Sunday, March 04, 2007

tif b.s.

Finally, finally, finally.

FINALLY

The Kansas City Star has finally called Mayor Kay Barnes on her bullshit about tax-increment financing.

(You may recall I wrote about this scam a while back.)

Herroner Barnes's stock answer to questions about this program run amuck has been that it benefit the city because it brings in more money. Kind of like investments.

But she has never offered any proof. She's just said it. And the Star has quoted her, and left it at that.

So today -- finally, finally, finally -- they gave us some facts. And whaddaya know? They refute Condo Kay.

From today's article:
City officials said the 54 current TIF projects have accrued significant benefits to the city — which is why the incentives were approved. But they haven’t been able to fully quantify the financial benefits versus the costs.

And...
Budget analysts estimate the city will reimburse $79 million to developers in the budget year beginning May 1, up from $47 million this year. Nearly two thirds of the estimated increase will be related to the IRS complex and downtown entertainment district.

And...
The budget calls for redirecting nearly $17.6 million in sales tax to developers next year, while overall sales tax collections are only expected to go up about $10 million

And...
The 3/8-cent ATA sales tax collections (this pays for bus service for poor people)are expected to increase by $737,500, but transfers of that tax to TIF developers are expected to go up by $1.1 million, for a net loss

And...
Some projects provide little new revenue for basic services. This is because workers and revenues are moving from a building that was not part of a TIF district to a TIF development. In these instances, the taxes that previously went for general municipal services are now directed specifically to the development.

The IRS center, for example, is moving workers from several non-TIF buildings in Kansas City to a TIF building downtown. The project is also attracting new workers from Kansas, but the earnings tax revenues from those workers will be directed into the project and not to city coffers.

Meantime, the city's economic development efforts in the rat market have been an unbridled success, with tens of thousands of the disease ridden, infant-biting vermin breading and thriving in Barnes's era of no money for rodent extermination.

1 comment:

costa rica said...
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