Chuck, who I usually don't argue with, said:
This is flat out wrong! TIF (Tax Increment Financing) allows cities to remove increased tax generated by a new development and capture it for the city. Not ONE DIME of the tax revenue that previously been coming from the property is lost from the county or school district.
Technically, you are correct. The income to the school district remains the same.
Are the expenses the same? Let's say you build a bunch of condos someplace on a TIF. And that in these extra 1,000 units there are a total of 100 children.
Those kids cost the district about 1.1M$ a year to edcuate, on average. The INCOME may remain the same, but the EXPENSE goes up.
Not a big deal? Sure, it's not a big deal on office buildings and so on. But we're building a lot of living spaces now -- and we could reasonably expect that these will incur more expenses in human services, corrections, schools, etc. As long as there aren't a lot of them it's not a big deal ... but at some point, it is a VERY big deal. The people who actually pay the big bills to the school district get hit for the difference.
And when these go on for 27 years, the problem is all that much worse.
Erik Hare [EMAIL PROTECTED] http://home.comcast.net/~wabbitoid/ Irvine Park, West End, Saint Paul, Minnesota, USA, North America, Earth
Fine Amish furniture, cedar chests, and crafts http://www.harmonycedar.com
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