The Fayette Citizen-Opinion Page
Wednesday, March 31, 1999
Bonds better choice to pay for new jail

Letters from Our Readers

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The need for a new jail and a new courthouse in Fayette County was apparent five years ago, when some of our shortsighted politicos were still fighting the state court (which now seems to be a resounding success).

But now we hear noises from our local politicians about raising the sales tax to pay for a new jail and a new courthouse.

Now these are two different issues. The decision to build a new jail and a new courthouse is one issue. How to pay for them is a different issue.

We can pay for the jail and courthouse as we use them, probably over the next 25 years, through low-interest bonds. Or we can fork out a lot of money much sooner through a sales tax increase.

In a series of published letters last spring, I showed how much better it is to finance large public expenditures for schools (which also last 25 years or longer) through bonds. Endeavoring to keep their ear to the ground, and unable to read in that position, our local politicians obviously missed those letters. So we are entertained still with foolish stories about how a sales tax is paid by visitors, like the Tooth Fairy perhaps.

The fact of the matter is that about half the sales tax is paid on the purchase or lease of the motor vehicles ordinary local people have to buy to go to work or buy groceries. Increase the sales tax by one percent, and you'll pay about $250 more on your next new car.

But even if you enjoy paying this extra amount, there's no guarantee Fayette County will get it because virtually all car dealers (save one) are located out of the county. So we're all dependent on the dealers and the state of Georgia to get back our sales tax money on these vehicles.

Yet we have seen story after story in the newspapers about how counties all around us, like Cobb, Rockdale and Clayton, have claimed the state was not giving them their proper fair share of the sales tax.

As I write this I have in front of me an article from the Sept. 20, 1998 Atlanta Journal-Constitution entitled, "Sales tax shortages delay school projects," with the sub-caption, "Shortfall: DeKalb County schools join Cobb County and MARTA in questioning the state Department of Revenue." Another one from Oct. 17, 1998 states, "Sales tax shortfall jeopardizes project at Rockdale School." Another one from Oct. 20, 1998, referring to Clayton County, states, "Courthouse tax receipts short."

We should learn from these people's experience.

I don't know what it is about our politicians that makes them hate bonds so much, or love the sales tax so much. I wish I could figure it out. In fact, anyone who "figures out" anything, using math rather than "feelings," soon discovers that the least painful way of financing capital projects like a courthouse or jail is currently through bonds.

We don't really have a choice on building a courthouse and jail. But we do have a choice on how to finance them. Between bonds and a sales tax, bonds is the better choice, and the sales tax is a very bad choice.

Ask any local politician you know whether he has read this letter. If he hasn't, make him a copy. The Tooth Fairy won't be paying for our courthouse and jail, I guarantee you.

Claude Y. Paquin
Fayette


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