A national group dedicated to honest accounting and citizen education is not sold on Jacksonville Mayor Donna Deegan's plan for the Jaguars' stadium.
Sheila A. Weinberg, the founder of Truth in Accounting, says the city is neglecting fiscal realities in favor of speculative and elective spending. "Is it wise to not pay the minimum on your credit cards so you can use the money to pay for a summer house that you may or may not make money on?" the group asked.
The group is referring to a proposal that would see Jacksonville on the hook for $775 million in stadium renovations and $150 million in community benefits, with a $775 million total match ($625 million on the stadium) by the team, though with conditions. The Jaguars, owned by a man worth more than $12 billion, would have 30 years to dole out their $150 million share of the community benefits piece.
The city proposes to finance the money by delaying the implementation of a half-penny sales tax intended to defray roughly $5 billion in unfunded pension obligations linked to a plan closed to new entrants nearly a decade ago, letting the pension ride until 2030 and moving capital projects back to that regressive scheme under the aegis of the Better Jacksonville Plan.
The city says critics are ill-informed and that the plan is a good one.
"Anyone who says this funding proposal would doom the pension fund is either intentionally misleading the public or misunderstands how the pension fund actually works. Leaving the Better Jacksonville Plan on its originally intended timetable will save taxpayers $1.5 billion in debt service and fully fund the pensions," read a statement from the Mayor's Office late Tuesday evening.
While Council members have offered some minor criticisms of the deal amid forced gridiron metaphors, such as a promise to play "left tackle" and ensure that the taxpayers, as "quarterback," aren't "blindsided," Truth in Accounting has pointed to Jacksonville's fiscal scoreboard before and found reasons for concern.
According to Truth in Accounting, "over the last year, Jacksonville's financial condition worsened by $984.6 million, resulting in a Taxpayer Burden of $11,200, earning it a 'D' grade."
In fact, only 10 cities of the 75 indexed are worse off.
One major issue, notes the analysis, is the city's massive pension problem.
"Jacksonville had set aside only 47 cents for every dollar of promised pension benefits and only 11 cents for every dollar of promised retiree health care benefits."
The city "had $4.5 billion available to pay $8.1 billion worth of bills," creating a "$3.5 billion shortfall, an increase of $984.6 million from the prior year, and a burden of $11,200 per taxpayer."
Ironically, much of Jacksonville's energy during the just concluded 2024 Legislative Session went to blocking a proposal that could have required the city to reauthorize its discretionary sales surtax once a decade. That means city leaders may have been compelled to push for a referendum as soon as 2026 or else lose a revenue source bond markets and creditors have leaned on for assurances of the city's ability to pay debt back.
While the city has bashed "biased" analyses from Truth in Accounting before, the group's caveats are worth noting in light of the current agreement ... and the reality of the books.
No comments:
Post a Comment