By Tom Fuller Santa Monica
A while ago, I heard a line about George W. Bush that I loved. It went, “George W. Bush was born on third base and he thinks that he hit a triple.”
So true for W. and so true for our City Council (SM gives chamber a heads up on possible tax, SMDP, Dec. 3, 2002). For several years now, our City Council has stood on third base smugly basking in the glory of the City’s financial success. Many of our council members, who exhibit an astounding lack of understanding of basic economics, acted like they were financial geniuses, taking credit for filling the City’s coffers through their expert fiscal management. The simple truth is that the Council unwittingly reaped the benefits of a good economy, and the fact the Santa Monica happens to sit on some of the most desirable real estate in the world.
The tax revenues generated by beach hotels, the Promenade and high property values made it all happen; yet, all along the way the Council systematically attacked the economic engine that fuels the City’s tax revenues. The hotel bed tax accounts for a large portion of the City’s budget, yet the hotels are continually attacked. While the City was collecting huge amounts of sales tax from the Promenade merchants, it turned a deaf ear to the merchant’s complaints about the negative impact that the inundation of homeless people was having on their business.
Certainly, the slowing economy shares some of the blame for the City’s tax shortfall. But bolstered by their conceit and arrogance, the City Council squandered the City’s natural advantages. While standing on the third base, congratulating themselves for hitting a triple, the Council addressed pressing world issues — like ATM fees, world peace and economic injustice — while failing to protect and nurture its tax base; the engine that generates the revenues that pay for all of the goodies that we all want the City to provide.
Originally published in the Santa Monica Daily Press print edition on December 4, 2002. Read the original PDF.