Other People's Money

On Friday, 14 November 2008, Phoenix Mayor Phil Gordon added the city of Phoenix to the growing list of those with their hands out for taxpayer money after Congress approved a taxpayer bailout last month of wealthy bankers. The mayor is asking for money from US taxpayers to help pay for a city budget shortfall of sales tax receipts of up to $250 million and also to pay for other Phoenix projects, "including transit," for a total of $1.2 billion.

The mayor's timing is interesting because the day before he was at the CityNorth grand opening, which he has championed by subsidizing it with up to $97.4 million over 11 years in sales taxes the developer is allowed to collect and keep.

From Mayor Gordon's website, one can see that he is a proponent of spending taxpayer money on infrastructure:

"As Mayor, Gordon lists his three priorities for the city as: Public Safety, Education and Jobs. He has already chalked up a tremendous record: Light Rail, ASU Downtown, two new downtown hotels, expansion of the Phoenix Convention Center and the passage of a $878 million bond program. The U of A Medical School is headed for downtown Phoenix and, according to The Tucson Citizen, 'Credit for this belongs to UA President Peter Likins, Phoenix Mayor Phil Gordon, and members of the Board of Regents, who hammered out details between two schools that have been traditional rivals.' "

Some more interesting timing is that the controversial light rail system supported by the Mayor is scheduled for completion next month. With a $1.4 billion price tag ($200 million more than what the Mayor is asking US taxpayers to pay), one hopes it doesn't run into the same problem that the Houston Metro is having with bank lease-back deals now in default since insurer American International Group (AIG), which insured the deals with the banks, collapsed.

Final note: "other people's money" is how politicians and developers see it. The other people are you and me.