Bill Caption

Relating to projects for which a transportation reinvestment zone may be created.

Fiscal Notes

No fiscal implication to the State is anticipated. There could be a positive fiscal impact to port reinvestment zones that obtained local revenues from property tax increment financing which would offset some loans or other debts incurred for a port project

Bill Analysis

Summary of Legislation: This legislation would add port projects to a list of those eligible for Transportation Reinvestment Zone designation and Tax Increment Financing (TIF). In addition this legislation expands the definition of transportation projects to include port security and transportaion and eligible facility projects.

Analysis: We have expressed our concerns about TIF financing on several occasions related to highway infrastructure. This legislation would open the door to expanded use of TIF. The excessive use of TIF has a negative impact on services in a community because it redirects tax revenue to transportation projects that would otherwise have gone to other taxing authorities. Infrastructure is an important state concern and should receive appropriate attention and funding from the Legislature. However, in our view Tax Increment Funding is the wrong way to proceed.