Where’s the Money for Our Kids?
A gang of thieves—aka private developers—are celebrating in their St. Charles mansions over their latest scheme to rip off public funds and tax money. The Convention Center, with the blessing of their bought-off state and city politicians, will build a huge hotel with $114 million of public funds and millions more in property tax exemptions (Bureau of Governmental Research).
The policy of allowing private hospitality capitalists to profit from public funds, tax exemptions and the wholesale theft of tax dollars is outrageous. Only 3% of the city budget goes to families and children while the rich steal $160 million. It shows that the government is solidly in the pockets of the rich.
Just one example is the Convention Center hiring of State Rep. Walter Leger III as vice president for Strategic Affairs. While in office, Leger sponsored legislation to enable public funding for the Convention Center hotel. A high paid position is his reward. If that ain’t corrupt, what is?
DECEPTIVE “FAIR SHARE” IS A NET LOSS FOR RESIDENTS
While Mayor Cantrell boasts of getting a “fair share deal” with a return of some city taxes to the Sewerage & Water Board, most residents don’t know that she agreed to legislation which included public funds for the hotel.
The total tourist tax dollars bypassing the city budget and going into private profiteers’ bank accounts was $180 million a year. Now “only” $160 million in taxes are being funneled to these private interests. To offset the money that the hospitality capitalists “lost,” legislation was passed that grants them even more money by way of new taxes. They also scored whopping tax exemptions for themselves. The net result of this “fair share” is that the people are getting less, the tax dollars are still stolen and the Convention Center is getting even more money.
Knowing this deal is unpopular, Mayor Cantrell is now criticizing what she agreed to. Convention Center President and General Manager Michael J. Sawaya said, “the mayor, when we agreed to the PILOT [payments in lieu of taxes] and agreed to give her $28 million, she agreed to support the hotel project,” he said. “She committed to it in front of the governor, in front of all of us.”
So, who is really running the city— the mayor or the mainly conservative, white, super-rich capitalists pulling the strings? We need to build up the independent power of the working class to fight this theft and have money for our kids.