Wisconsin Gov. Scott Walker is set to sign the Bucks arena bill today, and he couldn’t resist a defense of how giving around $450 million in state, county, and city subsidies and tax breaks to the Bucks owners was an offer too good for him to refuse:
“It’s critical not only for those who love sports, but the main reason I got into it was because it protected state revenues,” Walker said last week, citing the income taxes Wisconsin would lose if the team leaves the state. “That just creates a big hole for everything else. …This was really about protecting the taxpayers of the state.”
We’ve heard this before, of course — it’s the basis of Walker’s whole “cheaper to keep them” p.r. campaign — and I’ve debunked it at length for Vice Sports, if you care to hear all the reasons why it’s crazy. (Though given that Walker managed to fob off most of the Bucks arena costs onto the city and county, he could maybe make a case that he did protect state taxpayers, if by state taxpayers you mean only those who don’t live in Milwaukee County.) For now, though, just enjoy the simple pleasure of one of the most dedicated foes of government spending on anything defending $450 million on a private basketball arena as “protecting the taxpayers.” And then watch Tom Ziller‘s head rightfully explode with outrage.
I have a major disagreement with Tom Ziller on one issue, and I hope he chimes in here. I’m not going to join the cesspool of SBNation to make my comment.
Raising parking prices is the “least bad” way to raise revenues? Bull. Shit. He completely ignores that downtown Sacramento is actually extremely busy 5 nights out of 7. Yeah, like most downtowns, save Washington DC, San Francisco, NYC, and a few others, Sacramento is quiet on Monday and Tuesday. The rest of the time? I can’t find parking.
By tripling their rates over the next few years, combined with no more free-parking after 6 p.m., they are (I’m sorry, I’m going to upper-case here for emphasis) CHARGING PEOPLE FOR THE ARENA, WHO WILL NEVER SET FOOT IN THE ARENA. And what’s going to happen is that businesses will quickly figure out that they can relocate to places where parking will remain free after 6 p.m.
This is a REALLY CRAPPY way to pay for the arena. That may make it “least bad”, but if that’s a way to say “STILL CRAPPY”, I guess we’re on the same page.
Our plan is very similar to Louisville’s. People will figure out ways to avoid paying for parking downtown. I believe very strongly that people will learn to eat before they approach downtown, and that they’ll figure out ways to not pay for parking. It won’t be that hard. Taking light rail from one of several strategic locations will do it.
Tom Ziller, please come here to debate/defend.
/rant
I’ll be curious if this bill gets brought up by some of the Republican presidential candidates in the PR Soin, err, debates, tonight. It would seem like some small government/less taxes candidate would take up the mantle. Unless of course that would upset the ‘earning class’ too much.
Of course, the Democrats marched arm in arm with Walker into this mess, so they aren’t clean, but Clinton and Sanders didn’t have anything to do with this. I’m still amazed after all the years that Neil has been putting this site together, that the one unifying theme in politics is all politicians say ‘Hell Yeah’ to public arenas and stadiums.
My next sleight of hand is to somehow sneak schools into arenas. And maybe health clinics.
Neil, I’m sure you follow politics. “Protecting” = attacking, no matter which party is doing the talking.
Oh, and the Ziller piece is basically every finger-wagging sports columists’ HOT TAKE ever. Yawn.
The City of Milwaukee still must approve its Bucks giveaways, probably in Sept., probably a slam dunk if Bucks lobbyists continue their winning streak. The city would mostly fund a Bucks-owned PRIVATE “entertainment” mall adjacent to the 700,000 s.f. arena (full of bars and restaurants).
The plan is wasteful and fiscally bankrupt beyond belief. The Mayor wants to donate a well-kept parking complex to the Bucks owners so the city can pay to tear it down to make way for the Bucks mall. In addition to forgoing $1 million a year in income, Mayor Barrett wants the city to build a new garage a block away for $35M, and then GIVE THE BUCKS HALF OF THAT PARKING INCOME! He thought he got a “good deal for taxpayers” because the Bucks Bullies first demanded ALL the lunch money/parking income.
The block-long multi-floor mall will try to overrun about 20 existing businesses a block away, plus about 20 more on the next block. It’s absolutely the last thing downtown needs but now the NBA is so powerful it can demand not just public funding for arenas but also subsidies to cannibalize local businesses.
The city would also give the Bucks for free a one-acre vacant lot it paid $1M to secretly acquire three years ago in an underhanded deal to keep concerned citizens from trying to preserve a now-demolished historic building. The Bucks Billionaires would get the land for speculation, on top of about 30 acres of public land the state and county are giving them for same. Again, this is all being spun as great for taxpayers. And TIF taxes will pay for a “public space” INSIDE the Bucks private mall. Yes, Neil, words no longer have any meaning.
Prost,yes, the Dems went all in on this–except a few who tried in vain to get the Bucks to go easy on a broke county/city, including by letting naming rights repay some of that massive public debt. The Bucks masters of Monopoly and the universe would have none of it.
Mayor Barrett is a Dem, as is County Exec Chris Abele who cooked up horrible funding schemes (and keeps getting state GOPs to give him more power–to the point of neutering the county board. They got no say in any of the county giveaways, including prime real estate).
I’d love to hear these Dems explain this horrid deal to Bernie Sanders or E. Warren. Of course, Bucks owner Alex Lasry is a major donor to Hilary and a poker-playing Friend of Bill. So cozy!
Neil – I have to disagree with you on the way this post was written. Scott Walker pretty clearly says “but the main reason I got into it was because it protected STATE REVENUES.” I emphasize STATE as Scott walker has a fiduciary duty to the state budget, not to the city and county. This deal is terrible for the city and county, but it’s hard to argue against Walker’s point when you look at the state in isolation, especially when you look at current player income tax revenue and projected future revenue (even with less optimistic projections). yes, the Bucks leaving will have some substitution effect but when you consider the amount of revenue the Bucks import from the NBA team deal, much of the revenue driving player salaries would simply go away if the Bucks leave.
Is this a good deal? No – but Scott Walker is right. This deal protects the state taxpayers, it just completely f***’s over the county and city.
If he’d left it at “protecting state revenues,” sure. “Protecting the taxpayers of the state” is another story entirely, since Milwaukee County taxpayers are all taxpayers of the state as well.
I think we’re actually in agreement here — it’s why I included that parenthetical in my original post above. But Walker is clearly trying to sell this as “I saved us money!” without being clear that that all depends on who “us” is.
Doesn’t the current home of the Bucks also house the Admirals? Its not like it would be without a tenant if the Bucks left….
Ran across this article recently by Mr. deMause. Recommended reading for all. Concerns NYC transit system finances.
http://www.villagevoice.com/news/there-s-nothing-wrong-with-the-mta-that-a-hundred-years-and-a-few-hundred-billion-bucks-can-t-fix-7312416
Milwaukee & it’s dumb citizens being screwed by the NBA ( relocation ) current owners ( tax payers must pay ) and the Wisconsin Gov’t ( they’re just F’d up )
Congratulations!
“I’ll be curious if this bill gets brought up by some of the Republican presidential candidates in the PR Soin, err, debates, tonight.”
If there was any sanity left in the world of politics, signing on to this giveaway on the day of the first debate would be a suicidal move. But it’ll probably go unmentioned. Or blamed on Obama.
Anonymous: The Admirals will not play at the new arena (Bucks booted them) but at the nearby UWM Panther arena built in the 50s but OK. Perhaps a better deal for Admirals since they will get their merch income, rather than handing all that income to the Bucks.
Marquette will play in new arena and probably get their rent really jacked up, since the Bucks will write the lease as the official landlord.
Some are predicting the Bucks will sell the team within a decade, take their huge profit and new owners will have the team play wherever they choose. Buyers & sellers will just have to pay off the remaining debt–which may not be a huge deterrent when the team is sold for $1-plus billion…So Bucks fans will get a few more years but perhaps far fewer than 30.
@Native
I think what I’m saying is as long as there is a tenant to call the current arena home does it really matter if the Bucks leave?
I know the Admirals won’t be joining the Bucks in their new arena.
Isn’t this the same governor who dismantled all unions and cut school funding? I guess Wisconson can afford to spend millions to build a new arena for billionaires but cannot afford money to help educate the kids. Makes perfect sense.
Jeff et al:
It’s the New World Order. Walker is just looking out for his base–billionaire/millionaire donors!
Trump clearly made that point tonight when he bragged about all the politicians he’s bought over the years and how he’s called each for favors. Pay to Play is now something people can be proud about. Hedging your bets means paying off both sides. That’s how the Bucks deal got done and probably how most sports venues breeze through.
Now the Bucks have begun pay-to-play with the bars and restaurants around the arena that they need to be compliant so they won’t object to their cannibalizing, massively subsidized “entertainment” mall. Same playbook as paying off locals to comply with fracking and mining. Divide and conquer. Pay people to stop looking out for their own interests, the viability of their communities. Brave New World Order.
At least one pundit with O’Reilly on Fox News before the debate pointed out Walker’s stadium deal. Too bad it was not one of the debate questions. I was glad Trump was asked about his bankruptcies and how the investors pay the price. I think the taxpayers do, as well, through our tax code with losses and business writeoffs.