Tax Increment Finance (TIF) and Schools

By Corey Murphy
Chamber & Economic Development, Executive Director
Madison, Indiana
May 16, 2012

Education is critical to community success.  Important decisions that affect the quality and sustainability of Madison Schools will need to be made by the local elected school board.

Tax Increment Finance (TIF) is not an option for the schools because state statute prohibits using TIF funds to help pay teachers or other school costs. Madison Schools' funding challenges are primarily within the general fund (i.e. teachers pay).  The general fund is supplied by the state of Indiana, not local property tax revenue.

The slide show located on the school web site (http://www.madison.k12.in.us/) does not mention Tax Increment Finance (TIF) as a factor in the schools' funding challenges.  Declining state support and declining elementary student population are the two primary
reasons for the schools to consider reorganization.

TIF is an important economic development tool as is education.  Both support our community's competitiveness.

I wish the schools well as they chart a new course for our local students and look forward to continuing our partnership.