Josh Mather and Christopher Smrt at Ax The Tax Meeting

Rally Opposing Tax-Funded Arena Has Large Turnout

by Theresa Fritz Camoriano

          About 150 people turned out for the Ax The Tax meeting on Saturday, January 5, 2002, to hear a panel representing a wide cross-section of the community speak about the proposed arena funding plan.  Two important principles were highlighted by the speakers:

          1.      Taxation without representation is wrong and should not be tolerated.

          2.      Businesses should take their own risks and pay their own way.  They should not be looking to take money out of the purses of the taxpayers.

          The meeting was opened by Peter Hayes, Co-chair of Ax the Tax and candidate for metro mayor.  Hayes explained that this group had only met on the previous Sunday to organize this meeting, so he was quite impressed with the large turnout.  He also introduced members of the steering committee, which included Democrats, Republicans, Libertarians, and Constitution Party Members, as well as John Riley from Stop the VET. Lieutenant Colonel Christopher Smrt, the other Co-Chair of Ax The Tax, and a candidate for the 10th district of the new county-wide government, moderated the panel discussion.  Other speakers included Phil Gambrell, candidate 20th district, Jeff Klusmeier, candidate 23rd District, George Tolhurst, candidate 3rd District, Josh Mather, a U of L student studying political science, Ron Gambrell, candidate 14th district, Sam Tucker, candidate for the 9th district, and Kentucky State Rep. Tom Riner.

          Phil Gambrel began with some history, reminding the audience that when this country was still a colony, the people of Boston had a Tea Party to oppose taxation without representation.  He pointed out that the arena proposal is another example of taxation without representation, since the Aldermen, who were elected only in the city of Louisville, would be creating obligations that would have to be paid by the taxpayers of Jefferson County, who did not have the opportunity to vote for (or against) them.  He said that the only occasion in which the people's elected representatives would have a chance to defend them would be when the state has to vote on creating a special financing district.  For that reason, he said it was most important for everyone to contact their state senators and representatives to let them know how they felt about the arena funding plan.

          Jeff Klusmeier repeated that the issue would probably come down to the Jefferson County delegation in the state legislature, with the rest of the state legislators respecting and supporting their views.  He asked why this issue was so urgent that there could not be a referendum to give the taxpayers a chance to speak out. 

          George Tolhurst said the people in his area felt that this was a scheme by which poor people would have to pay for the arena so rich people could enjoy it.

          It was repeatedly stressed that, regardless of the rosy estimates of the arena proponents, the people who would be left paying all the bills in the event of a shortfall would be the taxpayers of Jefferson County.  The proposed bond issue is now at $259 million, ($250 million for construction and $9 million for administrative expenses) which means payments of approximately $500 million (or over $500 for every man, woman, and child in the county) over the course of the loan, with the amount of the payments increasing with time.  Since attendance would likely be high at the beginning and taper off or end completely at 15-20 years, when the tenants would demand a more modern facility, this loan arrangement only made sense if you were trying to pull the wool over the eyes of the people.

          Ron Gambrell pointed out that the proposed arena would have even fewer seats than Freedom Hall.  He said that, if a new arena were going to be built for U of L, it should at least be large enough to hold the NCAA tournament.  Gambrell also mentioned that, when he spoke with Alderman Dan Johnson, pointing out the unfairness of this plan, Johnson said that he didn't care if the plan was fair or not, the city was going to do it anyway. 

          Josh Mather, a political science student, explained how a Tax Incremental Financing District (TIF) worked and explained that the scholarly literature on the subject recommended that this funding arrangement be used only in areas that have been declared blighted.  Otherwise, a TIF is just a form of corporate welfare. 

          The group encouraged people who were interested in getting involved to contact Ax the Tax to pick up fliers and distribute them in their neighborhoods. To contact Ax the NBA Tax, call 502-636-0370 or e-mail alc_ky@hotmail.com.