MONTPELIER, Vt. -
There's only one slot left in Vermont's tax increment finance program and currently both South Burlington and the city of Barre want it.
Gov. Peter Shumlin wants to table this problem by creating another slot so both cities can take part in the TIF program. The program allows communities to keep some tax dollars generated by economic development projects that would otherwise go toward the state education fund. Back in 2006, the Legislature imposed a cap allowing only six communities to participate in the program.
"It is my strong recommendation to the Legislature that we increase the TIF program from six communities to seven because I don't think this competition between South Burlington and Barre is helpful to growing economic opportunities," said Shumlin, D-Vermont.
Critics of this program say it takes critical ed fund dollars out of the state budget. The decision will need legislative approval this coming session.
