T.I.F. "Surplus" Disappearing

A secret piggy bank, it's about to be drained:

• The Civic Federation is shining a bright and unflattering light on Mayor Brandon Johnson’s plan to declare a record $1 billion tax increment-financing surplus to rescue the city and Chicago Public Schools, stave off classroom cuts and help bankroll a new teachers contract.

  In a report issued Monday, Chicago’s preeminent taxpayer watchdog group said the “complex and highly politicized” surplus process revised by the Johnson administration last year has allowed the creation of TIF districts to “act as a sort of stealth property tax” that bankrolls operating costs at the expense of economically challenged areas TIF districts were created to revitalize.

  Although “increasingly large TIF sweeps” have bailed out the city and CPS budgets in recent years, the special taxing districts were “not designed to serve as a source of operating revenue” nor will “surpluses of this size continue” in future years.

  In fact, the expiration of many TIF districts beginning in 2030 means those surpluses will “begin to decline,” depriving the city, CPS and other cash-strapped local agencies of a way to generate cash windfalls without risking the political fallout from raising property taxes.

Remember, this looting of the TIF fund is on top of the massive property tax increases we all just got in the mail - increases caused AGAIN by the Chicago Public Schools raising their portion of the property tax the maximum allowable by law, despite:

• declining enrollment
• under-utilized buildings (some at less than 10% of capacity)
• test scores and graduation rates plummeting

If Chicago had real reform....and result based initiatives....taxpayers would be getting massive refunds.