RALEIGH – Yesterday I ran across a new example for an old argument of mine: that it’s hard to take local politicians seriously when they complain about tight budgets while defending the indefensible.
During times of fiscal stress, these politicians tell us that their only choices are to cut core government services or raise taxes. When they do the latter, it’s always to save teaching positions, police officers, or library branches.
Their claim is always false. By definition, a tax hike funds the lowest-priority spending that the politicians have refused to cut. Unless they mean to suggest that education and law enforcement are their lowest priorities, the reality is that the higher taxes sustain programs with narrower constituencies.
More to the point, such higher taxes often end up funding the local share of “economic development” projects. Last year I cited the examples of convention centers, recreational facilities, and sports venues. Today’s example is the Horse Park of the South project in Rockingham County.
As reported by the Greensboro News & Record, the equestrian center began life as a $14 million that would receive state funding of about $4 million (directly from the legislature as well as from the tax-funded Golden LEAF Foundation) as well as millions in city and county tax dollars. Not surprisingly, however, the initial phase of construction is costing more than projected, $10 million vs. the original estimate of $6.8 million.
What to do? If we were to take seriously the protestations of local officials that they always set firm priorities during tough times, the proper course of action is clear. Local and state governments should take this golden opportunity to save the taxpayer’s gold for more important needs. As Eden resident Thomas Harrington explained it to the Rockingham County Board of Commissioners, “You can always spend this money later. But you can’t unspend it. So stop it.”
Unfortunately, that’s not the kind of logic that typically guides decisions about government budgets. Instead, the “logic” that prevails is the notion that once you start a multi-million-dollar project, you might as well finish it.
It’s the kind of thinking that compels private developers to do whatever it takes – borrow money, sell assets, beg, borrow, and steal – to finish their building projects and housing developments even when the market tanks. That’s why you never, ever see any unfinished private construction projects during recessions.
Oh, wait, never mind. I just looked out the window.
Rockingham County officials risk significant public disaffection if they continue to throw tax money at a questionable project in the midst of continuing fiscal pressure. So do city and county officials across North Carolina who decided to plow ahead with subsidized hotels, sports arenas, and similarly indefensible projects.
No one ever said sticking to budgetary priorities is easy. That doesn’t mean it isn’t necessary.
Hood is president of the John Locke Foundation