Soccer Franchise Socks It to Bridge Users
The stadium in which the Chester team will play is being financed in part with contributions from the Delaware River Port Authority. The DRPA collects tolls from motorists who use the bridges spanning the Delaware River between Philadelphia or its suburbs and southern New Jersey. The DRPA claims that its $10 million contribution is for development of the area surrounding the stadium and not for the stadium. As if that matters. Why are bridge tolls being used for development of the neighborhood in which the stadium will be located? Why are they being used for construction of the stadium? Either way, the tolls should be used for repair of the bridges. Here is where the issue gets more interesting.
In December, the DRPA announced that the current $3 toll would need to be increased, perhaps to $5, to pay for repairs to the bridges it operates. According to this story, one of the DRPA commissioners alleged, "We have to maintain and secure the bridges." According to this commentary, the vice chair of the DRPA explained, "The deck of the Walt Whitman [Bridge] had a 50-year life span. We're at 50 years, two months."
Yet another member of the DRPA, according to the same report, justifies the spending of money by claiming that "Federal tax laws say you have to spend the money. You can't just leave it in the bank." Fine. Spend it on bridge repairs, bridge maintenance, and improving security for the bridges. There's simply no acceptable justification for plowing user fees into a private soccer enterprise, however masked, while also planning to increase bridge tolls.
The question of how user fees should be spent previously received some attention in When User Fees Exceed Costs: What to Do? and in User Fees and Costs. So it should not be a surprise that I find it indefensible that motorists paying to cross a bridge are charged more than it costs to operate the bridge because some of the toll that they pay is being funneled into a major league soccer franchise.
Perhaps, though, I would change my mind if the DRPA send several million dollars my way to franchise MauledAgain. I'm sure I could figure out some rationale for soaking bridge users for the money. Not.
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Other Posts by James Maule
Tax Myths, Tax Lies, and Tax Twisting - January 24, 2012
Can A Zero Congress Persist Forever? - September 27, 2010
If At First It Doesn’t Work, Try, Try, Try Again - September 10, 2010
An Exercise in Futility? - September 1, 2010
The Internet, Virtual Meetings, and Taxation - August 23, 2010
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