Last night, I wore my Town Center Village Board hat at a PATH meeting that provided useful information on Tax Increment Financing. This PDF explains the basics of TIF, so I’ll leave it at – A development increases the property or sales taxes on a piece of land, so they get to keep the increase, or increment. That reimburses them for some of their costs of the project. Howard County, or at least the County Executive’s administration, is thinking about doing this for the Downtown Columbia development. This proposal is also somewhat tied to the affordable housing that Howard Hughes wants to build…on county land. The article says that’s not true, but I don’t see how one can unlink them.
Usually, TIF is used for “blighted” areas – think unoccupied, dilapidated buildings.
During the recent primary campaign for Board of Education, many people were disturbed by one candidate’s use of “inner-city” Columbia.
These two things are not true. Yes, we have extreme poverty in parts of Howard County and yes, there are some homes that need external fixes. But blight? I live pretty much as close to the area being discussed as possible and I do not see blight. Maybe some run-down homes that need investment, but blight? Yes, we have some crime, but let’s get some perspective. We have a wide range of socioeconomic circumstances that we need to deal with.
But is giving away public dollars to a private corporation the solution? Usually, counties/cities needing renewal offer developers incentives to make a not-so-attractive spot more attractive. They forfeit the increase in tax dollars, hoping that other stars will align that make a good investment.
I wonder how much our County has appropriated for TIF for FY 2017. Oh, $70 million & more in 2018? That article, however, is outdated. Last night, County Council member Jen Terrasa said it is now $120 million with another $40 million more in future years.That’s not to say that it would all be for Downtown Columbia, but…probably fair to assume most of it would be.
Juxtapose that number with the “shortfall” between the County Council approved HCPSS budget and their request – $48 million. Granted, many of us do not believe that the increase needed to be that much. A bunch of the increase was in health insurance costs, which has been wrong for the last several years.
But…How much would I love to fund an increase in special education? More reading and math specialists? PARAEDUCATORS in Kindergarten? (Sorry, I’m yelling, that one is really irksome to me. “Other counties don’t use paraeducators as much as we do?” “We’re NOT other counties!”)
Politics and negotiations are about trade-offs. But this TIF proposal, regardless of what the number is, seems rather one-sided.
On a positive note, it seemed that 95% (and yes, that’s particularly specific) of the people at the meeting opposed using county money for a TIF incentive. But the way I see it now, I see a 3-2 vote in favor occurring in September.