July 21, 2014
$568 Million New Tax Revenue
Pilots (Payments In Lieu Of Taxes) are front and center in the current controversy about bringing our City finances under control. I went to the EDGE website (Economic Development Growth Engine). It is beautiful. On the lead page is the following information.
$568 Million in new tax revenue
Well the problem is solved. With $568 million in new tax revenue why are we cutting health care benefits for City retirees and raising health care costs for active employees? Why are we discussing changing the pension plan at the City of Memphis?
The reason is that it is all smoke and mirrors. If you go to the City of Memphis CAFRs (Comprehensive Annual Financial Reports) and the same for the County you will see that sales tax receipts have been level at best and decreasing over the last few years.
The Pilot program is a crutch used by local developers and real estate interests to give us something to attract new companies to Memphis and to keep local companies from leaving. Memphis has many assets to recommend it. Location, water, transportation and utilities. However it has two deficits. A high tax rate and poor education of the local work force.
The real report that EDGE should produce is a report that shows all companies that have come off the PILOT program at the end of their tax abatement. The report should show the amount of taxes abated over the length of the pilot program, the ending date and the amount of taxes paid after the end of the abatement period. This they have refused to do. Until they do that and show us where the $568 million is, I will continue asking the question WHERE IS THE BEEF?