Wednesday, April 28, 2010

How Much is Too Much?

On April 16, 2010 the Austin Chronicle published a story regarding a $34 million plan to redevelop the Waller Creek district. Furthermore, a separate project to build a tunnel through the area to shrink the flood plain is in the works. The plan envisions transforming the creek area into a centerpiece of Downtown, similar to the River Walk in San Antonio or Millennium Park in Chicago. Initially seeking to improve landscaping, lighting and trails, there are further proposals for promenades, restaurants and shops along the creek. While the idea of improving the Waller Creek area is generally a popular one with voters, the project has been stalled many times over the decades, primarily over questions of funding. While walking near that area recently, I considered that the cost of revitalizing Waller Creek area wouldn't be nearly so expensive if it hadn't been allowed to fall into such a state of disrepair over the decades.

This brought to my mind a recent program aired on PBS called "Liquid Assets". The program documented the importance and challenges of maintaining our water infrastructure. It profiled Atlanta Mayor Shirley Franklin who has been dubbed the "Sewer Mayor" for her efforts to improve the city's neglected water and sewer systems. It also brought to mind the recent I-35 Bridge Collapse in Minneapolis. Following the collapse, many stories ran investigating the safety of our nation's bridges, with reports of a high percentage of them being structurally deficient. While opinions about this issue were strong immediately following the collapse, it has once again been relegated to the background.

According to and April 21 report in the Statesman, Austin is facing a $28 million budget shortfall. A combination of lower sales tax revenue and a drop in property values has lead to the likelihood of an increase in property taxes. Obviously this is unpopular with homeowners, especially after an increase just last year. It is important to consider however, that this is not so much an increase in taxes paid, but rather an attempt to recoup tax dollars lost due to the recession.

Texas is one of only seven states that doesn't collect State income taxes. The State and Local Tax burden in Texas has been historically one of the lowest in the country with Texas ranking 43rd in 2008, behind states like Alaska, Nevada, and Wyoming. One should note that these states have far lower population densities than Texas and considerably less infrastructure to maintain. A majority of Nevada's income comes from taxation of gaming, with over 85% of the population living in Las Vegas and Reno. A majority of the State of Alaska's income comes from taxation of the oil industry and Federal subsidies. In fact, Alaska collects such a surplus of funds, it pays out dividends to it's residents.

It seems that many Texans take their political model from the idea of a classic Texas rancher, who just wants to lead a self-sustaining life outside of the reach of government. This may be reasonable attitude for someone who lives in Guerra (population - 8), but it is not a very realistic model for someone living in Houston (population 2.2 million.) Almost 90% of Texans live in urban areas. Every day you drive Texas roads. You expect reliable service from local Police and Fire departments. You expect clean water and sanitation. You want your children to receive a quality public education. You might run around Town Lake, swim at Barton Springs, or check out a book from the library. The idea of living your life outside of government and taxes is a fine one, but you can't expect to reap the benefits of the things it provides and not have to pay the cost. You may not agree with the need for all of these things, but they do add to the over all quality of life in Austin, whether you use them or not. All these things cost money. Often the expense is exacerbated by the refusal of the public to pay the cost of upkeep (as the in case with Atlanta's sewers.) This causes the cost to rise exponentially, like the late fees on a credit card. Don't get me wrong, I don't like paying taxes either. But I do see them as necessary. You will get no argument from me that we need to reduce wasteful spending in the Government. There is no doubt that improvements in handling tax dollars can be made. But we also need to we need to consider what we are paying for and the value that has in our lives.

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