Let's stay on the right track (5/19/05)

Economic development income tax revenues ought to be spent on economic development.

You’d think a principle that simple would be universally understood.

It has been in Jay County, where since its introduction the tax has been used to build spec buildings, develop plant site infrastructure, and improve worker skills.

EDIT funds have been used to leverage federal and state grants to solve wastewater treatment problems that could have been the death knell for villages like Bryant and Salamonia. New housing and, in the case of Bryant, industrial sites have been made possible that otherwise would not have existed.

But apparently, Jay County has been the exception rather than the rule.

Many counties around the state have treated EDIT revenues as a fiscal playpen to fund pet projects. Unlike property taxes, EDIT was viewed as more or less “painless” revenue that could be spent without political consequences.

The results had little to do with economic development and a great deal to do with politics; Delaware County’s record could stand as a prime example.

Faced with that reality — with Jay County among the few taking economic development funding from EDIT seriously — the Indiana General Assembly went ahead and opened the floodgates. As of July 1, EDIT revenues can be spent on just about anything.

But just because they can be, doesn’t mean they should be.

In Jay County’s case, about $630,000 a year has been generated for economic development purposes by a .25 percent income tax.

The tax was increased to .50 percent as of July 1, with the additional revenues earmarked toward a homestead replacement credit which should offset higher property tax bills due to the phase out of the inventory tax.

That makes sense, but it also makes sense to insure that the $630,000 still goes for the purpose originally intended.

And it also makes sense to keep in place the current system which has worked so well: Allocation of amounts for each of the communities in the county, EDIT advisory committees, and public review.

In other words, just because other counties have been undisciplined about using EDIT revenues and just because the state has thrown the rulebook away doesn’t mean Jay County should follow suit.

EDIT has worked well to preserve and create jobs in this county. The return on investment has been significant.

Let’s stay on the same path. — J.R.

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