to this mix, as has occurred when the state became involved with property tax distribution and education, the distribution of the increment presents a nearly intractable problem.
To prevent these problems, legislation must be enacted to ensure that TIF is used appropriately. The California case study indicates that this legislation must be continually examined for appropriateness. In California, blight is now defined in a series of complex statutes, penalties for not replacing housing are significant, and interjurisdictional fiscal flows are set by formula. But even in this case, redevelopment agencies are still searching for exceptions. 27
TIF can be a desirable tool if it is correctly monitored. The project can generate a revenue stream that can be turned into a self-financing instrument. But it only works correctly if it is carefully planned, monitored and implemented under the light of public scrutiny.