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OPINION

Editorial: County's incentives proposal deserves additional scrutiny

Friday, August 28, 2009
(Updated 3:00 am)

 

Guilford County commissioners made the right decision in delaying further discussion of a plan to give grants to small businesses until legal questions are resolved.

Since apparently enough votes already are committed to approve the proposal formulated by Vice Chairman Steve Arnold, waiting a while shouldn't make a difference.

Rushing ahead only to encounter a lawsuit questioning its legality would be counterproductive. It's better to anticipate and answer questions now than after funds are doled out.

Providing modest incentives and tax breaks to help mom-and-pop businesses grow plows new ground in the state. Skeptics, however, wonder that, if it's such a good idea, why hasn't it been done before?

The reason could be that offering special considerations may run afoul of laws prohibiting tax abatements, or breaks, for select groups. Under state law, public funds must be used for the public good.

Current incentives aimed at wooing large firms, often looking to relocate in the Southeast, skirt that admonishment by mandating job creation and setting specific goals.

Arnold's plan seems to demand less accountability. While encouraging the growth of small businesses is commendable, revisions may be necessary to pass legal muster.

At the urging of Commissioner Paul Gibson, county attorneys will review the plan with experts from the UNC School of Government. That's a good starting point.

Arnold has noted that, if the policy is passed and trouble arises, the commissioners could simply pull the plug on the program. However, such an ill-conceived contingency sends the wrong message to potential participants as well as county taxpayers.

Crossing the T's and dotting the I's now rather than forging ahead with a possibly flawed plan is best.

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