He explained that the properties on which TIF taxes are paid are not included in the AISD's property values.
State aid is calculated based on enrollment and property taxes.
As property values rise, state aid drops. After a year, the increased property tax revenue gained from opting out of the TIF district and the loss of state aid would produce a wash, Polnick said. Among the proposals are closing schools and paying cash incentives to veteran employees to resign, reducing the district's payroll. Declining enrollment, which also lowers state aid, is causing the shortfall. City officials don't believe the school system can stop contributing to TIF coffers.