A report released by the Cook County Clerk last month found that revenue from TIF districts increased to a record $1.6 billion for FY2021, including approximately $1.2 billion from the City of Chicago and approximately $361 million from suburban Cook County. The $1.6 billion total accounts for a 7.4% increase from FY2020 and represents 9.4% of billed property taxes in the County. In total, nine TIF districts were closed in 2021 (most of which were in the suburbs) that had generated a collective…
The following blog post discusses how the City of Chicago has used surplus revenue in its tax increment financing (TIF) districts since 2013. TIF is a powerful economic development tool for the City of Chicago, particularly at a time when capital and development funding from the State of Illinois and federal government has been scarce. One out of every four properties in the City is in a TIF district and in 2017 the City of Chicago collected over $660 million in TIF revenue, nearly one-third…
This article examines a new transit tax increment financing (TIF) district that will help fund the Chicago Transit Authority red line modernization. Laurence Msall, President of the Civic Federation, acknowledges that this is a creative way to fund Chicago transit in the absence of a State capital bill, but warns that it could change the policy for how public transit is funded in Illinois.
Budget holds fares flat despite increased expenses and lower revenues (CHICAGO) In an analysis released today, the Civic Federation announced its support for the Chicago Transit Authority’s proposed FY2017 operating budget of $1.52 billion. The budget holds base fares flat and continues to make strategic capital investments despite ongoing state funding uncertainty. The full 55-page analysis is available here. As detailed in the report, the structurally balanced budget does not rely on one-…
Following Mayor Rahm Emanuel’s FY2017 budget address, Civic Federation President Laurence Msall spoke with a pool of reporters about the finances of both the City of Chicago and Chicago Public Schools. He called the Mayor’s proposed budget “good news” for the City but cautioned that Chicago is not out of the woods yet. Msall also called for more details on how the recently signed teachers’ contract would be funded. ----- City of Chicago Finances DNA Info: Rahm Expands…
This article reports on a tentative contract deal reached between the Chicago Public Schools and the Chicago Teachers Union. Civic Federation President Laurence Msall notes that CPS should not rely on TIF surplus funds, because they are not enough to close the deficit that Chicago Public Schools faces, among other reasons.
FY2016 Budget Season Summary December 3, 2015 marked the end of the budget season for the eight local governments monitored by the Civic Federation. These governments include: the City Colleges of Chicago, Chicago Public Schools, City of Chicago, Cook County, Chicago Transit Authority, Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago and Chicago Park District. Four of the seven governments that levy property taxes held their levies relatively…
This article discusses Mayor Emanuel’s decision to freeze spending in certain downtown TIF districts and shut down the districts over time. The Civic Federation said the move shows the Mayor’s commitment to free up available resources to address the City’s financial crisis, but it should come as part of a comprehensive, long-term financial plan.
This article discusses Chicago’s Tax Increment Financing program and counters the argument that TIF districts take money that would otherwise go to public schools. When a TIF district is created its EAV at that time remains frozen, so tax revenues generated from the incremental growth in EAV above the frozen base are used for TIF projects. This does not change the levy collected by individual governments on the frozen base EAV. The Civic Federation explained that in recent years CPS has…
A new report by Cook County Clerk David Orr released on July 16 finds that 68.2% or 103 of Chicago’s 151 tax increment financing (TIF) districts experienced revenue declines in 2013. Only 30 TIFs reported revenue increases, while 21 of the districts did not collect any revenues at all. Suburban Cook County TIF district revenues also decreased, falling by 2% from nearly $266.3 million to $260.9 million. The Clerk’s Office annual TIF report provides information about revenues collected for each…
