City should raise taxes, not cut costs

The City of Peoria is in a world of hurt. Because of the recession, revenues are down. Way down. In fact, according to a report prepared for Tuesday night’s council meeting, “Staff is anticipating $3,334,129 less revenue than previously forecasted, which would result in a budget deficit of an equal amount.”

As a result, staff is trying to figure out a way to make up the difference. Curiously, they’re trying to do so through fiscally conservative methods, such as contract adjustments, expenditure reductions, revenue-generating activities, and reserve funds. In other words, they’re trying to save money without raising taxes.

But why? If the recent election has shown us anything, it’s that the vast majority of Peoria residents don’t give a hoot whether their taxes are raised. Most of them couldn’t be bothered to drag themselves downtown for early voting, or out to their polling place on a beautiful sun-shiny day. A majority of those that did voted to raise their own taxes for a non-essential project in the middle of an economic recession — some would say depression.

You know what that tells me? That tells me that the city council should stop stressing out about cutting costs and looking for other forms of revenue. In fact, they shouldn’t change a thing about their operating budget. They should simply figure out how much additional revenue they need, and then raise taxes to cover it. Done.

After all, the museum group didn’t look at any other alternatives to downsize their project, or to increase revenue-generating activity, or renegotiate contracts (like using non-union, but prevailing-wage labor), or any number of things that would have made their project more affordable. Yet, the majority of the few registered voters who turned out voted to give them $40 million anyway with no strings attached.

Not just the voters, either. Caterpillar, the Chamber of Commerce, almost all elected officials, District 150, the Peoria Association of Realtors, etc., etc., etc. — they were all for raising taxes. How could any of them complain if the city were to do the same for essential services, such as police, fire, streets, and sidewalks?

I’m calling on all those who supported and voted for the sales tax referendum to write their city council members and demand that they not cut spending, but increase taxes instead. Since we’re all so flush with cash, let’s start using it in the areas that are the most needy.

33 thoughts on “City should raise taxes, not cut costs”

  1. Great piece, CJ. Dead on. It feels like a “while Rome was burning” scenario in Peoria.

  2. I think that “The Peoria Chronicle” should be supported by tax dollars.

    Really though; police, fire, streets, sidewalks, sewage, schools, etc, etc……?
    Who needs that crap when in less then 3 years [?], we will have…….

    DAS MUSEUM!

    Will the new museum building be earthquake proof? Tsunami proof?

  3. Great (tongue in cheek) piece, C.J.

    I don’t need to point out all the logical flaws in your argument, cause I know you know what they are and were taking a humorous look at the situation.

  4. Do it while its hot. The City Council should vote to raise taxes within the next month. In two years, four years, who will remember right….

  5. Vast Majority? CJ c’mon. Where did you get vast majority on the “build the block” tax ref? LOL Too funny. However I get your oooze of sarcasm. let’s just raise taxes until no body can afford to live in Peoria, or Illinois for that matter. Maybe the whole City can be a Museum? We can visit the Dist. 150 Museum, or the Civic Center Museum.

    Yea, conservative approach to a budget? Holy common sense Batman! Does anyone care about the cost of doing business in Peoria anyway? Raising taxes hurt the small business owner, who we NEED desperately. If property taxes go up, and housing values decline, what’s the point? (Of course most people don’t know you can have your property taxes reassessed at a lower value if you qualify. hint, hint)

    We need to attract businesses to want to move and live here in Peoria. Hec, since none of us will be able to start a small business, let alone grow the ones we have if taxes go up, at least we will have time during the day to visit our new museum. Let’s not make our entire city a museum. CJ, did Peoria raise taxes in the 80’s when CAT fell on hard times? Did they raise CAT’s taxes then? Good post.

  6. By continuing in this way, under the guise of “democracy”, Peoria is insuring Dunlap, Metamora, Morton, Washington, East Peoria and Bartonville will continue to get the wealthiest members of central Illinois… Peoria will continue to bleed…. I think I mentioned this before… 50 years and no increase in population… what the???

  7. Scott J: I think CJ’s point is that only 11% of citizens voted for the tax… that leaves a vast majority that either voted against it or did not vote for it.

  8. That’s right, kcdad. The vast majority of Peorians didn’t vote at all, which shows that they don’t care one way or the other whether their taxes are raised. I think voter turnout was roughly 23% or something, wasn’t it? So, 77% or so didn’t care if their taxes were raised or not. Of the 23% who cared enough to vote, a (slight) majority of those actually wanted to have their taxes raised in the middle of a recession.

  9. Sore loser? Why, I’ve seen the light, people! Higher taxes are good during recessions. They stimulate the economy. They create jobs. I’ve bought into the new conventional wisdom and am ready to apply it liberally. You’ve made a believer out of me.

  10. C.J.: It’s MY understanding that a slight majority of COUNTY residents supported the tax. The museum tax was more popular in the city than the county. A fact which supports your opinion: Peorians LOVE taxes.

  11. C.J. — with your new wisdom and outlook on economic matters, you might now qualify for a post in the Obama administration. 🙂

  12. “A fact which supports your opinion: Peorians LOVE taxes.” No we love the children. It is all for the children, right? County residents must just hate children. 😉

  13. Thanks alot!

    I go to all the trouble of getting my GED [in only six years], and attending community college for three months………….hoping to land a part-time job when the new museum opens up, and YOU people tell me the bottom is about to fall out?!?!?

    Based on the Fujita Scale, does anyone know what kind of Tornado damage the new museum building will be able to withstand?

  14. Peorians will do whatever it takes to make the Kingdom of Caterpillar happy!

    I work downtown and restaurants, etc are closed today because it is a Cat holiday. I guess the museum and 40 mil hotel will have to shut down according to Cat’s schedule when they are built.

  15. Same thing has happened in the past too though. The day after Christmas, you couldn’t buy food in downtown Peoria because everything was closed.

    That is not how you make a vibrant downtown.

  16. I agree with Ben. Everything else in the tri-county area is open…..except of course downtown Peoria.

    I remember when I first discovered this ‘oddity.’ I walked around downtown for an hour, looking ridiculous as I pulled on every door……only to find them locked.

    Excellent point Ben.

  17. Downtown Peoria was ever open? I see downtown like the eye of a hurricane: meteorologists warning you to stay indoors and away from windows all morning, afternoon and evening with an eye of activity from 11am to 1pm.

    I’m relatively new to the Peoria area, and I walk through downtown most days with a heavy heart. Oh how I would’ve loved to see Peoria when downtown was vibrant, shops thrived, and when it wasn’t a ghost town at 5pm.

    At least the Block will be open nights and weekends, right? I’m sure that will drum up so much foot traffic to… uh… um… I guess from the museum to their cars in the underground garage.

    Peoria doesn’t even play in Peoria any more.

  18. C.J. Peorians are twice as civicly minded as those of us in Tazewell County. Estimates for the turnout ranged from 12-15 % depending upon location.

  19. “Why, I’ve seen the light, people! Higher taxes are good during recessions. They stimulate the economy. They create jobs. I’ve bought into the new conventional wisdom and am ready to apply it liberally.”

    DANG IT!! I DID miss something the day I skipped a class in economics.

  20. Can anyone confirm the rumor that the new museum will have an underground submarine pen with access to the Illinois River?

  21. That is in fact true NV, the pen is connected by a rocket train accessible from either the PRM or Visitor’s Center. It will blast occupants at near the speed of sound to the dock where the submarine will disembark from under the Riverstation which is why Tilly’s had to close. Construction for that portion of the project is going on in secret right now. It was built in the event the restless villagers start burning down the downtown and raising their pitchforks to the museum staff or Cat execs.

  22. CJ is right. Peoria is a dying town, so let’s raise taxes substantially and put it out of its misery quickly. No point in letting it decline slowly. And the economic benefit of a quick influx of home buyers in the suburbs right now will help cushion the recession for Tazewell and Woodford Counties. The only thing is, the Tazewell and Woodford County Boards will have to pass laws prohibiting the clowns who supported the museum and similar white elephants from moving out to Tazewell/Woodford and trying to wreck them too. I KNOW! A 90% County Income Tax targeted to those particular people! That should do it! WOW! I’m getting into the new spirit of Socialism that’s sweeping the country!

  23. Don’t forget. It’s the somewhat wealthy elite and the wealth elite and their “gofors” who don’t mind paying more taxes or don’t pay much now. Look at the voting patterns by area of affluence.

    It’s not the taxes only. It will be operating costs affected by “after the first year” shrinking paying attendance, that will cause the county who will own the museum building to take over operations as well.

    Then watch out for increases in property taxes. And of course, they won’t need another sales tax referendum; in fact, no need of a referendum at all. See my predictions on my blog site. Pessimistic? No, realistic, already proven by local events over the past few years.

  24. Any Pro-Museum people want to take a stab at Merle’s post?
    Of course the museum group never answered any of the ‘what if…’ questions. No ‘Plan B’ as Karrie put it.

    I was more than a little embarrassed for the Peoria County Board; what with the Peoria City Council [and friends] pushing them around like that…….

    We will make an exception for Merle here.

    I just hope the Peoria movers and shakers who pushed for this project are still around when the tax hikes begin to hit. It would be nice to hold SOMEONE accountable…or at least get an ‘I told you so’ in.

  25. Sure NV, let’s assume that everything you and Merle said is true or is going to happen. Then it is on the people of Peoria County to elect a board that represent their wishes which might be either to take the museum over and assume the deficit operation costs via tax increases or what ever alternatives exist.

    The representatives ELECTED by County of Peoria residents VOTED to allow the residents to decide the museum referendum for themselves and the end result was they VOTED for it. Merle deserves all the credit in the world for sticking to his guns and providing research to back it up, unfortunately for him the citizenry disagreed. And they will have to decide how to handle the outcome IF your hypothesis occur.

    Anyone and everyone can keep coming up with all the what if’s they want to, but by virtue of the decision made Tuesday the majority determined that the potential risks were outweighed by the presumed benefits. That’s the bottom line, there is really not much more to it than that…

  26. Merle, you are very optimistic if you think they are going to hit their revenue/attendance projections in the first year. They are so wildly inflated their only hope is that hyperinflation of the currency hits before opening day (OK, that could happen).

  27. 11BRAVO,

    I hear you. I agree, in the end it was up to the voters.

    I do believe you know where I am coming from. This analogy is probably going to get Diane all wound up, but if your a cop, do you spend more time going after the drug addicts, or the guy pushing the ‘dope?’

  28. Mouse: The museum group’s attendance and revenue and expense projections are for ‘stable year’ operations — a four year average. That might mean that their projections are higher or lower and/or steady state. Time will tell.

  29. No new taxes. Simple. You can’t keep dinging those on fixed incomes with taxes everywhere they turn. Fee increases such as in fines, application permits, etc, is a more appropiate avenue at this point in time.

    Our City government is much more leaner than before. No City employee other than a few management positions should be sacrificed.

    Peorians have a stinkhole of taxes levied against them and our visitors for years to come.

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