SPET Wish Book: loading the plate again
Special purpose excise tax has become anything but special
JACKSON HOLE, Wyo. — Town and county leaders have decided to let voters sift through the gargantuan grab bag of potential SPET initiatives—a wishlist already so long it would take until nearly 2040 to pay out (assuming the local economy continues to operate at its current breakneck pace). Not only will voters likely be asked to sift through a massive a la carte Sears Wish Book catalogue akin to kids circling Santa their Christmas toy requests, but officials are opening up the community end of the grab bag for ideas until April 18.
SPET: The tax we all pay
Town and county leaders have treated the special purpose excise tax like a Monopoly money free-for-all since pretty much the 1980s. At times coy about where the money comes from (it’s a 6th cent of sales tax and, while sales tax would not increase voting for SPET initiatives, voting them all down would reduce sales tax to 5%) and at other times promoting, advertising, and marketing the passage of what is now over $328,515,175 worth of stuff bought by taxing ourselves.
The tax has built plenty of miles of pathways and less sexy items like sewer and sidewalks. It has also been used to fix a landslide, buy firetrucks, and add to the hospital and library.
Some problems have cropped up when the tax pays for something that needs to be maintained or staffed. As in the case of the library—which added a wing via SPET in 2010 and then almost immediately after christening the addition had to close it because they could not find employees—Teton County’s eyes are often larger than its stomach.
Historically, local government has been reluctant to put more items on any one ballot that could be paid off in, say, four years or so. Also historically, however, this has meant about $60-80 million or so, total, given the penny of sales tax generates about $14-15M a year. That’s chump change these days, though. The tax rang up some $21M this past year. At that rate, town and county electeds are toying with the idea of really loading their plates—up to $90-100 million bucks worth. Why not? commissioner Mark Newcomb wondered at last month’s JIM.
How much this go-round?
During a recent workshop, both entities brought their respective spending sprees to the table. In an ideal world, the town would like to spend $121M, the county $91 ($131M if you include moving the fairgrounds), and outside projects would total over $81M. Obviously, some whittling needs to be done here. A molehill out of a mountain.
Commissioner Mark Barron felt it was irresponsible to assume tax collections are going to keep pace or increase, given many economists are predicting a full-on recession in the face of runaway inflation right now. Other elected officials, like town councilmember Jonathan Schechter, were prepared to ride the green wave.
Town councilman Jim Rooks landed somewhere in between but cautioned against today’s project price tag becoming tomorrow’s shortfall. Case in point: Rec Center expansion. On the SPET ballot for 2019 and approved by voters for $22M, the job still hasn’t been started and is already $9M overbudget.
Maybe 2022’s SPET list should include one giant lump sum for previous SPET project overruns and ongoing costs.
Oh, and one more reason the ’22 SPET is starting off so bloated? The relationship between town and county has become so tenuous, both would rather go it alone than ever believe they can agree on a list together.
Misuse, abuse—the houseguest that never leaves
SPET has backfired more than a few times. In 2001, $9.3M was approved by voters to go toward housing. The Housing Department used $1.2M of that, plus another $750,000 from another housing SPET initiative in 2006 to purchase the Rains property on the West Bank for $2.1M. In the ensuing 12 years, no housing was ever built and the Housing Department eventually sold it at a loss. Perhaps the only case ever of losing money in the Jackson Hole real estate land banking game.
In addition, local lawyer Peter Moyer sued to stop any build-up of density there on Cheney Lane and eventually won—a state supreme court decision agreeing unspecific land banking was probably not a proper use of taxpayer money via SPET.
SPET, by design, is intended for large, one-time capital expenses with specificity spelled out in the ballot proposition. It is questionable whether a ballot initiative for SPET can be as vague as “Community Housing Opportunities” for a cool $5.5M as it appeared on the approved 2019 SPET ticket. “Opportunities” can sometimes be defined as taking a bath, if you’re Teton County (see above).
SPET built a middle school and a nursing home in 1989. Admirable projects that could not have been realized otherwise. But where’s the “special” in special purpose excise tax for sidewalks and sewer? These are core services often neglected by a town and county government throwing dollars at other pipe dreams.
SPET in tony Teton has been called upon not when the community needs something big accomplished by a heavy lift. It has been a constant, a given, since 2001 to fund the regular course of government, and fuel the urbanization of Jackson Hole. The added penny perpetually rolls over and has never gone away in over two decades. And now electeds are talking about making it another extra penny of sales tax (to 7%) to further feed the beast.
Next step
Town and county are taking applications to be added to the SPET ballot through Monday, April 18.
After that, committees, JIMs, workshops, and other public meetings will determine what is put in front of voters on November 8.
