The People News, a free newspaper serving Cleveland Tennessee (TN) and Bradley County Tennessee (Tn).





Of Bradley County Tn.


JUNE  2003

                            The People News, a free newspaper serving Cleveland and Bradley County Tn.

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Editorial for THE PEOPLE

One heck of a deal

How much extra tax you will pay to support city and county government is being hotly debated by local officials trying to balance budgets that critics say are riddled with waste and non essential spending.  To their credit, most county commissioners have repeatedly affirmed a desire for budget cuts over increases but little seems to be happening on that front. They have been talking a lot about raising a tax though, the hotel/motel tax. The mindset to bring in more money to solve overspending is so powerful any straw will be grasped, even though the hotel/motel tax is an elusionary panacea that will evaporate without effect. Although time is running out on forming a plan to make the necessary cuts in time to effect the 2003-4 budget, the County Commission have been sidetracked and forced to waste valuable time squabbling over the unexpected bounty. At the Commission's regular work session on May 27 a vote was taken on how to divvy-up the proceeds of $107.000, even before legislation had been drafted. The original idea behind the proposal was to bolster the general fund to ease the pain of county departments facing cuts but that was overshadowed by two non-government organizations intent on receiving a larger slice of the pie. The Cleveland/Bradley Chamber of Commerce and the Tri-state Exhibition Center wanted 80% of the total revenue generated by the hotel/motel tax instead of 75% they had previously enjoyed. It is highly irregular to take an unadvertised vote at a work session, especially a vote to raise taxes, though County Executive Gary Davis said it was necessary in order to meet a state legislators deadline. Time was of the essence he said, to allow the introduction of the private act necessary for the tax increase to become law in time to help bolster the general fund. Local state legislators were concerned and needed guidance from the commission on how the tax was to be divided.  Apparently a last minute change in the division of revenue plan was instigated by the Chamber of Commerce in order for them to be locked into a bullet-proof funding source that was independent of county control and budget cuts. Chamber president Jerry Bohannon  said he wanted the Chamber to control it's own destiny and the increase from the tax would prevent him from seeking additional funding from the County for at least this year. Now that good readers, is a show of arrogance even Cleveland does not often witness.

The majority of commissioners present were in favor of granting the Chamber's request even though a complicated analysis of the new tax's division prepared by the Chamber and Davis, seemed not to be understood by many. A review by The People News, discovered the analysis contained conflicting predictions and it appeared that general fund appropriations described as "donations," which are subject to budget cuts were added to the existing tax collection percentage figures to make the new division seem more equitable. Davis said the discrepancy was due to the difference between his projected total revenue of $535,000 and the Chamber's proposed revenue of $525,000. His figures, he said, were current, while the Chamber's were for last year.  The bottom line is that before the new increase the general fund received $105,000 and after, by Davis' reckoning it will be $107,500, so it appears that the money the general fund could have gained  was spent before the legislation was even drafted. No one was concerned to ask why the Chamber of Commerce was calculating tax increases to influence where money was spent.

The Commission's action on this occasion could be considered a prime example of why county finances are in such a mess. To be fair, there does seem to be a genuine desire on the part of the Commission to do a good job for the citizens but they accept every line that is fed them and with the exception of Roy Smith, can't seem to say no to anyone.  According to the CTAS website (keywords: hotel motel tax for Tennessee counties) over 50% of counties with private acts, place all hotel/motel tax collections in a general or similar fund, only one specifically earmarked funding for the Chamber of Commerce. With the introduction of the higher tax, the Chamber of Commerce comes out the winner, with 55% of whatever the collections turn out to be, yet can still be supplemented from the general fund if they want more. They have worked themselves a heck of a deal that insulates them from budget cuts. Its pretty darn smart for a private business to ordain themselves with government status and guaranteed taxpayer funding with little if any government oversight. During the 2002-3 county budget discussions, Finance Committee Chairman Matt Brown said he had no idea how the Chamber spent the money but voted to increase their allocation anyway, although he wasn't present to vote on this one. By this latest action, county commissioners have agreed to enact a law to fund a private organization, without laying down rules for oversight or cap the maximum that can be received from the tax.

Lest we forget.... it was the Chamber who pushed for liquor by the drink... it was the Chamber who pushed for county zoning.... it was the Chamber that said we needed an income tax.....  it is the Chamber who is pushing for a new airport.... it is the Chamber who is continually recommending big tax breaks for their supporters... it was the Chamber who recently advocated increasing the local sales tax and it is the Chamber who is spending $500,000 renovating a large and fancy office in the Village Green when most people are suffering from the recession. It is one thing for taxpayers to finance wasteful and inefficient government but it is unconscionable to fund a private entity that uses the money to scuttle the wishes of the people who fund it. It may be time for Bradley County to handle its own tourism and industrial development and it may be time for our elected officials to learn to say no.

by pete edwards
Editor/Publisher

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