From Michael A. Boyce
Monroe
To the editor:
Does anybody like it when Scott Walker doles out corporate welfare to his political cronies? My bet is that few in Monroe support crony capitalism at the state level, and certainly not at the local level.
Here is how crony capitalism works locally and who it benefits. It's called Tax Incremental Financing. The first step is the city creates a TIF "district." Next that district borrows money and spends some on streets, sewer, water, lighting, etc. The remaining amount can be given to corporations in the form of forgivable loans, cash assistance, and real estate.
Who benefits? The corporations receiving your tax dollars benefit. And the corporate service consultants, the debt attorneys, the finance advisors, and the TIF planning consultants benefit by charging hundreds of thousands of dollars in fees. Politicians benefit by receiving support from the corporations, the service consultants, and city staff.
Monroe has five TIF districts, and it wants more. The expenses of the five TIFs exceed their revenue by almost $1,000,000. Tax dollars, that could be used for vital services or to reduce your property tax, make up the shortfall. All 5 TIFs were set up based upon the projections of the highly paid consultants that revenues would exceed expenses. They weren't even close to being right.
Now the city wants to purchase land to create a new TIF and develop it with streets, sewer, and water and then give it away to corporations. And the city wants to use an existing TIF to give cash grants to property developers. Both are examples of local crony capitalism and both involve a lot of your money.
Ask supporters of cronyism why it is necessary. The answer is always the same: "Because the development would not occur otherwise." Ask a property developer why taxpayer cash is needed to make a guaranteed profit and the answer will be "because I can't charge rents high enough in Monroe to make a profit."
Both answers beg the question, why can't economic development occur in Monroe without transferring taxpayer money to corporations? The answer is obvious - high taxes and fees negatively impact economic decision-making. Government spending consumes money that could otherwise be used for productive investment.
Government spending and cronyism are directly related. Local government must focus on its spending and service levels to create a low tax environment that encourages investment. Otherwise, local cronyism will continue.
Monroe
To the editor:
Does anybody like it when Scott Walker doles out corporate welfare to his political cronies? My bet is that few in Monroe support crony capitalism at the state level, and certainly not at the local level.
Here is how crony capitalism works locally and who it benefits. It's called Tax Incremental Financing. The first step is the city creates a TIF "district." Next that district borrows money and spends some on streets, sewer, water, lighting, etc. The remaining amount can be given to corporations in the form of forgivable loans, cash assistance, and real estate.
Who benefits? The corporations receiving your tax dollars benefit. And the corporate service consultants, the debt attorneys, the finance advisors, and the TIF planning consultants benefit by charging hundreds of thousands of dollars in fees. Politicians benefit by receiving support from the corporations, the service consultants, and city staff.
Monroe has five TIF districts, and it wants more. The expenses of the five TIFs exceed their revenue by almost $1,000,000. Tax dollars, that could be used for vital services or to reduce your property tax, make up the shortfall. All 5 TIFs were set up based upon the projections of the highly paid consultants that revenues would exceed expenses. They weren't even close to being right.
Now the city wants to purchase land to create a new TIF and develop it with streets, sewer, and water and then give it away to corporations. And the city wants to use an existing TIF to give cash grants to property developers. Both are examples of local crony capitalism and both involve a lot of your money.
Ask supporters of cronyism why it is necessary. The answer is always the same: "Because the development would not occur otherwise." Ask a property developer why taxpayer cash is needed to make a guaranteed profit and the answer will be "because I can't charge rents high enough in Monroe to make a profit."
Both answers beg the question, why can't economic development occur in Monroe without transferring taxpayer money to corporations? The answer is obvious - high taxes and fees negatively impact economic decision-making. Government spending consumes money that could otherwise be used for productive investment.
Government spending and cronyism are directly related. Local government must focus on its spending and service levels to create a low tax environment that encourages investment. Otherwise, local cronyism will continue.
