Does the title look a little bit like an encrypted message? No idea where to find the decoder? This brief guide will translate the acronyms into understandable language and provide you  with key questions to ask your local decision-making bodies about the use of Tax Increment Financing (TIF) in your community and its impacts on funding for local schools.

Tax Increment Financing, or TIF, originated in California in 1952. Originally intended as a way to raise matching funds for federal grants, TIF has grown quickly and spread widely ever since. TIF reached Arkansas in 2000 as a result of Amendment 78 to the Arkansas Constitution.

TIF has varying requirements throughout the many states that utilize it, but the basic operation is pretty much the same: TIF is used to finance public investments (usually infrastructure such as water lines and street repair) needed to spur economic development in a blighted area.

At the beginning of the process, specific parcels of land are set aside for economic development (these parcels are then known as TIF districts).