The Penny

In the discussion of government problems in Western New York, much attention has been given to “the Penny”, or the 1% sales tax historically collected by the county. In the recent Erie County budget debate, much of the gridlock surrounding the proposed sales tax increase focused on the county sharing the new tax revenue with the 44 other governments within its borders. To focus on the problem of sharing "the Penny" is to perfectly misunderstand the core problem facing the people of WNY. The argument between the governments is itself the problem. Every household in WNY has at least two, and sometimes three, governments vying for authority over that household. These governments perpetually argue about 1) how much each government should be able to tax the household, and 2) which government should provide services (snowplowing, garbage collection, park maintenance, etc.) Many people in the historical city limits think that the two local governments that simultaneously govern them should share this penny. Government A and Government B are arguing about how much revenue each of them should get out of the pocket of an individual citizen.

Don't Share the Penny... Share the Government

Every minute that a local government official spends arguing with another local government official is a minute not spent recruiting a new company to the Buffalo region. Any time that a local politician within Erie County argues with another local politician is a moment of waste. That moment could be better spent recruiting outside resources (federal funds, state funds, and outside jobs) into WNY. With 45 elected governments within Erie County, it only takes a small issue to divert valuable political resources into endless internal arguments.

Arnold's Trip to Japan

What was California’s Arnold Schwarzenegger doing during the recent Erie County budget crisis? While Joel Giambra was arguing with 44 other local governments within Erie County, Arnold was in Japan meeting with the head of Toyota Motor, which is planning on building two new production facilities within the United States. Toyota is also being recruited by Missouri Gov. Bob Holden and Kansas Gov. Kathleen Sebelius, and representatives from Mississippi, Alabama, and Texas. Where are our leaders? They are arguing amongst themselves about which one of them gets to spend The Penny out of our pocket.

Let’s not share the Penny, let’s share the government.