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An Update on Business Incentives
- Subject: An Update on Business Incentives
- From: "DiRossi, Ray E. (SenAnnexR)" <email@example.com>
- Date: Thu, 28 Aug 1997 14:37:00 -0400
- List-Name: GLIN-Announce
On August 5, Cleveland voters turned down a charter amendment that would
have limited tax abatements to businesses and given more tax dollars to
the schools. The proposal, known as Issue 1, would have required that
either the city or the developer receiving the tax abatement reimburse
the schools for lost property tax income resulting from abatements.
About 60 percent of property tax goes to the public schools. Estimates
of how much Cleveland schools are losing from the use of abatements
range from $9 to $21 million annually. The amendment, which was
sponsored by the Cleveland Teachers Union, lost 58 to 42 percent. It is
believed to be the first time in the nation that the issue of tax
abatement use was put to the voters. Issue 1 was supported by two
members of Congress, Democrats Louis Stokes and Dennis Kucinich. The
list of opponents to Issue 1 included Cleveland Mayor Michael R. White,
unions and parent groups. They contended that the use of tax abatement
allows the city to compete with suburbs for new business. Although the
amendment was defeated at the polls, it shows the issue is gaining
momentum as these -incentives- come under greater scrutiny. Information
on this and other related issues can be found at our web-site. The
Other recent additions include:
USA Today Editorial: How you pay $$$ for stadiums far, far away
TIME Magazine: "A no-win war between the states"
Governing Magazine: Saving the States From Each Other: Can Congress
dictate an end to smokestack chasing?
Washington Post: Ohio Senator Takes on Industrial Incentives
As always I am open to your thoughts and comments.....
Senator Charles F. Horn - Ohio