HB3674 Summary

• Amends the School Code section on state aid formulas (105 ILCS 5/18-8.05) to remove provisions that excluded tax increment financing (TIF) incremental value from equalized assessed valuation calculations.

• Eliminates language that prevented school districts containing redevelopment project areas with tax increment allocation financing from counting increases in property valuation above the initial equalized assessed valuation when calculating available local resources.

• Changes subsection (G)(2)(a) from detailed TIF exclusion rules to a blank provision, allowing full equalized assessed valuation to be used in state aid calculations regardless of TIF status.

• Simplifies state aid calculations for school districts by removing the special adjustment mechanism that previously reduced their funding eligibility due to TIF districts in their boundaries.