LINCOLN — A pros-and-cons discussion about one of Nebraska’s most controversial yet championed economic development tools took center stage at a legislative hearing Friday: Is TIF out of control? What, if any, changes should lawmakers pursue?
TIF stands for tax-increment financing, and state Sen. Danielle Conrad of Lincoln had called for a review of state laws governing the incentive — particularly related to the blighted and substandard designation on TIF-eligible areas and notification to affected neighborhoods.
Conrad told the Urban Affairs Committee that Legislative Resolution 415 was prompted by concerns from north Lincoln constituents. But she said residents elsewhere, including Omaha’s south and midtown areas, also are in the midst of divisive TIF-related matters.
Several state lawmakers have previously raised red flags about potential overuse or abuse of the incentive. Conrad pointed out Nebraska Auditor Mike Foley’s report two years ago documenting that more than a half-billion dollars in property tax collections were redirected over a five-year period to fund urban redevelopment throughout Nebraska — marking a “remarkable increase” in TIF use that risks further upward pressure on local property taxes…