Welcome to the third annual One-Size-Fits-All Candidate Survey, where city council and school board candidates answer questions about issues that affect not just one, but BOTH organizations. In part two, we ask:
Does Economic Development = Property Development?
TDDs, TIFs, CIDs, Chapter 100 bonds. To look at our present palette of economic development incentives, you'd think that the only economic development Columbia and Boone County want to incentivize is property development. Nowhere do we see incentives for high tech, manufacturing, or service businesses that aren't building something, usually on raw land.
We have no local incentives for historic preservation; and homebuyers have recently been stuck with a slew of new costs and fees that can no longer be offset. The small entrepreneur, who's just starting out, gets nothing but a lump of coal and a tax bill. Google, after all, didn't start out by building a huge new headquarters. And Steve Jobs started Apple in his partner's garage.
CANDIDATE QUESTIONS -- 6th Ward City Council and Columbia School Board
Q1. Do the benefits we receive from the development of strip malls and shopping centers justify the incentives we provide (primarily via TDDs and ultra-low property taxes on land)? If so, why? If not, why not?
ROD ROBISON, City Council
The simple answer to why we should use tax incentives is that other cities do, so to compete for these businesses, we must offer some type of incentive as well. In general, I am in favor of incentives for businesses wishing to build in or relocate to Columbia. My general rule of thumb is that Columbia should be more open to offering incentives to attract new businesses. Research shows that the trickle down effect of companies locating to a city offsets the initial cost of offering incentives.
MICHELLE PRUITT, School Board
This is a question that could theoretically be answered by careful analysis of cost vs. benefits. It would seem prudent for the city to evaluate the effectiveness of its policies, especially in difficult economic times.
CHRISTINE KING, School Board
I would like to see an example of one strip mall, etc. and see how the funds play out in the real world. For example, to follow the benefits actually received and then how do the incentives look on paper. Regarding the tax incentives working or not, this is another example of how were the incentives planned to be used, and then ask why weren't they used in that way, if that is the case. Do we really focus on the long term utilization of tax incentives and do we monitor and watch how and why the incentives are applied and utilized? These are questions I have, and more, before a definitive opinion can be provided.
SAM PHILLIPS, School Board
School board members should welcome meetings with city and county planners, as well as other officials and independent community leaders, to keep informed about community growth and other trends. As individuals, board members do not act to bind the district. But, individually and collectively, board members can listen and learn.
Q2. If the tax incentives we've been providing all these years really work, why do you think the county, city, and school district are always short of funds?
ROD ROBISON
I believe that granting TDDs to repeat users and then not having oversight on how or where that tax money goes is troubling.
MICHELLE PRUITT
The school district had rapidly increasing revenues over the past five years, but allowed expenses to grow even faster. Some increasing expenses for the school district are unavoidable unless larger-scale issues are addressed: employee benefit premiums, retirement expenses and energy costs all grew disproportionately over the past five years for the school district as they did for private businesses. It's even more important when we anticipate a period of slower growth in the tax base to prioritize our spending and plan for the long-term.
CHRISTINE KING
The tax dollars for economic activity and for our schools will help aid and assist making our community stronger and viable. If the tax dollars are being applied to economic activity for which we were promised, then are we watching and making sure the money is being managed properly so that another levy or tax increase is not necessary?
SAM PHILLIPS
Columbia Public Schools should continue to prepare our students for completing and advancing their education and for working in an ever-changing economy.
Q3. Does Economic Development only equal Property Development? If not, why do we subsidize it so heavily? And what other types of business and entrepreneurial activity should we be pursuing?
ROD ROBISON
Offering tax incentives, for me, depends on the type of business, the number of employees, the number of other tax incentives already in place, etc. To date, Columbia has used primarily TDDs, but is now looking into TIFs and CIDs.
MICHELLE PRUITT
The city, University of Missouri and Regional Economic Development, Inc. have targeted life sciences businesses and other high-tech companies to recruit to Columbia. But businesses that employ highly educated employees demand top-notch public schools both for recruiting employees to relocate to Columbia and for a well-educated local workforce. Columbia Public Schools are competing on a national and international basis to raise achievement for all students.
CHRISTINE KING
No response.
SAM PHILLIPS
No response.
Q4. What impact do you think heavily subsidizing one type of economic activity with tax dollars has on the average homeowner or taxpayer who rents, especially when they are the first people asked to pay higher levies and taxes?
ROD ROBISON
No response.
MICHELLE PRUITT
I would repeat my answer to question A -- we should be able to get a rough idea of the impact of our economic policies on tax rates and the ensuing impact on taxpayers and public institutions.
CHRISTINE KING
There is no way to please and make everyone happy with how and what we tax for. The important concern all of us should have is this "are my tax dollars being used for what I was told they would be applied." I think in many situations, there is not enough information reported back to tax payers on 1) how much money was actually received for whatever we were taxed for - for example schools 2) the money actually received, was that less or more than expected and 3) how was the money applied for the purpose. We need to ensure timely, effective and meaningful communications are being sent back to the public on an ongoing basis.
SAM PHILLIPS
The Board can help re-earn the community’s support, including their financial support, by: (a) assuring fiscal responsibility; (b) listening to the community, and, (c) providing for the district’s teachers. With the community’s support, the school system can help produce tomorrow’s innovators and civic leaders.
Editor's note: We did not receive answers from any other school board candidates and incumbent city councilwoman Barb Hoppe has been away visiting a relative in ill-health.
Next time: 2nd Ward council candidates Jason Thornhill and Allan Sharrock answer.
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