Springfield District 186 leaders warn Jerome TIF could cost $2.68 million in operating revenue over 23 years

Springfield Public Schools Superintendent Gill told the District 186 Board that the village of Jerome is seeking a tax-increment financing (TIF) district on the North side of Wabash, the east side of Chatham Road and the north side of Isles and that the district's share of new property-tax growth in that area would be captured by the TIF for 23 years.

That change would not reduce the district's current "base" property tax receipts but would divert the future growth in assessed value and tax revenue from District 186 into the TIF, Gill said. "The district actually does have a seat on the joint review board," she added, and noted the district can make suggestions to the board but does not have veto authority over a TIF recommendation.

District staff presented projected fiscal figures: the TIF is estimated to cause a cumulative negative impact to the district of about $4,433,000 over 23 years, the village has proposed returning roughly 25% of the TIF increment to the district (about $1,650,000 over the same period), and the net loss to District 186's operating (Ed) fund would be roughly $2,680,000 during the district's life of the TIF.

Assistant finance staff Steve Miller explained the mechanics: the district would continue to receive existing base tax on properties inside the proposed boundary but would not receive the additional revenue generated by increases in property valuation or by new development inside the TIF. He said the village described planned uses for TIF funds such as utility infrastructure and sidewalks and that increased sales-tax receipts could partially offset lost operating revenue, but those proceeds are restricted to facility projects and cannot be used for teacher salaries or other Ed fund operating costs.

Board members voiced concern about the cumulative effect of multiple TIFs across Springfield. Board member Micah Miller said the district has already seen multiple TIFs and similar abatements reduce its revenue base and called the Jerome request "death by a thousand cuts" when combined with other revenue pressures. Staff noted the district sits inside nine active TIFs and two others in the city do not fall inside District 186 boundaries.

Superintendent Gill said District 186 representatives have attended joint-review-board meetings and will continue to present concerns; she told the board the village expected work on the Jerome TIF paperwork to proceed in the fall and that the district would return to the TIF review process at its next meeting. No formal vote was taken by the Board of Education on the TIF; the district does not have a direct vote on the joint-review-board decision.

The district plans to report back to the board after the next joint-review-board meeting and encouraged board members to communicate any further questions to staff ahead of that session.