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heraldsun.com: azchive date search this is the case, After a 10-year study of Iowa TIFs, Iowa State University researcher David Swenson concluded that "[tax] increment spending has not yielded measurable and distinct economic or social outcomes." A major problem with TIFs is that, while most are authorized by municipal government, they affect all entities that depend on property taxes, If Chapel Hill or Carrboro issue self-Fnancing bonds, the county and school system will have their revenues from the TIF projects held back as well.. In fact, of all governing bodies, schools often take the hardest hit. Chapel Hill is one of scores of North Carolina municipalities that have endorsed Amendment One. But not all of them mindlessly signed on to the boilerplate resolution provided by its proponents. Monroe, for example, changed the language to remove the clause claiming there would be no increase in property taxes, The reason municipalities support this is simple: TIFs give them an easy way to raise funds, But there is a fundamental principle of democracy that says what is easiest for government is not always best for the people. There are many cases where public scrutiny and a direct vote provide an important safeguard. That is why general- obligation bonds are voted on as ballot issues. Despite the Orwellian sleight of hand that removed the word "tax" from the title of the amendment, there is nothing "self-Fnancing" about tax increment financing, TIFs are essentially a shell game, Like the deficit spending of the Bush administration, they avoid raising taxes for today's expenditures by obligating future governments, Both TI Fs and deficits can be effective fiscal policy tools if used sparingly and wisely. Unfortunately, such wisdom is in short supply, It might be possible to fashion TIF legislation that defined clear social goals, gave all stakeholders a voice and adequately assigned risk to the developer, It's just hard to imagine those requirements coming out of the N.C, General Assembly, In many states and municipalities, those concerned with economic justice must be constantly vigilant against abuses of the TIF system (for example, see www,ncbg.org in Chicago). There is no need to open that door in North Carolina. It is not too late far the Town Council to rescind its hasty and ill-considered endorsement of Amendment One. Dan Coleman is a local author and activist, Readers can contact him at emaildan@ncxr.com or c/o The Chapel Hill Herald, 106 Mallette St„ Chapel Hill, NC 27516. «snve to my chpflle» «e-mall this article-• «prirrter-friendly verslom~ :: privacy statement :copyright ©2004, The Herald-Sun :terms of use :: IMF http://www.herald-sun.com/archives/URNDetaihcfm?URN=0462109956 10/13/2004