Don’t Want Your Taxes Funding the Streetcar? Too Late

Economy |
By Patrick Tuohey | Read Time 2 minutes

Kansas City collects a 1-cent sales tax to fund the Public Improvements Advisory Committee (PIAC). According to the city’s website:

If a business, organization or neighborhood has a need for capital improvements (sidewalks, water and sewers, road improvements, storm water runoff, etc.), they are encouraged to submit a project request form.

An article in the Kansas City Business Journal stated:

According to documents from Kansas City’s Public Works Department, the city’s 3rd and 4th districts have committed a combined $1.89 million of their capital improvement sales tax revenue for fiscal 2014 to fiscal 2016 to conduct the corridor planning study for the second phase of the streetcar.

The documents, signed by Kansas City Council members Jermaine Reed and Melba Curls of the 3rd District and Jan Marcuson and Jim Glover of the 4th District, commit $270,000 from the 3rd and $360,000 from the 4th each year for the next three fiscal years.

That is $270,000 for the streetcar from the 3rd District for a project that barely run in the district (approximately 30 blocks exclusively in the 3rd). And $1.2 million that won’t be spent on 4th District “sidewalks, water and sewers, road improvements, storm water runoff, etc.” Some argue that a problem with the streetcar funding scheme is that it taxes some people in order to build something for everyone. That same criticism could be leveled against PIAC, which divides funds up by council district rather than taking a holistic look at city needs. Councilmembers may be tempted to think of their PIAC allotment as a type of political slush fund.

Aside from how the money is divided up, it is wrong that money earmarked for important and necessary capital improvements is being diverted to support a planning study for the streetcar.

The city is already planning to raise sales taxes by 1 percent in most of the 3rd and 5th Districts to pay for the construction and operation of the streetcar extension that likely won’t serve any of those taxpayers’ needs. And it is doing so with money taken from things that will serve their needs. If voters think opposing the streetcar tax will save tax dollars for projects that are important to them, they’re too late.

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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