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April 11, 2008
FL house proposes one-year cut to sports subsidies
The Florida state house, facing massive state deficits, has passed a budget that would eliminate for this year the $2 million in annual sales-tax kickbacks that all pro sports teams in the state receive, saving the state $20 million. Before you get too excited, though, the measure still has to be resolved in conference with the state senate, which passed its own budget with the tax subsidies intact; Orlando city officials, meanwhile, are charging that it could end up in default of its arena bonds for the Magic if the measure were approved. (It actually seems far more likely that the city would be forced to ante up the difference, but if you're the mayor of Orlando, would you mention that?)
House leaders admitted the legislation was "a symbolic gesture" and that it hadn't been vetted to determine how it would affect stadium debt obligations. Team lobbyists, meanwhile, threatened to sue if it were put into effect, presumably under the Supreme Court's "no backsies" precedent. Don't hold your breath waiting for this to become law.
The Florida legislature has cut medical payments for the poor which will leave many of them with no options relative to their health but there are no high-powered lobbyists threating suit. It would be nice if this proposal would move along but it would likely be vetoed by Governor Charlie Crist who has never met a billionaire sports team owner he didn't want to turn over millions of taxpayer dollars to.
Posted by Ed on April 11, 2008 09:29 AM