Sunday, March 11, 2007

Potential difficulty for the downtown arena?

This Blade article about the state's debt limit had the following statement:

"The Office of Budget and Management said the state could reach its constitutional debt limit in four to five years, which would severely limit its ability to build and renovate schools, university buildings, and park facilities, let alone tackle museums, sports arenas, and other projects.

"The reality is we're facing essentially flat [general revenue fund growth] and a large part of that comes from personal income taxes," said J. Pari Sabety, the state's budget chief. "Those are flat by operation of [tax cuts in] House Bill 56 [of 2005]. We've got to start flattening our debt." "


The current arena action plan calls for $12.25 million from the Ohio Cultural Facilities Commission - 15% of the total project costs. (more details about the funding plan and my comments available here)

In light of the news from the state, perhaps we should revise the financial plan for the arena - and decide at what point the financial gaps become too much to overcome...especially when any gaps in funding will end up being paid for by the taxpayers.

1 comment:

Hooda Thunkit said...

Maggie,

Do you mean that, GASP the State would have to live within its means?

True, revenues (taxes) is/are flat; so should be our spending plans.

In tough economic times such as this, politicians just may have to resort to alternative methods for buying votes and voters; perhaps by cutting taxes...

That has proven to increase revenues time after time after ti...

But, that would make way too much sense, wouldn't it?

;-)

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