure Beach WaterTaxi in Connecticut; and the combination of various governmentagencies were expected in the report. Howeverseveral recommendations more directly affect the marineindustry.What are some of the recommendations that may impactmarinas? The National Commission on Fiscal Responsibilityis co-chaired by Erskine Bowles, a Democrat, and AlanSimpson, a Republican. Both have indicated there will bereluctance in Congress to pass many of their recommendations,especially those with strong interest groups supportingthe status quo. However, Republicans fresh off sweepinggains in the November elections vowed to shrink thefederal government. Many Democrats concerned abouttheir political futures also are looking more favorably atgovernment cuts.1.Raise Gas Taxes.2. Eliminate Many Tax Deductions, like the Mortgageand Second Home Mortgage Interest Deduction. Theboating industry has long fought for retention of thesecond home mortgage deduction critical for the economicviability of retail boat sales. The primary homemortgage interest deduction is also very important toboat sales and to pay for major boat repairs.3.4.Increase Fees for National Parks and Recreation Areas.Terminate Low-priority Army Corps of EngineersConstruction Projects. An example used by theCommission in its draft report released this week is theelimination of funding for various operations designedto counter beach erosion and small dredging projectsthat enhance recreation. This action would save $1 bil-5.lion per year. The Commission said these expendituresshould be paid for by states, localities, and private landownerswho benefit from the expenditures.Change Inland Waterway Systems to be Fully Selffunded.The Commission proposes to increase the gastax on fuel used by vessels on the waterways to coverthe costs of construction, operation, and maintenance(dredging) of the inland waterways. Recreational boatingwas not specifically mentioned in the draft report,but recreational boaters use the inland waterways andcan expect to contribute to the cost savings of the proposal.There are many recommendations contained in the Commission’sdraft report, but these recommendations have themost potential affect on marinas. AMI must closely watchCongressional action, as it moves to reduce governmentspending to reduce the out-of-control budgetSAFETY FIRSTThis month’s feature: Video & Photo CatalogDo you have a video or complete photo catalog ofevery inch of your marina? If you don’t you should.If your marina falls victim to theft, or suffers damagefrom fire, hurricane, or other disaster, you will haveto be able to prove what your losses are.Most of us do not have a photographic memory, northe ability to otherwise remember every paint or oilcan, jack stand, deck board, line or all the other itemsfound at a marina. If you don’t remember it was thereyou won’t remember to put a claim in for it if it is lost. Ifit is a big item and you can’t prove you ever had it, yourinsurance company will not reimburse you for it.So take the time to take photographic evidence of allthat is yours and store that video or photos off-site,somewhere safe. Also remember to update it as oftenas aspects of your marina change.