Posts Tagged Mayor White
Do Taxpayers of Cleveland & Cuyahoga Have to Always Carry the Cost of Institutions that Serve a Much Wider Area of Northeast Ohio?
Posted by Roldo Bartimole in Economic Development, Politicians on May 6th, 2010
May 6, 2010… I read in the New York Times Friday that plans are being formulated to redo Progressive Field. Who knew?
A Gateway official says, however, that there is no big redo coming. Further, at this point, both teams leasing sports facilities are responsible for capital improvements.
But don’t you know that it is coming: We need a new stadium! The Indians might leave town! What we’ve heard before we will hear again. It’s only a matter of time.
It does bring up the question of how Cleveland and Cuyahoga County can continue to afford to build and support major institutions that serve a larger geographic area. Not only sports but cultural.
It does seem past the time for thinking about how we preserve the many facilities, institutions and infrastructure assets of Cleveland. The city is rich in major sports and cultural institutions, relics of a wealthier era. How can they be preserved? Who will pay for them?
Most of the actual institutions servicing Northeastern Ohio residents physically are in Cleveland or Cuyahoga County. Does that mean only those residents enjoy those venues? Of course not.
Progressive Field, Quicken Arena, Browns Stadium, Playhouse Square’s stages (Allen, Ohio, State, Palace theaters), the Cleveland Art Museum, Severance Hall and the Cleveland Orchestra. Even the highly subsidized downtown assets of Cleveland. These are places that serve a wider area of northeast Ohio, not just Cleveland or Cuyahoga residents.
But the bill to pay for these important institutions seems to fall, at least the public portion, most heavily upon Cleveland and Cuyahoga taxpayers. Every day in almost every way. And, unfortunately, they are regressive sales taxes weighing heavily on lower and middle income people. None are progressive taxes. Thanks to people like Tim Hagan and Mike White, George Voinovich and George Forbes.
In the latest County Auditor reports we get an idea of the tax burden here:
- The Medical Mart/Convention Center – Cuyahoga taxpayers have contributed via the quarter percent sale tax hike – $94,379,438.38 since only January 2008. Cuyahoga residents will be paying this tax for 20 years.
- Browns Stadium – Cuyahoga taxpayers have contributed via various alcohol sales taxes – $64,609,806.86 since August 2005. The tax previously amounted to some $266 million to help pay for some of Gateway’s costs at the baseball and basketball facilities. The tax was levied for 15 years for Gateway and 10 more years for the football stadium, taking us to 2015. Hopefully, not to be renewed.
- The Arts & Culture tax – Cuyahoga taxpayers have been paying this tax on cigarettes – $60,724,894.40 – Cuyahoga has been paying this tax since February 2007. It’s a tax that I believe will be extended on and on.
That adds up to some $220 million in taxes (not counting the $266 million for Gateway) on Cuyahoga taxpayers with tens of millions more to be collected before these taxes run out.
These taxes will continue for many years.
Cleveland and Cuyahoga County are both losing population. That means there are fewer people paying these taxes.
We see the effect it has had on RTA. The transit system depends also on the shrinking sales tax, one percent of the 7.75 sales tax, highest of any county in Ohio. Fewer people mean less purchasing thus less sales tax revenue. Population losses and higher percentages of poor people suggest further erosion of sales tax revenue.
The burden of these seemingly small taxes is heavy. They go from taxes on almost all alcoholic drinks, cigarettes, to parking and other revenue, such as the city’s parking revenue.
The latest tax increase county taxpayers are enduring is the added sales tax of one-quarter percent that raises some $40 million a year for a convention center and medical mart. These facilities serve far more than the people of Cleveland or Cuyahoga County. Why should the burden be limited to only Cuyahoga taxpayers?
In addition, almost all of these publicly subsidized institutions pay no property taxes, leaving the costs of fire, police, school, roads and many other services funded by property taxes. Home and commercial property owners pay more in higher property taxes. And tax abatements – which essentially go to higher income housing – to new and renewed housing also eats into revenue sources
But why does Cleveland have to pay the entire public cost of the Cleveland Browns playing field? Why do Cuyahoga County taxpayers have to pay essentially the entire cost of the playgrounds of the Cleveland Cavaliers and Cleveland Indians?
Most of the residents can’t even afford to attend these high-priced events.
The local taxpayers can no longer afford the many publicly-dependent institutions that provide entertainment for a much wider – and much wealthier – audience than the people of Cleveland and Cuyahoga County.
This is a problem of the entire northeast Ohio area, its residents and its taxing structure. The financial burden then should be shared more widely.
We hear a lot of talk about regionalism. This could be a most rewarding form of regionalism.
Why do Cuyahoga County residents alone have to pay for the culture tax that provides funds for some of our major (orchestra, museum) cultural institutions and many smaller arts and culture institutions?
The time is coming – really it has passed – when all the institutions this once wealthy city enjoyed and afforded can be supported by a shrinking and far less wealthy population.
We’re running out of the resources to finance what we have. Too institutionally rich; too economically deprived.
Now is the time to let the people of Lake, Summit, Medina, Lorain, Geauga know that they need to share in the burden of the cost of Cleveland and the treasurer of Cleveland and Cuyahoga County that they enjoy. Of course, some of the same type institutions in outlying areas should share in the wider financing method, whatever that becomes.
It’s time to think about a more regional tax approach to service the wealth of institutions in our communities. It ought to start with capturing taxes on a progressive basis from the beginning.
It’s a matter of fairness. The tax burden must be widened to a larger pool. It should also go where the money is.
Perfect Solution Where New Cuyahoga County Officials Can Meet
Posted by Roldo Bartimole in Media, Politicians on March 28th, 2010
March 28, 2010… I have the perfect place for the new Cuyahoga County Council to meet. It shouldn’t cost a penny. County taxpayers already paid for construction. And even to furnish it!
It’s a building the County constructed in Jacobs Field.
It’s not far from the present County Administration building.
The building wasn’t even in the lease. It was a gift.
I was told at the time that there was an unsightly ramp. Such a problem. So we – thank you Michael White and Tim Hagan especially – built a 57,500 square foot administration building “to hide the ramp that would have been visible to the public from Ontario Street,” Gateway boss Tom Chema told me. I guess they didn’t think of some far less costly solution. Shrubbery perhaps?
The truth is that Dick Jacobs wanted an office building for his Cleveland Indians staff. And what Dick Jacobs wanted our County Commissioners and Chema gave him.
So why doesn’t the County ask the Dolan family to vacate one floor of the five-story office building we built for them? (Come to think of it, maybe Matt Dolan, candidate for County Executive, could expedite this process with Larry Dolan, team owner and his dad.)
Back in 1990 I reported on this give-away. Neither The Plain Dealer nor any of the hot shot TV news stations touched it. Is that unusual?
Here are some of the facts:
The building, not called for in original plans or lease, cost us $7 million. That included furnishings. Yes, we even furnished it for Jacobs. It cost $900,000. Telephones, desks, computers, etc. All free.
Jacobs, of course, certainly knew the value of such real estate.
Here’s what I wrote in the Free Times at the time:
“Downtown real estate developer Dick Jacobs, of course, knows the value of that Gateway gift. Indeed, Jacobs, owner of the new Society (now Key) Center a few blocks away, asks tenants to pay $38 a square foot in his building. (His Society Center was property tax free, as was – and is – the stadium and the free building. You see rich people are not expected to pay taxes as the rest of us are made to do.)
“If Gateway did the same, instead of charging no rent, the space given Jacobs in the administration building would be worth $2,185,000 a year. With no increase over the 25-year lease that would be more than $54 million in free rent.”
Since 1990, that would have meant more than $30 million to the County. Didn’t happen.
And there’s a perfect table for the new commissioners to meet around.
At Jacobs’ request the County provided an 18-foot by 5-foot boat shaped table for a conference room. That should fit for the 11-member Council. If not, I’m sure it could be expanded.
The table had an ash veneer, according to the plans. I don’t think some of the special treatment asked by Jacobs will interfere with government business. The table called for inlaid wood shaped to replicate the stitching of a baseball.
There might be one problem. The table also called for a metal etching of the racist symbol of Chief Wahoo to be inlaid at each end.
I checked at the time with some firms that make custom tables. One said that with the inlays the cost would be about $10,000 for the table.
Good enough for our certainly new tax-conscious commissioners, don’t you think?
I asked Chema at the time whether he reported this magnificent gift to the Internal Revenue Service. “Absolutely not,” Chema said.
So there’s plenty of room for the commission at no cost in a building we taxpayers built.
The inattentive Plain Dealer offered today (Sunday) three possible meeting places. The cost estimates for the three range from some $687,000 to $1.2 million. The PD story is here:
Time to save some public money. Time for a billionaire family to give back to the community. Time, indeed, for us to assert our public will.
C’mon Matt, you can help. Have a talk with dad.