Tax increment financing is one of the few tools available to County government to support and encourage economic development in the county. The present funding mechanism allows counties to develop districts that build infrastructure in areas that are infrastructure deficient. Any limitations placed on this financing mechanism will reduce the ability to build public infrastructure, create good paying jobs, and increase the tax base. HB 573 exempts public school equalization mills from the calculation of tax increment. Removing school equalization mills would make it almost impossible to fund infrastructure development and administrative costs for a new district. Most infrastructure projects are financed with the issuance of bonds that are paid with increment generated in the district.
Excluding the 95 mills from the TIF calculation would increase the equalization fund by 1.9% or $4.8 million. However, individual TIF Districts would lose an average of 16.8% (based on the average number of total mills levied across the state) of their increment annually. This would reduce the ability of local governments to fund infrastructure in support of sorely needed economic development. In the end, while the schools may see a 1.9% increase in equalization funds state-wide in the short term, economic development would be hindered, ultimately affecting local school budgets in the long term.
Missoula County opposes HB 573 - Revise education funding laws related to tax increment financing, being heard tomorrow morning in House Taxation. HB 573 exempts public school equalization mills from the calculation of tax increment. Removing school equalization mills would make it almost impossible to fund infrastructure development and administrative costs for a new district. Most infrastructure projects are financed with the issuance of bonds that are paid with increment generated in the district. Excluding the 95 mills from the TIF calculation would increase the equalization fund by 1.9 percent or $4.8 million. However, individual TIF districts would lose an average of 16.8 percent, based on the average number of total mills levied across the state, of their increment annually. This would reduce the ability of local governments to fund infrastructure in support of sorely needed economic development. Ultimately, while the schools may see a 1.9 percent increase in equalization funds state-wide in the short term, economic development would be hindered, ultimately affecting local school budgets in the long term.
Representatives, Missoula County opposes HB 573 - Revise education funding laws related to tax increment financing, being heard on the House floor this afternoon. HB 573 exempts public school equalization mills from the calculation of tax increment. Removing school equalization mills would make it almost impossible to fund infrastructure development and administrative costs for a new district. Most infrastructure projects are financed with the issuance of bonds that are paid with increment generated in the district. Excluding the 95 mills from the TIF calculation would increase the equalization fund by 1.9 percent or $4.8 million. However, individual TIF districts would lose an average of 16.8 percent, based on the average number of total mills levied across the state, of their increment annually. This would reduce the ability of local governments to fund infrastructure in support of sorely needed economic development. Ultimately, while the schools may see a 1.9 percent increase in equalization funds state-wide in the short term, economic development would be hindered, ultimately affecting local school budgets in the long term. Please oppose HB 573.
Per Dori Brownlow:
ReplyDeleteOPPOSE.
Tax increment financing is one of the few tools available to County government to support and encourage economic development in the county. The present funding mechanism allows counties to develop districts that build infrastructure in areas that are infrastructure deficient. Any limitations placed on this financing mechanism will reduce the ability to build public infrastructure, create good paying jobs, and increase the tax base. HB 573 exempts public school equalization mills from the calculation of tax increment. Removing school equalization mills would make it almost impossible to fund infrastructure development and administrative costs for a new district. Most infrastructure projects are financed with the issuance of bonds that are paid with increment generated in the district.
Excluding the 95 mills from the TIF calculation would increase the equalization fund by 1.9% or $4.8 million. However, individual TIF Districts would lose an average of 16.8% (based on the average number of total mills levied across the state) of their increment annually. This would reduce the ability of local governments to fund infrastructure in support of sorely needed economic development. In the end, while the schools may see a 1.9% increase in equalization funds state-wide in the short term, economic development would be hindered, ultimately affecting local school budgets in the long term.
Sent at 4 p.m. on 3/13:
ReplyDeleteRepresentative Hertz,
Missoula County opposes HB 573 - Revise education funding laws related to tax increment financing, being heard tomorrow morning in House Taxation. HB 573 exempts public school equalization mills from the calculation of tax increment. Removing school equalization mills would make it almost impossible to fund infrastructure development and administrative costs for a new district. Most infrastructure projects are financed with the issuance of bonds that are paid with increment generated in the district. Excluding the 95 mills from the TIF calculation would increase the equalization fund by 1.9 percent or $4.8 million. However, individual TIF districts would lose an average of 16.8 percent, based on the average number of total mills levied across the state, of their increment annually. This would reduce the ability of local governments to fund infrastructure in support of sorely needed economic development. Ultimately, while the schools may see a 1.9 percent increase in equalization funds state-wide in the short term, economic development would be hindered, ultimately affecting local school budgets in the long term.
Please oppose HB 573.
Sending today at noon:
ReplyDeleteRepresentatives,
Missoula County opposes HB 573 - Revise education funding laws related to tax increment financing, being heard on the House floor this afternoon. HB 573 exempts public school equalization mills from the calculation of tax increment. Removing school equalization mills would make it almost impossible to fund infrastructure development and administrative costs for a new district. Most infrastructure projects are financed with the issuance of bonds that are paid with increment generated in the district. Excluding the 95 mills from the TIF calculation would increase the equalization fund by 1.9 percent or $4.8 million. However, individual TIF districts would lose an average of 16.8 percent, based on the average number of total mills levied across the state, of their increment annually. This would reduce the ability of local governments to fund infrastructure in support of sorely needed economic development. Ultimately, while the schools may see a 1.9 percent increase in equalization funds state-wide in the short term, economic development would be hindered, ultimately affecting local school budgets in the long term.
Please oppose HB 573.