Noble County Government

[mattg]

The Noble County Sheriff's Department is getting 9 new police cars. The County Commissioners on Tuesday, Jan. 2, agreed to purchase the cars using County Econcomic Development Income Tax (CEDIT) money.

The cars were definitely needed. Do you think this was a good use of CEDIT money?

[terryh]

The original purpose of the County Economic Development Income Tax (CEDIT), passed by the state Legislature in 1987, was to raise funds for local economic development projects. The law was later changed, allowing less restrictions on expenditures of CEDIT funds. Technically, buying new police cars for the Noble County Sheriff’s Department out of CEDIT monies is appropriate, but it’s also short-sighted. Noble County residents would benefit long-term by funneling most of its CEDIT funds to support the goals of the Noble County Economic Development Corporation. Established in 2005, its aim is to bring good-paying jobs to Noble County. That needs to be a priority of county government.

[Ligonite]

As was already pointed out, CEDIT is really a misnomer today. The state has changed the use of the funds to allow municipalities to offset property taxes and other sources of government revenue. Since the original intent has been lost, then perhaps the name should also be changed. Face it, if we really need new police cars, the money will come from the taxpayers in one form or another. Agonize/argue over the expenditure if you want, but I wouldn't get too worried over which "tax" will pay for it. Looking at the source of funds rather than the use of the funds is what causes some municipalities to spend money unnecessarily ("Hey, it's just riverboat gambling money anyway!").

From my viewpoint, until the EDC has to provide transparent accountability for the funds that they spend (unlike any government agency that is subject to scrutiny by any interested citizen), then funneling all of the CEDIT money to the EDC is as foolish as allowing CEDIT funds to be spent on things like healthcare costs for county employees. I don't like the idea of handing public money over to anyone without requiring an accounting of what was really accomplished, and without taxpayer oversight. My experience is that many EDCs spend a lot of money on marketing and support staff (i.e. overhead), are reactionary to nearly anything that looks like it might bring jobs regardless of the pay scale, and end up representing the interests of business to the exclusion of the interests of the municipality.

As far as economic development funds themselves - truth be told, some of the best forms of "government incentives" to business don't come in the form of direct handouts (like tax abatements or training grants, the most popular form of government assistance to attract business these days). The best incentives are the ones that have permanence beyond the life of the individual business - better infrastructure (roads, sewers, communications, utilities) and a well-trained workforce that can be tapped by any employer. Historically, these items are funded in a variety of ways, not just using "economic development" tax revenues.

- Ligonite

[Big Guy]

The Noble County EDC is accountable to a 16 person volunteer board of directors which includes county office holders (commissioner, council), city and town officials, school officials, farmers and others all of whom are taxpayers in Noble County. The EDC is fiscally responsible operating in donated space, with used furniture and office equipment and with computer equipment paid for by private donors. It is not the intent of the EDC to chase after every lead that comes along, rather try to develop jobs with living wages for the people of Noble County whether from helping existing industry expand or outside recruiting. Ligonier has benefited, in part, because of the EDC efforts in the first few months of the EDC operation. Much credit goes to Ligonier officials and the nice industrial park they have in place.

[hoosier]

Ligonite and the Big Guy both make valid points. You don't have to look far to see the infrastructure investment and workforce development theories at work (i.e.: Major Moves, Northwest RDA).

At the same time, there has to be some constant, progressive force at work to encourage and facilitate economic growth. In Indiana, the county level is a logical and practical level from which to excert that encouragement and provide facilitation. However, regardless of how much money is thrown at the effort, it is fruitless if there is not a concerted, unified approach. The EDC has been in existance for less than a year. In reality a couple of years is required to measure the impact, if not three or four. But, at the end of the day, the Noble County EDC operates with a small budget and a staff of one -n- a half. Independently, its doomed to fail. With the collective resources of Noble County in support, its far more likely to enjoy success, and success for the Noble County EDC is success for everyone in the county.

Noble County's economy is in a tail spin following what will historically be judged as one of the greatest dessimations of the US manufacturing sector. Noble County has made a significant commitment to economic development infrastructure. Now every city and town, every chamber, every community service organization, every citizen of the county needs to back efforts of the county-wide effort. Of course this same arguement can be made for every county in Northeast Indiana.

Well ... that's what I think.

[Ligonite]

Okay, so if we spend taxpayer money on things to promote economic development, what kind of things should we be considering? I offer the following:

1) We need a consistent view of the face of Noble County that can be presented to future stakeholders in the county (businesses, homeowners, investors, and workers). This is a real sticking point with me. Without a decent plan, there can be huge impediments to economic development. Take a new housing development. Businesses like the idea of affordable, nice housing that will attract a good worker pool. But farmers see housing developments as problematic because it is typically farmland (or adjacent property) that is acquired for these developments. The same thing can be said for industrial parks, highways, etc. The county comprehesive plan may be a good start, but it needs to be driven by community leadership, not by a consensus model. You will NEVER get a large group of people to agree on anything except for those things which are obvious. And why would you need a plan for something obvious?

2) The economic development process needs to take a long view of the situation. We don't need a bunch of small factories springing up willy-nilly that will end up vacant in 5-10 years, or taxpayer money being used to prop up dying industries. Look to where the US and Indiana economies are headed, and get in step with them. Maybe we should be trying to attract a small institution of higher learning (e.g. a private college or specialized technical school) to the area? Think of what that might do for the eduational opportunities of our residents, not to mention the pull-through effect on the local economy.

3) Planning needs to be done on a county-wide scale, especially since county-level things like roads and utilities are key items and those involves entities larger than the cities and towns themselves. Create enterprise zones that can be made accessible from specifically-identified throroughfares and feeder routes to the interstate. Noble County has plenty of roads, but only a couple are really good for carrying any kinds of freight or commuter (inbound or outbound) traffic. Zoning consistency is also a big problem. Everyone has their own idea of what makes for good land use, and adjacent jurisdictions that don't agree create barriers to development.

3) Attitudes need to change. Maybe Noble County will be a great place to live for people commuting to larger communities in Northeastern Indiana. Is that such a bad thing? Maybe in 30 years, farming will no longer be a dominant business. Is that necessarily a problem? Maybe the majority of people will have an Hispanic heritage. Does that make for a bad quality of life? We have a huge pool of resources that we often overlook because we insist on seeing the world as it WAS, not as it MIGHT BE. We should conserve our values, but be willing to change our approach.

I have other ideas, but I'm curious if anyone else want to throw in their 2 cents worth?