Monday, April 14, 2008

For Your Consideration: Economic Impact and PILOT Resurgance

Allison Alden, Asst. Professor, Department of Public Administration, College of Community and Public Affairs, Binghamton University, recently sent the following suggestion and information to the Group for consideration.
I just wanted to toss in another idea. It the group is going to conduct
another survey on economic impact, I suggest that they also include something
that asks about the value of services that are provided to the community NOT on
the local govt. dime. The reason I suggest this is that there has been a recent
resurgence of the view that there should be a push to force nonprofits to
pay for public services provided. Normally the costs of these are covered
through property taxes, but since they are exempt there is talk about the need
to have them pay a service fee. (below is a link to a letter to the editor
printed this morning from a former mayoral candidate). This does not take into
account the value of the services that nonprofit organizations provide to
the community (at no local cost). For example, the fact that the city does not
pay to take inebriated citizens who are causing trouble to the crisis
center alleviates them from having the expense and responsibility of providing
such a service. I think the organizations should be prepared to counter such a
movement if it gains steam.

Best wishes for continued success.
Regards,
Allison

http://www.pressconnects.com/apps/pbcs.dll/article?AID=2008804100334

1 comment:

Andrew Marietta said...

Posted on behalf of Bob Hanye:

Allison's point is well taken, although it might be very difficult to come up with a valid amount in many cases. I suggest we use the business model (good and services purchased locally, payroll etc x a
multiplier) of economic impact as part 1 and then quantify as best we can the social value in economic terms per Allison as part 2 and then add them up. Detailed cost/benefit studies can be very cumbersome and expensive-like estimating the amount saved Medicare by a particular service.