May 29, 2008 Local Newspaper & Sales Tax Referendum: That Was Then, This Is Now

There actually IS a citywide special election on a sales tax referendum, and early voting ends today. Election Day is June 3.

There was a countywide sales tax referendum four months ago (February 5) that failed by a narrow margin.

It is amusing to observe and speculate about the dramatic difference in local newspaper coverage (Citizen Tribune) of the February 5 countywide sales tax increase referendum (THEN) and the current June 3 citywide sales tax increase referendum (NOW).

THEN The local newspaper ran a daily barrage of articles and front-page headlines about the tax increase and/or those who supported it, such as:

"School board supports sales tax increase proposal" January 8, 2008.

"Early birds: Sales tax resolution is the hot ballot item" January 16, 2008.

"Purkey backs the tax" County Mayor David Purkey. January 23, 2008.

"Haun says schools need voters to support tax referendum" School Board Chair Janice Haun. January 24, 2008.

"Turnout low for early voting" January 25, 2008.

"Robinson: Tax increase would be extra income for schools" Chamber of Commerce CEO Thom Robinson. January 25, 2008.

"Ford Says Tax Plan Is Fair" Commissioner Stancil Ford. January 28, 2008.

"Sales tax referendum helps city property owners" City Mayor Sami Barile. January 29, 2008.

"Backing the tax: P-16 discusses importance of referendum" Tish Jones, Andy Smith. February 1, 2008.

NOW How many front-page articles/headlines have appeared so far about early voting, the current sales tax referendum, the "leaders" who support it?

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THEN The tactic of hit them on the head with pro-tax articles didn't do the trick.

NOW The tactic has changed. The current election, as a previous post noted, looks more like a stealth operation.

Don't say anything (or as little as possible) on the front-page. Just network behind-the scenes and make sure that the loyal supporters of every tax increase and those who will benefit the most by the temporary property tax rollback carrot come out. Follow the money--who benefits the most and who loses.

The City keeps saying that out-of-town shoppers will help pay for the operation of city government through the sales tax increase.

What about the price of gas? What about the new stores opening in adjacent towns? How many out-of-town people will travel to a Lowe's/Walmart in Morristown when there is a Lowe's/Walmart in their own hometown? Who will be stuck making up for the loss of "out-of-town shoppers" sales tax revenue when there is a drop in budgeted sales tax revenue? Taxpayers of Morristown.

The real long-term solution would be to live within a budget--a budget that is limited to necessary government services procured and performed in a professional manner---without $100 million wish lists, chrome everywhere, overruns, no-bid agreements, and interest-only debt payments that simply pass the debt and continuing interest to the next generation!

FYI: The City taxpayers will have to pay about $8,000 for the costs of holding this special election because this is a special election that the City requested to be set on a date when no other regular election was already scheduled.

Of course, City taxpayers will be footing the bill--which they also did during the last referendum--for the current "City of Morristown" political campaign committee and its electioneering letters, etc. supporting the sales tax increase.

February 2, 2008 Dialing (oops) Mailing for Dollars

The full-court press is on. Morristown Mayor Sami Barile and the city council have sent out their PRO-SALES TAX letters. [Click here to see Hamblen County Mayor David Purkey and Commission Chair Stancil Ford's pro-sales tax letters that were mailed by the local P-16 council. ] The Tribune is going full-tilt with pro-tax pictures, pro-tax interviews, pro-tax front-page articles, pro-tax everything.

If you click on the images above, you can read the desperate plea of city officials to city residents, "asking... encouraging...and recommending" that city residents vote YES to increase the local sales tax. The city is trying to piggyback on the schools and get a coalition of votes with the "for the children" theme. Strangely, the city actually had to send a reminder to the school board to get the school system to call a special meeting to jump on the "for the children" tax bandwagon.

The city is also using a variation of the county's 2002 "pick your poison" wheel tax referendum tactic. In 2002 the county told voters that the wheel tax referendum was an opportunity to pick your (tax) poison. The Tribune ran a banner headline and front-page article reporting that voters could EITHER vote for the wheel tax OR there would be a property tax increase. A majority of county voters took the bait and voted YES on the wheel tax. Then the county laughed and went ahead and added a 15-cent property tax increase three months later. So much for truth in politics.

The city has put a little twist on the county's 2002 "pick-your-poison" blackmail. Instead of waiting until after the referendum, the city raised property taxes a whopping 40-cents first. Then the sales tax referendum was put on the ballot with promises by the city that it will reduce its historic 40-cent property tax (poison) to a historic 25-cent (poison) if voters fall for the referendum bait again. Of course, the city can keep its promise by simply cutting the tax rate for one year and then go right back to the same old overspending and overborrowing again.

Just like the 2001 sales tax referendum and the 2002 wheel tax referendum, the Tribune is providing free front-page advertisements (oops) articles promoting higher sales taxes.

What's missing in this money grab? Accountability. Fiscal responsibility. Honesty. Concern for the taxpayers.

City and county government and the school board are pushing the tax increase for various reasons, most of which are hidden behind nifty words like what a great "opportunity" a sales tax increase is. One-half will be "for the children." The other half will be for city residents who will have their massive 40-cent tax increase pared back to a 25-cent tax increase. Yes, county residents get the wonderful opportunity to subsidize the city property tax reduction.

The real opportunity that the city is looking for is a way to grab more tax dollars. The city may make a one-time adjustment in the city property tax. Then the city will wait it out a year and jump right back in to hike the local property tax again and again as the impending financial disaster arrives. The disaster on the city doorstep is inevitable. Years and years of overspending and overborrowing have only postponed--at great cost--the time when the city has to "pay the piper."

The county also is looking for a way to grab more revenue while there is cover in saying it's all "for the children." The $5 million extra BEP funds that the School Board received this year are never mentioned. Just the familiar refrain of more, more, more money.

There are many county financial problems, and they go back to the pattern of overspending, overborrowing, and paying interest only on huge bond issues. The city and the county are in deep financial trouble.

There is no talk of righting the city or county financial ship of state. The only discussion taking place is about increasing the tax burden for citizens of Morristown and Hamblen County even more.

Interestingly, the school board is not pushing the sales tax nearly as persistently as one would expect. The board had to be cajoled by the County Mayor and City Mayor to hold a special meeting to endorse the sales tax increase. The school board's low profile in the tax debate is not all that surprising. Board credibility isn't high, and they do not want to draw any attention to the fact that the schools ALREADY RECEIVED over $5 Million extra BEP dollars this past year. Where did all that money go? The schools and teachers ought to be in great shape with that bonanza. Why doesn't the board like to discuss the way that it switches money all around after their budget is approved.

The familiar pro-tax opinions of Andy Smith, Tish Jones, Thom Robinson, David Purkey, Stancil Ford, Sami Barile, Jack Fishman, and Janice Haun get front-page or editorial page press day after day after day.

I am far more impressed with the honest and forthright opinions of taxpayers such as Dr. W. Robert Gronewald, H. Richard Haley, Gwen Holden, and others who have written letters to the editor expressing their disgust with $100 million dollar "wish lists," uncontrolled debt, a temporary wheel tax followed by county property tax increases, an unprecedented city property tax increase, and the ever-increasing costs to taxpayers of gas, milk, utilities, and insurance.

Many of those who draw a government paycheck every week--particularly elected officials who drive taxpayer-provided cars and get paid even when they don't show up for work--don't get it.

They have never punched a time clock or met a payroll with THEIR OWN MONEY.

They don't realize that there are people who have nothing--NOTHING--left at the end of the month. They don't realize that there are actually people out there who get NO pay raise, have NO pension, have NO health insurance, and have NOTHING left to give.

The schools have $5 million more BEP dollars this year than last year. Yet, in these toughest of economic times, the schools are trying to get more and the city is trying to piggyback on the schools.

When will the government have enough tax money? When it has ALL the money and ALL the power.