Pay Attention, please, candidates for Mayor of Norfolk
There's
a message buried in the report done by economists James Koch and
Vinod Agarwal published in September.
But
the message isn't the one reported or massaged by the Hampton Roads
Economic Development Alliance, which commissioned – a fancy word of
saying 'we paid two very well-known and highly respected economists
to affirm our existence' – the report.
On
the surface, the report says every city in the region benefits from
the economic "spillover" of its neighbor.
The
two economists looked a the mobility of labor and deduced from
government statistics, sprinkled with some dismal science fairy dust,
that every city in the region benefits from the economic impact of
its neighbors.
What
this means, the economists say, is that Norfolk reaps an economic impact, or "spillover,"
from the 27 percent of workers who work in Norfolk but reside in Va.
Beach.
What
this really means is that we, the economists, “estimated” that
Norfolk receives “spillover” from its neighbors, particularly
Virginia Beach.
The
report says 27.16 percent of those employed in Norfolk are residents
of Virginia Beach and this exceeds the 26.46 percent of workers in
Norfolk who actually live in that city.
But
Va Beach residents who work in Norfolk don't spend their money in
Norfolk.
Nor
do they pay real estate taxes or personal property taxes or their
sales taxes in Norfolk. They don't buy homes and live in homes in
Norfolk.
They
don't buy groceries in Norfolk. They don't buy their clothes or the
childrens' clothes and toys in Norfolk. I doubt they even buy their
cars and trucks in Norfolk.
The
Va Beach residents labor in Norfolk. But they consume in Va. Beach.
The
report validates the existence of the Alliance – and justification
for cities to funnel tax dollars into their coffers.
But
the report masks a hard reality.
That
cities in this region, as elsewhere, depend upon real estate taxes to
pay for city services, including education.
Look
at any city budget. Those are hard core numbers portraying revenue
and expenses, not an exercise in arithmetic.
The
majority of city revenue is generated by real estate taxes. Va. Beach,
simply due to its geographic location, gets a financial boost from
tourists.
What
Norfolk and its elected officials should do is woe more people to
live and work and spend in Norfolk, not flee after five.
Ah,
but that's the rub, isn't it?
Why
should I live and own a home in Norfolk and pay $1.15 per $100 of the
assessed value of a home when I can live in Va. Beach and pay 99
cents per $100 of the assessed value of a home?
Why
should I have my children attend Norfolk's schools, often a
repository for recidivism, when they can attend Va. Beach Schools,
the best known, best endowed and least rife with daily classroom
conflict and cross-cultural controversy?
Why
should I live in Norfolk where homicides were nearly twice those of
Va. Beach and robberies and aggravated assaults were double those
reported in Norfolk, even though Va. Beach has almost double the
population of Norfolk? (See Editor's Note about the statistics on
rape.)
Norfolk has what Va. Beach doesn't want. Lousy schools and a higher crime rate. Or Va.
Beach has what Norfolk doesn't. Better
schools and a lower crime rate.
Why
else would 55 percent of Virginia Beach residents work in their home
city? That's the highest percentage in the region, the report said.
Because, also, Va. Beach must have not only the most jobs but also the highest
paying jobs, since wages and income are the highest in the region.
Over the past four years, Norfolk (and Portsmouth) had the lowest number of company openings and expansions and amount of investment compared to the other cities in the region. See Economic Scorecard by City.
Over the past four years, Norfolk (and Portsmouth) had the lowest number of company openings and expansions and amount of investment compared to the other cities in the region. See Economic Scorecard by City.
So,
Mr McCabe and Mr Protogyrou, tackle the real issues. One of you could
begin by saying that as mayor I will attract 1,000 new families to
Norfolk every year.
Editor's
Note: The crime data are based on 2013 data supplied by the
Virginia Beach and Norfolk Police Departments. In
2013, the reported number of rapes in Virginia Beach totaled 149. In
Norfolk, for the same period, the number was 102.