Tax increment financing : a documentary case study of the financial impact and policy implications for public schools in Illinois
Johnson, Donald R., 1941-
Ed.D. (Doctor of Education)
Department of Leadership, Educational Psychology and Foundations
Tax increment financing--Illinois--La Salle County--Case studies; Public schools--Illinois--La Salle County--Finance--Case studies
The major purpose of the study was to investigate the financial impact of tax increment financing (TIF) districts on public school districts in LaSalle County, Illinois. The secondary purpose of the research was to establish a list of provisions contained in intergovernmental agreements that could offset a local property tax increment redevelopment project. This descriptive study examined the variables of local property tax revenues and general state aid to determine the impact on school local financial resources caused by TIF. Through document analysis, the research focused on 30 TIF districts affecting 20 school districts located in LaSalle County between the years of 1999 to 2003. Thirty-four intergovernmental agreements identified between school districts and the municipalities/developers were inspected to develop a summary of provisions. Three research questions guided the framework of the study. Based on the results of the study, it was concluded that tax increment financing negatively impacted school district local property tax revenues. The amount that the 20 school districts lost access to between the years 1999 to 2003 was $10,572,969. The findings of this study also indicated that, due to the framework of the general state aid formula, the state of Illinois paid more to LaSalle County public school districts with TIFs than would have been necessary if the tax increment assessed valuation of the project had been available to support the funding of the school district. The cost of the redevelopment projects to the state of Illinois during the time frame of this study was $2,000,556. The gain in state aid was not enough to offset the loss of local property tax revenues, and the mechanism of the state aid formula diverted funds that are intended for educational services away from non-TIF school districts to municipal redevelopment projects. A summary of provisions contained in the intergovernmental agreements was included as a part of this study.
Benson, Christine M., "Tax increment financing : a documentary case study of the financial impact and policy implications for public schools in Illinois" (2005). Graduate Research Theses & Dissertations. 5215.
vii, 221 pages, maps
Northern Illinois University
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Includes bibliographical references (pages -182).