THE FOLLOWING IS A DANVILLE DISTRICT 118 RELEASE
DANVILLE, IL – Danville Community Consolidated School District 118 is asking the City of Danville and the Village of Tilton to return a portion of Tax Increment Financing (TIF) revenues to help support local students, classrooms, teachers, staff and educational services.
The district is not asking for new taxes.
It is asking municipalities to share a portion of property tax revenue currently directed into municipal TIF funds and return those dollars to the schools serving our communities’ children.
More than $12.8 million in school property tax revenue has been lost by District 118 due to the TIF districts
TIF districts are designed to promote economic development by redirecting growth in property tax revenues within a designated area and using those revenues for development-related projects.
While municipalities have the legal authority to establish TIF districts, other local taxing bodies, including school districts, cannot prevent those property tax revenues from being redirected.
District 118 currently serves students from communities affected by five TIF districts in Danville and five in Tilton.
The impact on local schools is significant.
The City of Danville established its first TIF district in 2005 and has since created four additional TIF districts. The city is also in the process of expanding the existing Western Gateway TIF district.
According to the City’s 2025 Annual Tax Increment Finance Report, Danville’s TIF districts have generated $10,033,728 for the city since their formation. Because approximately 50% of the local property tax rate is attributable to District 118, an estimated $5,016,864 in property tax revenue that would otherwise have supported the school district has instead been directed to Danville TIF districts.
Tilton established its first TIF district in 1991 and has since created four additional TIF districts, with a sixth currently being developed.
Financial information provided by the Village shows that Tilton’s TIF districts have generated $13,118,424 through 2025. District 118 tax rate represents approximately 60% of the total property tax rate paid by Tilton residents, an estimated $7,871,054 in property tax revenue that would otherwise have supported the school district has instead been directed to Tilton TIF districts.
Combined, the figures represent more than $12.8 million in property tax revenue diverted from District 118 through Danville and Tilton TIF districts over the life of those TIF districts. And the financial impact on schools will continue to compound yearly.
In 2025 alone, Danville TIF districts generated $1,754,554, while Tilton TIF districts generated $2,510,305. Based on District 118’s share of the local tax rate, approximately $2.38 million of that 2025 revenue represents property tax dollars that otherwise would have gone to the school district
– approximately $877,277 from Danville and $1,506,183 from Tilton.
Every local dollar matters in the classroom
For District 118, these are not simply numbers on a financial report. Local property tax revenue directly supports the services and resources available to students.
According to the district’s audited financial reports, approximately 26% of District 118’s revenue comes from local sources, compared with 51% from the state and 23% from federal funding.
At the same time, school districts continue to absorb substantial costs associated with state-required programs that are not fully reimbursed.
For the 2025-2026 school year, estimated reimbursement rates include approximately:
• 70% of general education transportation costs
• 71% of special education transportation costs
• 88% of special education private facility tuition costs District 118 must cover the remaining costs with local resources.
That makes every local property tax dollar particularly important.
District 118 is asking for a partnership, not to end TIF Districts
District 118 recognizes that TIF districts can play an important role in economic development and community growth. The district is not asking Danville or Tilton to eliminate TIF districts.
Instead, the district is asking both municipalities to recognize that schools are also essential to the community’s future and to return a portion of TIF revenues to the school district.
Those dollars would help support:
• School safety initiatives
• Student achievement and academic programs
• Teacher and staff recruitment and retention
• Special education services
• Educational programs and opportunities for students
• Technology improvements
• Facility maintenance and upgrades
The district’s position is simple: When property values and economic activity grow, the benefits of that growth should be shared with the schools serving the families who live and work here.
Strong schools are essential to a strong community. They help attract and retain families, prepare the local workforce, support property values and contribute to the long-term economic health of our communities.
Returning a portion of TIF revenues to District 118 would not take away from the importance of economic development. It would recognize that education is itself an investment in economic development.
Superintendent Statement
Danville School District 118 remains committed to working collaboratively with the City of Danville and the Village of Tilton. We recognize the important role economic development plays in building a strong community. At the same time, we believe our communities should understand that TIF revenues come from property tax dollars that would otherwise support Danville School District 118.
At a time when school districts are absorbing increasing costs associated with state-required programs and receiving less than full reimbursement for transportation and other services, every local dollar matters. We believe it is reasonable to ask that a portion of these revenues be returned to the
schools serving the students and families of Danville and Tilton.
Economic development builds today’s community. Education builds tomorrow’s future. We believe both deserve our investment.”
John P. Hart
