(A name given to me by the City Controller since I regularly attend the Council Meetings and 14 Budget Hearings)
TIF - Tax Incremental Financing
The TIF concept started in California in 1952 as a way to set aside a portion of property tax dollars to fund large infrastructure projects that needed to get done. (CA repealed it in 2010.) It was tied to one project for a limited time. As it started getting used for economic projects, debt increased and the TIF's got larger. There are now some major issues with TIF and overextending.
Generally it is recommended by economists to not have the TIF exceed 10% to keep things in check. South Bend has approximately 35% of our revenue now in TIF. Mishawaka has approximately 39% of their revenue in TIF.
In Colorado they decided VOTERS need to approve the projects FIRST.
Is Transit Based Development the answer?
In trying to educate myself about TIF's I came across information done in Indiana by IU, Purdue and Ball State. There is also information from the CATO Institute available. If you are interested in learning more, here are some links:
In Indiana, 82 of the 102 TIF areas use their TIF dollars to benefit taxpayer assets such as sewers, drainage projects, curb and sidewalk improvements, etc. (Page 5)
Ball State 2015 Business Conclusion: “Overall, TIFs are not an effective economic development tool”
Inside Indiana Business, "TIF Funds Being Misused"
"We find evidence that the non-TIF areas of municipalities that use TIF grow no more rapidly, and perhaps more slowly, than similar municipalities that do not use TIF."
What are the dollar amounts here?
Click on the TIF Map Button to get a quick idea of why we need to be concerned about TIF's. Subtract the Expenses from the Revenue (Money coming in) after clicking on the St. Joseph County square.
I'd like to see a map like this for the TIF areas in South Bend that includes the dollar amounts, but include the full cost showing the interest as well. This one is from Milwaukee.
Where South Bend is increasing TIF areas:
It is my goal as an Advocate to involve YOU in the process.
If these are your priorities, I need your VOTE and Donations!
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