CIB To FMB

About the only thing I liked about Gov. Mitch Daniels' announcement yesterday on his plan to dump the CIB and replace it with a new locally-controlled Facilities Management Board (FMB) was his concession that the CIB has been over-spending. "Embarrassing" is the word he used to describe it. The data his administration gathered from the cost of running convention centers and stadiums in other cities confirmed the CIB's outlandish expenses:

Stadium
Lucas Oil Stadium
» Comparable revenue: $9.5 million.
» Comparable expenses: $29.6 million.
» Expense per dollar of revenue: $3.09.

Reliant Stadium, Houston
(similar size; also has retractable roof)
» Comparable revenue: $12.2 million.
» Comparable expenses: $19.3 million.
» Expense per dollar of revenue: $1.59.

Convention Center
Indianapolis
» Revenue: $5.8 million.
» Expenses: $19.7 million.
» Expense per dollar of revenue: $3.42.

Denver
» Revenue: $10.8 million.
» Expenses: $14.3 million.
» Expense per dollar of revenue: $1.32.

Pittsburgh
» Revenue: $6.7 million.
» Expenses: $9.8 million.
» Expense per dollar of revenue: $1.46.

Atlantic City, N.J.
» Revenue: $6.5 million.
» Expenses: $9.9 million.
» Expense per dollar of revenue: $1.52.

Columbus, Ohio
» Revenue: $8.9 million.
» Expenses: $9.9 million.
» Expense per dollar of revenue: $1.12.

When the Star attempted to contact CIB Vice President Pat Early, a CPA who has been on the board for 17 years, he responded that he was in Florida and had not been briefed on the new proposal. At least Gov. Daniels' administration did something Early and the CIB hadn't bothered to do in its decades of existence and analyze its costs to figure out if the facilities could be managed more efficiently. Because of the late date of this announcement, Councilor Joanne Sanders notes the council will only have about 10 days to consider the plan before having to act on it. Ballard seems to think he'll have support to raise $12 million in new taxes: hotels, car rentals and admissions. CCC President says his members aren't committed to the plan yet.

A Star editorial weighs in on the plan and urges the General Assembly to embrace it. It's a little short on detail on explaining why it's such a good plan. It relies less on higher taxes and revenue diversions and more on cuts is about all the editors can muster to make the argument. Transparency in the operation of the new board is an open question. I really think we've been taken for a ride all along. First, I believe the CIB exaggerated the true extent of the Lucas Oil Stadium expenses. Irsay's letter to Colts fans said as much earlier this year, but the media ignored it. Of the $47 million deficit the CIB claimed, $20 million was attributed to LOS, while another $15 million was self-inflicted in order to give $15 million a year more to the Pacers. I'm not buying the fact that this plan saves money when it hasn't even been proven that the deficit as projected by the CIB's leadership is based on hard numbers.

Like I said yesterday, it's all smoke and mirrors. I expected better of Gov. Daniels. This plan reflects his desire to help out his old buddy Jim Morris earn a big fat bonus from the Simon family for suckering the government into giving the greedy billionaires $15 million more of our hard-earned taxpayer dollars. Jim Morris got a big laugh and a big pay check on the Indianapolis Water Company deal that's left the City saddled with nearly a billion in debt. He'll have another laugh on us while playing cards with his elitist buddies at the country club. Gov. Daniels ought to be ashamed of offering a deal that gives $15 million of our taxpayers dollars away to the State's wealthiest family at a time others are suffering and sacrificing so much.