The TIF will not affect the current levels of tax revenue that the local schools receive and rely upon. The districts will continue to levy their budgets annually as they normally do. The school districts will continue to receive all of the tax revenue they were entitled to before the creation of the TIF district. The districts will also continue to receive all applicable revenues generated from development which occurs outside the TIF area.
The property tax revenue which is generated from new private development attracted by a TIF designation is “new” money. Without TIF, development likely would not occur and the new tax increment would not be produced. The TIF can assist with increasing the tax base of the area in the long-run which would benefit the schools and other taxing districts.
Additionally, if a redevelopment project receives financial assistance from the TIF, a portion of the increment generated by the project must be set aside for any new school students that the project may produce. The TIF Act has a default method for assisting school districts financially by reimbursing a portion of TIF increment for a resulting “net increase” in student enrollment.