TIF financing does not reduce the total dollars available for schools.
The total stays the same -- the split between the amount received from
local property tax dollars and the amount recieved from state aid
changes. Put another way -- let's say the school district's revenues
are $100. And, the state is contributing $60 and local property taxes
are contributing $40. If the amount of local property tax dollars are
significantly reduced -- and nothing else chagnes -- the state would
increase its amount to get to the $100. So, the state contributes $65
and the local property tax dollars contirube $35 still the total
available to the district is $100.
Marj Rolland
Windom Neighborhood
Michael Atherton wrote:
>
> This maybe overly simplistic (conservatives have this nasty
> habit of falling back on basic principles), but it seems obvious
> that TIF financing reduces the overall pot of available tax
> dollars. If so, then TIF financing reduces tax revenues for
> the public schools. If this is incorrect, please feel free to
> educate me.
>
> If the assumption above is valid, then while we are facing
> a school budget shortfall, why are some people lobbying
> to maintain TIF financing for the NRP (the city's agency
> of superfluous projects)?
>
> Michael Atherton
> Prospect Park
>
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