LTTE: What about Economic Development Income Tax funds?

“What to do about Economic Development Income Tax (EDIT) funds?” is the question many are asking themselves. This discussion is occurring with 2013 budget discussions under way among our elected officials. Now that the electorate is starting to realize the scope of what an EDIT is being used for, many disagree with those uses. People are frustrated as they have seen the amount of manufacturing and total jobs decrease across the country over the last decade. Young people graduate from high school and leave their home economic areas. This all wraps back to the EDIT fund, plus other economic development initiatives, and what we do with them to grow our county. 

The “Economic Development Income Tax” (EDIT) is taken from our paychecks just like “County Optional Income Tax” (COIT), which combine to equal our total county income tax. In 2012, the county government appropriated approximately 2.7 million dollars, of which the breakdown is as follows. The county spent:

• $1.48 million on roads and a parking lot,
• $935,232 on the storm water project in Dubois,
• $140,000 for the apparent annual payment to the 4H fairgrounds,
• $125,000 on the new emergency sirens and the GIS, 2-1-1 annual funding, and
• $60,000 is slated for “economic development,” which is probably Dubois Strong, though not specifically indicated. 

Where is the job-growth spending from our 2012 EDIT revenue? Many of the 2012 projects are very necessary, but are they EDIT worthy? Did the job base grow? Did new companies located here because of the spending? Did current companies stay here instead of relocating because of it? If the spending doesn’t develop and improve the economy, why have the tax? Maybe the COIT needs to be raised to make up the difference, and the EDIT reduced to better reflect governmental priorities. Our county is being examined here, but other government entities need the same sort of review. 

Ferdinand and Huntingburg were the early adopters of the idea of economic development.  We can see the results and jobs their efforts have brought. Ferdinand has had multiple new expansions after launched their HTC program a few years back. Huntingburg has active TIF districts and has seen many new businesses open up around their town. Jasper was the first to pass and use the tax abatement idea from the Jasper Action team. Jasper has allocated money for economic initiatives for the first time in many years within the approved 2013 budget, with actions to help plan the future for the downtown area. 

The county passed tax abatements but then fought giving $25,000 to research a potential I-67 road through the county; the only government entity from Owensboro, KY up to Washington-Loogootee area who resisted the idea. Considering how much was going elsewhere in 2012, it was odd to see it voted down 4-2 earlier this year. Even when the money was finally given during a second vote, two council members still voted against it. 

All this is important because of the job data compared with the population from the last 10 years. The 2010 census data points out clearly that Dubois County median age is growing older since 2000. Up to age 44, only the age groups 0-5 years and 20-24 years saw a population increase, but still the 0-44 year-old group saw a population decrease of 2802 people. Age 45 to 85 years saw a population increase of 4514 people, with the majority being between 50-65 years old. In total, 1712 more people located to Dubois County for a total of 41,627 people in that period. That increase is because of an influx of people from outside the county locating here. That is important when compared against job totals over that same period. Based on Economic Modeling Systems, Inc. (EMSI) here is what happened in Dubois County: In 2001 there were approximately 34,150 jobs.  As of 2011, there are approximately 31,450 jobs; a loss of 2700 jobs. In manufacturing jobs, the county had 13,290 jobs in 2001. As of 2011 there were 9,475, a loss of 3815 jobs. When you consider that our population increase was mostly among the older working or retired age, and we had an overall job reduction, you can see how we all need to get involved about the future of our county. 

We have to realize we have a voice in how our EDIT money is spent, as well as the other tax revenue we provide. Elected officials are our employees.  As their supervisors, sometimes we need to help them do their jobs the way we expect! If they don’t listen, then we apply the Clint Eastwood logic and we “just got to let them go.” I hope you are encouraged to be engaged and let your opinion be known today, tomorrow, on Election Day and beyond. The federal government is a prime example of what happens when we let politicians spend as much as they want to stay elected. Do we want our kids to want to look for work here? Do we think the status quo will accomplish this? We must encourage our elected officials to be bold in encouraging economic growth.  We also we must understand that our ideas matter, in order to reverse this trend. Don’t ignore chances to get your two-cents to those hosting efforts to make our Home Town Competitive once again to entrepreneurs and relocating or growing businesses. Vote in those who stand for these principles.