Wednesday, October 13, 2010

MCANA Press Release on CIB Budget

Marion County Alliance of Neighborhood Associations, Inc.
P.O. Box 1082 * Indianapolis, IN 46206
(317) 862-1316 *

For Immediate Release, October 10, 2010

Contact: Cathy Burton (317-847-9959) or Pat Andrews (317-679-7018)

October 10, 2010

The Marion County Alliance of Neighborhood Associations (McANA), has adopted two positions which affect the proposed 2011 budget for the Capital Improvement Board, now before the City-County Council. On Saturday, October 09, 2010, letters were sent to the Municipal Corporations committee, Chaired by Barbara Malone, and to the full Council through President, Ryan Vaughn, expressing these positions.

First, McANA urged the Municipal Corporations committee and the full Council, to amend the proposed 2011 budget for the CIB, by removing the $10 million earmarked for a ‘loan’ to the Pacers organization. The CIB-Pacers agreement clearly states in Section 1.02, “The CIB's obligation to provide PBLLC with an Operating Loan on January 15, 2011 and January 15, 2012 shall be subject to the CIB obtaining a final appropriation in the amount of the required Operating Loan for each of those years from the appropriate fiscal body.” The Council serves as the ‘fiscal body’ of the CIB and it may deny this appropriation.

Second, McANA stands firm that the Council is obligated by State Law (IC 36-1-7-4) to review the Interlocal Agreement between the CIB and the Metropolitan Development Commission, signed on September 1, 2010. McANA has urged the Council to reject the Interlocal Agreement upon its review.

It is clear that the MDC-CIB Interlocal Agreement transfers $8 million a year of property tax revenues to the Pacers organization. It does so by taking property tax revenues from the Consolidated Downtown TIF district, sending it to the CIB, who in turn sends it to the Pacers organization in partial fulfillment of the terms of the CIB-Pacers agreement.

During these years of constricting budgets and a down economy, it is especially grievous to spend tax dollars on sports teams. Our Libraries are reducing hours, IndyGo has a chronic shortage of revenue, and our Parks budgets have been subject to several consecutive years of large cuts. These organizations contribute to the quality of life for residents and neighborhoods throughout Indianapolis. The Council’s priority should put residents before sports teams.



Unigov said...

Isn't it a violation of the state constitution for the state and local governments to loan money to a corporation ?

Indy Student said...

We've been ignoring that for decades, Unigov.

Paul K. Ogden said...

Actually I think Welsh pointed that out. It's obviously not a loan if there is no expectation of paying it back.