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Discussion Overview

Discussion Overview. Impact of Economic Development Incentives on our Local Schools Achieving Proper Balance. Public Education Funding. Source: U.S. Department of Education. Within the last 20 years…. A number of new incentives have been instituted to spur economic

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Discussion Overview

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  1. Discussion Overview • Impact of Economic Development Incentives on our Local Schools • Achieving Proper Balance

  2. Public Education Funding Source: U.S. Department of Education

  3. Within the last 20 years… A number of new incentives have been instituted to spur economic development in the state • These incentives rely heavily on property tax abatements or diversions to partially fund development • Public schools rely heavily on property taxes to fund the education of children

  4. Economic Development Study • Study the use of Economic Development Incentives in Missouri • Gauge the impact of these incentives on funding for public education

  5. Economic Development Study Missouri School Boards Association Missouri Association of School Administrators Missouri NEA Missouri AFT Cooperating School Districts of Greater St. Louis Cooperating School Districts of Greater KC Missouri Association of Secondary School Principals Missouri Association of Elementary School Principals Missouri State Teachers Association Missouri Parent Teachers Association

  6. Economic Development Study • Conducted by Doolin Ward LLC of Kansas City • Focused only on the year 2007 • Focused only on tax abatements and diversions of four types of incentives – Chapter 353 – Tax Increment Financing (TIFs) – Chapter 100 – Enhanced Enterprise Zones (EEZs)

  7. Local Impact How Have Economic Development Incentives Affected the Riverview Gardens School District & its Students?

  8. Study Findings Total Tax Dollars Diverted/Abated in 2007 TIF $ 50,489 Chapter 353 $ 0 Chapter 100 $ 0 Economic Ent. Zones $ 0 Total $ 50,489 • The diverted/abated tax dollars shown here are for one Year ONLY in 2007 • Many Economic Development Incentives last in excess of 20 years

  9. Local Impact Though no research has been conducted to show a clear relationship, there is reason to believe that the granting of economic development incentives by municipalities to developers is at least a factor in the increasing gap that exists between the assessed values of homes in the district when compared to the assessed value of commercial property since 1985

  10. Local Impact

  11. Local Impact

  12. Local Impact In most communities in the St. Louis-Metropolitan Area, it appears that homeowners and small businesses are carrying an ever-increasing share of the property tax burden while many large scale developments are being exempted

  13. Local Impact Under the present system of granting economic development incentives, school districts are the primary contributors and cities are generally the ones that control. The system is stacked against schools and other public services that rely on property tax revenues

  14. What is the Proper Balance Between the Funding of Public Schools and Fostering Economic Development? • Good schools are necessary for good development • Good development is important for a good community, good schools and infrastructure development • How do we assure each?

  15. Success will depend on effective partnering and a balanced approach

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