California cities do not have a constitutionally given right to steal money from schools and other tax districts to use for their crony capitalism and social engineering, saysthe California Supreme Court when it rejected a law suit brought by urban redevelopment agencies against a state law abolishing them. As a result, barring new legislation reinstating the practice, tax-increment financing (TIF) comes to an end in California, the state that pioneered the tax tool and, as recently as 2011, did more TIF than all the other states put together.
It is conceivable that, somewhere, sometime, a TIF project was truly worthwhile. In general, however, TIF was mainly a way for cities to build empires, elected officials to engage in crony capitalism, and urban planners to practice social engineering. Almost all of those “transit-oriented developments” that were supposedly stimulated by light rail and streetcars were really simulated by TIF. Nearly all of the cases of cities using eminent domain to take private property and give it to developers involved TIF.
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