Stop This Train, I Want to Get Off
The National Underground Railroad Freedom Center (NURFC), initially hailed as an important addition to Cincinnati’s riverfront and economy, has become another government-subsidized boondoggle. The facts:
Construction costs:
1996 estimate: $70 million
Actual cost: $110 million (on taxpayer-donated prime riverfront real estate)
Endowment:
1996 estimate: $10 million (to be raised from private sources)
1998 estimate: $20 million
2007 actual: $1 million
Annual Operating Budget:
1996 estimate: $3 - $4 million.
1997: $12 million
2007: $9 million
Visitors per year:
1996 estimate: 1 million
2000 revision: 450,000 the first year and 250,000 per year thereafter.
Reality: 125,000 visitors per year, many of them students on field trips, thus adding nothing to our downtown economy
Construction Costs:
1997 estimate: 75% from private sources
Reality: 51% from taxpayers and 49% from private sources.
Economic impact per year:
1997 estimate: $17 million.
Reality: $1 million on a $9 million annual operating budget
Salaries:
Spencer Crew, President: $320,000
Donald Murphy, CEO $270,000
Love Collins, Vice President of Advancement: $210,000
Most importantly, voters and taxpayers were promised that once the facility was built, it would stop seeking tax subsidies and become self-sustaining. On December 12, 2006, the Center broke that promise by announcing that it will need a $3 million per year perpetual taxpayer subsidy.
On that same day, the Ohio House of Representatives voted to give the National Underground Railroad Freedom Center an additional $2 million in taxpayer money.
Governor Ted Strickland, in his current budget bill, has included a line item for $250,000 in annual operating support for the NURFC.
On April 11th, Cincinnati City Council member Chris Bortz introduced (and then withdrew, on a procedural issue) a motion to give $1,000,000 to each of four Cincinnati organizations, including the NURFC.
All this money is being thrown at what is, at best, a broken institution, and, at worst, a failed one, despite the fact that a May 2006 survey of Cincinnati-area voters by Public Opinion Strategies showed that 55% of Cincinnati voters and 76% of Hamilton County voters were opposed to providing additional money.
The main cheerleader for more taxpayer subsidies for the Center is John Pepper, retired Procter & Gamble Company Chairman and Chief Executive Officer, current Chairman of the Board of The Walt Disney Corporation, and current CEO of the Center.
I have a suggestion for Mr. Pepper. If he so strongly supports the Center, why doesn’t he organize a fundraiser, invite 300 of his well-heeled friends, and raise the needed funds for the Center? If each of his friends gave $10,000, the Center would have its funding - for a year, at least.
Of course, that’s not going to happen. Mr. Pepper and Mr. Bortz, both millionaires, clearly don’t understand what it’s like to have to work hard to make ends meet. Libertarians do. Please join us in opposing any and all taxpayer subsidies for the National Underground Railroad Freedom Center.
Construction costs:
1996 estimate: $70 million
Actual cost: $110 million (on taxpayer-donated prime riverfront real estate)
Endowment:
1996 estimate: $10 million (to be raised from private sources)
1998 estimate: $20 million
2007 actual: $1 million
Annual Operating Budget:
1996 estimate: $3 - $4 million.
1997: $12 million
2007: $9 million
Visitors per year:
1996 estimate: 1 million
2000 revision: 450,000 the first year and 250,000 per year thereafter.
Reality: 125,000 visitors per year, many of them students on field trips, thus adding nothing to our downtown economy
Construction Costs:
1997 estimate: 75% from private sources
Reality: 51% from taxpayers and 49% from private sources.
Economic impact per year:
1997 estimate: $17 million.
Reality: $1 million on a $9 million annual operating budget
Salaries:
Spencer Crew, President: $320,000
Donald Murphy, CEO $270,000
Love Collins, Vice President of Advancement: $210,000
Most importantly, voters and taxpayers were promised that once the facility was built, it would stop seeking tax subsidies and become self-sustaining. On December 12, 2006, the Center broke that promise by announcing that it will need a $3 million per year perpetual taxpayer subsidy.
On that same day, the Ohio House of Representatives voted to give the National Underground Railroad Freedom Center an additional $2 million in taxpayer money.
Governor Ted Strickland, in his current budget bill, has included a line item for $250,000 in annual operating support for the NURFC.
On April 11th, Cincinnati City Council member Chris Bortz introduced (and then withdrew, on a procedural issue) a motion to give $1,000,000 to each of four Cincinnati organizations, including the NURFC.
All this money is being thrown at what is, at best, a broken institution, and, at worst, a failed one, despite the fact that a May 2006 survey of Cincinnati-area voters by Public Opinion Strategies showed that 55% of Cincinnati voters and 76% of Hamilton County voters were opposed to providing additional money.
The main cheerleader for more taxpayer subsidies for the Center is John Pepper, retired Procter & Gamble Company Chairman and Chief Executive Officer, current Chairman of the Board of The Walt Disney Corporation, and current CEO of the Center.
I have a suggestion for Mr. Pepper. If he so strongly supports the Center, why doesn’t he organize a fundraiser, invite 300 of his well-heeled friends, and raise the needed funds for the Center? If each of his friends gave $10,000, the Center would have its funding - for a year, at least.
Of course, that’s not going to happen. Mr. Pepper and Mr. Bortz, both millionaires, clearly don’t understand what it’s like to have to work hard to make ends meet. Libertarians do. Please join us in opposing any and all taxpayer subsidies for the National Underground Railroad Freedom Center.
posted by Anonymous at 10:35 AM
9 Comments:
Wow. An argument based on hard facts, and not promises and guilt. I like it.
I can't believe what the head honchos at that place earn - well, make. One would think they would take pay cuts if they really wanted to keep the place open.
The salaries quoted must be very recent because they used to be worse. When the "financial" troubles at the Center were publicized last year, they announced they were "laying off" 110 employees, saving about
$ 2.1 million per year.
ARE YOU KIDDING ME?
What were 110 other employees doing at an empty museum, and that is an average of $ 200,000+ per person?
It would be interesting to see a breakdown of names, job titles, descriptions and salaries for those people.
And worse, the Freedom Center tied up the large lawn in front for years!!! This plot belongs to the County but PC has prevailed on it's use. This prime venue needs to become a Veterans Memorial P{ark, as proposed to the City, County, and the Banks Working Group. The park, at this location would appropriately represent the service and sacrifice of 800,000 plus area Veterans. The funding is a no-brainer and the Park could be completed before any thing else on the Banks; giving many a reason to venture their. This is simply the right to do----now!!!
PEPPER HAS GIVEN OVER $10M
TOWARD THE CENTER. MUCH OF YOUR CRITICISM IS VALID; BUT JOHN'S SACRIFICE ON BEHALF OF
THIS PROJECT (MOSTLY MADE WHILE HE WAS BATTLING CANCER) HAS BEEN EXTRAORDINARY.
SOUNDS LIKE THE VERY DEFINITION OF THROWING GOOD MONEY AFTER BAD
The reason this overblown and overhyped museum exists is because Pepper and his ilk believed they had to make amends for the construction of the stadia. Government involvement in those monstrosities led the "powers that be" to back this one as well....And since one of his subordinates at P&G took the point on this museum, it hasn't resonated with any part of the Cincinnati community except the black upper-middle class and white liberals...what puzzles me is how no one has noticed the architectural irony....the path to freedom lies between two sports arenas...
I realize that I am a year late here, but, couldn't let this demagouery go unanswered. Philosphically, I would prefer that all private institutions would not take tax dollars. But, we've already crossed that line. I note that you've not mentioned the other 3 institutions for which Mr. Bortz proposed funding. Nor do you mention that the Cincinncati Museum and the Zoo rely on actual tax levies. In the case of the Cincinnati Museum, only about 30% of their income is generated from admissions. And, yet, you expect the NURFC to be "self supporting". Expect that of the other better liked institutions around Cincinnati and your arguments will have more merit. In addition, if the City/County had done their part, we would have a Banks which, regardless of your naysaying would have a positive impact on the financical status of the NURFC. Regardless of what anyone says, when push comes to shove, the resentment is because of racism. I say that as a conservative, Evangelical Christian, Republican, suburban, middle class white woman. All the "groups" which one would not expect to be making that charge. I'm demographically part of that racist group so don't try to convince me otherwise. I've heard it all.
It not at all about racism. The Cincinnati Zoo (one group you mentioned) may only get 30% of their revenue from admissions, but they do have over 42,000 donors a year. This is on top of an endowment fund that the Zoo has set up. Very few attractions rely entirely on admissions. Non-profit groups like the Zoo, Museum Center, Art Museum, and the NURFC rely on donors who support their cause.
The Zoo currently receives about $6,000,000 a year. They have over1,000,000 visitors a year. That breaks down to about $6 tax subsidy per visitor. The Freesom Center is receiving about a $40 per visitor subsidy. This is after promised to not receive tax money. John Pepper (former P&G CEO and Board of Director member for the Disney Corporation) has many connections with rich individuals. If was serious about making the Freedom Center self-sustaining, he could simply ask his millionare and billionare business associates for donations. Instead he seems to think it best that the taxpayers support the center.
As far as the reason for their strugles being the undeveloped Banks, look no further than the Zoo and the Cincinnati Gardens. Both facilities inconvientely located to most people and are in poor neighborhoods. But people still travel to both locations. Why would the NURFC be any diferent?
By the way, most of the people who are upset by Freedom Center subsidies are also upset that the Zoo, the Reds, the Bengals, and Museum Center are getting subsidies as well. Don't try to cry racism here.
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