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Show AQ The Salt Lake Tribune UTAH/NATION Friday. March 12,1999 SLOC Budget Socked With $81M Shortfall Still, he said, even if no new sponsors come aboard, Utah will members. Accountants hired by SLOC to prepare the budget inaccurately recorded various VIKs, makingit appear as if SLOC had $41 million moreto spendthan is be better off financially to go ahead with the Games. “We're already in a hole . and hosting the Olympics are the way we're goingto dig out of that available. There were other unforeseen an Olympiad fourtimesthesize of Salt Lake’s Games. Romney suggested ways SLOC could generate another $67 million, which include: impose a fee for events that would have been free; tap charitable foundations and the federal government; is his first experience with a bud- get built with value-in-kind (VIK) contributions. The complexity of mingling cash and donated goods and services is underscoredby the The five-member SLOC President Mitt Romney proposescutting $14 million from the costs. swelling the budgetto over $1.5 billion. He hasidentified $84 milllion in contingencycuts if revenues fall short committee charged with evaluatingthe eth- COST BUDGET Original budget _$1.453,000.000 million in marketing, legal and ber from discussing and voting on SLOC matters. Trustee Jim modate newsporting events. But overall, Romney found the budgetto betight. not “all lardedup” as he had expected. And he promised notto propose anybudget increases without first identifying the revenue to cover them. Romney's presentation sparked Swartz lamented the delay, saying Additions Subtractions as long as the ethics issue remains TOTAL tax fees and $1 million to accom- write us a $300 million check.” Romney, a Boston businessman whose venture-capital firm has rebuilt many a company, said this budgetfor the 2002 Games. But he aiso found $81 million in additional cy. ies policy is struggling to define know someone who's willing to of which goes to SLOC. By comparison, Atlanta's marketing team raised just $480 million for 2002 Budget Grows and lagging efforts to revamp SLOC’s conflict-of-interest poli- what level of economic interest should disqualify a board mem- expenses, including a $25 million bumpforinformation technology, canceling the Games unless they lion in sponsorships, $326 million about a lack of communication $5 million for a medals plaza, $9 hole,” he said. “Utahns should spendzero energy thinking about @ Continued from A-1 Trustees, however, complained little discussion from the board. budgeting error caught by SLOC unresolved, the public will continueto be suspicious of board deal- $1,520,000,000 Contingency cuts: ings. $81,000,000 ~$14,000.000 -$84,000,000 REVENUE BUDGET Oniginal budget ere Target revenue $1.520,000,000 budget o~ Base budget total $1,436,000,000 Romney, in turn, was criticized for not communicating with board $1.453.000.000 $67,000,000 ( re KN ) Source: Salt Lake Organizing ( members about contract and hiring decisions. Steve Bak he Salt Lake Tribune charge those who use SLOC to makehotel reservations; and lure sponsors affiliated with new Olympic sports such as women's bobsled. DeFrantz Knew Of Scholarships, Johnson Says if only communication plans - @ Continued from A-1 were as simple as communicating tuition assistance and living ex- pensesfrom the Salt Lake bid and organizing committees, according to the Salt Lake Organizing Committee ethics-panel report. Johnson, former SLOC vice president, said he does not know whether DeFrantz knew about the cash payments, free medical care and other gratuities that Salt Lakepaid to IOC membersduring and after the successful campaign for the 2002 Winter Games. But he said that DeFrantz called bid-committeeofficials after IOC members madetheir site visits to Salt Lake City, inquiring about their general reactions to the city and asking specifically about “the ones with histories of taking advantageof the [Olympic gift-giving] culture.” “We answered her questions, forthrightly,”” Johnson added. Johnson was confirming statements that appeared Thursday morning in The New York Times, shortly before DeFrantz participated in the first SLOC management committee meeting since the scandal shook up Organizing Committee leadership. Introducing AT&1 Personal Network DeFrantz refused to confirm or deny the accusations when she left the session, repeating as she walked away: “You knowthere's a Department of Justice investigation under way.” Heronly departure from that chant was to add: “I would never, ever mortgage the Olympic movement.” She had denied the allegations to The Times, which quoted her as Now it doesn't matter what kind of calls you make. AT&l Personal Network saying “those discussions never took place.” The first woman ever to be wireless gives you one low rate of 10¢ a minute on local and long distance elected an IOCvice president, De- Frantz wona bronze medalfor the wireless calls from your home area, long distance United States in rowing at the 1976 Montreal Games, was on the 1984 Los Angeles organizing com- calls from home, calling card calls, personal 800 number mittee and, because she commands considerable respect, has been mentioned as a possible candidate to someday lead the IOC But Johnson’s comments sug- $29.99/month 7 | | |\ calls and many international calls. For just $29.99 a month, you | get all your communications in one network, with one number to call for more gest DeFrantz overlooked or encouraged the bid committee's vote-seducing tactics in her eagerness to see a U.S. city win the 2002 hosting rights. Suspicion has been raised before. SLOCtrustee Ken Bullock personalized service and one monthly bill. Plus, you can long distance calling card rnet access has said that DeFrantz squelched discussion of the scholarship pro- gram whenheraisedthe issue at a 1995 SLOC board meeting, charge which she denied. a The accusation also re-ener- gizes questions about how many people knew about the bid committee’s improper approaches to wooing IOC voters, While the personal Aled network | 800-IMAGINE’ SLOC ethics panel found noevi- dence that board members were awareof these payments,the U.S. www.att.com Olympic Committee's Mitchell Commission said that conclusion strains credulity,” Andthe appendix of the ethicspanel report itself contains two documents — one from a 1997 travel schedule, the other from an addendum to the bid committee's 1994-95 budget — that lists the namesofall four scholarship re- cipients under the National Olympic Committee program The Times article Thursday also hinted that the destruction of minutes of Olympic boosters’ board and executive-committee meetings from late in the bid drive occurred suspiciously soon after inquiries arose about the scholarship program. ‘The documents were destroyed in May 1998, five months before the scandal broke, at the Salt Lake City law firm of Ray Quinney and Nebeker. Twoofits part- ners, James Jardine and Kelly Flint, were pro bono attorneys for the bid committee, Flint now is SLOC’s lead attorney Jardine said Thursday that he has no explanation for the destruction of thefive files, despite a check of computer records and interviews with thefile clerk and other employees by another attorney in the firm. : ‘ CERUueceased PLU HOLLADAY. Cottonwood Mal! Highiand 4 M-Sat_10am: 9pm Sun 12am-5pm LOGAN 444 N, Main St 495 753-2355 MF 10am-7pm Sat 10am-6pm ‘OnEM University Mall 1300 $. Sute St 801 225-2730 M-Sat 10am-pmn PROVO 5N 801 977-2355 MEF NOam-7pm Sat 10amn-6pm WORTH OREM MF 10am 7pm Sat 10am-6p ocoen 4025 Riverdale Fi 801 621-2385 MEF 10am-7pm Sat 10amn-6pm 8 1719 M-F 1am-7pm Sat 10am-€pm Sat 10arn-6pm WILL AFB Ogden, 7437 6th St., Bldg. 430 801 SMITHS State St 801 765-00) ree 45S. Provo, 380 N. 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