Tax and Guest Speaker Have More Than Vision in Common

On July 10 residents of Polk, Dallas and Warren counties will head to the polls and decide the fate of “Yes to Destiny,” a proposed local option sales tax. Next Tuesday residents will have an opportunity to listen to one of the founders of the economic model upon which the plan was built. The speaker and the tax increase, however, are not without critics.

Former Pittsburgh Mayor Tom Murphy will take part in a new educational series launched by the Greater Des Moines Community Foundation next Tuesday. “Community Conservations” kicked off earlier this month with Denver Mayor John Hickenlooper as guest speaker. The series touts “stories of developing regional economic opportunities through arts and culture.”

Murphy, pictured above, served as mayor of Pittsburgh for three terms, stepping down in December and recently accepting a position as senior resident fellow with the nonprofit education and research-driven Urban Land Institute. He has been widely credited for leading the reinvention of Pittsburgh’s economy following the decline of the steel industry.

When he took office in 1994, Pittsburgh was suffering from a severe economic downturn and a deteriorating physical environment. Over the years, he led a drastic turnaround, including the transformation of former industrial sites into vibrant residential neighborhoods and miles of riverfront public space. This led to more than $4 billion in new investment in the city, including new office towers for the city’s major financial institutions, world-class professional sports facilities and an environmentally conscious development expansion of the city’s convention center.

At the ULI, Murphy focuses on urban development issues.

“He has a proven track record of turning ideas and plans into results, and his insights will be invaluable in helping us expand and improve our program of work on building sustainable cities,” said ULI President Richard Rosan at the time Murphy was hired.

Murphy is an avid biker and marathon runner as well as a leader in the national Rails-to-Trails movement. He supervised the building of nearly 14 miles of trails that run through the center of Pittsburgh and connect to riverfronts. This was a vast face-lift for a city that previously been named as one of the worst cities in the country for bike riding in a metropolitan area by Bicycling Magazine.

Despite all of this, however, not everyone in Pittsburgh views the former mayor kindly. As mayor, as well as in his earlier legislative career, Murphy didn’t always do things as the Democratic leadership would have liked. Ironically, when he was unable to overcome Pittsburgh’s financial shortfalls, Murphy requested the state Department of Community and Economic Development declare the city to be in financial distress. This allowed the city to qualify for financial help from the state, but also allowed the Legislature he often balked against to appoint a coordinator with the power to override existing union contracts and institute new taxes.

The union contracts, in particular, were a thorn in Murphy’s side. In June of last year Murphy agreed to cooperate with city and state officials in relation to a deal he struck with Pittsburgh firefighters in 2001. The move ended a two-year criminal investigation by the U.S. Attorney’s Office. The union endorsed Murphy for re-election — arguably providing votes which put him back into office — after he approved a contract worth up to $12 million with a no layoff clause.

Local campaign officials say the “Yes to Destiny” plan will raise $750 million over 10 years through the sales tax increase. Proceeds would be split into thirds: One-third for property tax relief in each of the 41 communities voting, one-third earmarked for publicly announced government plans and one-third for regional “quality of life” projects. Participating cities have set a 10 year plan for use of their portion of the funds.

Proponents believe property tax burdens will be reduced and regional quality of life amenities will be enhanced. This, in turn, will allow the region to retain current employers and employees while attracting new ones.

Opponents say this plan is “the largest local option tax increase in Iowa history” and point to an April report by the Tax Foundation. In that report, Iowa is listed as 18th in the nation for state and local tax burden. Iowans, according to the report, will pay 11 percent of their incomes in taxes to state and local governments this year.

If passed, the third of the tax earmarked for “quality of life” project would be managed by a new 15-member board called the Tri-County Regional Authority. Funding would be distributed, according to YesToDestiny.org, for regional quality of life facilities (30 percent), recreational trails (25 percent), scientific, arts, cultural and historic preservation organizations (25 percent) and additional regional property relief through regional property tax equalization and transition (20 percent).

Murphy will speak at Hoyt Sherman Place in Des Moines on Tuesday. The event will run from 11:30 a.m. to 1 p.m. There is a $12 per person charge, which includes lunch. A registration form available for those who wish to attend.