The Mesabi Daily News, and sister publication Hibbing Daily Tribune, ran a story about KSTP’s Ironworld hit piece from last week. Across the Range, readers collectively ask: “What is KSTP?”
Bill Hanna talked to the #2 in the KSTP newsroom, Iron Range Resources Commissioner Sandy Layman and others. Layman took former State Rep. and Taxpayer’s League president Phil Krinkie to task for his comments in the original story because he was aware that major reorganization had already just been made to Ironworld when he made his comments.
Stunningly, KSTP is sticking to its false claims about the “waste” of taxpayer’s general fund money. Ironworld draws its public subsidy from mining tax revenue paid by mines in lieu of local property taxes.
In a telephone interview Friday, KSTP Assistant News Director Sam Zeff, was asked if the story would have been more fair if it had explained Ironworld funding was from taconite production taxes paid by mining companies that do not pay property taxes.
“No. It was fair. It’s all tax money. The money isn’t just donated by the mining companies. If the IRRB didn’t exist the tax money would go into the state general fund,” he said.
Zeff said he is “completely comfortable with the piece” and thought it was a “fair and balanced and important story to tell during tough economic times.”
This is classic TV agenda-setting for you. For instance, I could say that if KSTP “didn’t exist,” people within 100 miles of the Twin Cities would be smarter. I can’t prove it, but it sure feels right.
Especially during tough economic times.
“If the IRRB didn’t exist the tax money would go into the state general fund”
Is that true?
According to the Legislative Auditor:
“Iron Range Resources receives no funding from the State of Minnesota’s General Fund. Instead, the agency gets most of its funding from taconite production taxes paid by mining companies.”
And it appears that if the money didn’t go to the IRRB, it would go to one of three other funds, not the general fund. But hey, what do you expect of commercial media?
No, it isn’t. Not even close, really.
Iron Range Resources exists, by statute, as the agency that allocates the revenue from taconite production taxes. These taxes are paid by mining companies in lieu of local property taxes. Mines don’t pay ANY local taxes on their massive tracts of valuable land. Instead, they pay taxes on each ton of ore they remove from the ground. This is done so that the mines can stay open even when ore prices are down, making their land holdings cost prohibitive.
I have been very vocal in saying that the agency hasn’t always been perfect in how it allocates the money. But that’s a matter for local residents, who I believe are the rightful “owners” of this money, to determine through the election of our state legislators and governor. Remember, this is money that would (and largely still does) go to the counties, cities and schools in the Taconite Tax Relief Area (the Range). But KSTP’s traditional audience doesn’t have any more right to complain than we Rangers have to complain about how Edina spends its local property tax revenue.
But know this. If there was no Iron Range Resources this whole place would have shut down decades ago and would exist only as a tourism destination for wealthy suburbanites, which is exactly the world view subtly espoused by KSTP’s story. That’s why I’m so hopped up about this.
Whether it’s contrived controversy at a Muslim school, the search for a specious smiley-face killer, or an inaccurate Ironworld investigation you can count on KSTP’s assistant news director Sam Zeff to be at the center of the confusion. It is truly shocking how much damage one psychotic person can do. Fired from his last job for abusive, sexist, and racist behavior, Zeff is a one man wrecking crew. His impact will be felt in the KSTP newsroom long after his departure. How long will it take KSTP management to cut out the cancer?