What is the role of government?
I used to know the answer to that question but I am no longer sure. Have we lost our collective minds regarding local government and development in Knox County?
The reason that development can be good is that is provides income to the local government. A case can be made for TIF’s (Tax Increment Financing), IF there is a return on the investment of the TIF. If the project fails then the local government does not receive the full extent of the projected property taxes and the local government pays the balloon note on the infrastructure. All projects have risks. There are no slam dunk real estate projects. There are no sure things.
We need to have a debate about what is the role of government. It has morphed from what we learned in high school to something very different today. We cannot fund schools or police retirement because we are using too much tax money to make speculative risky investments with private enterprise on the “hope” the end result will be increased property taxes. That is not the role of government. The government is not meant to be a lending partner to local real estate speculators. That is what banks are for. The government is supposed to build schools and pay its policemen.


