I know this is most likely an off-the-wall subject for many, but recent Florida Today articles on the Economic Development Commission (EDC) and the smoke they blow finally led me to blow off a little steam of my own. Not only do Brevard County taxpayers fork over $1.5 million to the EDC, but just last Tuesday another $180,000 went down the hole to a lobbying firm dealing with the inevitible - the retirement of NASA space shuttle program.

One thing you may be assured of is no matter what happens at Kennedy Space Center, we will be told it would have been worse except for the efforts of the EDC and the lobbyists.

It is hard to fathom how the word ‘economic’ fits into the EDC; the outfit has about zero economic sense. One would think any elementary study of economics would reveal increased taxes and regualtions would harm the business climate of the affected.  Yet the allegedly pro-business EDC has never gone to local governments in opposition to the whirlwind of tax increases and regulatory burdens. In a Florida Today interview published October 25, 2007, Ms. Weatherman (questioned on the tax issue) answered with a string of buzzwords that actually said nothing.

“This a tough issue that is going to need to be dealt with in a different manner than we are accustomed to in Florida.  It is going to take a special group of people to rectify these complex issues.  We have heard first hand that the current uncertainty is being watched around the globe and could  impact investments here.  We must use caution when moving forward, though.  When we have what we think is a solution, we’ll need to look carefully at all of the potential ramifications and the subsequent reactions to the actions.”

What was that? A true pro-economic leader would simply state “High taxes are clobbering businesses and the taxes need to be cut.”  Reading the above, nothing is mentioned about taxes being too high (the original question) or what the heck ought to be done other than an oblique reference to a physics experiments on Newtonian Mechanics.  Of course, when one’s corporate and personal income has benefited greatly from the windfall of local property tax increases, it is tough to bite the feeding hand.

Then discussing the SubPrime crash unfolding nationally, we are told this by the EDC:

“Most of the hits in subprime, and foreclosures themselves, have taken place in the midwest, but subprime lending fueled the Florida statewide markets, too.  We need to see the degree of this in our local market when all of it falls out”

Foreclosure filings in Brevard County, Florida, now exceed sales but “most of the hits have taken place in the midwest”? How about another real answer we should get from an economic leader, “The Housing Bubble has burst, and if we do not let up on regulations, taxes, and impact fees housing will never recover”?  Again, when all these impact fees and regulations were imposed, no EDC representatives at the meeting spoke against them. Why? Because the feeding hand wanted more bread from the public again.

The exchange below was just priceless.

Q: Sounds like the word out of Tallahassee is that local governments are in for some budget constraints. How is the Economic Development Commission going to justify the public funds it receives?

Mikitarian: Great question. We justify it through measurable results. In 2004, for every dollar the county invested in the EDC, we were able to return $75 to the local economy through our work attracting and retaining businesses.

This 75 to 1 figure is one of the biggest crocks I have ever seen in local government.

First, there is no ‘investment’.  Investors invest freely and expect a return on investment. Brevard County taxpayers foot the $1.5 million annual bill for the EDC. They do not freely give up said money, and they get nothing back from it. Obviously, somebody profits. Most likely it is those who run the EDC, and any favored sons who may pick up a few contracts now and then. But, the tax burden for Brevard County has continued to rise astonomically even as it is alleged the EDC is returning such a windfall to the community. Perhaps we should just give them $9 million and abolish all the property taxes. The reporter asked for measurable results and got a number, but a number is not a measurable result if it is not tied to anything real.

The EDC is aggressively promoting our products overseas. That is why they take certain County Commissioners with them to travel at taxpayer expense. The real trip secret, though, has nothing to do with exporting anything. It is all about ensuring imports: the imports of tax dollars to the EDC. Those who vote for the cash take the trips. They become such good friends with our EDC members that they just ‘know’ the EDC is wonderful. The same ‘measurement’ noted above is the same kind of ‘measurement’ used as we pay millions of dollars for vacant properties, and even buildings, in excess of their value. It is the application of emotions to solve math problems. Any time math is done this way, the door is wide open for a few to make a fortune off many - without having to truly justify the value of any service or property.

Rain or shine, the EDC claims it has called the shots and worked to make it happen. When a Housing Bubble lifts all boats, the EDC is there to to take the credit for job expansion. When the Housing Crash leaves all boats high and dry, well, now you need the EDC more than ever.