That's according to a memo released Wednesday by the Legislative Fiscal Bureau.
The report conflicts with a previous study by the Department of Revenue that suggested the limits would discourage local governments from using TIF districts to spur growth.
Gov. Doyle's spokesman says municipalities would be forced to cut spending on basic services as new property tax revenue came in from the TIF districts so they would remain under the proposed limits, but Republicans say is distorting the intent of the limits as he campaigns to preserve his veto of the plan.
The dueling reports are the latest episode in an ongoing battle between Doyle and Republicans over the limits. Republicans inserted the limits into the budget they approved in June only to watch Doyle veto them last month. The Democratic governor says they would hurt schools and local governments.