Consultant Comes to Defense of TIF

Posted: Updated:
Culp worries that newly-elected officials will "absorb the message that TIF is bad." Culp worries that newly-elected officials will "absorb the message that TIF is bad."
INDIANAPOLIS -

The president of Indianapolis-based KSM Location Advisors says, when used correctly, Tax Increment Financing Districts can be "game-changing" tools for local governments. Katie Culp is responding to a study from Ball State University's Center for Business and Economic Research suggesting TIFs are overused and not necessarily creating new investment. Culp calls TIFs a "critically important" tool for local government, which she says often don't have many other options for economic development incentives.

The CBER report suggests TIF Districts capture up to $320 million each year in funding from Indiana communities. Director Mike Hicks says the districts pull funding that could be used elsewhere, such as schools. However, Culp says TIFs are often used in areas that already have more stable tax bases.

Culp acknowledges that there have been TIFs in Indiana that have turned out to be "awful," but says many have been extremely effective as well. She specifically cites their use in Carmel and the revitalization of downtown Indianapolis. Culp likens calling TIFs inherently good or bad is "like passing judgment on a chisel," saying it can be used to make beautiful art or sit gathering dust.

Among her biggest concerns, Culp says, is that newly-elected officials will "absorb the message that TIF is bad." She says, while TIF Districts are not the answer for every deal, education and constructive criticism can boost the tool's effectiveness.

You can connect to the full report, which includes a county-by-county breakdown, by clicking here.

Culp says she is especially concerned about newly-elected officials' perceptions of TIFs.
  • Perspectives

    • School District Raises Questions About ILEARN

      Like all schools in Indiana, we were disheartened at the ILEARN results for school year 2018. We would like to raise several questions concerning this test as it relates to college and career readiness for our students. The annual Indiana Statewide Assessment (this year’s ILEARN) has been developed to evaluate college and career readiness at all levels tested. We are very troubled by our lack of understanding of what indicators in the test evaluate...

    More

Events



  • Most Popular Stories

    • School District Raises Questions About ILEARN

      Like all schools in Indiana, we were disheartened at the ILEARN results for school year 2018. We would like to raise several questions concerning this test as it relates to college and career readiness for our students. The annual Indiana Statewide Assessment (this year’s ILEARN) has been developed to evaluate college and career readiness at all levels tested. We are very troubled by our lack of understanding of what indicators in the test evaluate...

    • Purdue University ranks #7 for Best Value in a college education in the U.S., according to the Wall Street Journal

      Two Indiana Schools Break Top 50 List of Best Colleges

      The Wall Street Journal and the Times Higher Education magazine have released their annual list of the top 801 colleges and universities in the country. Two Hoosier universities are included in the top 50.

    • Purdue to Open Chick-Fil-A Amid Protests

      Citing overwhelming demand for Chick-fil-A’s food and services, Purdue University has announced it will allow the restaurant to open on campus. The university has been at the center of a debate over the Georgia-based food chain. 

    • Photo courtesy of Crestwood Village

      Justus Rental Properties Details Closures

      Indianapolis-based Justus Rental Properties, Inc. has announced it will be closing its assisted living service line at Crestwood Village West and Crestwood Village East. The company is also is in the process of selling the both communities.

    • (image courtesy of Pixabay/NIkolay Frolochkin

      State Revenue Ticks Higher in August

      Indiana revenue in August exceeded projections by nearly four percent. The Indiana State Budget Agency reports General Revenue funds last month hit $1.1 billion, 3.8 percent above projections. Sales tax revenue came in higher than anticipated at $693 million, more than three percent higher.