The Taxman, Pinellas edition

Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Hide your wallet if you live in Pinellas, my friends.

Property values are expected to rise in Pinellas County for the first time in five years, but that didn't stop county Administrator Bob LaSala from suggesting another tax rate increase.

LaSala unveiled a proposal Tuesday to raise the general fund tax rate by 5 percent next year, a move that, if approved, would mark two years of consecutive hikes. The increase is needed, he said, to cover raises for county and sheriff's employees, as well as a state mandate to increase retirement contributions.

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

Don't forget that St. Petersburg is planning on spending at least $50M tax dollars a new pier.

Artist rendering of the propose Lens to replace the St. Pete Pier

Other municipalities in the area are doing a better job holding the line on taxes while the economy is "recovering".

Rising property values have prompted other municipalities to hold the line on taxes. Hillsborough County, which also plans to give its employees their first raises since 2009, is keeping tax rates flat. And neither Tampa nor St. Petersburg, which is in the middle of a mayoral election, have announced plans to raise rates.

Of course, this property tax increase will be in addition to the proposed 14% sales tax increase referendum the esteemed Pinellas County Commission overwhelmingly voted to place on the ballot for November 2014.

Pinellas County commissioners on Tuesday overwhelmingly approved putting a question on the Nov. 4, 2014, ballot that would ask residents whether they would pay a higher sales tax to support a major overhaul of the transportation system.

...

The referendum would ask residents to vote on whether to raise the county's sales tax by up to 1 cent — potentially lifting it from 7 to 8 cents to pay for major changes to the public transportation system. The sales tax, which would bring in about $128 million, would replace the property tax that currently funds the county's transit agency, the Pinellas Suncoast Transit Authority.

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Even the Tampa Bay Times, friend of the Taxman, in a brief moment of partial sanity, editorialized Go easy on tax increase.

County administrator Bob LaSala believes its time for the county to start planning for the next recession, but county commissioners need to consider the broader view of what's best for the taxpayer, not just for county coffers.

...

LaSala proposed raising the tax rate about 5 percent to cover additional operating costs without dipping into reserves. But he proposed another 4 percent increase to flow to reserves in anticipation of a future recession. The combined impact: The county's property tax millage rate would grow from $5.01 per $1,000 taxable property value to $5.49. 

Don't ask me what I want it for

If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

...

The economic cloud for many families in Pinellas hasn't fully parted, and a county government that takes more money out of their pockets to simply stash in reserves won't be helping them.

But of course, the Times has been the biggest cheeleaders for the transit taxes.

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.

Or could it be that the Times sees the proposed property tax increase puts their hallowed transit tax increase at risk?

Lyrics courtesy of The Beatles Taxman, written by George Harrison.  Here's a George Harrison version, with Eric Clapton.

Hillsborough PTC Part1: Inhibiting competition and choice

Here in Hillsborough County, we watch our County Commissioners espouse their proposals for economic development.  They have tied transportation to economic development and have doled out our tax dollars to bring the big box Bass Pro Shop Sporting Goods store to Hillsborough.  They are now proposing  subsidies, tax breaks, tax credits to large companies who want to bring their businesses and jobs to Hillsborough like Amazon.  

But what about new, innovative companies who also want to bring their business to Hillsborough County but burdensome regulations are keeping them out?  We know what happened last year to Uber during the RNC convention.  The Tampa Bay Times wrote last year:

While Republican National Convention delegates decry excess governmental regulation, a case study is unfolding outside: a dispute between Hillsborough County regulators and a techie taxi startup in town for the convention.What the company can't offer? Low prices. Hillsborough County regulations set Uber's minimum fare at $50, three times as pricey as the service's minimum fare in New York City, London, Paris or practically anywhere else.

At the Eye, we agree with what Rachel Holt, general manager for Uber's DC operations said,

"There is an important role for regulations, and that's protecting the public … not blocking competition."

Well, Uber left town during the RNC, run out by the heavy handed anti-competitive regulations of the Hillsborough County Public Transportation Commission, and headed to Charlotte for the DNC.

Also recall the entrepreneurial company Hop Tampa who was providing free golf cart shuttle services downtown.  

Hop Tampa free shuttle cart downtown shutdown

In 2009, Hop Tampa was shut down by the dubious Public Transportation Commission.  The Tampa Bay Times article Plug pulled on free shuttle service by downtown Tampa's electric carts  reported:

Hillsborough County transportation officials Wednesday slammed the brakes on electric cart operators providing shuttle services downtown.The Public Transportation Commission ruled that the companies run vehicles for hire, which means they need permits to stay in business.

And all it took was a call from a local taxi cab company as TBT went on to state:

The board made the decision after hearing from an attorney for Yellow Cab.

Creative Loafing also reported on the shutdown with Free rides short-circuited as Tampa kills green downtown shuttle service:

It is a classic Catch-22; electric vehicles operators downtown say they were told they didn't need permits because they didn't charge for their rides (they make their money from advertising on the vehicles, and the drivers get tips), and since the PTC tightly controls taxi permits, they likely wouldn't be able to get them anyway. But even though they don't charge fares and mostly provide rides that the for-pay taxis won't/don't give (short hops that aren't profitable), the PTC put them out of business after cabbies complained.

Apparently these private sector, entrepreneurial golf cart transportation services were being well received in downtown and south Tampa. They were free to riders because they used advertising on their vehicles. They provided a service for those short hop trips that taxi cabs do not want anyway. The taxi's want the longer haul trips, especially from the airport.

The question that needs answering is what is the purpose of the PTC?  Hillsborough County is the only special district in Florida that regulates for-hire vehicles with such a commission.  It regulates taxi cabs, limousine services, towing services and ambulance services.  PTC regulations force limo services to charge a minimum $50 charge to step your leg into a limo, even if you only want to go 10 miles down the road.  PTC regulations are inhibiting ambulance service competition in the county.  PTC regulations are driving out innovative, entrepreneurial businesses like Uber and Hop Tampa.  

Now another innovative new company, Ride Command, is trying to pick up where Uber was forced out.

Ride Command App

The Tampa Bay Times reports today Company offers luxury car rides via smartphone app:

Ride Command lets customers use a mobile phone app to order a ride right away for a predetermined price or put future rides out to bid to get the lowest price possible.

President and Founder Al Stapleton, who retired from the US GAO, developed the concept and stated this in the Times article:

"We're giving consumers the power to choose," he said. "We think people can ride for less if they're in charge.""We feel like the market should determine the price, not the government," said Stapleton, who is funding the company himself.

Here at the Eye, where we support free markets, innovation, competition and entrepreneurs agrees, but the power and regulatory control of the PTC lurks as the Times article goes on to state: 

He (Stapleton) also hopes pressure from customers could eventually persuade the Hillsborough County Public Transportation Commission to reduce or eliminate the fare minimum — an effort that proved futile for Uber.

Every other county in the state has figured out how to ensure safety, provide choice and competition around these vehicle for hire transportation services.  For example, if you want to start a new transportation service in Pinellas County you can easily go to the their website and obtain a Public Vehicle Certificate.

Last but not least is a reminder of the corruption and ethical issues associated with this commission.  Former County Commissioner and PTC board member Kevin White went to prison for bribery and corruption charges associated with this board.  Current Hillsborough County Commissioners who sit on this board, Victor Crist and Ken Hagan, receive campaign donations from the very companies they regulate.  The smell of this Commission is so strong the Tampa Tribune recently weighed in with their Op-Ed,  Dump public transportation commission.

Corruption, Cronyism and inhibitor of Competition are the 3 C's associated with the Public Transportation Commission.  Perhaps while the County Commissioners are handing out our tax dollars to some large companies, they can reign in the PTC too.

Stay tuned for Part 2.

Lutz 4th of July Parade

We dropped in on the annual Lutz 4th of July Parade today, and thought we'd share some of the highlights.

If the video does not play, try here.

Hope you enjoy it, and hope you had a Happy 4th of July!

Dennis Ross at Lutz town hall meeting

U.S. Congressman Dennis Ross held a town hall meeting Tuesday, July 2nd at Lutz Elementary School.  A good sized crowd, mostly Lutz residents, attended. Congressman Ross made his opening statements, and addressed his positions on immigration and the NSA.

Here are Congressman Ross's opening statements.

If the video does not play, try here.

Congressman Dennis Ross addressing attendees

Several attendees asked questions from their chairs, as well as from the microphone.  Questions from immigration, tax policy, spending, evil bankers, the IRS... and of course, a few rambling speeches and rants.

Lutz attendees readying their questions

Some of Congressman Ross key positions he stated are:

• Addressing immigration in a incremental fashion, addressing border security first
• Linking e-verify with a guest worker program.  No e-verify without the guest worker program
• Tightening up the NSA surveillance 
• Tax reform, where he co-sponsored the FairTax, and spoke of a possible consumption tax
• Support for the farm bill, with its massive food stamps subsidies.  He was for splitting the farm subsidies separate from the food stamps, but House leadership would not agree to the split
• Return student loans to the competitive marketplace rather than remain under federal government control

Things did get a little testy at one point, as both sides of the immigration debate were present and asked questions.  Ross had to calm things down during one exchange between the two sides. Ross answered consistently even when challenged by the pro-immigration attendees that he was not in favor of the recent Senate immigration bill.  It appeared those that asked questions or made speeches as proponents of the Senate bill were a small group representing Mi Familia Vota (one was spotted wearing a Mi Familia t-shirt, taking pictures of their speeches, and they sat together), which we introduced here.

UPDATE:  Some information on the Brandon meeting, which apparently had a 50-50 split on the Senate immigration bill, is here.

Yes - Medicaid Expansion Looms Large

We believe Americans understand the "ponzi" scheme called Social Security that is imposed on most of us, excluding politicians and public sector employees, of course. And it's been widely reported on the looming problems with Medicare that will hit even earlier than Social Security. In May the government trustees reported that Medicare's trust funds are exhausted in 2026 and Social Security trust funds exhausted in 2033. In other words, they're going broke if nothing is done.

But what about Medicaid? Well the Tampa Tribune decided to address that issue in their Op-Ed yesterday "Medicaid Expansion Looms Large":

The state's decision to reject $51 billion in federal money to expand Medicaid looks more foolish with each passing day.

Really? Does the Tribune think this money grows on trees and is "free"? Perhaps a closer look at Medicaid is needed because many Americans may not understand how it's funded or it's long term financial outlook.

Tribune's Free Medicaid Money Tree

Medicaid is funded jointly by the feds and the states for low-income individuals and families. In Florida, Medicaid was 18% of the state budget in 1999 but has grown expeditiously where Medicaid is now one third of the entire state budget. And the problem of fraud has been high as claims have been filed for services not rendered or claims filed for unnecessary services and treatments. According to BizPac review:

The unfunded obligations of Medicaid are trickier to estimate than Social Security and Medicare. That is because Medicaid funding comes from general tax revenue funds and fluctuates year to year. Unfunded obligations for Medicaid were estimated at over $20 trillion prior to Obamacare being passed. According to the Senate Budget Committee, this new “health care law adds $17 trillion in new unfunded liabilities… by massively expanding the Medicaid program and creating new Exchange subsidies."

But is this just another "ponzi" scheme? ObamaCare intends to swell the Medicaid program by adding millions of people to this already financially distressed program. The carrot the federal government uses to entice the states to expand Medicaid is the feds have promised to cover 100% of the expansion costs for three (3) years (2014-2016) and then decrease their funding to 90% by 2020. That federal promise must rely on the assumption that it will keep all of its spending pledges as alarms continue to be raised about our increasing debt obligations. Our country currently has over $17 Trillion in direct debt and the estimates for our total debt that includes these unfunded liabilities range from $80 Trillion to over $120 Trillion.

If and when the feds do cut spending, the states will be left with a huge gaping liability. According to this Forbes article:

Medicaid is cumbersome, complex, and wasteful – already the worst health care program in the country. That means the poorest and most vulnerable patients enrolled today will be competing with millions of new Medicaid patients for appointments to see a limited number of physicians. Those who have the greatest need and nowhere else to go are likely to have the hardest time getting care. 

We agree with Speaker Weatherford who was referenced in the Tribune Op-Ed:

But the Senate plan was rejected by House Speaker Will Weatherford, who made the specious argument that accepting money to expand Medicaid would deepen the country's debt.

Apparently, the Tribune is for risking the state's finances, adding more federal debt and putting the most vulnerable's medical needs at risk. 

So Yes - Medicaid expansion looms large because Medicaid is broken and in dire need of reform not expansion.

Pasco or downtown Tampa?

The Tribune highlights 2 different jobs and transportation strategies emerging in the Tampa Bay area.

In Tampa, Mayor Bob Buckhorn wants more people living in the city's urban core and continues to push programs to make downtown and the Channel District more enticing, particularly to young people

In Pasco County, commissioners want more jobs in bedroom communities like Wesley Chapel and Land O' Lakes, which now send a third of their population out of the county for work.

Of course, more commuters drive to work in to Tampa than drive up to Pasco.  Tampa has twice as many jobs as workers, as cited by the above article.

But, if Pasco grows its jobs base, things even out a bit.  More jobs for the locals.  Less commuters in Tampa traffic.  Perhaps some Tampans will figure out if they commute north to Pasco, they will be driving against the traffic, and have a more enjoyable commute.

Embrace and invest where the people live.  Sounds like a good idea.

Saddlebrook Resort and residential community in Wesley Chapel

Buckhorn, on the other hand, is seeking to continue to attract more residents downtown.

The last decade saw the downtown population grow dramatically, from a few hundred in 2000 to nearly 6,000 today. A third downtown high-rise and a new multistory apartment building in the Channel District - complete with a potential grocery store - promise to push those numbers even higher.

The city has acres of vacant property between downtown and Channelside to accommodate more residential and more office space.

There has been some growth with more downtown residents. If people want the downtown lifestyle, that's cool, we're all about choice... and they still have to drive to a grocery store.  But downtown is not without some challenges.  Unfortunately, the Channelside  Bay Plaza retail and entertainment complex is now a ghost town, and the Port Authority still holding out for a better deal after two developers backed away.  It looks like it will be a long slow summer for those still trying to eek out some business at Channelside.

"Unfortunately, they are the victims here,'' [Madison Marquette property manager Chuck Taylor] said. "They have their life's savings poured into this thing and have worked very hard.''

Madison Marquette has lowered rents based on documented sales figures but can't do much more than wait it out like everyone else, Taylor said. Under the management agreement, any new lease must stipulate that a tenant can be evicted with 30-days notice. Translation: Don't expect any new businesses to open in Channelside before this mess gets settled.

That's a harsh reality for stores and restaurants that rely on foot traffic. Forget getting a new tenant to take over the shuttered Channelside Cinemas. Or the still empty Stumps Supper Club. Or nearly all of the second level. For now, the center is more likely to subtract businesses than add them. 

Channelside Bay Plaza, looking for better days ahead

 Meanwhile, back in Pasco (via the Trib)

[Richard] Gehring [Pasco's growth management director] sees the solution in the mix among live, work and play.

"What Pasco's trying to do is balance the triangle, so we're not all bedroom," Gehring said.

Gehring expects financial giants Raymond James and T. Rowe Price to help achieve that balance.

Together, they've promised to bring more than 3,000 predominantly white-collar jobs to Wesley Chapel and Land O' Lakes, which currently have about three times as many workers as they have local jobs, according the census study.

Some of those jobs will move up from Tampa, but the majority will be new, expanding the regional economy and taking some commuters off the highways.

Seems like a decent formula... bring in jobs to were people are.  How did they do that without massive transit subsidies?  Or did they entice Raymond James and T. Rowe Price with tax subsidies?  We'll save that for another day.

Even if Pasco builds corporate centers in Wesley Chapel, "half the CEOs are still going to live in South Tampa," [Buckhorn] said.

At least they'll be driving against the traffic from Tampa into Pasco, won't they?

But Saddlebrook is a lot closer.

Interview with Terry Kemple

We caught up with Hillsborough County School Board District 4 candidate Terry Kemple last Tuesday, June 25th, at the Tampa 912 meeting where he was speaking.  Terry updated the audience with the latest from the Diversity Panels which he thinks he is back on after being tossed off by the Hillsborough County Commission.  You can follow the saga here and here.

Terry graciously agreed to the Eye's first interview about his motivation and platform for running for School Board and seeking to move on from the Diversity Panel kerfuffle.

To learn more about Terry or to contact him, please go to  http://www.vote4terrykemple.com/

We're working out some kinks and looking to do some more video.  Please stay tuned and keep your
Eye on Tampa Bay.