Res Ipsa Loquitur

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May 11, 2005

Economic Reality Bites Back

Fayetteville's request for a 4.8 mill increase for schools lost in yesterday's election.

Fayetteville School District voters turned thumbs down on a tax increase to pay higher salaries to teachers and upgrade computers Tuesday in what officials call one of the largest turnouts in recent years in a school election.

The unofficial returns show 61 percent of voters casting ballots Tuesday against the 4.8-mill tax increase. About 11 percent of the district's 37,806 registered voters cast ballots.

I find this pretty interesting for a couple of reasons. One, it illustrates the growing bind Fayetteville is finding itself in. Surrounding communities receive more tax dollars for schools on less millage because they're more friendly to the evil capitalist businesses. Pseudo-hippies don't want their taxes raised anymore than anyone else. Yet everyone wants more tax dollars for school, roads, etc.

And that money has to come from somewhere. It don't grow on any of those hallowed trees so zealously protected by the city. The economic reality is that tax dollars come from businesses and/or citizens. Decrease one and the other has to make up the difference, or tax revenues fall. When tax revenues fall, governmental services decrease.

It ain't quantum physics, you know. But the current administration, backed by the pseudo-hippies, doesn't seem to understand basic economics. Take, for example, the Dickson Street 'renovation' plan. The main thrust of the plan appears to be to turn Dickson Street into a collection of art galleries and select bars/coffee shops.....a type of pretentious Yuppieville, you might say. Which is why they were backing the 'Entertainment District' legislation BTW. Visions of yuppies spending their weekend afternoons (and their trust funds) strolling from gallery to gallery, with a glass of merlot in hand (or whatever the in wine happens to be) were dancing in their heads.

The reality of the matter is that this is a college town. Let's face it, Dickson Street is one of Fayetteville's major cash cows because of the money spent there by college students. In other words, bars. The average college student won't give a rat's ass for art galleries, and will take their parents' money elsewhere. Likely out of town, because it's not like they're a captive market.

It seems to me that the Dickson Street 'renovation plan' is remarkably similar to the underpants gnomes business plan.....much like the rest of the city's plans.

Which brings me to the other reason I find the election results interesting (and amusing). The millage increase had been hyped by certain of the local media, the ones which normally support the mayor's plans. Now it's probably normal for a city's mayor to support increased school funding, but the election appeared to be getting an abnormally strong mayoral backing.

It all struck me as kinda odd until I read a quote (which of course I can't find this morning b/c of the bad archival policies of our local media) along the lines of the TIF district was only a small part of the school's taxing district, so even if the school lost its millage in the TIF district it wouldn't have much impact on the overall total collected if the millage increase passed.

Now there's a win-win situation for the city and the school, isn't it? The city gets more money out of its TIF district, and the school gets the benefit of the increase in the non-TIF area to offset the revenue lost to the TIF district. (Assuming of course that it's ruled the TIF district can access school millage.) Overall, a millage increase would've provided a mighty handy carrot for the city to use in its TIF litigation. The school might very well drop or lessen its opposition to the TIF district if it wouldn't lose its overall funding level.

How very Machiavellian.

Now I doubt that this was an issue for the average voter. I think the millage failed because Fayetteville already has one of the higher school millages in the state, and because Fayetteville also has one of the highest per-pupil expenditure ratios in the state. I would say that the average voter thought the school was already getting more than enough funding.

But it also just goes to show you that you can't be too careful when dealing with the pseudo-hippy set. They ain't too bright, but they're pretty crafty....especially when they're trying to get their hands a little deeper into your pocket.

It's the 'All For The Common Good' socialism thing that justifies them spending your money instead of their own.

Posted by Rita at May 11, 2005 08:30 AM

Comments

Posted by: blarg at May 14, 2005 09:09 PM

Posted by: rita at May 14, 2005 09:36 PM

Posted by: blarg at May 15, 2005 11:52 AM

Posted by: Keith at May 15, 2005 09:14 PM