Monday, November 06, 2006

A Thumb on the Scale - Zoning Subsidies in Fairfax

I strongly believe in markets. When no one has a thumb on the scale, the free market tends to produce better results than government decision-making in the economic realm. Generally, most people, be they Republicans or Democrats, tend to agree. However, there clearly is role for government to play in policing markets against fraud. What government should not do, however, is place a big thumb on the scale to favor (or disfavor) market participants.

Needless to say, Fairfax County puts a big thumb on the market scale in the area of taxpayer subsidies for the real estate industry. In addition to the $6.8 M annual subsidy for the Economic Development Authority's advertising program that benefits commercial real estate, county taxpayers subsidize land development and zoning services. From July 1, 2002 through June 30, 2007, taxpayers will have paid more than $43 M in subsidies for these services. Granted, state law prohibits local governments for setting these fees above cost, but it does not require a huge subsidy. Indeed, the Spotsylvania County board of supervisors has set their fees at cost.
What's the difference? In Fairfax County, we have Gerry Connolly and his colleagues and their government by campaign contribution. Apparently, in Spotsylvania County, elected officials make an attempt to govern in the public interest. Move over Chicago and New Jersey, Fairfax County's corruption is on the rise.

Isn't it time to get government's thumb off the real estate market scale?

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