Herb Simon explained to a reporter in 1997 why he was reluctant to ask other businesses to help fund his new Pacer's Fieldhouse. "I don't think it's right for an entrepreneur to ask another entrepreneur for a gift," he intoned. With a combined net worth of more than a billion dollars, it's unclear why he and his brother need a "gift" from anyone.

Nevertheless, confident that servile public officials will fling open the treasury doors, Simon has never been shy about demanding taxpayers help fund his various business ventures. The recent announcement by Indianapolis Mayor Bart Peterson that the City is handing the Simons a $23 million gift of free land and other incentives for a new office building surprised no one. Sadly, it's becoming something of a local tradition.

A few years ago taxpayers spent $230 million to build Circle Centre Mall which the millionaire Simons are allowed to run like a private business. In 1999 the $180 million Conseco Fieldhouse was built for the Simons, once again, with taxpayer money. The Simons, who own the Pacers, invested virtually nothing but get to keep all the Fieldhouse revenue. They pay an affordable $1.00 a year in rent and unless the Pacers turn a whopping 18 percent profit, the City even kicks in $3.45 million to help with maintenance, utilities and incidentals.

Is this corporate welfare a good use of scarce public funds? Does it create the jobs they claim and at what cost? Is it fair to take public money that's meant to serve everyone to provide jobs and subsidies for a few? As Professor of Economics at Washington College, Robert Lynch writes, "For every dollar in tax cuts, state and local governments will reduce their spending by one dollar."

It's worthwhile to ask Mayor Peterson, "Which public services will be cut to pay for this latest round of tax abatements and subsidies to business?" We know that last year alone he cut $9 million from the budget earmarked for city vehicles and new parkland. Also, studies show that public incentives to business do not result in the creation of more jobs. The Journal of Regional Science reports that the biggest reasons for incentives are to "give politicians 'talking points' or 'bragging rights' regarding their role in expansion."

Those studies show that incentives are unnecessarily provided to firms that were already planning to invest before incentives were even offered. Public services have been shown to have positive effects on economic development. As Professor Lynch points out, those public funds "could have been better used to enhance the attractiveness of jurisdictions through investment in public services improvements."

The real clincher is the evidence that shows that reductions in public services from loss of tax revenue actually cause job loss and economic slowdown. Bragging rights for Mayor Peterson and other weak, unimaginative politicians are insufficient reason to keep lavishing millions in public funds on the richest people in Indiana. In his first three years as mayor Peterson was able to brag that he had doled out 76 tax abatements worth $92 million.

A recent university study shows that since 1991 Indianapolis has invested less public money in roads, schools and other infrastructure than the rest of the nation. That lack of public investment has had serious consequences. Among other problems, Indianapolis has some of the dirtiest air in America with air quality the worst since 1988. Over four billion gallons of sewage is dumped annually into area waterways with e coli counts commonly 70 times EPA limits. Indianapolis has rampant sprawl with ineffective urban planning and no rapid transit system. Over 30,000 houses are still on antiquated septic systems—the second worst of any large American city.

Mayor Peterson has written of his concern that Indianapolis doesn't have a "positive national image." He wonders why "surprisingly few people outside Indianapolis know much about us." In all likelihood they know more than the mayor would like them to know. It might come as a surprise to Mayor Peterson, but people who have a choice don't tend to locate in cities with filthy air; open sewers called rivers; inadequate park and recreational space; substandard schools, roads and infrastructure.

Another insight that's lost on the uninspired Peterson comes from former Alcoa CEO Paul O'Neill. O'Neill told a Senate hearing, "As a businessman, I never made an investment decision based on the Tax Code...[I]f you are giving money away, I will take it. If you want to give me inducements for something I am going to do anyway, I will take it. But, good business people do not do things because of inducements..."

Mayor Bart Peterson needs to begin putting public welfare above corporate welfare. Indianapolis doesn't need a "positive image"...it needs a positive reality. When public money is spent on true quality of life issues and not squandered on enriching millionaires, who coincidentally fund the mayor's campaign coffers, Indianapolis will, in reality, become a place of which we can all be proud.

Jack Miller is a freelance writer and activist based in Indianapolis.