It is with sadness that we all recently learned of The Village of Schaumburg’s decision to levy a property tax to meet the current budgetary shortfall. Schaumburg as not had a property tax since its formation in 1956. My family moved to Schaumburg in the early sixties and this is where I grew up. I still consider Schaumburg my hometown. Skokie is now the only major suburban Chicago community that does not levy a property tax.
Village leaders say they had to implement this tax in large part because of a significant decline in retail revenues during this great recession. You see Schaumburg is considered the Retail Mecca of the Midwest. Woodfield Mall, one of the largest malls in North America, anchors its beautiful skyline. Rolling out from the mall are numerous shopping centers (that include big box retailers), car dealers, furniture retailers (IKEA comes to mind), and restaurants.
With a projected $17.6 million General Fund deficit, Schaumburg has decided to levy a tax of 8.1% of the 2009 property tax bill. The Village manager and his staff recommended the property tax levy to the full Village board. There are other ways for Schaumburg to get out of its budget quandary, some of which were ruled out because market conditions are not favorable. That is the arrogance of government.
First, the Village should sell off the Convention Center and Hotel. Some consultant recommended that they build the Convention Center and that it would pay for itself. Baloney. The private sector does a much better job than any governmental entity at running hotel businesses. Government should not be involved in enterprise.
Second, the Village should sell off the Schaumburg Flyers baseball stadium. Minor league baseball is much more profitable than the majors. Fans enjoy the natural play of the sport and any team ownership worth their salt is able to increase their fan base and profitability. Sell it to the baseball team owners, perhaps on a long-term contract. Ownership of a baseball stadium is not the role of government.
Third, re-evaluate the village’s master plan and zoning laws around the Woodfield Mall area. The village should allow for high-rise residential development. This can provide a base of retail consumers for that area. The net effect of this would be greater support of the existing businesses and attraction of new business. In turn, tax revenues will increase. While the housing market is not yet fully recovered, in time it will improve. Demographic population changes will fuel the increase in popularity of condominium dwellings.
Fourth, join the other five Northwest Suburban townships in forming a new county (Lincoln or Reagan) thereby telling Crook County to go stuff it. Cook County and its daddy, Chicago, are the most corrupt units of government in the State of Illinois. Its fair time that the municipal leaders of the Northwest Suburban region wake up and sever all ties to this unit of government. Not only has Crook county levied a large retail tax (part of which was recently rolled back), but its method of assessing commercial property makes these property taxes a huge burden on businesses in the Northwest Suburban region.
Schaumburg can survive without a village property tax by taking the steps mentioned above. The community has a lot to offer. It has a solid library district, a strong park district, and quality schools, which are a part of elementary school district 54 and high school district 211. These government entities survive just fine with their tax revenue. Schaumburg should be able to do the same.
A property tax levy will only hasten the departure of businesses in Schaumburg to more tax advantaged areas outside of Crook County. The Village should concentrate on providing basic services and not try to build a real estate fiefdom.
Wednesday, December 30, 2009
Monday, December 21, 2009
Political Musings
Global Warming…yeah, right.
While the eco-topians hammered out a non-deal in Copenhagen, 18-24 inches of snow fell on Washington, DC. Meanwhile the eco-preacher from Tennessee, Al Gore, continues his pattern of false statistics and scientific measures. To these global alarmists the Global Warming is a religion and Gore is their pastor. I wonder what flavor kool-aid they drink?
Obamao-Care
The U.S. Senate marches on towards passage of the health care legislation. Apparently they have the votes and will pass the Senate version by Christmas Day. This legislation will burden Americans with increased taxes and add greatly to the federal deficit. Republican reform measures were all ignored, including: insurance portability, tort reform, importation of prescription drugs, and expansion of Medical Savings accounts. All of which are true reform. Instead, smarmy Harry Reid, has stuffed the legislation with “earmarks” to buy off legislators. Should the conference committee piece together a final measure that gains passage, the legislation will be re-visited after the 2010 elections.
Double-Dip Recession?
With the incredible tax burden that is festering due to a huge stimulus package that has failed, Obamao-Care, and the prospects of some form of Cap and Crunch (the economy), it is likely that we will see a double-dip recession. The weight of this troika of the iron fist of government will hurt small businesses and independent business people. Because of the new mandates and tax increases the self-employed and underemployed will rise as small businesses get pounded. Watch for the unemployment rate to remain unchanged. Also, watch for the “contingent workforce”, as it is called in Private Equity circles to rise. It is possible that many will be moved from the payrolls into a role of skilled temporary workers as a result of the socialist-democrat legislative agenda.
Does Government do Anything Right?
As the Party of Government (POG’s) increases the level of government workers and their benefits you have to wonder why? Do they do anything right? Consider:
· Amtrak continues to run in the red.
· The U.S. Postal Service will have a $3.8 billion loss this year and is projected to lose $8.0 billion next year.
· Fannie and Freddie are near insolvent and continue to be a dumping ground for political has-beens.
· The government cannot get the flu vaccine distributed in a timely fashion and when it does it is found that numerous batches do not have sufficient strength to ward off the current strain.
· Education. Most of the public schools in this country are terrible and produce those that graduate with an education that cannot compete with the rest of the world. Shameful.
It seems to me that government service attracts mediocrity while private industry attracts the best and the brightest. That is not to say that there are exceptional people working for governmental institutions. It is just that government bureaucracies do not create a culture of excellence. Government needs to be shrunk desperately.
Secular Religionistas
Why is it that all the secular religionists have to weigh in on all matter of public policy? Can’t they just shut up and tend to their flocks? They should concentrate on making their followers better people.
Liberal Union Leadership
These goons continue to speak out and lobby on all types of legislation. Very little of which has anything to do with matters important to their membership. They should negotiate on behalf of their members, NOT try to represent all Americans. The healthcare legislation is a case in point. They are pushing this monstrosity, yet in the Senate bill they are going to get hosed. The bill will heavily tax the “Cadillac” healthcare benefits they negotiated for their membership. No wonder union membership continues to decline. Its leaders are trying to get their 15 minutes of fame in the National political arena instead of negotiating for their membership.
P9FN9R57XG4C
While the eco-topians hammered out a non-deal in Copenhagen, 18-24 inches of snow fell on Washington, DC. Meanwhile the eco-preacher from Tennessee, Al Gore, continues his pattern of false statistics and scientific measures. To these global alarmists the Global Warming is a religion and Gore is their pastor. I wonder what flavor kool-aid they drink?
Obamao-Care
The U.S. Senate marches on towards passage of the health care legislation. Apparently they have the votes and will pass the Senate version by Christmas Day. This legislation will burden Americans with increased taxes and add greatly to the federal deficit. Republican reform measures were all ignored, including: insurance portability, tort reform, importation of prescription drugs, and expansion of Medical Savings accounts. All of which are true reform. Instead, smarmy Harry Reid, has stuffed the legislation with “earmarks” to buy off legislators. Should the conference committee piece together a final measure that gains passage, the legislation will be re-visited after the 2010 elections.
Double-Dip Recession?
With the incredible tax burden that is festering due to a huge stimulus package that has failed, Obamao-Care, and the prospects of some form of Cap and Crunch (the economy), it is likely that we will see a double-dip recession. The weight of this troika of the iron fist of government will hurt small businesses and independent business people. Because of the new mandates and tax increases the self-employed and underemployed will rise as small businesses get pounded. Watch for the unemployment rate to remain unchanged. Also, watch for the “contingent workforce”, as it is called in Private Equity circles to rise. It is possible that many will be moved from the payrolls into a role of skilled temporary workers as a result of the socialist-democrat legislative agenda.
Does Government do Anything Right?
As the Party of Government (POG’s) increases the level of government workers and their benefits you have to wonder why? Do they do anything right? Consider:
· Amtrak continues to run in the red.
· The U.S. Postal Service will have a $3.8 billion loss this year and is projected to lose $8.0 billion next year.
· Fannie and Freddie are near insolvent and continue to be a dumping ground for political has-beens.
· The government cannot get the flu vaccine distributed in a timely fashion and when it does it is found that numerous batches do not have sufficient strength to ward off the current strain.
· Education. Most of the public schools in this country are terrible and produce those that graduate with an education that cannot compete with the rest of the world. Shameful.
It seems to me that government service attracts mediocrity while private industry attracts the best and the brightest. That is not to say that there are exceptional people working for governmental institutions. It is just that government bureaucracies do not create a culture of excellence. Government needs to be shrunk desperately.
Secular Religionistas
Why is it that all the secular religionists have to weigh in on all matter of public policy? Can’t they just shut up and tend to their flocks? They should concentrate on making their followers better people.
Liberal Union Leadership
These goons continue to speak out and lobby on all types of legislation. Very little of which has anything to do with matters important to their membership. They should negotiate on behalf of their members, NOT try to represent all Americans. The healthcare legislation is a case in point. They are pushing this monstrosity, yet in the Senate bill they are going to get hosed. The bill will heavily tax the “Cadillac” healthcare benefits they negotiated for their membership. No wonder union membership continues to decline. Its leaders are trying to get their 15 minutes of fame in the National political arena instead of negotiating for their membership.
P9FN9R57XG4C
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