The House passed HB 2804, which reopens the Local Revitalization Financing (LRF) program and provides an annual state contribution of up to $15 million for the next 20 years. These funds go to local jurisdictions to be used to invest in public infrastructure to encourage economic development. The House passed the bill with a strong bipartisan showing of 94 yes votes.
Currently, the LRF program is closed to new applications and there is no additional funding available. HB 2804 restarts this critical funding source for local economic development. AWC needs your help to pass the bill out of the Senate.
AWC needs your help to pass the bill out of the Senate.
Reach out to your senators now and ask for their support to quickly pass HB 2804.
Below we have included talking points you can use when communicating with your senators:
- Starting January 1, 2021, HB 2804 provides up to $15 million annually in state contribution for LRF projects for no more than 20 years.
- HB 2804 establishes a clear competitive process to measure which proposals should receive state investment.
- Starting in 2009, the state provided $6.66 million in LRF funding where 17 different local governments received funding for 18 revitalization areas. Additionally, the state provides up to $6.66 million annually in sales tax credits to these jurisdictions.
- Thirteen projects have reported a total state benefit of over $633 million. The state benefit includes the increase in state property tax and the increase in state excise tax received since the approval of the revitalized area.
- Benefiting cities report that an estimated 2,564 new businesses have located in the revitalized areas creating an estimated 19,458 permanent jobs.
- According to the Council of Economic Advisors, every dollar invested in infrastructure results in $1.50 in economic output.
Ask your senators to please take swift action on this bill to fund critical economic development tools for cities.