HF921

The legislative bill H. F. No., authored by Kresha, aims to address adjustments in school district finances related to tax increment financing (TIF). When a school district receives excess tax increments due to adjustments or decertification of a tax increment district, this bill ensures modifications are made to both the aid and levy limits of the school district for the relevant fiscal year.

Key elements of the changes proposed by the bill include:

1. Adjustment in District Aid: For the fiscal year in which the excess tax increment payment is received, an amount equivalent to the payment multiplied by the ratio of specific prior years' certified levy amounts will be subtracted from the district's aid.

2. Aid Types Affected: The bill specifies multiple types of aid that can be affected by this adjustment, including health and safety, long-term facilities maintenance aid, community education programs aid, early childhood family education aid, referendum equalization aid, operating capital aid, equity aid, transition aid, debt service equalization aid, natural disaster debt service aid, school-age care aid, and alternative teacher compensation aid.

3. Adjustment in Levy Limitations: The school district's levy limit for the next certified levy will be reduced by the difference between the total amount of the excess tax increment received and the amount subtracted from the aid.

4. Application Criteria: The provision only applies if the total excess tax increment received by a district for a calendar year exceeds $25,000.

These adjustments help ensure that when a district receives unexpected increases in funding through tax increment financing, its financial support from state aids and levy limits are recalibrated accordingly to maintain balanced fiscal operations.