True or False: A municipality may offer publicly funded incentives in the form of grants or loans for any purpose.
Answer: False
A municipality may offer publicly funded incentives in the form of grants or loans as long as the funds are used for a public purpose. In South Carolina, council can only spend public funds for a "public purpose." The S.C. Supreme Court defines public purpose as one that "has for its objective the promotion of the public health, safety, morals, general welfare, security, prosperity and contentment." Eligibility for incentives participation must not be arbitrary and must treat all members of the class of eligible business activities in a similar manner under similar circumstances.
Want to learn more? The Municipal Elected Officials Institute of Government offers in-person and online courses. Elected officials who complete all of the required coursework graduate from the institute. Register for the September 26 courses, "Municipal Economic Development" and "Forms of Municipal Government."