If you want get your heart racing, read my colleague Jay Bookman’s account of the unheralded vote in the House to extend a 7 percent tax on hotel and motel bills to help pay for a new Falcons stadium.
As Jay notes, desperate schools are cutting staff and even days as lawmakers refuse to extend any relief to them. But the legislators aren’t telling the Falcons to do without. Jay has a priceless quote from the Lieutenant Gov. Casey Cagle that you need to read.
According to Jay:
Facing a financial crisis, Fulton County schools may soon have to lay off 480 teachers. The DeKalb County district is planning to close a dozen schools. Schools in Gwinnett County face a loss of at least $62 million in state funds in fiscal 2011, a figure likely to climb as state revenues plummet. That would mean across-the-board pay cuts for all Gwinnett school employees.
Despite that dismal outlook, state legislative leaders continue to balk at targeted tax increases that could soften the financial blow to public schools. In a discussion Tuesday, Lt. Gov. Casey Cagle repeated his insistence that the state’s budget crisis would be handled by cutting spending, not by tax increases. Georgia’s status as a low-tax state must be preserved, he said, because that status is what makes the state attractive to businesses and newcomers.
Leaders of the Georgia House have made similar statements. Yet just a day earlier, the state House quietly voted to extend a 7 percent tax on hotel and motel bills that would help pay for a new Falcons stadium. The current tax, which was used to build the Georgia Dome, expires in 2020; HB 903 would allow imposition of new hotel-motel tax running from 2020 to 2050 to build a replacement Falcons stadium downtown.
The vote in favor of the new tax was overwhelming, 151-13. And as Tom Crawford of Capitol Impact points out, 34 of those voting in favor of the bill have signed pledges never to support a new tax.
But as the rhetoric goes, it’s all about priorities. We spend on those things that are important.
41 comments Add your comment
Whew!
March 11th, 2010
10:43 am
One good thing about eliminating band in schools is that the next generation of GA politicians won’t know how to fiddle while GA burns
cgregister
March 11th, 2010
10:45 am
You know, I love football and most sports as much as most southerners and people do; however, this is crazy. We are talking about the future of not only our city,and state, but of this country and you all are willing to let it keep on “sliding south”. Education is what has made us such a great nation and yet you all are willing to sacrifice what little we do have.
Jess
March 11th, 2010
10:57 am
This extension begins in 2020. If they had voted no on this extension, would the schools be better off? No. By voting yes will your taxes increase? No. This post makes no sense then.
Mike
March 11th, 2010
11:06 am
If you do not understand how sports teams bring in more revenue for a city,then maybe you should go back to school and take a economics class. Cities do not spend millions of dollars on pro sports just so their citizens can sit home and get fat watching them on TV.
Chris
March 11th, 2010
11:26 am
Maybe Mike can ask someone to read this book to him so he’ll have a better understanding of how new stadiums offer little to no return on the investment (at least to the taxpayers). On the other hand, the Falcons and Mr. Blank will likely see a considerable profit.
http://www.nebraskapress.unl.edu/product/Field-of-Schemes,673388.aspx
nick
March 11th, 2010
11:37 am
“If you do not understand how sports teams bring in more revenue for a city,then maybe you should go back to school and take a economics class.”
Actually I was going to do just that, but they cut the economics department out, too.
V for Vendetta
March 11th, 2010
11:42 am
Mike,
Do you work in the legislature?
This is completely ridiculous. It is becoming harder and harder to accept the fact that I am a born and bred southerner. I’ve lived in and around Atlanta my whole life. Although it has had it’s share of problems, for the most part, I’ve felt good about being a product of the South. Now, as a working adult, I am becoming increasingly ashamed.
We need REAL change in this country. No more talk. No more tea parties. No more meaningless words. Perhaps we need to remember this Ralph Waldo Emerson quote: “What you do speaks so loud I cannot hear what you say.”
I’ve never before been interested in politics, but I am starting to change my mind about that particular topic. I’m starting to worry that my children’s future is in jeopardy, and, since no one seems to care about the future of this state/nation, it is up to me to do something about it. I don’t want my kids growing up in a state or country like this. Can anyone cut through this mess and make some progress? What is it going to take?
Heck, if I thought people would vote for an aetheist schoolteacher from suburban Atlanta, I’d run for political office.
Then I remembered where I live. Sigh.
V for Vendetta
March 11th, 2010
11:43 am
filter again? I’m on a roll lately.
Maureen Downey
March 11th, 2010
11:53 am
V, You are out. Not sure why you were in.
Joy in Teaching
March 11th, 2010
11:55 am
Wow. Just….wow. Clearly, every single Georgia legislator needs to be removed from office NOW. Not just voted out, but removed forcibly from office for failing to give a flying you know what about the children and the future of the state of Georgia.
I’m really starting to HATE these people. Who the hell do they think they are? Or are they even capable of thinking?
Teachers, state patrol, fire fighters, etc are all being furloughed BUT our state will have an amazing new shiney stadium plus a fabulous fish pond and horse stadium.
Damn them all to hell.
Joy in Teaching
March 11th, 2010
11:56 am
Horse barn, I mean. Sorry…but I’m so disgusted that I can’t even type correctly at the moment.
V for Vendetta
March 11th, 2010
12:10 pm
Maureen,
No problem. I figured it was because I said “aetheist.” Even the blog filters are Christian!
V for Vendetta
March 11th, 2010
12:10 pm
er, atheist.
irisheyes
March 11th, 2010
12:15 pm
Honestly, I can’t even work up any outrage any more. Everything they do anymore makes no sense, so it’s really wasted effort in getting mad. They’ll never get a clue.
catlady
March 11th, 2010
12:17 pm
Mike, how’s the Gwinnett Brave’s stadium workin’ out for ya?
Ms. Downey, were you able to find out how many of the legislators have children or grandchildren in private school?
catlady
March 11th, 2010
12:20 pm
Up here where I live we have these festivals in the fall that supposedly bring in 30,000 people and make “all this money.” The problem is we never add up the expenses involved for the taxpayer. Yes, some businesses make money, but the rest of us foot the bill for police, clean up, etc. No one will give an accounting of it.
Maureen Downey
March 11th, 2010
12:25 pm
catlady, We could only do that by surveying all 236 of them and we don’t have the time right now to do so. However, a few years ago, I did do a count in the two education committees and it was only about 12 percent of the members. That was only a count of members with kids in private schools, not grandkids.
Maureen
Chris Murphy, Atlanta, GA
March 11th, 2010
12:37 pm
There are intangible benefits to having pro teams: the PR, and the attraction factor, for example. But, yeah, study after study has shown there is no net gain to communities that have teams. LA seems to do quite well without one, for example. They are amenities, not necessities. I understand that for many GA residents, schools are not necessities either; the high school football teams always seem to be so rated, though. And surely, GA Tech’s and UGA’s teams will never go away as long as legislators and other political officers get tickets to the games. When it comes down to it, the political leadership of the state hasn’t shown the maturity needed to guide us through the present economic thicket; no surprise, they also didn’t show much wisdom when state revenue was high. And then there’s that “Go Fish!” thing, and the horse barn, and ………
flipper
March 11th, 2010
1:17 pm
You know, I’m about on the verge of moving elsewhere. In fact, I bet a lot of people will be considering it within the next couple of years. Most of those people will be educated citizens who give a rip about education. I’ll hate to see what’s left of this state when everyone with an IQ over 100 leaves.
Cooper
March 11th, 2010
1:18 pm
This is good. It’s not a new tax and the falcons bring in money.
Hank Rearden
March 11th, 2010
1:21 pm
The people of a democracy get the government they deserve.
A True Patriot
March 11th, 2010
1:32 pm
Yeah, but a lot of those voting for extending the tax might be pushing up grass by 2020 so they’re not gonna worry about it. As far as I’m concerned, Arthur Blank can take his Falcons elsewhere and build a stadium……besides, if the City of Atlanta, with all it’s education problems continues on it’s present path, by 2020 you’re not gonna want to go there anyway.
catlady
March 11th, 2010
1:40 pm
Thanks, Ms. Downey. I understand about not having the time. I suspect it is considerably higher when you factor in grandchildren.
magi
March 11th, 2010
1:48 pm
When the majority of the citizens keep voting into office the same types of politicians with the same types of ideological positions, you cannot expect change to occur. Sadly, this continues to be the case in our state. I truly believe that it is time for us to grow up and face the facts: we must be willing to pay for the things we consider important, and education is one of them. Stop electing officials that put everything else ahead of the well-being of ourselves, our children, and grandchildren.
One of those things that makes me say hmmmm… « Our Community – Post 6
March 11th, 2010
1:49 pm
[...] Here is the link: http://blogs.ajc.com/get-schooled-blog/2010/03/11/maybe-kids-can-go-to-falcons-games-when-schools-ar... [...]
ms.s
March 11th, 2010
1:52 pm
WOW … not everyone will go to a Falcons’ game, but everyone will go to a school; EXCEPT in Georgia according to HB903 =(
jsnell
March 11th, 2010
1:54 pm
Maureen, thank you for the incredible bits of information you provide daily! This bit of info is disturbing.
http://www.jsnellpost6.com
Angus
March 11th, 2010
2:03 pm
Is anyone at the AJC going to produce some numbers in regards to this?
How much does the hotel tax generate?
How much of that comes directly from Dome events?
How many businesses are dependent on Dome events?
How many jobs does that mean?
Is there or is there not a net economic gain from the Dome?
If we don’t upgrade the Dome, will the Falcons and other events leave for sure as indicated?
This is the third blog this week on this – all opinions, no facts.
Hank Rearden
March 11th, 2010
2:14 pm
What if, as a result of their own crappy education in GA, the electorate is simply too stupid to do anything about this?
Alas, GA has become the model factory for GOP votes!
baaaaaaaa…baaaaaaaaaaa
Sick&Tired
March 11th, 2010
2:15 pm
You get what you vote for and sometimes even less.
Ole Guy
March 11th, 2010
2:26 pm
Perhaps Nick needs to take a basic grammer course…but that’s really besides the point. Nicholas, are you suggesting that, somehow, the revenue brought in by a sports franchise somehow justifies this legislative action? You, my friend, must have your head buried in Georgia clay to not step back and see where Georgia’s legislative priorities lie.
Go out and buy ya a Falcons pennant on a stick, getcha a bag o’ peanuts and go “rah rah rah”!
make it better
March 11th, 2010
2:53 pm
That’s nothing! In Cobb County, the School Board is pushing to put down millions of dollars in plastic grass for the high school football teams while they leave thousands of students in plastic boxes out in the parking lot for instead of building classrooms. Football rules- education gets the shaft! Way to come in 49th in education and tops in football
throwing stones
March 11th, 2010
2:54 pm
Ole Guy,
It’s “Grammar” and “beside”.
V for Vendetta
March 11th, 2010
2:55 pm
Make it better,
In most (nearly all) cases the plastic grass is paid for by the football booster club. It is NOT paid for by the county. Although it must be replaced every so often, it saves maintenence departments money in long-term care costs, sodding, and fertilizing.
In any case, not exactly an apples to apples comparison.
what's right for kids???
March 11th, 2010
3:00 pm
The turf is not paid for by the boosters in Fulton County. It does come from a different pot of non-instructional money, though. I say take the money and use it where it is needed, but, again, that’s up to the community.
high school teacher
March 11th, 2010
3:11 pm
flipper, I would move but I owe more on my house than it’s worth at the moment and wouldn’t be able to sell it- anyone else in that boat now? I have seen my fair market value go down and my property tax go up…
V, I am a Christian who would vote for you if you voted to fund education rather than a new football stadium.
Tony
March 11th, 2010
4:28 pm
Converting public money to private purposes (as in building stadiums) is the same thing the conservatives want with vouchers in education. Here, we see an example of private enterprise getting a huge benefit from a special tax. It turns out there is very little benefit if any at all to the local community. (Field of Schemes, as already posted).
The same kind of scheme takes place in those special tax districts where the claim is the tax improves infrastructure for the benefit of everyone. However, the developer is the one who is able to pocket huge sums of money as a result of taxes being converted to private hands.
The biggest losers here are our children. The children of the state of Georgia have had their eduation sacrificed on the altar of football. Each and every legislator who voted for this special tax but will not even consider increasing the sales tax by 1/2 cent for education is nothing more than a hypocrite.
David S
March 11th, 2010
4:50 pm
It is a spurious argument that “the city” will benefit from the presence of the sports team. Certain companies will benefit, certain restauants will benefit, certain hotels will benefit, and you can fill in the rest. City services are not utilized equally accross the citizenry, and for the most part one might even say that those who will pay the least in the new taxes will be the ones to benefit the most from city services. The burden of the higher taxes may reduce convention business, may reduce other vacation business, and who knows, which will hurt specific other businesses, etc. There is no way to know, and blanket statements like “the city will benefit” are just a cover for those who do not wish to put the money out of their own pockets to support a commercial venture with associated risk. They just want their Falcons to have a nice new stadium to play in and someone else to pay for it.
The bottom line is that in a free market or a free country for that matter if we had one, those who believed they would benefit directly from the presence of the stadium would pony up the money, either through venture capital, the purchase of bonds, the lending of money, the purchase of shares, or whatever creative funding mechanism the Falcon’s owners could come up with. Instead, in our unfree world, payed off legislators bestow massive financial benefits on a private business while socializing the risk of the venture through excessive taxation that will no doubt penalize a far less connected segment of the private sector.
And let’s not forget that the only way “the city” benefits from the presence of the stadium is because they burden every financial transaction that takes place with their immoral taking of money as if they are somehow deserving of tribute.
In every city, the story is the same. Government abuse of the masses on behalf of their friends. It is hard to imagine how the secession of GA from the United States would improve anything for its citizens when we may still have to suffer from this kind of legislature.
David S
March 11th, 2010
5:00 pm
It would be funny to read Tony’s comments if they weren’t so sad.
It is amazing to see the money that is taken from people through the force of government and its police powers referred to as “public money.” It is always funny to see this brought up in reference to vouchers. The government of couse has no money except that which it steals through one mechanism or another and justifies with the passage of laws. These laws basically allow them to do what you and I individually would be criminally charged for if we did.
Parents pay only a minor fraction of what the state spends on education of each child. Generally a household may pay 1-3 thousand dollars a year. The government spends over $7500 per child. So a huge difference for the first child and ever more for every one after that. The difference is made up by the theft of monies from neighbors with no kids and businesses to the tune of tens of millions of dollars each year.
But of course once the government steals it it becomes “public money” right Tony?
Don’t get me wrong. I wrote a wonderful piece decrying the special benefits government gives to business while socializing the costs. Of course that is basically the essence of the government school system too let’s not forget. Unfortunately Maureen appears to have blocked my comments, or the posting fairy is way behind.
And by the way, your call for a half cent tax is also just another transfer of wealth from one group to another through the police action of government. Morality matters. The lack of it in the funding mechanism for government schools may likely be at the heart of why they never seem to be a success. Instant karma you may call it.
Ole Guy
March 11th, 2010
5:31 pm
Thanks, Stones…I always admire attention to detail.
Paul
March 11th, 2010
6:42 pm
David, I’m pretty close to Libertarian in my views. But what you and so many other “strict” Libertarians fail to account for is the indirect benefits of many of the shared burdens. Yeah, there’s a 30-70 split between cost born by parents and that born by non-parent property owners. Even worse if you consider the number of non-property-owner parents. And while logically it would make sense to charge parents for educating their kids, the reality is that the benefit to the state for having an educated populace is shared by everyone in the state. It is a public good. If you have a job because you work for a company who located here because they knew they could count on finding educated workers, did you benefit? If your salary is improved because the quality of job that comes to the area increases because of an educated populace, did you benefit? Yes. There are many such public goods, including roads, airports, etc. Your argument falls completely flat there. Any free market textbook will speak to such.
Now, a football team and stadium is much more arguable. I do agree that government should stay the heck out of that business. Social security and other “security blankets?” Get out. But education is undeniably a public good whose cost should be shared. And if cuts can’t realistically be made elsewhere (for political or practical reasons), then a temporary tax increase may well be justified.