More on Brown's $4.5 billion

City Hall has a fundamental problem: it can't support itself on locally generated taxes.

Historically, property taxes have been the city's primary source of revenue. But operating costs long ago surpassed the amount of revenue generated by property taxes, the city's share of sales tax, and other traditional sources of funding.

To make up the difference, the city has increasingly turned to the state for funding. It's gotten to the point where state aid now outpaces property tax revenue - $147 million to $146 million. Sales tax revenues account for another $65 million.

If the city is to ever close this huge structural deficit, it needs to grow its tax base. But the development on Brown's list, even if it all comes to pass, would not have much of an impact for the foreseeable future, for a couple of reasons.

   First, nearly two-thirds of the projects are tax exempt because they are owned by the government or, to a lesser degree, the Seneca Nation. Right now, one-third of commercial property in the city is tax exempt. That means the Brown list is more reliant on the development of tax-exempt property than what has occurred in the past.

   Second, many of the projects that are taxable enjoy property tax abatements that will delay by up to 15 years the time they pay their full property tax bill. Depending on the subsidy program, building owners only pay partial property taxes, or the state pays the tax bill on their behalf, which only adds to the state deficit.

   In either event, taxpayers are paying a price.

Comments

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Who wants the control board to go away??????

Anyone?????