|
|
| Intel Not
Inside – Cities
and Public Entities Deal With Tax Shortfalls and Deals
Gone Bad
In March of this year Austin city officials received a
very rude wake up call. Construction on Intel’s $124
million centerpiece—in what was (and hopefully will be)
Austin’s mega-center of high tech companies—stopped.
Remaining was hollow concrete shell, witness to a high tech
economy that halted just that abruptly.
|
A decaying Intel building
in downtown Austin, as portrayed by The Lawrence Group
Architects, "Casa des Cartas" (house of cards). In
March Intel abruptly halted construction on the $124
million dollar building. Austin American Statesman
photo. |
This story is being repeated in cities, counties, and state
government throughout the United States. The public sector may
not fully realize what they’ll be facing in terms of tax
shortfalls. Yet Texas government has already received the word.
When the legislature convenes again in 2003, they’ll be
looking for 5 billion dollars
that won’t be there.
| The Mayor Pro
Tem Jackie Goodman Solution to Workforce Redevelopment and
Redeployment (the lighter view)
|
 |
We asked Austin Mayor Pro
Tem Jackie Goodman, known for her quick wit and sense of
humor, if she thought there would be a homeless camp for
ex-dotcom executives in Austin:
"I guess if we're
going to have a shelter for 'em we'd better put some
FREENET computers in there too, and job training programs
that will help them write resumes to Kentucky Fried and
Payless Shoes.
"Maybe we could hook
them up with Youthworks or Habitat for Humanity, - they
could learn greenbuilding, and we could let them finish
out the Intel building, hmm?" |
|
City, county,
and state government are in a cost containment mode, and
you’ll see the woes continue. Here’s what our readers
tell us is happening in the public sector:
- States and cities are balancing their budgets based
on last year’s ample collections. They’re like
Wily Coyote just before he realizes the ground beneath
his feet is air and that he’ll be feeling the canyon
floor soon. They know there’s a fall, but don’t know
how far.
- Watch the cycle and you’ll see that large capital
improvements in roads and public buildings began in
earnest just before the downturn. These present projects
will be finished, but at great expense to operational
budgets. After this we will have five to ten years of
"deferred maintenance," with lots of potholes
that don’t get fixed and highways that don’t get
expanded.
- It’s the time to get the bargains for industry.
Tax-base hungry governments will make large concessions and
investments in infrastructure for industries locating and
expanding.
|
Austin suddenly realized that it hadn’t done much
to court industry stalwart and longtime player in Austin, AMD,
in their proposed expansion. The City of Austin is now pulling
out the stops in that courtship.
- Good city Government will put the basics first. Jeff
Jack, senior aide to Austin City Councilmember Beverly
Griffith, emphasizes keeping up with basic city services,
police, fire, EMS. Cities can also pick up bargains by
acquiring lands for greenbelts that are less expensive and
easier to buy now, Jack observes.
|
|