Cook County Clerk Joins Call For Emanuel To Declare TIF Surplus, Fund CPS

By Chuck Sudo in News on Jul 12, 2013 4:50PM

Cook County Clerk David Orr released his annual report on revenue collected from tax increment financing (TIF) districts in Chicago and suburban Cook County and joined the growing call for Mayor Emanuel to declare a TIF surplus to fund Chicago Public Schools’ 2013-14 school year.

Orr has some numbers on his side. Last year Chicago’s 154 TIF districts generated $457 million in surplus revenue. That’s up slightly, but remember that nine TIF districts were shut down, so the numbers there cancel each other out. Orr did credit Emanuel for stemming the flow of TIF districts.

Still, 154 TIF districts controlled by the mayor to dole out as he pleases is 154 TIF districts too many to opponents of CPS school closings and people who understand that TIF districts siphon money from city services and departments, especially considering the districts have generated $5.5 billion in revenue since Harold Washington established the Central Loop Tax Increment Financing District in 1986. With CPS claiming to have a $1 billion budget deficit for the upcoming school year, Orr said the TIF surplus money should go to the school system.

"How do we explain to school kids that gym, music and art classes are canceled while profitable businesses are tapping into the city’s tax base?" Orr said. He added the city has already turned over $182 million in TIF surplus funding to CPS over the last five years, including $10.5 million last year. If CPS has a $1 billion deficit, as they claim, Orr said the total surplus should go to them. "TIFs may have helped make downtown Chicago beautiful, but not enough is being done with TIF funds in the neighborhoods where they are needed most," Orr said.

In other good news on the TIF front, Orr announced that future property tax bills will list how much a homeowner’s property taxes go to TIF districts; a move Orr said would improve accountability of the TIF process. That will happen with the Summer 2014 bills.