Educational equity and economic development: A study of the impact of tax increment financing districts on suburban cook county school districts

Tax increment financing (TIF) districts have become a popular economic development tool, designed to encourage growth in blighted areas by redirecting property tax revenues to fund improvements and incentivize developments (Briffault, 2010). However, this tool results in a diversion of funds that would otherwise go to local taxing bodies, such as school districts (Dye & Sundberg, 1997). The impacts of TIF districts for public school funding, particularly in school districts with higher percentages of low-income students, students of color, and lower property wealth, is an area that has not been studied extensively, despite the significant reliance of school districts on property tax revenues (Habans & Bruno, 2018; Hickrod et al., 1987; McGuire & Papke, 2008). This dissertation furthers the current research by investigating: (a) the relationship between the establishment of TIF districts and the property wealth, racial demographics, and income demographics of affected school districts in suburban Cook County, Illinois, and (b) the impacts to property tax and total revenues that those affected school districts experienced. Using both descriptive and causal quantitative analyses, results show that TIF districts are more likely to be established in school districts with higher percentages of low-income students, lower percentages of white students, and lower property wealth per pupil. Results also demonstrate that there is a measurable decrease in property tax revenues and total revenues received by affected school districts, especially at the elementary level. This study highlights the need for TIF legislation reform in Illinois and proactive partnership between school districts and municipalities.

Name thesis:degree_name

Ed.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Educ Policy, Orgzn & Leadrshp

Grantor

University of Illinois Urbana-Champaign

Year dc:date

2025

Author dc:creator

• Attaway, Justin Matthew

Contributors dc:contributor

• Roegman, Rachel
• Bruno, Paul
• Hinze-Pifer, Rebecca
• Alexander, Samuel

• Tax increment financing
• School district revenue
• Education finance reform
• Property tax and education
• Fiscal equity in education
• Illinois school funding
• Economic development policy
• Critical resource theory
• Education policy and equity

Statement dc:rights

• Copyright 2025 Justin Attaway

Language dc:language

en, eng

Handle dc:identifier

https://hdl.handle.net/2142/129392

OAI record oai:identifier

https://www.ideals.illinois.edu/oai-pmh?verb=GetRecord&metadataPrefix=etdms&identifier=oai%3Awww.ideals.illinois.edu%3A2142%2F129392