Tag: government waste

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“Pork Report” Judges Bluff City Law, Megasite, and More

CREDIT: Jake Giles Netter/NBC

Beacon Center

Corporate welfare, Bluff City Law, and lax government spending topped the Beacon Center’s 2020 Pork Report for Memphis and Shelby County this year.

The center is a non-partisan, free-market think tank in Nashville. Its new Pork Report marks the 15th year the agency has taken aim at wasteful government spending in Tennessee. This year, the report featured 12 examples of “pork” from this year and three of the group’s “favorite” examples of government waste from the last 15 years.

“Beacon has long fought corporate welfare, where governments lavish some big businesses with massive handouts that other small businesses aren’t fortunate enough to receive, all at the expense of taxpayers,” reads the report. “And we’ll continue that quest until the government stops picking winners and losers.”

FastTrack

AutoZone HQ in Memphis

The report reviewed the state’s FastTrack program. It’s similar to the Memphis and Shelby County Economic Development Growth Engine (EDGE) program as it also gives grants and tax breaks to companies to locate, expand, or stay in Tennessee.

The Beacon report said, “Tennessee taxpayers are asked to give up millions of dollars to private companies through the state’s main corporate welfare program: FastTrack.”

In the last year, the program has given $39.6 million to big companies like Pringles and Accenture. Last year, AutoZone got $2.3 million in a grant from the program for an expansion and new location project here worth $191.3 million and 130 new jobs.

”The overwhelming evidence shows that these types of programs make little difference in company relocation and expansion decisions,” reads the report. “Estimates indicate these handouts sway companies as little as 2 percent of the time. Do we really think when Pringles is investing over $200 million to expand its factory that giving it $400,000 is really necessary?”

Bluff City Law
Jake Giles Netter/NBC

Going straight — Caitlin McGee (left) and Jimmy Smits play father-daughter attorney duo at the Strait Law Firm.

Beacon said Shelby County taxpayers are still on the hook in 2020 for a courtroom drama that was canceled in 2019.  Beacon Center

EDGE delivered Bluff City Law $1.4 million in tax breaks back in August 2019. That was part of a larger incentive package worth $4.2 million.

After the show was canceled, Shelby County Assessor Melvin Burgess took aim at the incentive here, according to The Commercial Appeal.

“My team and I strongly believe that there is absolutely no public benefit that would justify Comcast and NBC receiving $1 million per year of taxpayers’ money that I can recognize,” Burgess said at the time. “Accordingly, I believe that Shelby County government should challenge the approval of the PILOT and the loss of tax revenue.”

They didn’t.

“Because of the incompetence of the Memphis EDGE board, Memphis taxpayers are left holding the bag while politicians try to explain away the bad decision and talk about all the ‘unseen benefits’ that the short-lived show created for the city,” Beacon said in the report. “Film incentives are always problematic and should be eliminated entirely.”

However, Charles Vance, director of marketing and communications for EDGE, said the future years of the PILOT ended when the show cancelled. The show did positive things for the city’s image and economy, he said.

“As the show was canceled, future years of the PILOT are now canceled, and Comcast will only see benefits from the first year,” Vance said in a statement. “That provision was always built into the PILOT agreement.

“The PILOT benefit started on December 31st, 2019 and expires December 31st, 2020. The show’s promotional value was significant. On top of the great [public relations] exposure for our city, the show created jobs, and spent more than $31 million here.”  

Shelby County hiring freeze

After a warning about the county’s dire financial situation by Mayor Lee Harris, the Shelby County Commissioner agreed to a freeze on hiring and promotions earlier this year. The freeze lasted about a month.

“This is the problem with government finances,” reads the report. “When times are tough, families have to dig deep and make tough decisions.  Beacon Center

“But for governments, tough times are merely an inconvenience. Governments at all levels are able to kick the can down the road (like the federal government) or ask struggling taxpayers to bail them out (like Nashville). Our leaders need to remember that they are charged to be stewards of taxpayer money, not treat it like monopoly money.”

For this, Beacon suggested that Shelby County government should cut unessential services and enact a spending cap tied to economic growth to curb excessive government growth.

Memphis Regional Megasite

TNECD

A view of the megasite looking north from I-40.

The Memphis Regional Megasite won a spot in Beacon’s top three worst “porks” of the last 15 years.

No company is showing interest in the 4,100-acre piece of land east of Memphis that Beacon calls “the field of empty promises.” This is after more than a decade and $200 million in state investment.

”Yet, after numerous major companies have begged off, all they can do now is watch the grass grow,” reads the report. “It’s high time to flush this boondoggle down the drain once and for all.”

See the full report here:

[pdf-1]

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‘Pork Report’ Takes Aim at FedEx, Wiseacre, Wharton, Bluff City Law

CREDIT: Beacon Center of Tennessee

Beacon Center of Tennessee

The Bacon Center, a Nashville-based, free-market think tank lambasted several Memphis and Shelby County projects in the group’s annual Pork Report.

The 2019 report is the 14th from Beacon seeks to expose ”government waste, fraud, and abuse.”

”While the Pork Report is a fun and creative outlet for our team to expose the top 25 most ridiculous instances of government spending in the past year, it is also a call to action to the state and local governments to cut the waste from their budgets,” reads the report. “After all, it is state and local taxpayers who are funding all of the ’pork’ found in this year’s report.”

Below are the top examples of Memphis-area “pork” Beacon cited this year:

FedExcellent at Taking Tax Dollars

LRK/FedEx Logistics

“The Memphis-Shelby County Economic Development Growth Engine (EDGE) board, the entity formed to bring business into the city, instead continues to redistribute the tax dollars of hard-working Memphians to enormous corporations.

In one of its worst moves ever (which is really saying something if you have seen its other handouts), EDGE is giving FedEx $2 million to move its company’s headquarters from one part of Memphis to another. This is in addition to the $10 million from the state and $1 million from the Center City Development Board.

So in total, FedEx got $14 million of taxpayer money to move a few miles. The point of economic development is supposedly to bring new companies to the area, not give hard-earned tax dollars to huge corporations to move down the street.”

Bluff City Naw
Jake Giles Netter/NBC

Going straight — Caitlin McGee (left) and Jimmy Smits play father-daughter attorney duo at the Strait Law Firm.

What do you think about forking over $4.25 million of your hard-earned money to Hollywood?

We’re not bluffing. After spending more than $50 million on the canceled “Nashville” TV show, the government continues to pump money into the TV business. This year’s feature is “Bluff City Law,” a new NBC series based in Memphis.

Study after study shows that film and TV incentives have a horrendous return on investment, bringing in as little as seven cents for every dollar spent. This is a fairytale for Hollywood elites, as the overwhelming majority of tax dollars spent on these incentives wind up in their pockets, not local workers’.

At least temporarily, because most of these shows don’t last very long. “Bluff City Law” only filmed 10 episodes before pumping the brakes this fall.

Memphis Tax Dollars are Leaving the Building

In another example of a company holding a city hostage and leaving taxpayers all shook up, the Memphis City Council authorized $75 million in incentives for Graceland, Elvis’ historic mansion.

This came on the heels of veiled threats by the management company to actually move Graceland brick by brick from Memphis. The council’s only stipulation was that Graceland couldn’t build an auditorium or theater to compete with the city’s other taxpayer-funded arena, FedExForum. Apparently, they have to draw the line on giving away taxpayer money somewhere!

This isn’t even the first time that Graceland has pocketed taxpayer money. It received $21 million back in 2015. When will Memphis taxpayers realize their leaders ain’t no friend of theirs and call for fiscal restraint?


The Next Round is on Memphis Taxpayers

Wiseacre Brewing Co.

Wiseacre’s soon-to-be Downtown location rises from the ground along B.B. King.

Lots of guys love to brew their own beer. It’s like a science experiment at home that you can drink!

While it’s not a very labor-intensive hobby, it sure can get expensive. Between equipment and ingredients, it can add up quick. Too bad most didn’t think to get a $1.7 million property tax subsidy like Wiseacre Brewing Co. did from Memphis.

Sure, most of us don’t brew professionally, but here’s the problem: many others in Memphis do. Do a quick search and you’ll find a handful of microbreweries that now have to pay higher property taxes to subsidize their competition.

Everybody loves the guy who brings free beer to the party. Too bad Memphis taxpayers will have to pay even more money to try the beer they already paid for.

Enemies in High Places

Garth Brooks sang about his appreciation for friends in low places, yet Memphis resident Kareema McCloud probably never thought about having enemies in high places.

But that is exactly what happened when her neighbor, former mayor of both Memphis and Shelby County, A.C. Wharton, found out she was legally renting out rooms in her home through Airbnb.

Interactions caught on McCloud’s security camera showed Wharton and a barrage of government officials from at least six agencies showing up at her home day after day to hassle her. This included a three-day police stakeout at McCloud’s home on the unfounded claim that she was not running an Airbnb, but a brothel.

While a Memphis spokesman stated that anyone can call and complain about a neighbor, it is hard to dismiss that Wharton’s political connections brought about more scrutiny — and more wasted tax dollars — than the average citizen’s complaint. Let’s hope this political, taxpayer-funded bullying has been put to bed.

State Pork DepART- ment

Tennessee Arts Commission

Another year, another multi-million- dollar check written for the Tennessee Arts Commission. This year brought over $6.5 million in tax dollars for the Arts Commission to increase participation in all areas of the arts, including music.

However, with Memphis and Nashville as two of the main cities where everyone from aspiring musicians to incredibly successful artists move to, it begs the question as to why state government continues to fund music awareness through the Arts Commission.

If you speak to anyone from Tennessee, chances are they personally know a musician. Speak to someone from the Tennessee Arts Commission, you’ll probably hear about their large budget. Even in a state with amazing artistic talent, wasted tax dollars will always be a sour note.

How Much Does It Cost to Start a Podcast?
 Shelby County Commission

At the Beacon Center, we are pretty familiar with what it takes to get a podcast started.

Do you know what it doesn’t take? Over $100,000. Apparently Shelby County didn’t get that memo. County officials approved a $109,800 contract to produce a podcast where they talk about county commission meetings. But commission meetings themselves are already streamed live online, so why the need for more?

It’s hard to imagine people wanting to hear play-by-play coverage enough to justify that expense. Hey Shelby County, if you’re looking for a great podcast to fund, check out Beacon’s “Decaf” podcast. If you can’t beat ‘em, join ‘em, right?