Saturday, June 25, 2016
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 

WCN Site Search


Preview the Paper Preview the Paper

Preview this week's Paper
A limited number of pages are displayed in this preview.
Preview this Week’s Issue ›
Subscribe Today ›

Lost & Found


VideoLost: Lab/Pit, missing evening of Mon., June 6, between 5-8 p.m., from Shannon Ridge Subdivision, Floresville, his name is Buster. Call 210-331-8966 if found.

VideoLost: Yellow Maine Coon named Felix, missing since May 22 from F.M. 536, Floresville. Call if found, 210-365-6305.
*Includes FREE photo online! mywcn.com/lostandfound
More Lost & Found ads ›

Help Wanted

Diesel Mechanics Needed Coastal Plains Trucking is currently hiring for Diesel Mechanics to work in the following locations: Stockdale, TX – Charlotte, TX – Jal, NM (housing provided at this location only) These positions are full time and offers medical, dental, vision, STD, Life, 401k benefits and bi-weekly pay. Mechanic Responsibilities: Vehicle Maintenance and Repair on Transport and Bobtail Tanker trucks. Qualifications: Must have own tools Certification in Brakes is a plus Experience preferred working on Diesel trucks. Prefer experience working on Kenworth and Peterbilt trucks and PACCAR, Cummins and engines. Experience changing tires and performing all PM work. Detail oriented, organized, takes pride in work and is safety minded. Compensation - Depending on experience – hourly pay with overtime. CDL NOT REQUIRED To apply: Log in to www.coastalplainsllc.com to complete an application Or contact Human Resources at 830-996-3002.
Maverick Grill is hiring wait staff, bus staff, line cook, and dishwasher. Apply in person Mon.-Fri. between 2-5 p.m., 6671 U.S. Hwy. 181 North, Floresville. 830-216-2712.
More Help Wanted ads ›

Featured Videos





Video Vault ›

Commentaries


The Economist: Economic Development Sales Tax Turns 25




E-Mail this Story to a Friend
Print this Story

Disclaimer:
The author of this entry is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com.
March 26, 2014 | 7,810 views | Post a comment

M. Ray Perryman

The Texas Legislature made a very smart move 25 years ago: providing a mechanism to fund local economic development efforts. The Development Corporation Act had been passed in 1979, allowing cities to form economic development corporations (EDCs) to attempt to attract new businesses. However, funds available for this purpose were scarce. The Legislature amended the Act in 1989, and the sales tax for economic development was born.

Local areas can vote to add a local sales and use tax to fund economic development, and about 700 have done so. Rates can range from one-eighth to one-half of one percent. There are some restrictions on which cities are eligible, and the total local piece of the sales tax is capped at 2% (including the economic development portion). The EDCs are established by cities, with boards of directors named by city councils. City councils must also approve proposed expenditures by the EDC.

There are two basic types of structures: “Type A” and “Type B” (which used to be known as 4A and 4B). Type A EDCs have the authority to use funds primarily for industry and manufacturing development. Projects include buying land, building industrial buildings and other facilities, undertaking certain infrastructure improvements, and paying maintenance and operating costs associated with the projects. Type B sales taxes can be used to fund all of these things and more, including quality-of-life improvements such as sports and athletic facilities, parks, streets and roads, and various other types of infrastructure. Type A corporations can do Type B-type quality-of-life projects, but only with voter approval.

The 697 cities which filed required reports for fiscal 2011 range from tiny to large and are located all over the state. The EDCs had total revenue of $781 million, with $573 million stemming from the sales tax. They spent almost $736 million in fiscal 2011, with most of it going to capital costs (with capital assets involving things such as land, commercial buildings, industrial park sites, and equipment), debt service for prior investments, and direct business incentives. Primary objectives were job creation/retention and infrastructure projects.

We have studied the economic benefits for several cities and found that these taxpayer investments pay off. Economic development corporations choose projects to fund based on the likely opportunities offered to residents in the form of jobs and other benefits. The increased economic activity stemming from corporate locations, expansions, and retentions in turns generates tax receipts. It’s a virtuous cycle, with new activity stimulating further gains in related businesses and the overall economy.

Many of us remember all too well the dark economic days of the late 1980s. After an amazing boom spurred by oil prices and friendly tax treatment for certain real estate investments, the bottom fell out. Rig counts dropped dramatically when the global political situation changed and crude prices fell, and cities in the Permian Basin and other oil and natural gas-rich areas were battered. Tax law changes and other factors also led to a real estate (and later, savings and loan) crisis. These events caused substantial dislocations, with shrinking employment and major oversupplies of commercial real estate. Against the backdrop of this disruption, visionary legislation was born.

In an ideal world, economic incentives might not exist. However, incentives are a fact of life, and Texas communities must offer them to keep the playing field even or risk losing out on quality corporate locations and expansions. By allowing local areas to create and fund economic development corporations, state legislators made a bold move which is enhancing prosperity in communities large and small across the Lone Star State.

Texas is a center for job growth, outperforming the United States as a whole by a significant margin. Even other states with notable advantages can’t keep up. Part of the reason is that 25 years ago, Texas legislators, community leaders, and voters decided to invest in a better economic future. This investment benefits us all in the form of greater opportunities for Texans.

Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com). He also serves as Institute Distinguished Professor of Economic Theory and Method at the International Institute for Advanced Studies.
 
‹ Previous Blog Entry
 

Your Opinions and Comments


Be the first to comment on this story!


You must be logged in to post a comment.




Not a subscriber?
Subscriber, but no password?
Forgot password?

Commentaries Archives


Commentaries
Commentaries page govtrack.us
Commentaries who represents me?
Allstate & McBride RealtyVoncille Bielefeld homeHeavenly Touch homeTriple R DC Experts

  Copyright © 2007-2016 Wilson County News. All rights reserved. Web development by Drewa Designs.