Don’t Get Taken By Their Shell Game

“VOTE NO!” NOVEMBER 2, 2010

on the Re-imposition of Aiken County’s Sales Tax
There’s a ‘Shell Game’ going on and if local government officials move their hands fast enough they hope you
won’t keep your eye on the real ‘bean’ - of funding our tax relief by cutting local government. They hope you turn up the
empty shell that says ‘let others help pay’. Under that loser, you’ll find that tax spending in Aiken County, the city of
Aiken and the city of North Augusta is accelerating much faster than our population growth and faster than any income
growth. The result will be a big fat spending and budget crisis they intend to expose in 2011 or 2012. At that time, we will
get every type of new tax and fees they can muster, across the board and very few ‘others’ will be helping us pay for it.

Or else they want you to look at the other empty shell that says on it, “It’s only One Cent.” No, it’s not one
cent. That losing shell really provides them 14.5 billion cents or $145,000,000 in tax relief denied to us. These “cents”
add up on your utility bills, the bill at your favorite grocer (i.e. Kroger’s), …they keep gnawing away at your limited income.

Why do they want to play this shell game now when the current sales tax expires in nearly two
years? We think County Councilman Scott Singer told the truth recently, to a group of 30 people. Singer admitted a
major factor behind the County Council’s decision to move up this vote to 2010 was the Council believes the future
(economic/political) climate would worsen in 2011 and 2012. While expecting tougher times ahead, some politicians are
moving quickly to secure “their” revenue stream and dismiss your plight. Income is dwindling, unemployment
skyrocketing, Gov. Sanford warns us to “hold on to our hats” with the coming state budget storm and local government
spending is wildly uncontrolled. They don’t want you spotting the two loser shells until after you give up your tax relief by
renewing this sales tax. This is cruel when they know financial suffering is coming for many of us.

Why do they have to play this shell game at all? We gave them this sales tax money starting in 2000 and
instead of keeping their spending in check, shifting a moderate amount of these capital projects over to the sales tax and
then reduce our property taxes…instead of operating in such a sound fiscal manner, they just exploded growth in local
government spending everywhere they could! In fact, we asked the County Council early this summer to take the last
allocation of $6,000,000 of sales taxes and use it to abate or reduce your property taxes. They refused and spent it
extravagantly, much of it going to nonprofit corporations! They’ve made hallow promises before. Former Aiken City
Manager Roger LeDuc said in the Aiken Standard (7/19/2000), running up to the November 2000 sales tax vote,
approving the sales tax will result in a “possible two to three-mill reduction” in property taxes. It was reported that LeDuc
said personal property would also be impacted by the reduction, which could mean lower car and boat taxes. Have you
seen any real or personal property tax reductions the last ten years? We haven’t!!

How much has local tax spending exploded? From 2001 to 2010, Aiken County government’s spending
rose 56.3%; its population grew only 10.3%; and inflation grew 23% while “Culture and Recreation” spending jumped
200%. Employee and pension fund spending is eating away our primary tax base. From 2003 to 2009, the City of Aiken’s
spending rose 43%; its population grew just 14%; and inflation grew 17%. Meanwhile, its employees increased 17%;
and, its “economic development” spending skyrocketed 170% - all while unemployment increased by 70%. Finally, North
Augusta’s spending rose 50% in the last 5 years and its employee numbers increased 14%. (Contact us for Fact Sheets.)

Meanwhile, who created this $145 million extravagant list of government capital projects?
Government employees submitted projects - the same ones who can’t rein in their personnel spending. How many
ordinary citizens helped validate, price and prioritize these projects? We’re not aware of any. Are you?

Even if we could afford them, what do voters KNOW about these projects? Voters will know vague
project titles and price tags; but will have no supporting details businesses must provide banks to obtain loans for similar
projects. Perhaps you’ve heard of the $500K project to enhance the $3M Aiken Railroad Depot, well, there’s so much
more. Then, how can voters believe tax dollars will be wisely spent from vague project information such as follows?

Five Notch Rd widening and improvements $ 4.5M

Renovations and development of Public Safety HQs and substations $ 6.0M
Hitchcock Parkway widening $ 4.0M Would you buy a house
Expansion of Aiken Municipal Building $ 3.0M based solely on this ad –
University Parkway widening $ 3.0M
Vehicle/equipment replacement $ 2.5M “House for $1.2M”?
Vehicle replacement for Aiken County Sheriff’s Office $ 3.5M How are these projects
Purchase/renovation or construction of a new health department $ 5.0M any different?
Continued brownfield remediation and restoration $ 2.0M
Construction of a Senior/Youth center at Eustis Park $ 3.5M
SC State Government has been assessing many tax, fee, and license hikes to offset federal “stimulus” money that ends in
2011 and to address a $21 billion shortfall in state employee retirement benefits. In May, Aiken County School Board
tried to add $236 million to taxpayers’ backs. Now, Aiken County governments want $145 million. Trust them? In April,
the City of Aiken approved a water and sewer rate hike of 11.3%; then, at the same meeting, approved $2.25 million for
private special interest groups. Local governments in Aiken County refuse to cut spending!

With “Phase III” projects on the Nov 2nd ballot, has anyone told you about Phases IV, V, etc.?
Government often starts projects without the total funds needed for completion. With “seed” money, government then
asks for more money so the previous funds spent are not “wasted”. The “Whiskey Rd/Powderhouse Rd Connector”
project for $1M in Phase II (2004 ballot) was seed money. Now, Phase III (2010 ballot) has $5.5M for “Powderhouse Rd
Extension/Connector”. “Seed” money in Phase III is the hook for many more dollars in future Phases.

Is Aiken County government expansion prudent at this time? Aiken residents face some hard realities.
South Carolina Policy Council (SCPC) research found Wash DC funds 39% of SC State’s FY2010-2011 budget ($21.151
billion). Of all SC counties, the SCPC also learned Aiken County receives the most federal dollars per person - $16,606.
Wash DC is broke; Columbia is functionally broke and yet depends heavily on Federal funds; and, Aiken County receives
the most Federal dollars per capita in all of SC. Conclusion? Prudence argues Aiken County governments downsize
now, to reduce dependency on an increasingly unsustainable financial house of cards.

How do government projects affect the local economy? Pumping $145 million more into Aiken
government “shovel-ready” projects won’t create lasting jobs, fuel prosperity or lessen tax burdens on residents, as
America just proved on a national scale. After a short term shot for a few, the long term drag then kicks in for all of us.

Any guarantee the listed projects will even be started? No. The proceeds of the re-imposed tax must
FIRST be applied to projects voted on in 2004, including any debt obligations associated with those projects, before any
new projects can receive funding (see paragraph 7 of the new ordinance). Let’s say you like just a few projects on their
list, support it because of those few projects, and the tax passes; your projects may still not receive funding. Do
politicians structure an “all-or-nothing” vote hoping residents will hold their noses on the many unwanted projects and
support it because of a few desirable projects? City of Aiken Council Member Leslie Price proposed just this strategy at
the April 20, 2004, City Council Meeting, according to the Meeting’s minutes.

Our Vision
The Shell Game must stop. Excessive personnel spending in county and city governments must be rolled back. Elected
officials should have revenue for core government functions that protect the God-given rights of citizens. But they’ve
gone way past that. The county and city councils of Aiken and North Augusta need to cut operating expenses by at least
15% and employees by at least 10%. Then reasonable infrastructure costs can be funded with these cost savings.

The role of government is to protect the People’s God-given rights…especially to “Life, Liberty and the pursuit of
Happiness.” People have a right to the fruits of their labor. In executing this role, government SERVES the People. Too
often these days, they serve special interests and the economic benefit of the well connected corporations. If Aiken
County’s government projects were funded entirely by the same small group of “stakeholders” who created these projects,
we’d be silent. But, all Aiken County taxpayers will fund these extravagant projects if approved. Consequently, all
County taxpayers are major stakeholders who deserve a central role in defining, costing and prioritizing any reasonable
infrastructure projects being designed to meet legitimate needs. Instead, various government employees made laundry
lists of generic project titles with cost estimates and without a needs test. Those lists went to government’s small, hand-
picked panel to process. Now, government will give voters an all-or-nothing choice. This ballot initiative occurs without
town-hall meetings giving the broad taxpaying community chances to discuss the original need, potential alternatives and
project details. This is wrong. Often some elected officials want to create legacy monuments (e.g., roads, buildings,
parks) and to engage in private sector functions (e.g., construction and sale of homes, fitness facilities, entertainment
facilities, dining facilities, economic development and special interest group projects). Stated differently, some elected
officials want greater power and control over the People because these officials believe they know what is BEST for our
money. So, they continue to spend on local government payroll and pensions, transfer infrastructure projects to the sales
tax, exclude broader citizen participation, give voters insufficient information and force an arbitrary “all-or-nothing” choice.
We say “Enough Already!” You have an extremely rare opportunity on Nov 2 to send this same message to elected
officials and to vote for a DECREASE in your tax burden. Do that by joining We The People - Aiken and…

Vote “Heck No!”

On The 14.5 Billion ‘Cents’ Capital Projects Sales Tax, Nov. 2
Paid for by We The People - 2010, Deb Nix, Chairwoman, 803-215-3540, Kathy Pate, Treasurer. Email WeThePeopleAiken@gmail.com