Spotlight Report

City Incentives in North Carolina: How Large Cities Are Using Taxpayer Dollars

posted on in City & County Government, Spending & Taxes
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Increasingly, city officials have been using municipal-level resources to participate in economic development activities. These efforts have replicated approaches utilized by state and federal officials, albeit on a smaller scale. This study surveys North Carolina’s most populous cities and examines how each conducts economic development in its jurisdiction.

Currently there is no single data source that tracks the expenditure of tax revenue on economic development activities at the local level. To address this need, we collected and categorized economic development spending in cities with populations of 70,000 or more. Between FY 2009 and FY 2014, there were 13 such cities in North Carolina. All 13 cities participated in economic development activities. Collectively, they entered into 238 economic development contracts worth more than $65 million over the five-year period. Actual payments, however, totaled $20.2 million.

City Incentives in North Carolina: How Large Cities Are Using Taxpayer Dollars by John Locke Foundation

Sarah Curry is Director of Fiscal Policy Studies at the John Locke Foundation. Previously, she worked for the North Carolina State Senate as a research assistant for the chairs of the Senate Agricultural Committee and headed the research efforts for… ...

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About John Locke Foundation

We are North Carolina’s Most Trusted and Influential Source of Common Sense. The John Locke Foundation was created in 1990 as an independent, nonprofit think tank that would work “for truth, for freedom, and for the future of North Carolina.” The Foundation is named for John Locke (1632-1704), an English philosopher whose writings inspired Thomas Jefferson and the other Founders.

The John Locke Foundation is a 501(c)(3) research institute and is funded solely from voluntary contributions from individuals, corporations, and charitable foundations.