Smaller, independent hospitals across the nation have increasingly sought partnerships with larger hospitals in recent years, a trend largely driven by financial challenges.

For Highlands-Cashiers Hospitals, the latest hospital in the region to jump on board with Mission Hospital in Asheville, cost savings were certainly a large motivator, although not the only one. While Highlands-Cashiers Hospital loses money on operations every year, that doesn’t mean it is in the red.

Highlands-Cashiers Hospital will soon join the growing number of small hospitals in Western North Carolina to come under the management of Mission Hospital in Asheville.

A task force charged with creating guidelines for a joint Jackson County Tourism Development Authority is still struggling to figure out exactly how everything will work — and the deadline for making recommendations to the county leadership is drawing nearer.

Jackson County has two tourism agencies — one for the county as a whole and one for Cashiers — that oversee room tax money collected from overnight visitors by the lodging industry. Whether to merge the two entities has been a point of contention since last year.

Jackson County commissioners in the coming months will weigh whether to open a liquor store in Cashiers, outside Cherokee — or both — but the road to a decision will take a lot of number crunching.

Namely, Jackson County must decide whether it’s likely to sell enough booze to cover the overhead of an ABC store.

Artists from around the Southeast will set up their easels and ready their colors in an outdoor painting spree around Cashiers for the weeklong Arts on the Green, a plein air art festival held from July 15-21.

Don’t expect business as usual at the Cashiers Chamber of Commerce as a new director takes over for the first time in more than 20 years.

The business organization became embroiled in controversy last year amid questions about whether the agency was effectively promoting the region and spending tourism tax dollars wisely. Shortly thereafter, the chamber’s longtime director, Sue Bumgarner, announced her retirement.

On the heels of a vote that now allows alcoholic beverages to be sold countywide, Jackson County is considering opening two new ABC stores: one in Cashiers and the other along the highway leading to Cherokee in the Qualla community.

County commissioners indicated at a meeting this week they’d likely form a committee to determine whether opening either of the ABC stores was financially feasible.

A task force studying whether Jackson County should revamp its approach to luring tourists began laying the groundwork last week to merge its two separate tourism agencies into one.

In coming months, the task force will wrestle with the best make-up and structure for a single countywide tourism development authority, which will control roughly $440,000 generated by a 3-percent tax on overnight lodging.

Jackson County currently has one tourism agency representing the Cashiers area and one tourism agency representing Jackson County as a whole. Supporters of that concept have argued Cashiers needs its own tourism agency — with control of its own dollars — to cater to its own unique tourism needs. Opponents have argued that having two groups is a waste of money and resources and is less effective.

Clifford Meads, manager of High Hampton Inn in Cashiers, suggested a makeup for the new entity that guarantees Cashiers a nearly equal number of seats on the board.

Meads tendered a proposal calling for an 11-member board, with five seats designated for tourism representatives from the Cashiers area. Specifically, he suggested six representatives from lodging businesses, three of which would hail from Cashiers; one tourism-related business representative from Cashiers and one from Sylva; one chamber of commerce representative from Cashiers and one from Sylva; plus a county commissioner designee. A chair would be selected from within the group.

The proposal received nods of general agreement from other task force members, though the exact makeup is clearly a long way from being decided.

Robert Jumper, manager of Travel and Tourism for Cherokee and chairman of the Jackson County Travel and Tourism Authority, emphasized that he believes it critically important that the chamber directors be on the future tourism development authority board, too. They currently serve on the Cashiers and Jackson County boards that are in existence.

“From my perspective, I saw a huge value in having the executive directors there to give us the staff perspective,” Jumper said. “In some capacity there needs to be that input.”

For now, Jackson County most likely will temporarily merge its two tourism agencies into one. There is a sense of urgency following revelations that Jackson County is out of compliance with a state law mandating that a single entity oversee room tax expenditures. Moving forward with a temporary merger for now will give county leaders until next year to hammer out the specific makeup of a permanent, future tourism development authority for the county, County Commission Chairman Jack Debnam said.

While a task force comprised primarily of lodging owners has been appointed to make recommendations, county commissioners ultimately have the final say. A vote on combining the two tourism boards into an interim tourism development authority is likely to take place at the county commissioners’ meeting Monday.

Attorney Jay Coward said, like Debnam, he believed that the county needed to come into compliance with state law quickly and continue hammering out actual details about the new board.

“I think what y’all are doing is exactly what you ought to be doing,” he assured task force members in their discussions at last week’s meeting.

Look to the east?

Having to balance competing geographic interests isn’t unique to Jackson County. Haywood County, for example, had an ongoing tug of war over tourism dollars between Waynesville and Maggie Valley for years. To resolve these differences, the tourism board there was expanded from nine to 12 members about four years ago.

The board is representative of various geographic areas in the county.

Additionally, a portion of tourism tax dollars are earmarked to individual communities to spend as they see fit, yet another effort aimed at ending the tug of war and turf battles over the room tax money. Of the county’s 4 percent room tax, 1 percent is earmarked for special tourism initiatives in the different geographic areas of the county.

The special pot of money is divvied up among the county’s five “zip code” communities based on where it was collected, said Lynn Collins, executive director of the Haywood County Tourism Development Authority. The TDA collects and administers the money, but each community has a subcommittee that accepts and review applications for dollars. The subcommittees make recommendations to the full TDA, which pretty much rubberstamps them, Collins said

“It seems to be working well,” she said, adding that the communities have “flexibility” to spend on things they feel are important and can pinpoint “what’s most needed as is related to tourism. It’s kind of like a grant program,” Collins said in explanation.

Meads said he believes the mandate for a single tourism development authority could be a good thing for Jackson County because “it forces us to come to agreement” on various tourism-related issues.

“We can craft something for ourselves” and not be “pigeon-holed” with another county’s format, Meads added.

As in Haywood County, composition of the new board in Jackson County will be key.

How we got here from there

Jackson County for months has been struggling to sort out how best to spend its room tax dollars, and how to best balance competing geographic interests in the county.

Jackson County currently has one tourism agency representing the Cashiers area and one tourism agency representing Jackson County as a whole. The members oversee the annual 3 percent room tax money collected from the lodging industry. The amount isn’t small potatoes: each year about $440,000 is collected, which is pumped back in to tourism promotion.

Seventy-five percent of the room tax generated in the Cashiers area currently goes back to that community’s tourism group to spend on its own marketing. Supporters of that concept have argued Cashiers needs its own tourism agency — with control of its own dollars — to cater to its own unique tourism needs. Opponents have argued that having two groups is a waste of money and resources.

Whether to merge the county’s two tourism groups into a single countywide entity has been a source of ongoing controversy since last year. The debate essentially ended earlier this month, however, when the county discovered that its current structure doesn’t comply with state law.

The county, by seeking an increase in its room tax rate from 3 to 6 percent last year from the General Assembly, triggered the mandate to form a single tourism development authority. The state has sought uniformity in how tourism boards operate, a requirement that is imposed whenever counties come to the state seeking a tax increase as Jackson did.

The state is forcing Jackson County’s hand when it comes to forming a single entity to oversee how tourism tax dollars are spent.

Jackson County has two tourism agencies — one representing the Cashiers area and one for Jackson County as a whole — that oversee room tax money collected by the lodging industry. Whether to merge the two into a single countywide entity has been a source of controversy since last year, prompting the formation of a task force to study the issue.

That may be for naught, however, since the county recently learned its current structure is out of compliance with state law.

It seems the county inadvertently triggered the mandate when it sought an increase in its room tax rate from 3 to 6 percent last year. Doing so required a special bill in the General Assembly. That same bill also required Jackson County to form a single tourism development authority.

While the county has held off on enacting the room tax hike, the county nonetheless was obliged to follow through on changing the structure of its tourism boards, according to County Attorney Jay Coward.

Cashiers tourism leaders have resisted attempts to do away with their separate tourism arm, which gets 75 percent of the room tax generated in the Cashiers area to spend on its own marketing. They argue that Cashiers needs its own tourism agency — with its own funding stream — to cater to its own unique visitor demographic apart from the county as a whole.

Those who supported a merger believe it would be more effective, eliminating the duplication and competition that currently exists between the two entities and putting the money to wiser use under a single tourism strategy.

It would seem the argument is now moot.

County Commissioner Mark Jones, who represents the Cashiers area and voted against the original proposal, said he does not believe the community will resist a unified Tourism Development Authority after all.

“But it’s going to depend on what the state recommends and what the makeup would be,” Jones said. “(There must be) a fair representation from all over the county.”

A county-appointed advisory group made up primarily of lodging owners has been meeting every two weeks to discuss this very issue. Jones said they are within two meetings or so of returning to commissioners with recommendations about the formation of a new group.

“There’s no template,” Jones said about statewide tourism efforts. “We thought we’d find something out there to serve as a good template to guide us, but it’s not out there.”

Instead, Jones said, each county in North Carolina more or less creates how to best manage tourism-generated tax dollars.

That is precisely why the legislation triggered the formation of a new unified tourism board: the state has sought uniformity in how tourism boards operate, a requirement that is imposed whenever counties come to the state seeking a tax increase.

“I hope you don’t mind some friendly constructive criticism of the bill,” Coward wrote Trina Griffin this week, a staff attorney for the N.C. General Assembly. “I understand that the plan is to legislate on a case-by-case basis a consistent statewide system of tourism promotion. The obvious suggestion for a change to save other counties and towns from being confused by future bills would be to pass one statewide law.”

Coward, as of late Tuesday, had not received a reply from the state.

David Huskins, who heads a consulting group that is helping Jackson County develop an economic development plan and who’s worked with them on this issue, said there’s no question Jackson County must put a single tourism development authority in place.

Huskins said Asheville and Buncombe County were the first in the state to seek occupancy tax legislation from the state. By the mid 1980s, the trend of enacting a room tax had pushed into the western end of North Carolina. But oversight in some cases was loose because of the varying structures of different tourism boards overseeing the money that was raised.

“Over the years, some of the local governments were diverting funds outside of tourism – the tax was originally conceived for tourism promotion and marketing. But, a lot of local governments were saying if they needed a new ambulance, well tourists get hurt, too, and we have to provide services for them,” Huskins said.

That interpretation diluted the intent of the room tax — namely to provide a stream of revenue to further tourism — and created such an outcry from the tourism industry, the General Assembly by the mid 1990s moved to set up uniform guidelines.

“If you want an increase, you come under the new guidelines,” Huskins said flatly.

Commissioners did not decide on when exactly to form their new tourism development authority. Chairman Jack Debnam indicated a required public hearing could be held as soon as the April 16 meeting. The advisory committee meets this Thursday. Coward is expected to detail more of his findings regarding the state legislation.

Margaret Fry Carton of the Cashiers area has been elected president of the Friends of Panthertown, a nonprofit that protects, preserves and promotes Panthertown Valley, a national forest enclave of unusual beauty and stunning natural features near Cashiers.

"We will continue our work to ensure that Panthertown remains a vibrant and protected natural resource for our community, and for the unique flora and fauna the flourishes here," Carton said. "This organization represents a unique partnership between conservation minded individuals and the Forest Service."

Carton, who lives in the Cashiers, retired in 2005 from Coca-Cola Enterprises as the vice president, chief information officer. Before that, she was the vice president of investor relations and planning and managed several financial functions, including investor and share-owner relations, employee communications, financial media relations, and strategic financial planning and analysis. Her husband is an associate professor and department head for entrepreneurship, sales and marketing, and hospitality and tourism at Western Carolina University.

Panthertown is located in the Nantahala National Forest between the mountain communities of Cashiers in Jackson County and Lake Toxaway in Transylvania County. Carton is also the chairman of the Rabun Gap-Nacoochee School Board of Trustees in northeast Georgia. In addition, she serves on the board of the Atlanta Ballet and is a member of the Western Carolina University Computer Information Systems Advisory Board.

Carton is the second president of Friends of Panthertown, succeeding David M. Bates, the organization's first president and co-founder, who passed away last year.