News & Views

Broward sales tax hike: Who will profit?

BY DAN CHRISTENSEN Oct. 27, 2006

A political committee that wants Broward voters to increase the county sales tax to pay for mass transit is getting most of its money from firms that could profit if voters approve the tax hike Nov. 7.

The committee that's urging Broward voters to approve a $260 million-a-year sales tax increase is being financed mostly by businesses positioned to do the work the tax would pay for.

Engineering firms, construction companies and real-estate developers are by far the biggest contributors to People for Progress, the business group that's pushing for the money for mass transit.

People for Progress had raised $502,000 through Sept. 29 to support its campaign to pass the proposed penny sales tax hike, records show. But more than 60 percent of that money came from corporate interests that stand to profit from planning, building and acquiring land for those proposed new projects.

Engineering firms led the pack, with 18 companies from South Florida and around the country contributing a total of more than $200,000. The largest donations -- $25,000 -- came from two firms. One is PBS&J, a Florida corporation currently under investigation by a Miami federal grand jury for possible election law violations. The other is DMJM Harris of Los Angeles.

James A. Cummings, chairman of People for Progress, said those companies donated big money because better transportation is vital to Broward's future, not because they expect to snag a contract.

''Nobody is guaranteed any work. That's told to everybody who contributes up front,'' said Cummings. ``But I'm sure people will accuse us of using the engineering firms to finance this, if they get work.''

Cummings, who owns a large construction outfit that bears his name, said he would not benefit if voters approve the sales tax increase.

''I don't do any of this kind of work. Just because you are a construction company doesn't mean you are in the rail business or transit business or transportation business,'' Cummings said.

The penny tax hike is one of two tax measures on the Nov. 7 ballot. The second is a proposed $450 million bond issue to build a new courthouse. Each needs more than 50 percent of the vote to pass.

In August, county commissioners voted 5-4 to let voters decide whether to bump up the sales tax from 6 to 7 cents in Broward to pay for more transit. Last week, they approved a vague plan that envisions adding buses and improving bus lines, but did not mention building the commuter rail system that tax backers favor.

People for Progress, which pitched the one-cent tax hike, is an offshoot of the pro-business Broward Workshop. Cummings also chairs the workshop.

AX THE TAX

Opponents like Winter Park-based ''Ax the Tax'' call the penny tax unnecessary and wasteful. They've argued that adding transit capacity probably won't relieve congestion because it would account for only a fraction of all trips.

''Do you honestly believe that giving the county more money from your wallet will improve traffic?'' asks one Ax the Tax advertisement.

Ax the Tax, which opposes new tax initiatives statewide, has raised about $20,000 for its anti-transit tax fight in Broward, according to spokesman Mark Eckert.

Cummings cites state projections that the number of people and cars in Broward will swell 50 to 60 percent in 20 years.

''Our people won't be able to get to work. Our trucks won't be able to move,'' said Cummings. ``If you are in business and you are looking at what's coming down the road, you know we have to do something now.''

To succeed, People for Progress has sought to assemble what Cummings called a ''grass-roots initiative.'' As part of that strategy, former Miami Dolphins quarterback Dan Marino was recruited to pitch it to voters in television ads.

But if contributions to People for Progress are a measure, the transit issue has failed to catch fire with either individual voters or Broward's broader business community.

Only a handful of other local businesses and interests have made large contributions to the cause. They include AutoNation, City Furniture, the Huizenga Family Foundation, and the city of Hallandale Beach, which made the biggest single contribution: $50,000.

Ax the Tax spokesman Eckert said its largest contribution -- $2,000 -- came from retailer BrandsMart.

CONSULTANTS PAY

So far this year, People for Progress has spent $332,000 to sell the tax to voters. More than half -- $168,750 -- was paid to a consulting firm owned by former county commissioner John Hart, records show.

Hart was hired to manage the pro-tax campaign, and his firm has spent many hours on it, according to Cummings.

''Is he being paid a lot? Yeah. Unfortunately, there aren't many people who are willing to step up on board to take this on,'' Cummings said.

Cummings remains hopeful voters will recognize the need for the proposed new tax.

''It's not just the engineering firms that will benefit. People throughout Broward County stand to benefit,'' he said. ``If this doesn't pass, it's the people of Broward County who will be the losers, not the people like me.''

Miami Herald staff writer Erika Bolstad contributed to this report.


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