County hires famed economist's firm for study

The firm founded by an economic advisor to Pres. Ronald Reagan has signed on to analyze Sarasota County's approach to fiscal neutrality.

Laffer Associates, founded by economist Arthur Laffer, signed a $90,000 contract with the county Aug. 20, to study the process by which the municipality determines the financial impacts of new development. For a new development project to receive initial approval, the developer must prove the project is fiscally neutral or beneficial — that taxes, fees, assessments and charges for services balance out new public facilities and services to support the development.

The firm will give two presentation to the Sarasota County Commission and one presentation to the Sarasota County Planning Commission to present its recommendations for changing fiscal-neutrality requirements, according to the contract.

Here is a short video explaining the concept of fiscal neutrality: