Norweigan Cruise Line is not the only private company to get millions of taxpayer dollars in “marketing incentives” from a Miami-Dade government that is allegedly “tightening its belt.”
In addition to the $3 million commissioners approved (in consent agenda, no less) for the cruise company earlier this month, dozens of airlines have received at least $4.3 million in incentives, including landing fee waivers, since 2006, according to records obtained by Political Cortadito this week.
This fiscal year’s total for the Miami-Dade Aviation Department’s MIA Air Service Incentive Program (ASIP4) is $900,000, according to the documents provided by Greg Chin, the department’s communications director.
Yes, that is from the same budget in which there was no money for libraries or paramedics or a no-kill shelter. Yes, that is from the same budget that Miami-Dade Mayor Carlos “Not So Golden Boy” Gimenez says is so tight the county cannot afford to give back the promised 5% that employees willingly have contributed to group health (read: healthcare subsidy) since 2009.
Or, to put it another way, as Gimenez threatened to close down libraries and fire dozens of paramedic firefighters, he was giving nearly $1 million more away to private airlines.
And we can expect more of the same next summer as the 2014-2015 budget looms. Especially since NCL’s incentive program calls for another $3.3 million to be awarded each year through 2017.
Really.
To be fair, and as the mayor and his staff love to say repeatedly, these are “different funding sources” that can’t be mixed up.
“You’ve got to be careful not to mix funding from different sources in your coverage of this issue,” Gimenez spokesman Fernando Figueredo chided me in an email response asking about these gifts to corporate giants.
“The Library System as well as the Fire and Rescue department have their own taxing districts separate from the general fund taxing district or the UMSA taxing district. It is illegal to use funds from one taxing district to subsidize operations in a separate taxing district. So the operations of the MD Library System as well as the MD Fire and Rescue department have to be funded strictly by the taxes generated by their independent taxing districts,” Figueredo wrote.
“The Mayor could not, even if he wanted to, transfer funds from the airport or seaport to either one of those organizations,” he added.
Or, to put it another way, we can’t use seaport money to pay for librarians — and the mayor doesn’t want to, anyway. So at the end of the day, to balance the budget, I guess we have to give some of the surplus away?
Well, county folk — or those on the 11th floor, anyway — call it an investment.
“In addition, the airport (MIA) and seaport (PortMiami) are both ‘proprietary’ organizations within the County that function independently from the rest of the County organization. They both operate as quasi private businesses and are strictly funded by the revenues they generate,” Figueredo explained. “Just like any private business, in order to generate future growth and an increase in revenues, incentives need to be provided. Both MIA and PortMiami operate in an intensely competitive environment, one in which airlines can easily promote passengers to travel to particular destinations or through specific airports to reach a final destination.
“Since both MIA and PortMiami receive a large portion of their revenues from landing fees or passengers moving through their facilities, it is important for them to provide incentives to airlines and cruise ships to bring as many passengers through as possible,” he said. “In the case of MIA for example, the incentives are in the form of landing fee waivers for those airlines that bring large volumes of passengers.”
But isn’t the county government’s real business to provide services for its residents? And if the revenue stream is the airport and the seaport, why on Earth would we exclusively use those funds to further vamp up the revenue stream and not shore up other areas of the “business” that are not so lucrative? It seems ludicrous. Libraries are never going to pay for themselves. Neither are firefighters. We should be able to use other funding sources to pay for them.
After all, this is our seaport. Our airport. These assets belong to the people and we, not the Fortune 500 travel companies, should be the ones benefiting from its success.
It is true that what they call the “lock boxing” of revenue streams keeps funds separate. The county in their infinite wisdom has set up an accounting system that would make Rube Goldberg proud. They created entities and then pledged revenue streams to fund these departments, organizations, taxing districts, ad nauseam. The premise was they would protect themselves from “robbing Peter to pay Paul.” It also helps in the bonding out of billions of dollars for special projects because they can show the underwriters that the money will be there in the future to pay back the borrowed funds with dedicated tax and fee structures in place.
Of course, they can clearly take from the General Fund to add to any shortfall in whatever department they like. Or lower the tax rate on one of the separate funds, say, the library tax, so they can use the reserves up and then claim they have lowered taxes, since the average taxpayer only looks at the overall bill.
But when Figueredo, speaking on behalf of Mayor Gimenez, says it is against the law to take money from one account to pay for operations in another, he is not talking about a federal or state law. In most cases, these are county ordinances, which, of course, could be changed if the will were there. But our electeds simply like the things the way they are for many reasons. It gives them the political cover to hide behind the crappy decisions they make, for one.
Another reason is to confuse us. Because, as Ladra pointed out, these assets — the seaport, the airport, t
he water and sewer system, the American Airlines Arena, the Marlins Stadium — belong to us. The Mayor, the Commission and county department directors are simply trustees of our assets. And temporary ones, at that (with any luck). The fact is, the citizens do not understand the convoluted way the county pays for the upkeep of these assets and the politicians like it that way. That’s why they double talk anyone who asks any questions. (No offense, Fernando).
What is the point of having these resources if the public can not benefit? The politicians want to talk about the jobs they bring. No question about that. But if they sold these assets to someone, the jobs would not go away. Well, maybe the two port directors who make as much combined as the President of the United States would be looking for a new gig. And Ladra is not suggesting privatization, but there has got to be a better way to reap more from these investments in our assets, instead of the airlines and the cruise lines and the backroom insiders like Chris Korge, who practically has a concession monopoly at MIA, and Micky Aronson.
It’s a little bit of an insult to our intelligence when they use the argument that we will lose the cruise lines if we don’t give them these incentives. Yeah, just like we were going to lose Major League Soccer if we didn’t upgrade SunLife Stadium with taxpayer dollars. Remember those lies? These sound the same. Where are the cruise lines going to go? Jacksonville? Providence? Albuquerque? Even Fort Lauderdale is not that big of a threat.
And do we really need to encourage them to bring in more passengers? Isn’t that what they want to do anyway?
Or is this really about the private perks airlines and cruise lines give to politicians and the highly-paid lobbyists who threaten the doomsday scenario if these huge payouts are not gifted to these billion dollar companies? Why, Ladra has repeatedly heard that at least one commissioner in particular always gets an upgrade for her cabin on her multiple cruises.
Maybe there’s a connection.
This is corporate welfare. And quid pro quo. All wrapped into one.
Even if it comes complete with a brochure that also says premium candidates are airlines with flights to Africa and Europe. “The MIA ASIP4 complements the strategies and objectives of the airport’s air service development efforts while encouraging incumbent carriers at MIA to consider expansion and new market development.”
Blah, blah, blah. Is anybody buying this crap?
Marketing incentives may be fine — when times are good and the budget is bulging. But if we are forcing our sanitation workers and our nurses at Jackson and our police officers on the street to tighten their belts and “make sacrifices,” as some jackass commissioners like to say, shouldn’t that also be the message to these private companies?
Commissioners approved the $3 million handout to NCL earlier this month at the same meeting they denied their own employees the return of the 5% — part of 16% in total concessions agreed to in 2009 — that the county promised would be returned starting in January.
Ladra says we break our promises to American Airlines and keep our promises to our public servants.
Miami-Dade takes from workers; gives millions in ‘incentives’ added by Ladra on
View all posts by Ladra →
The righteous anger of once-loyal government workers is growing dramatically. County employees are good and honorable people with real commitments and lives now being unfairly and viciously sabotaged by unscrupulous, self-serving politicians promoting their own “Apartheid” tactics as they try to pit the private sector against their own employees.
It may not be in my lifetime, but a genuine revolution is coming in this once great country, as class warfare, greedy “Kochs”, and Tea Party fanatics continue to demonize and destroy the middle class. Conventional tactics will eventually give way to human nature as society rises up and extracts their pound of flesh on these bastards that serve only themselves.
Sad to say, those politicians who continue to thumb their collective noses at the masses will one day fear for much more than their gravy political offices, and that day is sooner than later.
Government employees are fortunate they have salaries and benefit plans. Many private sector employees have no health insurance. Almost no private sector employees have Defined Benefit Pension Plans. Many have no pensions.
The treatment of county employees under the current administration will have counter productive consequences in the long run. Morale is currently at an all time low and poor morale negatively impacts productivity and ultimately the quality of services to the community. The Mayor and several of the Commissioners could care less about the employees because they are only concerned about their political images and anti-tax, anti-spending conservatives catering to the anti government element of the community. What they fail to grasp is that successful organizations understand that their employees are their most valued asset. The County is much more concerned with catering to special interests and their politically connected lobbyists. The County makes sure that those special interests, who fund political campaigns, are kept happy. It’s a recipe for deteriorating government and these politicians won’t be around to deal with the long term damage they have caused.
It’s all about political gamesmanship. The mayor would love to raise taxes but his Spanish listening radio base will not tolerate it. So save $250,000 by closing a couple parks in their neighborhood under the guise of no new taxes. Reality is no one is going to notice the difference if the mayor lays off one of his $250,000/ yr administrators however lots of constituents notice when you close the neighborhood park.
And don’t get me started on the shell game of silo budgets, bed taxed and proprietary fees. No one with an IQ larger than their shoe size buys that BS.
Oh wait, we’re talking about Spanish radio listeners….. Never mind.
From my perspective, the Library funding debacle is an example of “no good deed goes unpunished.”
Sometime before 2005, the Library Director, with the advice of the Advisory Board,developed a plan to allow the Library System to expand to meet the needs of all the new users in the south and west by adding one mill to the Library District millage, raising it from .275 to .375. The idea was to pay for new construction, new equipment, new materials and for renovation of older facilities on a “pay as you go basis.” Among other things this policy would reduce long-term costs of borrowing to build. As new facilities were built, this raise would also permit the operation of the new facilities to be supported.
The County, in order to gain more electoral support for its large bond issue, included some Library facilities, but that was not really necessary.
Came the recession and loss of property tax revenues, the Library had to cut back like everyone else.
It’s time to revert to the common sense plan of having the Library System pay as it goes.
One turn in office for Gimenez, Scott, Tea party members, Republicans and politicians who just just can’t seem to relate to the struggles, challenges (and now deflated morale) of the working class.
Excellent Journalism. This blog, and Eye on Miami are the best political blogs in this part of Latin America.
Yes to your assessment that the mayor states only enough information to skew public favor to his goals – firing staff. He defines how many must be laid off in his budget recommendation each July. This fiscal year, the number told to the editorial board of the Miami Herald was 600 county staff. He refuses to equate how services will be specifically affected.
Also, it is his half truth that having a special taxing district isolates the department’s budget. On Mayor Gimenez’s first attack two years ago, 150 full timers and 100 part timers were laid off and many librarians were demoted, hours were cut, the free tutoring program stopped. No libraries were closed because budgets were tweaked,,,,
From Miami Herald, The (FL) – Tuesday, July 19, 2011
Miami-Dade Commission supports mayor’s proposed tax plan, but spares county libraries – Commissioners voted to back new Miami-Dade County Mayor Carlos Gimenez’s tax plan, part of a proposed budget that includes some $400 million in cuts.
Author: MATTHEW HAGGMAN AND MARTHA BRANNIGAN, [email protected]
The commissioners, concerned about the prospect of closing libraries that are particularly vital to lower-income groups and the elderly, tweaked Gimenez’s proposal by instead lowering the tax rate for the fire department and adding the difference to the tax rate for libraries.
Gimenez’s initial plan called for closing 13 of 49 locations in the county library system. Even prior to the vote, Gimenez said his administration had found a way to save four of the 13 libraries from closing .
But they will all remain open as a result of the tax rate change.
Good work, Ladra.
It is true that the FCC will ask for misspent $ at any time, but the Sea Port does not have the same formula, a lot can be done for the sake of the employees if they would care to stand up and defend them. I know of no solid waste worker, first responder etc, who can take a $0 cost cruise not even once a year, imagine a few times a year ( as a well known commissioner ) is known to have been doing it for years:( There is such a yellow streak running up and down the spine of a certain group ( of the 13 sitting ) that you wonder how can they sit up straight ? Crazy glue perhaps 🙂 Thank you Ladra for never giving up!!!
Excellent article! Please keep up the good reporting on important county issues!
The county says money for the libraries and firefighters is in separate categories from the county general fund.
And yet, the county has taken huge amounts from the libraries, saying it serves folks in the library district.
(If you will give me an Email address where I can send you an attachment, I’ll send you the particulars on the county’s largess with the libraries money.)
When Mayor Carlos Gimenez first came into office in 2011 he said he was using the rollback rate which would have given the Library more funding. Instead, he lowered the library millage to raise the millage for fire. The fire department had overspend the previous year even knowing that the property values originally calculated were inaccurate. At one point the Fire Department was $70-80 Million on the hole. The FRS contribution allowed them to close some of this gap and Mayor Gimenez lowered the library funding by approximately 10 Million and raised the fire millage by that amount.
1. Commissioner Barbara Jordan was advocating for a stay of execution for a library department that has seen it’s millage rate drop from .4860 in 2006 to .17250 in 2012. The entire infrastructure of that department would have been damaged beyond repair had not Jordan and a few others seen fit to save it through extraordinary measures.
2. The proverbial can that got kicked was created by the Mayor when he initially proposed a restorative library budget in July 2013 and then quickly rescinded it before the public had a chance to voice their priorities.
3. The current financial crisis hitting libraries and the fire department almost appears contrived when you consider the fact that no other county departments are targeted for such substantial cutbacks. During truly hard times there was a “we’re all in this together” mentality; this year’s budget looks more like a firing squad with the library and fire departments backed up against the wall.
While government should be wary of spending money it does not have, or wasting money it does have, the library situation that exists today falls into neither of those categories.
Thank you for having the strength and dignity to expose Gimenez and his jesters. The tax paying citizens are supporting the salaries and benefits of a cast of crooked politicians who care very little about democracy and its values. These rats only care about the size of their mansions, the length of the yachts they ride in and the amount of days they can vacation in exotic places at our expense. It is high time for a grass roots movement to put an end to this abuse. Somewhere in this county there must be an organization or community leader that will put a stop to this unethical practice. This is not Gimenez’s personal fiefdom. This community belongs to all of us.
I have a solution. M. Aronson return the 3 mil to our first responders.
Hi Joe,
You have no idea of the funds allocate to CRA’s by Miami-Dade County.
This is exactly the type of investigative reporting we used to expect from the Miami Herald before it became an irrelevant afterthought. If it weren’t for Ladra, would any of us know what’s going on? I doubt it!
As you pointed out, this is corporate welfare (or crony capitalism – same thing), and it’s exactly what’s going on in municipalities all across the country right now. Public employees seem to be the only ones asking to sacrifice, while those at the top of the government food chain continue to live large on taxpayer money.
Thank you for exposing this ugliness.