(Alexandria, VA) – Nassau County voters heading to the pollstoday on a $400 million bond issue to construct a new home for the New YorkIslanders are only the latest taxpayers being asked to underwrite sports-venuedeals of questionable merit, according to the National Taxpayers Union (NTU).The non-partisan NTU, a grassroots organization that has previously foughtagainst taxpayer subsidies for professional sports teams elsewhere, has over18,000 members in New York and 362,000 members nationwide.
“When you look at the timing andthe structure of this deal it seems like a clear attempt to skate past seriousoversight,” said Brent Mead, State Government Affairs Manager for NTU. “Timeand again politicians make deals with team owners on the backs of overburdenedtaxpayers. History shows these deals are not only wasteful but still leave thedoor open for teams to move.”
The 30-yearcost of the bonds will likely total $800 million. Once the new arena iscompleted the Islanders will agree to pay a $14 million annual rent. The countywould also receive an estimated $4.9 million in assorted sales tax revenue.However, the projected revenues fall well short of annual interest payments of$28 million. Even worse for desperate fans, Wang would still have the abilityto sell the team. Leaving open the possibility of the Islanders moving, andleaving Nassau taxpayers with a major expense for little reward.
The resulting3.5%-4% property tax increase to pay for the new bonds would be stacked on topof an already staggering burden. The average Nassau County homeowner pays$11,500 per year in property taxes, among the heaviest loads in the entire country.
The Islanders added salt totaxpayers’ wounds by placing the measure on the ballot today, rather on aregularly scheduled primary or general election ballot. Not only will turnoutbe far below normal, at around 10%, but if the measure fails, taxpayers are stillon the hook for the $2.2 million in extra election costs.
“After a year in which NassauCounty ended up over $100 million in the red and was placed under statefinancial control, taxpayers just might choose to send the backers of thisproposal to the penalty box for financial high-sticking,” Mead concluded.“Whatever the electoral outcome in Nassau County, taxpayers across the countryshould remain concerned about future power-plays on their wallets in the nameof pro sports.”
NTU is a nonpartisan, nonprofitorganization working for lower taxes, smaller government, and economic freedomat all levels. More information, including studies on taxpayer-funded sportfacilities, is available at www.ntu.org.
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