The declining outlook for the creditworthiness of the Harris County-Houston Sports Authority has been taken by Houston Clear Thinkers writer Tom Kirkendall as one more reason not to use public money for a large-scale renovation of the Astrodome.
It's also sparked debate over the authority itself. One commenter on the Houston Chronicle message board suggests a truth-in-advertising approach to the taxes that build sports facilities. Let's call them "professional sports salary" taxes, the commenter suggests. It's doubtful the lawyers would let that one slip through.
There's more background on the issue in this Texas Watchdog post from October, when Bloomberg reported on the possibility that the almost $1 billion in debt would need to be refinanced after projections of tax revenue fell short (by double-digit percentage differences). The sports authority's financing relies on hotel/motel and car rental taxes. Maybe every Houstonian who is able should bring an out-of-town friend in for a visit and book them a stay at a swanky hotel?
In reporting on Moody's Investors Service's latest downgrading of the bonds, the Houston Business Journal captured the severity of the situation:
“Moody’s believes the liquidity reserves are sufficient to cover the November 2010 payment, but their depletion may result in a payment default from pledged revenues as early as March of 2011,” the report said.
BlogHouston casts what seems to be a rueful glance at the sports authority chairman's stubborn optimism even in the face of such news.
Contact Lee Ann O'Neal at leeann@texaswatchdog.org or 713-980-9777.
Cartoon illustration of an IOU bag by flickr user zolierdos, used via a Creative Commons license.
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