INC NEWS - any cuts just has to hurt somewhere...

Fri Jun 6 07:42:07 EDT 2008

Fair point at the end, but an earmarked admissions tax is just a way of
transferring the cost of the arts to the arts user, freeing up the
general fund for the core responsibilities of government.  It is only an
alternative to a method where the arts are left to wither or unfairly
pitted against needs that must be supported by the general fund.
Another way to look at it, do we really think the price of our ticket
now is paying enough to provide the entertainment we're
getting...no-way.

But it was just an idea borrowed from other models of funding.  I'm open
to anything but the approach we have now.

RB

-----Original Message-----
From: inc-list-bounces at rtpnet.org [mailto:inc-list-bounces at rtpnet.org]
On Behalf Of RW Pickle
Sent: Thursday, June 05, 2008 11:32 PM
To: inc-list at durhaminc.org
Subject: INC NEWS - any cuts just has to hurt somewhere...

There are a lot of projections used in the budgetary process. One of our
questions is "can you get it done/started/completed in the coming budget
cycle?" If not, it can wait. But from this, we see the wish lists that
could trickle down into funding just about everything eventually. But it
all costs real dollars.

Barry is sort of right about something here. It does all boil down to
Council (or Commissioners) deciding where they will spend the money and
how much they will spend on any particular item. I can only hope that
the
countless hours spent by citizens that have volunteered their time in
analyzing it, scoring it, and recommending what we all (and that must be
a
huge ALL, not just the Capital Improvement Group I'm in, but all
citizens
who volunteer trying to make the ends meet) think we need. Because most
of
these recommendations came from people who live all across this town and
come to the table with many different backgrounds. One may support one
thing very strongly while another may not value that particular thing.
With many people voicing their opinion in the process, what we end up
with
is what we need (regardless if we want it or not; a synthesis by all
means
that as an average, it was more important if it rose to the top of the
averaged list). We're currently spending a great deal on American with
Disabilities Act compliance in our City. I remember when it was enacted.
It's been a while and we still haven't gotten all this stuff done. Now
we're in a rush because we'll be fined for not having it done. So we've
short funded it for years until now, we have to get it done.

Some things change (at least in the Capital Improvement budget) as this
process moves forward. For example, if Greenfire takes over one of the
parking decks and bears the cost of renovation, that'll free up $6.2M+
and
would allow 18 or 19 more projects to be funded in the CIP. That's still
not down a half page in a 2 page list. And this is just on the short
list
we started with. Budget and Finance is trying to find more to cut before
it makes it further into the process (as Council has asked).

If we decided we were going to do a four year tax increase that would
sunset at the end of the fourth year (for 4 times what we're currently
looking at getting; say from $.15 to $.60-.75), we could get a great
deal
done with the influx of more funds. Even for that short of a time. But
would it be enough to get it all done? Like I said, we don't even have
the
people it would take to deal with it all. And it would cost us all more
if
only just for a short time. Just as Council or Commissioners vote to
increase taxes, they also must pay these fees since they live here as
well.  And these increases in fuels, groceries, water, taxes, etc add up
for a lot of people and make life yet more difficult. Especially those
on
fixed incomes.

One thing we do need to do right now is to acquire debt. The City
Council/Budget Office likes to keep our debt load around 12%. Money
today
has never been cheaper (in the amount we need to get things done) and
while it's cheap, we need to increase this load to maybe 17-20%. So we
need to bite the bullet, borrow more while it's cheap, and work our
butts
off getting stuff done. Last time I looked, it looked like there already
is a lot going on. But seeing it all in numbers and projects, there's a
lot left to do. And it doesn't seem to be getting any cheaper. Just look
at fuel costs over the last year. The City has something like 1100
vehicles it puts out on the road each day. The County has all those
school
busses (plus a fleet). Everyone buys fuel, so you know how much the cost
has gone up. Just as an example, Solid Waste goes through more than 1200
gallons of fuel a day! The budget we are working under now was fixed
last
year. So it's even short before we get to the next new budget to
increase
it. But that doesn't mean we've stopped needing fuel today and it must
be
paid for today as well. So we rob Peter to pay Paul (as the saying
goes).

I wouldn't say the budget process this year is a disgrace because it's a
work in progress. And as long as I can remember, there has been a
shortage
of funds to make all the ends meet. So we have the same dance year after
year. That's why, at least for Capital Projects, we're going to spend
the
next year developing a long-range plan so we can roll out funding yearly
if necessary to get it all done.

The sudden outcry by the NCA community is really moot. Like Barry said,
why didn't it come up during the campaigns? It's been 2 years in the
coming and like the panel I sit on (the CCIP), the arts funding was
decided by citizens as well. They looked at the requests, like we look
at
the Capital Project requests, and decided what was important. So it's
the
community really deciding (at least up front) what it wants and needs.
The
final decisions will always be made by our elected officials... We can
only hope they listen to us.

The real disgrace is that there isn't enough money to go around for
everything. But then again, there is no blank check in this process. If
there were, I guess everyone would be happy... Or would they? It all has
to be paid for some how and we're the ones paying for it (and that
includes our elected officials and most of the folks who work for our
municipality). Would you pay 4 times in property taxes right now just to
make it all work? I doubt it. But it might just change the funding
metrics
enough so as to get it all done and we'll have some left for other
things.

I hated to hear an "admissions tax" mentioned in an earlier email. It
just
becomes another one of those hidden fees we end up paying especially
when
it comes to music in our City. There's a lot of competition in Durham;
too
much free music for many to want to pay for it, muchless pay an
additional
tax on it for admission. And that's a good thing. Free to all is what it
should be. Like the Latin music in CCB Plaza this weekend. It's not a
fee
based event; the City (DPR) is throwing the party. The City still
believes
in the arts and here is an example of it. So get out and enjoy what your
taxes are paying for! And at many of the other free music events held
around the City this summer.

RWP
27 Beverly

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