The Idaho Department of Lands sent us a well presented defense of their financials regarding the purchase of Affordable Self Storage in Boise–a state owned retail business.
What it means is that Boise-Ada taxpayers get screwed out of tax revenues, but the schools get a boost. The IDL sent the details–and we agree with the numbers–after Boise School Board member Rory Jones complained about the loss of revenues. Jones was correct with regard to loss of tax base, but the deal does benefit Boise Schools in the long run.
Meanwhile the giant cartel of big business and government remain silent. Based on the figures below, Boise City loses $12,565, Ada County $5,509 and ACHD $2,139. We talked to the Chamber of Commerce where a spokesman noted the philosophy of the business group was “minimal competition from government.”
The GUARDIAN was struck by the lack of concern about State-owned business competing with the private sector and the loss of tax revenue. No one from either Boise or Ada County has voiced concerns over lost tax revenues and the Idaho Association of Commerce and Industry defended the purchase in a brief conversation with us.
Turns out the State owns millions of dollars worth of Boise real estate that is off the tax rolls according to the IDAHO REPORTER blog.
Here is the IDL statement and spread sheet:
In 2009 the investment under private ownership contributed $10,040 to the Boise School district through the tax roll process. We cited in the land board memo that Affordable should generate in year 1 approximately $228,000 in net revenue for the Public School endowment.
Based on the FY2011 estimated public school distribution, Boise School District receives 8.81% of the total statewide distribution (see complete list attached). Therefore, the Affordable Storage investment should contribute about $20,087 to the Boise School District, or double the current tax roll. The balance in annual earnings, approximately $208,000, will be shared across the state based on the distribution formula.
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