Chicago Public Schools (CPS or the ‘District’) introduced a proposed $9.88 billion budget for fiscal year (FY) 2027 on July 15, 2026. Much of the discussion in the week since has surrounded how the District proposes to address ongoing fiscal uncertainty and the degree to which it continues to rely on uncertain revenues. Given the volatility and uncertainty associated with Tax Increment Financing (TIF) District surplus dollars, CPS has moved to reduce its total TIF surplus assumption for the…
TIF is a tool used by local governments, like cities, towns, or villages, to boost their economies and pay for redevelopment projects in specific areas. Governments do this by taking property tax revenue above a set starting point and reinvesting it back in the same area. The goal is to encourage development that would not happen without this public funding.
A recent report by Cook County Treasurer Maria Pappas shows that Cook County property taxes surged 182% in the 30-year period between 1995 and 2024, rising from $6.8 billion to $19.2 billion. This is far greater than the 91% rate of inflation during that period and much higher than the 161% increase in wage growth (161%). The major drivers of this increase are: Increases in school district levies, which hiked property taxes by over 189% in this period.The failure of the state’s property…
In October of 2025, Mayor Brandon Johnson released his proposed 2026 budget, which aims to close a deficit of over $1.2 billion as is required by state and municipal law. One component of the budget is a $1.01 billion Tax Increment Financing (TIF) District surplus, which will generate an estimated $232.6 million in revenue for the City of Chicago (Chicago or ‘the City’). Although this year’s $1.01 billion surplus is the largest in Chicago’s history, the oncoming expiration of many TIFs…
Tax Increment Financing (TIF) Districts are a complex, often misunderstood part of Chicago’s tax structure. TIF Districts segment and dedicate a portion of property tax collections within a designated geographic area to fund economic development and capital or infrastructure projects. They do not, as critics often claim, siphon funds away from local governments. Instead, TIF districts limit the taxable value of property, or the tax base, from which local governments can draw their property tax…
This report explains the system and method for how property taxes are levied, calculated and collected in Cook County, Illinois. This is called the tax extension and billing process. Additional Civic Federation primers will explain the Cook County assessment, property tax appeals and tax increment financing (TIF) systems.The purpose of this report is to make the property tax system more transparent and understandable for policymakers, homeowners, renters, business owners, and residents across…
A report released by the Cook County Clerk in July 2024 found that revenue from Tax Increment Financing (TIF) districts in Cook County increased for a seventh straight year to nearly $1.8 billion, including approximately $1.4 billion in the City of Chicago and $428.3 million in suburban Cook County. The $1.8 billion total accounts for a 5.5% increase from tax year 2022, representing 9.7% of property taxes billed in the County.
This report lays out several major issues facing the Chicago Mayor and City Council as they prepare to enter the FY2025 budget cycle and beyond, including the City’s structural deficit, pensions, long-term debt, public safety and more.
A report released by the Cook County Clerk in November 2023 found that revenue from tax increment financing (TIF) districts in Cook County increased for a sixth straight year to a record $1.7 billion, including approximately $1.3 billion from the City of Chicago and $404.3 million from suburban Cook County. The $1.7 billion total accounts for a 7.5% increase from tax year 2021 and represents 9.6% of billed property taxes in the County. Thirteen TIF districts were closed in tax year 2022,…
With the upcoming implementation of an elected school board to oversee Chicago Public Schools, the governance of CPS will be separated from the City of Chicago. The 21-member elected school board, set to replace the existing seven-member board appointed by the Chicago mayor, will be phased in beginning in 2025, with the fully elected board in place beginning in 2027. The separation raises questions about the ongoing financial responsibility of the City to the school district and whether…
