Saint Albans reports $1.5M increase in education fund due to TIF district growth

The Senate Finance Committee meeting held on March 20, 2025, focused on the financial implications of the Tax Increment Financing (TIF) District in Vermont. The discussion highlighted significant growth in the grand list within the TIF District, reporting a 47% increase since its establishment. This growth is projected to continue, with an estimated total value of new permits reaching approximately $20 million.

Key points of the meeting included a comparison of tax contributions to the education fund before and after the TIF District's establishment. The committee noted that had the previous trend of 0.4% continued, the education fund would have received only $100,000 in fiscal year 2024. However, actual contributions amounted to nearly $290,000, resulting in a cumulative increase of approximately $1.15 million over 11 years compared to the projected trend.

The committee also discussed the future financial landscape once TIF investments are paid off. For instance, in Burlington, the expiration of the waterfront TIF district is expected to yield an additional $2 million for the education fund, underscoring the potential financial benefits of TIF districts once initial investments are recouped.

The meeting concluded with reflections on the importance of stimulating downtown areas through strategic investments, emphasizing the need for continued support of municipal designs that promote economic growth. The discussions underscored the ongoing impact of TIF districts on local education funding and community development.