6: AOP - Econ Dvlpmt Flashcards
Triple Bottom Line
People, prosperity, Planet (coined by John Elkington in 1995)- three Es of sustainability
Fiscal Impact Analysis
AKA Cost-Revenue analysis
Used to estimate costs and revenues of a proposed development on a local government.
Most common form - for a development project. Can also be used to examine the cumulative impact of land use decisions.
Example: a city is considering an annexation or new zoning policy, a fiscal impact analysis may be conducted.
Average Per Capita Method:
Type of fiscal impact analysis
This is the simplest method of fiscal impact analysis, but it is also the least reliable.
It divides the total local budget by the existing population in a city to determine the average per capita cost for the jurisdiction. The result is multiplied by the expected new population associated with the new development. The major problem with this method is that it assumes the cost of service to a new development is the same as the cost to service to the existing community, which might may not be necessarily true.
Adjusted Per Capita Method:
Type of fiscal impact analysis
The Adjusted Per Capita Method uses the figure through the Average Per Capita Method and adjusts this based on expectations about the new development. This relies on subjective judgment.
Disaggregated Per Capita Method:
Type of fiscal impact analysis.
The Disaggregated Method estimates the costs and revenues based on major land uses, for example, the cost of servicing a shopping center versus an apartment complex.
Dynamic Method
Type of fiscal impact analysis.
The Dynamic Method applies statistical analysis to time-series data from a jurisdiction. This method determines, for example, how much sales tax revenue is generated per capita from a grocery store and applies this to the new development. This method requires more data and time to conduct than other methods.
Economic Development
Job Creation
Private Business Expansion
Tax Base Expansion
Wealth Creation
Quality of Life
Standard of Living
Multiplier Effect
Can be used to forecast resulting economic growth in a community, related to promoting job growth. `
Multipliers, which measure the interdependence or linkage between industry sectors within a region, provide an estimate of the “ripple effect” due to a local change in economic activity.
For example, if a new industry creates 10 new jobs directly, and there are an additional 15 jobs that are indirectly created as a result of suppliers needed for that industry, and then there are 12 induced jobs related to services needed for the new workers (e.g., hairdressers and grocers), the result is that the 10 direct jobs created by the new industry resulted in a net total of 37 new jobs in the region.
Enterprise Zones
Are geographic areas in which companies can qualify for a variety of subsidies. Used in economically distressed area.
STATE LEVEL
The original intent of most EZ programs was to encourage businesses to stay, locate, or expand in depressed areas and thereby help to revitalize them. EZ subsidies often include a variety of corporate income tax credits, property tax abatements, and other tax exemptions and incentives to encourage businesses to locate in low-income areas of a city or county.
3 core activities to econ development
Business recruitment and attraction.
Business retention and expansion.
Enterprise and small business development.
Incentive: Industrial Revenue Bonds
Loan to company to build or buy facility, land, or equipment.
local government issues the bond, investors purchase the bonds, funds use to make loan.
Revolving Loan FUnd
seed money established, loans made & repaid, funds are re-loaned to next applicant.
Empowerment Zones
FEDERAL LEVEL
economically distressed area, businesses get credit for going here.
What are policy measures to address gentrification?
- Conduct social impact assessments to evaluate development plans and proposals.
- Encourage equitable development.
- Mitigate potential outcomes of gentrification, including quality-of-life concerns.
(NOT revitalizing the neighborhood through added green space - this can contribute to gentrification)
Economic Base Analysis
Looks at basic and non-basic economic activities.
DIVIDES INTO 2: Basic activities are those that can be exported, such as automotive manufacturing.
&Employment in the region vs employment to national levels
Can be used to look at the current economic situation to determine future economic possibilities. Developed as part of the Regional Plan of New York and its Environs in 1928.
