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Vol. 14 No. 43…Dedicated to the Dialogue on
Race…October 24, 2011
Bit of History
SPLOST (1997-2011)
The
DeKalb County Special Purpose Local Option Sales Tax (SPLOST) authorizes the
collection of a one-cent sales tax on purchases taxed in
Claiming the work
begun under SPLOST I incomplete and more needed to be done, DeKalb voters were
asked to re-authorize the one-cent SPLOST sales tax. Voters approved the tax
referendum for another five years. Over the five-year period (2002-2007), the
country collected $457 million. Under SPLOST II, the county constructed eleven
(11) new schools, made modifications to existing structures countywide,
including major renovations to ten (10) middle and high schools.
Nearing the end of
SPLOST II, school officials claimed more needed to be done and warned of a
possible increase in property taxes to fund debt obligations if SPLOST III
failed to gain voter approval. DeKalb voters approved SPLOST III, which was
estimated to raise $466 million over the five year period (2007-2012). As of
July, SPLOST III has collected $385 million, which were used to replace one
high school and fund renovations at other locations across the county.
As expected, school
officials are asking for another extension. On November 8, 2011, DeKalb voters
will decide whether to approve SPLOST IV to extend the one-cent sales tax for
another five years. The revenue collected will be used to pay interest on the
debt, upgrade the bus and vehicle fleet, build new elementary schools,
investments in technology equipment and infrastructure, etc. SPLOST IV is
estimated to raise $475 million over the five year period (2012-2017)
A
By John Burl Smith
Described
as a "true win-win solution" by leaders who got projects funded under
the Transportation and Investment Act of 2010, the once grand vision of
commuter rail for the Atlanta Metropolitan region degenerated into an insider
scheme that will benefit the same 
groups
and communities that have benefitted most from previous tax referendums. Before
the battles began, hopes were high that an I-20 East Rail Project would be a
part of a regional economic development, job creation, congestion relief and
air quality improvement plan that finally rewarded
Starting out most DeKalb residents were willing to "stack arms" and
let "bygones be bygones" by agreeing to pay another one-cent in sales
tax demanded under HB277 in order to get an I-20 train. Enthusiasm was kindled
in October 2010 when MARTA,
The general
consensus was that such an I-20 line would serve thousands of South DeKalb,
Rockdale and
Now that the horse
trading is over, what will go before voters in July of 2012 is a raid on
taxpayers' pocketbooks by insiders. The only ones happy with the project list
are politicians that represent areas which got projects, special interests that
will benefit and their backers. Were it not for the underhanded manner in which
HB277 was designed and implemented, projects such as the Clifton Corridor
transit line, the Atlanta Beltline, the Northwest Corridor light rail study and
planning phase along I-85 from the Doraville station to Gwinnett arena would
not be considered. Moreover, two projects in particular on the list, the
The skirmish line
between those who support passage of the HB277 referendum and those who have
pledged to oppose it is best symbolized by the I-20 rail line fight. Faced with
the funding impasse, DeKalb Commissioner Lee May offered a compromise to raise
the$225 million allocation for the I-20 line by splitting funds for the Clifton
Corridor, which got $700 million, with the I-20 project. May got six elected
officials - Commissioners Larry Johnson and Sharon Barnes Sutton; School Board
member Eugene Walker; and state Reps. Michelle Henson, Howard Mosby and Darshun
Kendricks - to sign his letter requesting the change which was sent to DeKalb
CEO Burrell Ellis.
Outrage grew among
DeKalb Board of Commissioners members May, Larry Johnson, Sharon Barnes Sutton,
Stan Watson and Elaine Boyer at both the Roundtable and Ellis' decision not to
support more funding for the I-20 corridor. They fired off a statement accusing
Ellis, who sat on the Regional Roundtable, of refusing to offer an amendment that
would have allowed a full vote on equally splitting funding between the I-20
East and the Clifton Corridor projects. "With no champion on the
Roundtable to further the interests of the people, rail will not come to South
and Central DeKalb and the economic advantages that rail brings will continue
to be out of reach for this segment of DeKalb."
Board
of Commission President Larry Johnson said he is going to push DeKalb
legislators to support a petition signed by more than 900 voters supporting
full funding for a MARTA rail extension to
Feeling extremely pleased
that MARTA got $600 million for state-of-good repair projects, CEO Beverly
Scott said MARTA plans to use the $225 million earmarked for I-20 to buy land
for park and ride transit centers in South DeKalb. Her suggestion fueled even
more outrage in South DeKalb. Viola
Atlanta Mayor Kasim
Reed, who helped put together the list, acknowledged that "the projects
list is not the grand plan once envisioned." But, Reed is happy with the
slice of the transportation pie he got for backers of the Beltline. After getting
$602 million 
for
the Beltline, he said, "For folks who disagree with this work, I just want
you to put up your Plan B. Show me what your plan is to deal with the biggest
threat to our region and our state, which is traffic congestion. We're losing
business ....because of traffic, and we know what our competitors are
saying."
Apparently,
Reed ignored South DeKalb, which is the most under-served area in Metropolitan
Atlanta and its I-20 argument which would do more to relieve traffic
congestion, improve air quality, shorten commuter time, provide economic
opportunities and serve thousands of South DeKalb, Rockdale and Newton County
residents, as well as others that commute daily up I-20 to Atlanta. Ellis, as
Reed, is happy with the $700 million he got for his friends in the Clifton
Corridor. However, the question now is are the voters of South DeKalb and
Fulton going to be happy with paying another one penny in sales tax for
improvements in communities which will not benefit them. The south end has lagged
behind other areas in development for the last forty years and the fight over
HB277 funds will do nothing to change that. Under this plan $6.14 billion will
be spent but there is not a single major project to help economic development
on the South end of the metropolitan region.
Voters in DeKalb and
Fulton should vote "NO" in July 2012 and send a message to our
so-called leaders that they are not going to continue to pay taxes and get
nothing for them.
Union Nurses Call for Wall Street Tax
By Michael Moore
The
movement to hold Wall Street accountable for tanking the
The
nurses marched along
Put forth by
National Nurses United, the nation's largest nurses' union, the Main Street
Contract's centerpiece is the Financial Transaction Tax, a 0.5 percent tax on
Wall Street trades. Nurses say such a tax would help curb the reckless,
computer-driven trades made by bankers seeking high-volume, short-term profits
in 2008, contributing to the country's financial meltdown.
The transaction tax
could generate as much as $350 billion annually. Nurses want to see that
revenue invested in public services "like health care coverage for the
poor" and job creation.
By demonstrating in
A week earlier, the
Minnesota Nurses Association officially endorsed the Occupy Wall Street actions
spreading to cities across the
"We applaud the
commitment, savvy and sacrifice exhibited by the multitude of students, union
members, clergy and many others from all walks of life who have come together
to loudly and clearly place the blame for the nation's pain where it
belongs," the MNA said in a statement. "Wall Street caused the
financial crisis, and we share the growing demand that Wall Street pay us
back."
The MNA represents
more than 20,000 nurses in
About Me: Not to be confused with 'the'
Michael Moore,
Some DeKalb Citizens Question SPLOST IV
By Leslie Johnson
Major
renovations could come to 
Under SPLOST IV,
which voters will decide on in the Nov. 8 election, there would be additions
and renovations to
Two schools in
"Simply put,
we're still not finished," said Barbara Colman, Interim CIP Operations
Officer, DeKalb County School System, at the monthly legislative meeting held
by Super District 7 Commissioner Stan Watson.
There is a full list
of the proposed renovations and building plans, including estimated costs on the
DeKalb County School System website.
Colman reviewed past
SPLOST projects (which stands for Special Purpose Local Option Sales Tax) 
that
resulted in new schools and improvements over the years, with the crowd of
about 150-200 people. During the question and answer period in which one person
spoke in favor of the tax's benefits, some county residents weren't convinced
that plans under a new SPLOST were necessary or feasible, considering the
system's decision to close several schools.
"Please explain
the reason we closed all those schools and need to open up" new ones, a
parent asked.
"Some of the
older school buildings have used their life cycle," Colman said.
Viola Davis, of the
grassroots movement Unhappy Taxpayer & Voter, asked about an external
forensic audit of SPLOST funds, given the criminal investigation that kicked
off a few years ago of school construction programs under previous system
leadership. The answer: no, but there are other audits and performance reviews
happening as required by law, an official said.
SPLOST Means More Taxes
By Dot
And,
while
Currently,
Given its history
and the pledge of its elected representatives not to raise taxes, one would
expect
In addition to
property taxes, local governments employ a variety of sales taxes, fees and
fines to fund local governmental operations, particularly public education and
transportation. For example, in DeKalb County, residents pay a one-cent MARTA
sales tax to support public transportation, a one-cent sales tax for SPLOST
(Special Purpose Local Option Sales Tax) for use in public education capital projects,
which include new schools, classrooms, technology, and debt retirement, and
HOST (Homestead Option Sales Tax), a one-cent sales tax to provide for an
increased homestead exemption from county ad valorem taxes; a portion of HOST
revenue (20%) can be used for capital improvements and adjustment of the
millage rate. DeKalb is only one of two
As you know, sales
taxes are the most regressive way to fund government. 
Sales
taxes are regressive because those on the lower income level pay a higher
percentage of their income in taxes as compared to those at higher income
levels. Poor people spend every cent earned on basic necessities, so every
dollar is taxed, whereas those with higher incomes can save and invest, and in
doing so, avoid sales taxes.
On Tuesday, November
8, 2011,
Because this is an
off-off year election, voter turnout is expected to be really low. A few
hundred voters will likely decide the outcome of this referendum. Should SPLOST
IV pass, it will mean more taxes, despite what SPLOST advocates in this blue
state claim to the contrary.
Wolf Rips Norquist
On
Tuesday in a fiery speech before the House of Representative, Rep. Frank Wolf
(VA-R) accused Grover Norquist, President of 
Americans
for Tax Reform (ATR) of working with "unsavory characters" and
pushing a pledge that makes it harder for Congress to achieve meaningful deficit
reduction and tax reform. Frank is one of six House Republicans that have
refused to sign ATR's no-taxes pledge, which commits those who sign it to
oppose all tax increases, as well as the elimination of tax deductions unless
they are offset by corresponding tax rate reductions.
Wolf charged the no-taxes pledge was "paralyzing Congress" and making
it impossible to even discuss ways to reform the cumbersome
According to Wolf,
Norquist's unsavory associates include disgraced former lobbyist Jack Abramoff,
who used 
ATR
to launder money with the full knowledge of Norquist. He also charged Norquist
with associating with two terrorist financiers and lobbying for mortgage giant
Fannie Mae and Internet gambling companies.
Wolf called for
Republicans not be held to account by Norquist, given his background of dealing
with unsavory characters and causes and work to find solutions to the federal
deficit crisis. He said, "Everything must be on the table, and I believe
how the pledge is interpreted and enforced by Mr. Norquist is a roadblock to
realistically reforming our tax code."
Norquist dismissed
the criticism, calling the allegations "beneath him." He also branded
Wolf's speech a "hissy fit" and a "compilation of whack job
criticisms."
To hear Wolf rip
Norquist, log on to www.c-spanarchives.org/program/MorningHour631.
For the November 8,
2011 election, DeKalb voters will essentially be deciding on SPLOST IV and 
whether
or not to allow Sunday alcohol sales in
"Shall a
special one percent sales and use tax for educational purposes continue to be
imposed in DeKalb County for not longer than 20 quarters, beginning July 1,
2012, to raise not more than $645,000,000 in the aggregate for the purpose of
(A) developing sites for constructing and equipping new schools, support
facilities and athletic facilities; (B) making additions to, acquiring or
renovating and equipping existing schools, support facilities and athletic
facilities and greenspace associated with such facilities, and demolishing
portions of existing structures in connection therewith; (C) making system-wide
renovations, additions and improvements to bus and parent pick-up driveways and
facility parking lots and purchasing school buses, school-related vehicles and
other transportation equipment; (D) making existing lease/purchase payments
with respect to the acquisition of new and existing schools and support
facilities; and (E) modernizing technology and making system-wide technology
improvements, including the acquisition of computers and similar technology for
students and staff; not to exceed $607,384,422 for the DeKalb County School
District, $18,115,116 for the City Schools of Decatur and $19,500,462 for the
Atlanta Independent School System, all as more fully described in the Notice of
Election? If imposition of the tax is approved by a majority of the voters
within the DeKalb County School District, such vote shall also constitute
approval of the issuance of general obligation debt of the DeKalb County School
District in the principal amount of not to exceed $200,000,000 for the purpose
of funding a portion of the above projects of the DeKalb County School District
and if the tax is approved by a majority of the voters within the City of
Decatur, such vote shall also constitute approval of the issuance of general
obligation debt of the City of Decatur in the principal amount of not to exceed
$10,000,000 for the purpose of funding a portion of the above projects of the
City Schools of Decatur?
Mailbox: E-Mails, Faxes and
Telephone Calls
Email
www.guardian.co.uk...US firms cut thousands of jobs during last tax holiday,
study reveals...By Paul Harris...As some of 
America's
biggest corporations push for a tax holiday on more than $1trillion of overseas
profits, a new survey has revealed that the last time such a measure was tried
it ended in the loss of hundreds of thousands of jobs. The study could be a
setback to the aggressive push by a coalition of American businesses, called
Win America, which includes big-name firms like Apple, Google and Pfizer. The
group has employed more than 160 lobbyists to push its agenda, claiming that
the companies will use the tax break to bring back money overseas and invest it
in building new facilities and creating jobs. But a report carried out by the
Washington-based Institute for Policy Studies has examined the last time such a
move was carried out. That was in 2004, when a similar scheme allowed 843 firms
to cut their tax rate on repatriating overseas profits from 35% to 5%. The
firms then brought home $312 billion and avoided paying $92 billion in
government taxes in return for a promise to create jobs. The measure was called
the American Job Creation Act. However, the IPS study measured the actions of
some of the largest firms who took advantage of the tax holiday, and found that
58 of them slashed 591,000 jobs. The companies accounted for a massive 70% of
the repatriated funds, and saved around $64 billion they would have otherwise
paid in taxes. The firms included Ford, Pfizer, Kodak, General Electric and
Verizon.
Email
http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html...Federal
Reserve Now 
Backstopping
$75 Trillion of Bank of America's Derivatives Trades...This story from
Bloomberg just hit the wires this morning. Bank of America is shifting
derivatives in its Merrill investment banking unit to its depository arm, which
has access to the Fed discount window and is protected by the FDIC. This means
that the investment bank's European derivatives exposure is now backstopped by
Email
http://workingamerica.visibli.com...Tax Cuts for Rich Cost $11.6 Million Every
HOUR...by Tula Connell...It's really a shame 
Republicans
in Congress don't want to raise taxes on the super wealthy to help fund needed
repairs to our nation's bridges and roads--which in turn would create badly
needed jobs for some of the nation's 26 million unemployed and underemployed or
those who have stopped looking for work. Because tax cuts for the wealthiest 5
percent cost the U.S. Treasury--that's you, gentle taxpayer--$11.6 million
every hour of every day. That nauseating figure comes to us from a new rolling
counter of the cost of Bush's tax cuts on taxpayers by the National Priorities
Project (NPP). The project notes: In total, the top 5 percent of wage earners
live in 1.4 million households. They earn $477,453 per year, on average, and
will receive an average tax cut of $66,384 in 2011. Conversely, the bottom 20%
of wage earners will receive an average tax cut of $107 this year. The
wealthiest 5% of Americans earn 33 % of all
Email
www.federalnewsradio.com... Judge: 
over