It’s been said that “the best throw of the dice is to throw them away.” My sentiments exactly! A recent proposal to create a local “entertainment district,” replete with casino gambling is an interesting but not compelling concept. Some may view this as a means to enhance our declining tax base and an economic catalyst while others see it as a social and perhaps even religious affront to the values of the community. I, on the other hand, tend to assess the issue with a purely economic argument. There is only a finite amount of disposable or discretionary income within a community. A cursory look at existing casinos in the Greater New Orleans area confirms the fact that most visitors to local gambling establishments are area residents. Every dollar spent on gambling leaves one less dollar for local purchases, which is counter productive to enhancing tax revenues. If non-discretionary income is expended, an even greater negative economic impact can be expected. Ask the merchants of Biloxi and Gulfport what happened to the restaurants and other businesses that once flourished there. These establishments disappeared well before Katrina.
What must be objectively assessed before we jump on the casino gambling bandwagon are the vaguely acknowledged or even hidden economic costs associated with this proposal. We would most assuredly be confronted with the need to increase police and fire protection, access road maintenance and perhaps counseling services. The potential for increased bankruptcies, spouse/family abuse, alcohol related incidences and crimes of every nature have real economic consequences. Job creation is mostly a temporary situation with many jobs going to out-of -area workers and contractors. Any perceived tax benefit must be weighed against a realistic assessment of additional costs, both direct and indirect that other similar communities have encountered.
The Mississippi Gulf Coast has already claimed the territory. Gambling casinos are being moved off the water and expanding at an increasing pace. Soon there will be a point of saturation. The City of New Orleans is, by most accounts, already there. Casino gambling will most likely survive and prosper in both locations but they share a common feature; they are both tourist destinations. We have yet to establish ourselves as a travel destination. Perhaps one day we will and when we do I dare say it won’t be built on gambling. Outdoor activities and family oriented recreation appear as much more plausible tourist draws. Our motto should be, “when you lose your shirt in Mississippi, come to the Florida Parishes and we’ll give you a new one.”
The question is not, should we allow casino gambling? It is a more basic question. Why is casino gambling even an issue? I am not aware of any grassroots effort on behalf of local business or citizen groups to champion this proposal. It apparently stems from a political perspective. It is touted as a means of generating much needed tax revenue to compensate for projections of reduced or stagnant sources. At best this would only be a subterfuge to temporarily placate the necessity to address the real issue of tax reform.
Our local system of tax generation is out of kilter. We currently pay the highest tax rate in the State and one of the highest property tax rates in the South. The problem is not taxes, it is the distribution of tax revenues. The imbalance of tax revenue distribution between local government (and non-governmental!) agencies is the real issue. Raising more revenue without correcting the problem only exacerbates the situation.
The tax base, excluding State Income tax, fees, grant and miscellaneous revenue sources, consists of sales and property taxes. Local sales tax varies by location but includes four percent state tax, two percent local schools and two percent for Parish road maintenance and drainage. The two percent local school tax is approximately 40 percent of the total local sales tax. Coupled with the 51 percent property tax makes the school board by far and away the largest taxing entity in the parish. Municipalities receive between two percent and two and a half percent, while special enterprise areas have higher assessments. Other recipients include a quarter percent for Parish jail expansion, Justice Center and law enforcement. Property taxes vary by location but include a base of 51 percent school board, eight percent law enforcement and 19 percent for fire districts. The remaining 22 percent provides revenue for both governmental and non-governmental operations. Perhaps it is time to relook the distribution of tax revenues and determine a prioritization of tax revenues use based upon a prioritization and needs analysis. Those agencies that receive funding from both sales and property tax are in need of special review.
In some respects this may seem like a “broken record.” I have addressed the need to conduct an independent, citizens based bottom-up review before. This is a complex and difficult issue that will not be widely accepted by the agencies involved. Each would argue their case but it is the tax payers who must ultimately decide. We must demand accountability.
Let’s look carefully at consolidation of activities and in some cases even elimination of functions. We can not continue down a road that calls for tax increases or casino gambling as the only panacea to our plight.
The time to demand changes in our tax revenue system is now. Far too many agencies currently compete for a shrinking tax base. Given the right leadership all agencies of government can find economies and efficiencies to include consolidated operations. Reduced services is an old threat that has no merit. A complete revamp of our system is the answer. Casino gambling is not.
The temptation to reach for an easy solution is great. The problem is, gambling is not the solution, demanding efficiencies and justifying activities and expenditures from our local government is. We ask that elected officials stand up and be counted on this tough issue “and lead us not into temptation.” “My two cents for what it’s worth.”