Does the County think we as residents are stupid?

[Hoss]

Citing 'this is about jobs,' Tulsa County may have airport tax to support airline businesses
By P.J. LASSEK & BRIAN BARBER World Staff Writers
Published: 5/22/2012  2:30 AM
Last Modified: 5/22/2012  4:23 AM

Tulsa County voters likely will be asked on the Nov. 6 ballot to approve a roughly $340 million tax package to benefit American Airlines and airport industrial businesses, multiple sources said Monday.

The total for what is now being called "Vision For Jobs" includes $260 million for airport-related infrastructure improvements and $80 million for a "deal-closing fund" that would be governed by an authority and doled out as business incentives, according to sources.

"I think the sooner we begin the discussion with everyone in the county the better," County Commission Chairman John Smaligo told the Tulsa World.

"I think all of our regional leaders need to figure out what kind of proposal they might be willing to support."

Mayor Dewey Bartlett said he has not taken a position on the proposal and has not made any promises to American Airlines.

"I'm in the process of exploring our options," he said. "But this is about jobs, plain and simple."

Tulsa Metro Chamber President Mike Neal said the American Airlines' situation, "has pushed aerospace jobs to the forefront of the minds of many of our business and community leaders as well as citizens."

"The airline employs 7,200 and the risk of it going away could be potentially devastating having catastrophic impact on our community and the region," he said.

Neal said the goal for some time has been to try to "support, preserve and position" the aerospace industry as a whole for continued growth which means upgrading the many city-owned facilities, some of which are World War II vintage.

Possible funding: Elected officials are still debating the funding mechanism.

One option is to ask voters to approve a four-tenths-of a-cent tax increase for about seven years.

It would basically amount to the Vision 2025 share approved by voters in 2003 to lure Boeing, but since Boeing never came, the tax was never collected.

That would push the city's tax rate to nearly 9 cents on the dollar.

Another option is an early renewal of the Tulsa County Vision 2025 tax, extending it years beyond its 2017 expiration date so there's no increase to the actual tax rate.

Neal said the process is very fluid and area officials had hoped to have time to build a consensus on the details of a tax package before the information went public.

It will be up to the three-member Tulsa County Commission whether a countywide tax package moves forward.

Smaligo said he is pushing for the option with no net tax rate increase.

County Commissioner Karen Keith said she doesn't know where she stands.

"It's all so nebulous right now," she said.

County Commissioner Fred Perry said, "I'm still looking at whether anything should go on the ballot at this point. I'm asking a lot of questions."

But Perry said he, too, would prefer no net rate increase.

Package items: Among the improvements considered for funding are revamping the American Airlines maintenance hangars so that newer planes like Boeing 737 with taller tail fins can fit inside for repairs, other building infrastructure needs, and equipment related items, said Airport Director Jeff Mulder, noting it also includes the Air Force Plant No. 3 which houses Spirit Aero Systems and the IC Bus Corp.

Elected officials said those changes are needed to make the airport facilities marketable, regardless of what happens with American Airlines' bankruptcy proceedings and the airline's future in Tulsa.

Neal said the process of "aggressively reaching out" to other aerospace companies, other airlines and third-party maintenance vendors to make them aware of the work force, and the sizable facilities has been under way for some time.

"But what we hear is that you have to continue to make those infrastructure investments to ensure you have state-of-the art facilities to attract companies," he said.

Smaligo said officials are trying to figure out what "the best option is to try to and make sure that the resources we have at the airport and in the region are viable."

Perry said no one wants to see American Airlines jobs go away.

But he emphasized, "No one is proposing writing any checks to a specific company. I would certainly not support that."

The facilities are owned by the public, Perry noted, and any tax investment would stay with them.

Bartlett agreed, saying. "This is all property we own, and like any property, it must be properly maintained."

The mayor said he doesn't know whether the proposed package would help preserve American Airlines' presence in Tulsa.

But he said the improvements would support the thousands of jobs at the airport and help attract new ones.

Incentive fund: Neal said a "deal-closing fund" is critical to compete in today's global market noting that Oklahoma City has one with about $75 million and it was created through one of the MAPS initiatives.

The legislature also approved a "quick-closing" fund, which has no funding, but state chambers have agreed to provide it funding, he said.

Neal said the fund would be available to all Tulsa County municipalities and would be overseen by some sort of public county authority.

Keith said that it's unfortunate, "but in order to compete in today's climate a city, a region has to have some incentive ability. It's the game that is being played."

Keith said she would support such a fund if she was ensured that there were protections for taxpayers.

"You don't want to give an incentive to a company that comes in for only two years and then leaves," she said."No taxpayer is going to support some open-ended fund."

Bartlett said such "deal-closing funds" have been beneficial elsewhere but one must be carefully crafted to be efficient.

"It could give us a real leg up in competing for new business," he said.

Public polling: Neal confirmed that polling has been conducted on a possible tax package, but would not give the results.

He did say that the message learned was there is an overwhelming support to grow, retain, and attract jobs.

Sources say the polling indicated that a tax promoted as an American Airlines package would be rejected. It would do better if touted as a jobs package, but it would still fail, sources said.

Past tax money to American Airlines

Vision 2025: Voters approved $22.3 million in 2003 for equipment purchases at its maintenance and engineering center at the airport.

State and local: The state's Opportunity Fund in 2007 provided $5.7 million, while $4.3 million in local funds were used to build Hangar 80, an aircraft overhaul and repair facility.

What would four-tenths of a cent sales tax increase mean for Tulsa's overall tax rate?

It would take the city's sales-tax rate to 8.917 cents on the dollar, including 4.5 cents to the state, 3.157 cents to the city, and boost the county's share to 1.26 cents.

Wow.  In this economy, does the county really think this won't go over like a turd in a punch bowl?

Look, I'm all for keeping AA here.  But let AA upper management take the hit.  Not the county residents.

[swake]

"newer planes like the Boeing 737"

?

[carltonplace]

I think they should not waste the time and money it will take to market this thing towards its inevitable failure.

[Townsend]

After it fails, fingers can be pointed and claims of "we tried" can be made.

[erfalf]

After it fails, fingers can be pointed and claims of "we tried" can be made.

Politicians are always in CYA mode. It's much easier for them to do it with other people's money.

[Hoss]

Politicians are always in CYA mode. It's much easier for them to do it with other people's money.

If they frame it as an extension to V2025 without the 4/10ths of a percent increase, it *might* pass.  But otherwise it's doomed I think.  The hypocrisy of many politicians in this economic environment of denouncing corporate bailouts at the expense of the taxpayer and then proposing this is astounding.

[AquaMan]

in answer to your thread question....yes. Yes, they do. They are planning on it.

[Conan71]

Just how exactly do you tell the voters this will create jobs at AA when they are mulling cutting 2400 or so jobs in their bankruptcy procedures?

Sooner or later companies like AA will run out of gullible communities who will bend over at the drop of a hat and open their checkbook.

[Townsend]

Just how exactly do you tell the voters this will create jobs at AA when they are mulling cutting 2400 or so jobs in their bankruptcy procedures?

"We need to save as many as we can."  That's a guess.

[RecycleMichael]

I am not saying I am for it, but isn't it refreshing to see politicians willing to try to raise revenues? After the Tea Party crap and our governor slashing taxes at the expense of needed programs like education, I am hopeful.

I am willing to pay a little more for a better world.

[AquaMan]

I am not saying I am for it, but isn't it refreshing to see politicians willing to try to raise revenues? After the Tea Party crap and our governor slashing taxes at the expense of needed programs like education, I am hopeful.

I am willing to pay a little more for a better world.

So am I, and I'm glad to see investment in updating public facilities, but we can all read and have been following the history of AA. It is a hard to sell that they wouldn't just fold up and leave anyway or drastically cut staff and still benefit from our contribution.

The only thing they said that makes sense is the fact that we own the properties and should bring them up to date if we intend to rent them to anyone else. Anyone who has talked to an IC workers knows the buildings  are horrible to work in.

[Townsend]

The only thing they said that makes sense is the fact that we own the properties and should bring them up to date if we intend to rent them to anyone else. Anyone who has talked to an IC workers knows the buildings  are horrible to work in.

Someone may have to prove to the few of us that vote that there will be takers if we do upgrade the facilities.

[AquaMan]

Someone may have to prove to the few of us that vote that there will be takers if we do upgrade the facilities.

You still paint your house even if its not for sale.

[Townsend]

You still paint your house even if its not for sale.

If I was pretty sure it'd be up for sale in the near future I'd want to make it was sellable.

[Teatownclown]

I am not saying I am for it, but isn't it refreshing to see politicians willing to try to raise revenues? After the Tea Party crap and our governor slashing taxes at the expense of needed programs like education, I am hopeful.

I am willing to pay a little more for a better world.

Me too!

Curious how people don't realize the company already failed and this is the attempt to move forward. I find it interesting that some posters are willing to allow "non profit" religious institutions avoid paying taxes rationalizing they add so much to our economic base and want to harm that same base if it means instating a tax already accepted but not placed.

Upside out and inside down, it's the only game in town. If this were xyz company, we'd all be for this proposal if it meant luring 2400 employees. Because AA has a stigma attached to it is no reason to abandon our work force now.  US Air will be a worthy corporate citizen now that there's a future. Let's keep the working man from losing despite corporate welfare. If this weren't about the working man, I'd say forget it.