Doug Thornton, senior vice president of SMG, told members of the General Government Subcommittee of the House Appropriations Committee that Dome officials will need to tap the state treasury for the money because revenues from the hotel-motel taxes in the New Orleans area and other revenue sources are not able to keep up with the payments to the teams and the Superdome's bond debt.

Thornton said the state is negotiating a new contract with the Saints but did not indicate when a deal could be struck. The existing agreement expires in 2018, although the financial inducements the state pays end after the 2010 Football season. He said he would like, to extend the contract by 15 to 20 years.

The state owes the Saints $23.5 million this year and next year, part of a 10-year $186.5 million inducement package struck in 2001. The Dome also pays the Saints another $10.4 million in other contractual "entitlements" like concessions and parking revenues.

The 2010 budget calls for Superdome officials to pay the Hornets $7.16 million in inducements plus about $4.2 million in revenues from parking and concessions.

--- Clock keeps ticking ---

Thornton said the state and city hope to submit a proposal for the 2013 Super Bowl to the National Football League by its April 1 deadline. The NFL has indicated it wants assurances a new contract has been reached or is in the final stages before awarding the game to New Orleans.

Besides the inducements to the two teams, Thornton said, insurance costs have increased at the Dome and a bond deal sold after Hurricane Katrina in 2005 to renovate the stadium and refinance older bonds has a debt payment of $18.2 million looming for next year, up $9.2 million from this year.

The hotel-motel tax in Orleans and Jefferson parishes is expected to generate about $31 million in the fiscal year starting July 1 and other revenues are expected to bring in another $10.1 million. But those sources are not enough to keep pace with projected expenses, he said.

"We had a good year last year," Thornton said. "There are not enough monster truck shows in the universe to make up" the projected shortfall.

Rep. Jim Fannin, D-Jonesboro, chairman of the full Appropriations Committee, told Thornton to come back before or during the session with a possible financial solution to the ongoing shortfalls at the stadium. Thornton said he has been working with House staff on possible solutions, including raising existing taxes on hotel rooms or other tourist-related items in the New Orleans area or reallocating some of the existing taxes to the Dome.

--- Striking a win-win tone ---

New Orleans City Councilman-at-Large Arnie Fielkow, a former executive with the Saints, said both the Saints and Hornets are "part of the fabric of our community and need to remain here." He urged state and team executives to come up with a revenue formula that will keep both franchises in New Orleans .

Saints spokesman Greg Bensel said that like the state, "we have significant contractual obligations and are facing financial challenges. We hope that an eventual solution will address the short- and long-term challenges that face the Saints and the state."

He said the team has a "projected $670 million economic impact" and will generate about $31 million in state taxes this year. "We continue to strive to be a solid community partner and impact our region positively during this crucial time," Bensel said.

Hornets spokesman Harold Kaufman said the franchise is also a revenue-producer for the state. "We are working with state officials to continue serving as an asset for the region," he said.

. . . . . . .

Ed Anderson can be reached at eanderson@timespicayune.com or 225.342.5810.