The Festival of Lights Association, a non-profit run by volunteers since 1996, has found itself susceptible to the pitfalls of a faltering economy just like many other charity groups. After saving steadfastly for a dozen years to upgrade the electrical on the Chandler Blvd. medians that feature the annual holiday light display, the job was finally complete this Fall. However, the savings has also been tapped over the past two years to make up sponsorship shortcomings due to the economic business climate.

"We knew going into November's Kick-Off Party that our cash flow situation was going to be tight, so we were really aggressive in cutting our expenses, " said Association Treasurer David Smolinski. "We usually net about $25K from that event to put toward the light display, but we budgeted for $20K to be safe and realistic. And then the wind picked up, the temperature dropped and it rained," Smolinski added. The group netted only $8K at the event, bringing the group at least $10K in the hole for annual expenses.

President Kristine Kemper added, "we normally have people arriving in droves at about 3pm, but because of the sprinkling rain we had from about 3pm-5pm, they were running out of the park in droves as if they were going to melt."

"We had a rainout in 1998 when we were just getting started," said founder Susan Ballman. "But we didn't know about rain insurance back then. We've bought it every year since for about $3K per year just to be safe, and of course the amount of rain we had on November 28, wasn't enough for the insurance to pay out," Ballman added.  The policy calls for at least .10" between 9am-5pm – the rainfall experienced that day only totaled .05".  Just enough rain to dampen the spirits and seriously put a dent in the expected income from the event.

"We realize that asking for donations in these economic times, and particularly during the Holidays for the median light display is a tough sell, regardless of how special the lights are" said former President Jim Crouch, "but we have a very real cash flow crisis right now and don't know what else to do." The future of the group has been on shaky ground for a few years, from stolen generators to a a continuing loss of committee members, and now to the affects of the recession. "We don't know what we're going to do, we're just trying to handle one problem at a time, and right now we need to pay the bills" said current President Kris Kemper.

The Foothills homeowners approved as part of their dues a $1 per house/per month/per year donation to Festival of Lights that accounts for $42,000 of the group's annual income. "Back in 1996, our expenses for the light display were about $70K, so that was huge," said Treasurer David Smolinski. But the costs have inched up over the years to $95,000 currently, the difference being made up through fundraising events like the Winetasting Festival in June and the Kick-Off Party in November. After years of unpaid service, committee member burnout made it necessary for the group to hire a part-time administrator at a cost of $15,000/year. "Just like the lights, all our other expenses have gone up over the years, from staffing to insurance to increased permit fees – but our income hasn't kept pace and the rain at Kick-Off really hit us hard," Smolinski added.

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