On the Mega Deals and GASB 77 Rule Changes

The wonderful economic development watchdog group, Good Jobs First, has been at the forefront of tracking economic development mega deals.  This recent article shows why governments since the Great Recession have been keen on spending so much to attract large firms, which will come at the expense of entrepreneurs and small firms trying to compete.  It touches on a topic that I have been increasingly interested in, how competition is different in metropolitan areas at the border of two or more states.  More on that later though!

In a second interesting article, the Government Accounting Standards Board has issued statement number 77 which requires governments to provide information within their Comprehensive Annual Financial Report (CAFR) on how much the government is providing in economic development incentives.  This Bloomberg News article shows that there will likely be variation in how transparent governments will be in their reporting.  Also, it demonstrates that even programs like TIFs which might deliver the benefits in rebates over time are required to be reported. 

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