How does tax increment financing affect local school districts?
First, all debt service tax levies are “protected,” and funds produced from those levies go to the school district and do not become tax increment revenues. Second, because of the state foundation aid program which funds the first $5.40 of each local school district’s property tax levy for its general operating budget, many school districts will not be seriously affected by a city or county tax increment financing district. The exception will be school districts which have significant general fund tax levies above $5.40 per $1,000 of valuation. General fund levies above this amount are not covered by state funds.
Related Questions
- Could the money spent on improvements in the Villages Tax Increment Financing (TIF) districts be used to fund services instead and help reduce the deficit?
- Does the calendar affect teachers who live in other districts and whose children attend their local school?
- How does tax increment financing affect local school districts?
