Letters 16-05-2016

May 13, 2016

Truth About Schools & Incentives

In his May 4 column "Why Schools Are Closing," Grant Parsons blames recent school closings on state tax incentive programs, but he failed to mention two points that discredit this premise.

First is that the tax revenue he speaks of does not exist. It is not like schools are giving up the money because they do not have it nor would they ever if the property does not get developed. When the state approves such tax incentives, they do so only to the extent that the project were not feasible without the incentive.

The Michigan Economic Development Authority identifies project financing gaps, and that is the basis for any tax incentive that they and local bodies must approve.

Mr. Parsons likes to look back at the good old days, but he neglects to mention that incentives existed back then too. Back in those "urban renewal" days programs like UDAG and CDBG (which still exists) were used to support development and came from already collected taxes. It would be more correct to say tax money was diverted more for development then than it is now.

The other glaring omission is that local school funding is directly tied to enrolled students. TCAPS’ funding is dwindling because our region is aging and student counts are declining. We need to encourage housing types that appeal to young buyers and renters. The shortage of these units is proving a barrier to in-migration and business growth and discourages young natives to stay. Building and land costs and wages make developing these housing types difficult in here. What is Mr. Parson’s plan to encourage young families to our region? It is easy to be critical, but difficult to provide solutions.

Schools are not closing because of tax incentives. Our school systems will benefit if we grow our region with a focus on young families.

John Di Giacomo, Traverse City

CORRECTION

Last week’s profile of the partners in the Wineguys restaurant group incorrectly said two owners were Bob and Mary Reedy. Their correct last name is Keedy. We apologize for this error.