Indianapolis is Broke

[4sarge]

Tax Monies Squandered for Millionaires


Indianapolis Is Broke: A Must See Short Documentary


This is a must see short video documentary on what is wrong with Indianapolis' continued public funding of the sports and convention industries. If there was an award for best short documentary, this would be high on my list. I don't agree with every point it makes, but for the most part, it hits the mark right on. Follow the link and share it with your friends. I can't get the YouTube video to publish right now on this site but will upload it later when I can get it to work. I would attribute the creator's name if I knew who it was.

http://www.youtube.com/watch?v=_uBXk5dcc1s

 

[RaiseTheBlackFlag]

corporate capitalism at its finest.

 

[4sarge]

corporate capitalism at its finest.

You know RTBF, you are absolutely correct, kinda sounds like Comrade OBAMA's RIP OFF the Working American Stimulus Package, doesn't it

 

[RaiseTheBlackFlag]

wasn't trying to get you riled, I was being honest and very truthful.

 

[fireman1328]

All I can say is WOW!!!!!!!

Fire

 

[Ashkelon]

Thank you for posting this. Whoever put this together did a fantastic job.

 

[4sarge]

The Magic Act that is the CIB: Watch the Magician's Other Hand


Yesterday the Capital Improvement Board claimed to much fanfare that the Board was trimming $6 million from its budget. Included in such cuts were the such nifty items as leaving adminstrative positions unfilled, cutting back on security, and delaying maintenance.

As always, Gary Welsh over at Advance Indiana lifts the curtain to reveal the the dog and pony show that is the CIB:

=>As is it always seems to be the case, things are not as they appear. The CIB's 2009 budget is $110.2 million, which is $20 million over the CIB's 2007 budget, the last year it operated before the opening of Lucas Oil Stadium, a budget increase of 21%. The 2009 budget contained an astounding 75% increase in salaries from $12.4 million to $21.8 million. The CIB says it had to add 52 full-time employees since it opened Lucas Oil Stadium. That translates into an increased cost of over $180,000 per employee. The CIB's 2009 budget also added in an additional $2 million for advertising, utility costs nearly doubled to $8.1 million, repairs and maintenance costs tripled for the new stadium, topping $3.6 million. There's even $4.2 million in additional money for land and building alterations, renovations and repairs.
=>To pay for this higher budget, the CIB is drawing down more than $25 million from its reserves; otherwise, the CIB projects its revenues in 2009 will actually be over $8 million less than they were in 2007. Part of that relates to $4 million less in food concessions and $6 million in suite license fees given up to the Colts franchise. Tax receipts from the food and beverage tax, the innkeeper's tax and car rentals are expected to grow close to $4 million.
=>So what about this so-called $6 million in budget cuts? Barney Levengood told the Board that he would find the savings by cutting $1.1 million in salaries and benefits, $2.3 million in maintenance and repairs, $2.1 million from a combination of advertising cuts and utility, legal and insurance savings, and $250,000 from supplies (the supplies line item was also doubled in the 2009 budget).
=>But are these really cuts? Or did the CIB intentionally inflate its 2009 budget in anticipation of this day when it would have to make its case to the public to raise taxes to bail it out of this colossal financial mess, which I contend was intentionally planned by the CIB's leaders. The CIB knew it had no revenue stream to pay higher costs associated with the new stadium because of the sweetheart deal it negotiated with the Colts. Yet, the CIB went forward with the stadium plans anyway. Contrary to the efforts of some apologists for the Peterson administration, a downtown casino never factored into the equation because the proposal never gained currency in the legislature. The CIB has already conceded another $15 million in subsidies to the Pacers to match the Colts' sweetheart deal even before sitting down to negotiate a new lease agreement with the Simons. Notice that the taxpayers are always told about long-term leases secured by these deals but are never told about the clauses which allow for those long-term leases to be opened up and renegotiated by the team's owner in a much shorter period of time.
​

The Indianapolis Star trumpets in its sub-heading in today's printed version of the Indianapolis Star that "Board that Runs Stadiums Won't Seek Property Tax Hike to Plug Deficit." In the article, Bob Grand, President of the CIB, said he was ruling out lobbying for higher property taxes as a potential solution. Don't think for a second that that quote is an accident. Grand knew it would be picked up the Star and made a part of the story. Grand's comment though is extremely disingenuous. He knows the CIB has never been funded by property taxes. One wonders why he did not publicly rule out federal and state income tax increases to cover the CIB too, which taxes also do not fund the CIB. Grand is like a magician. He wants you focusing on one hand, while not watching what the other hand is doing. You will notice he did not rule out increasing those very taxes and fees which actually fund the CIB. According to the Indianapolis Business Journal, the Mayor Ballard's administration is behind the scenes lobbying for higher taxes for the CIB. Again, it is the same thing with Bob Grand. He thinks he's the smartest guy in the room and that everyone is so stupid they will believe him no matter what tale he spins.

It should be noted that part of the $43 million shortfall ($50 million if you accept the IBJ's figures), still includes an additional $15 million the CIB plans to give to the Indianapolis Pacers, who are owned by Herb and Mel Simon, Grand's clients. Again, Bob Grand, contrary to his promise to recuse himself in matters that involve his clients, the Simons, is in the middle of CIB discussions about how to give the Simons' Pacers millions more in taxpayer money. Grand has no problem, supposedly, cutting back on security or low-paid staff members, but when it comes to pulling the plug on giving $15 million more in taxpayer money to his wealthy clients, well that is not on the table.

It is time for leadership from the Mayor. He needs to take control of the CIB and start asking for accountability from the Board, including asking for more than a few resignations. The City-County Council likewise needs to get actively involved and start demanding full disclosure from the CIB on everything. The secrecy with which the CIB has historically operated, needs to be relegated to the scrapheap of history. Even though the CIB works for the taxpayers, it is clear that the taxpayers are low on the Board's list of priorities when it comes to making decisions. That needs to change.

 

[Hammer]

He forgot to add that the RCA dome was not even paid for when the detonated it.

 

[txgho1911]

This CIB has nothing on the fraud washington is doing.

 

[Turn Key]

He forgot to add that the RCA dome was not even paid for when the detonated it.

Good point Hammer

Thanks again 4sarge for another learning experience. To bad it is at all of our expense!



TK

 

[JcJ]

 

[Turn Key]

Where did you get that shot from bro!

Now that's some PhotoShop


TK

 

[hornadylnl]

Who cares? As long as my Colts are on tv, I don't care! THAT FIRST PART IS TOTAL SARCASM. I've been railing against this stadium and the deal Irsay is getting since it was first mentioned. I'll bet Irsay got part of the concession sales from the National Guard Recognition service they had there. He gets half of all non colts revenue. I've bitched about this on the star forums and get called a whiner, troll, you name it.

I'm not a big sports fan but can appreciate a good game of just about any sport. If the city of Indianapolis and the state of Indiana would have offered every swinging Richard involved in the Colts organization a 100% tax abatement on all income and corporate taxes, I couldn't care less. They shouldn't charge businesses of any type taxes. But to physically take money out of peoples pockets to give to Pay-a-ton Manning, Irsay and the rest of the douchebags, I have a real problem.

Now add on the total bastardization of eminent domain. They used the force of tyranny to take Hurst's property for parking because they didn't want to pay for a parking garage. Hurst was already opening up his property for parking but the city wouldn't have it as they and Irsay wasn't making the money off of it. When government can force you off of your property for private use, you right to property might as well be flushed down the toilet.

As long as the fans have their football, they don't care what is happening to their freedoms. It benefits them, so they don't care.

If you want another lesson in how the state is hosing us, drive the scenic byway from Lawranceburg to Madison and see where all the industry is. It's in Kentucky. We have casinos. Our state lawmakers are only after the quick buck. Industry will bring money into our economy for years to come. Lower the cost of doing business and they will come. Instead, the very people who wanted this new stadium throw a fit every time they give a tax abatement to Lilly or whoever. No, lets build freaking casinos.

Sorry, this is a sore subject for me. That video is hilarious.

 

[agentl074]

Very TRUE!

 

[right winger]

Thanks for the post.