By Bruce Wissel in the Richmond Palladium=Item:
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Until recently, EDIT funds were appropriated to the General Fund without any designation assigned for their use. This was done for several reasons. During the September budgeting period, many of the opportunities for economic growth are not known, so it is impossible to budget for it.
Also, many of the businesses negotiating for additional jobs or new employers coming to the community have a need to keep this information quiet until funding has been secured or corporate strategy has been developed. There is often a desire to keep this expansion news away from competitors.
Appropriating money for uncommitted projects leaves the decision to the mayor or other executive departments like the Board of Works or Redevelopment Commission with the authority to decide where the money is spent.
Over the last several years EDIT funds have been spent for projects that many members of council feel should not be spent from a fund designed for economic development. These allocations include the art museum, civic theater, symphony, Civic Hall, Birth-to-Five, Special Olympics and Widowed Persons Services. These are all worthy programs. The debate is how do these relate to economic development? This is not a shot at the mayor, there will always be disagreement on spending money and the current enabling legislation from the state allows for these funds to be used for almost any use.
During last year’s budgeting process, the City Council and Mayor agreed that council would retain the right to appropriate each use of EDIT Funding. The Eastside Development project was our first attempt to tackle a major controversial EDIT project.
It wasn’t pretty. I’m referring to our first attempt to handle this new responsibility.
All members of council had a different idea of what constitutes the proper use of these funds, what claw backs should be put in place, how should those claw backs be monitored and many redefined their thoughts on what is economic development. The citizens of the community came to the meetings, wrote letters and called to express their opinion. The public’s feelings were as diversified as those from members of council.
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See the full article here:
http://www.pal-item.com/apps/pbcs.dll/article?AID=2013309240003&nclick_check=1
