Amendment One, what is it, and what does it mean?

The upcoming referendum, “Amendment One,” will be on the North Carolina Ballot this November 2004. This amendment has many names that explain its purpose. The most notable title is ‘self-financing bonds.’ Here’s a little background on this issue:

*Self-financing bonds are touted as an economic development tool used by the government to pay for public improvements associated with private development. Much of the advertisement of Amendment One has claimed that it will attract jobs, revitalize communities, and increase property values. Prove this with examples that are similar to North Carolina. In the long term owners could lose control of their own property.

*The tool used to accomplish this is called a (TIF) Tax Increment Financing. TIF districts are set-up for development and are communities that incur indebtedness by their local governments sale of bonds. The local County Commissioners and Town Councils will have the ability to sell bonds for these ‘TIF Districts’ without a referendum; no public vote is needed.

*Local governments, following discussions with landowners, decide the boundaries of the TIF districts. The State Local Government Commission in the State Treasurer’s Office, (non elected officials), have plan approval. But what if the citizens don’t approve of the plan? They will have no power to stop the impending plan. The local government does not need citizen approval under Amendment One.

*This amendment comes with seven specific criteria that would have to be met for the bonds to be issued. This is another way of saying more rules and regulations that stifle the entrepreneurial spirit. Anytime the government controls development the people lose more rights and control of their property.

*This is a Fifth Amendment issue. The laws of eminent domain have been used in TIF districts to condemn property in neighborhoods to be leased to condominium and office building developers. The Fifth Amendment states “nor shall private property be taken for public use, without just compensation.” This means roads, bridges, public buildings and the like.

*Bond payments are made by taxing the people. Simply stated, why should the voter be removed from the process? Are we not governed by the people?

*Many groups and organizations are supporting this amendment because they have something to gain. It’s suspicious that the NC Association of Educators is supporting this amendment since schools will receive no direct protection. The AFL-CIO an extremely large union affiliation supports this amendment; North Carolina is a right to work state. Why does a national union organization want to support Amendment One in North Carolina where there aren’t unions?

*Iowa and North Carolina shares some similarities, one of which is agriculture. In a recently released report Iowa State University researcher Davis Swenson said in reference to TIF’s, “…There is virtually no evidence of broad economic or social benefits in light of the costs.” He also stated that in much of the state there’s little to no evidence of overall public benefit of the practice.

*TIF’s are a way to raise government debt and elected officials don’t have to rely on the public’s support.

*Local governments (cities and counties) declare an area as a tax district, and then they sell bonds that would benefit one or more of their selected private developers. No one has a good solution for the taxpayers if the developer goes bankrupt, or if the development is a failure. The bonds, once sold, must be paid.

*It would be wise counsel to consider carefully before voting for or against Amendment One.

MORE INFORMATION

localinnovation.org
ncamendmentone.com
heartland.org
nfib.com