February 12, 2005
Plan 5 from outer space
Since the first four financing plans for an Indianapolis Colts stadium weren't doing the trick, there's now a fifth one on the table. Indiana state representative Mike Murphy has proposed diverting $28 million a year in income taxes paid by suburbanites who work in Indianapolis to help pay for the $687 million stadium. "It's a regional solution that doesn't raise any taxes," said Murphy. "I don't know how you can argue with this."
The Colts debate highlights a dilemma faced by politicians seeking to use public funds for sports facilities (or for anything else, for that matter): Do you propose a new tax, like Indianapolis Mayor Bart Peterson did with his legalized slot machine scheme, and brag that it doesn't drain the city treasury of any existing revenues? Or do you propose draining the city treasury, as Murphy would do, and make a pledge of no new taxes? You're either robbing Peter to pay Paul or robbing Paul to pay Peter, so your decision is probably best made by whether your audience is more perturbed by the threat of new taxes, or of reduced city services.
Draining the Colts' profits on the deal, of course, is right out. This is about "finding a horse to ride," remember?
