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…
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…
Last week Cook County Clerk David Orr announced upcoming changes to property tax bills that will allow residential and business taxpayers with properties located inside tax increment financing (TIF) districts to see how much of their payments are going to TIF funds. For the first time, Cook County second installment property tax bills mailed this summer will show the tax amount and percentage of…
The Civic Federation supports the $425.6 million Chicago Park District budget for continuing the District’s multi-year effort to reduce its structural deficit. The proposal includes a broad-based property tax increase after eight years of relatively flat levies for the District. It also leaves the District well-positioned to implement the comprehensive pension reforms passed by the Illinois…
Pension Contribution Increase in FY2015 Threatens to Derail Fiscal Progress In a report released today, the Civic Federation announced its support for the City of Chicago’s proposed $7.0 billion budget as a reasonable short-term plan that continues to reduce the City’s structural deficit. However, Chicago’s fiscal and economic stability continue to be jeopardized by the failure to fix the City’s…
The Civic Federation supports the City of Chicago’s proposed $7.0 billion budget as a reasonable short-term plan that closes approximately two-thirds of a $338.7 million budget gap with structural changes that will continue to reduce the City’s ongoing deficit. To help balance the FY2014 budget, the City proposed an increase in the City’s cigarette tax rate, a reduction in the partial exemption…
As noted in last week’s blog post, two City of Chicago tax increment financing (TIF) districts will be extended for another 12 years if Governor Quinn signs Senate Bill 20, a large economic development bill, into law. The two TIF districts, the Michigan/Cermak TIF and the Midwest TIF, are located on the near south side and west side of Chicago. This blog will focus on the two districts. For more…
In the latest session of the General Assembly, the Illinois legislature approved extensions of two Chicago-area tax increment financing (TIF) districts. This blog explains what happens when TIF districts are set to expire and what local governments gain and lose from expirations and extensions. Next week, the Civic Federation blog will explore the specifics of the approved legislation. TIF…
On June 30, 2011 the Civic Federation released Recommendations for a Financially Sustainable City of Chicago. The report offered a comprehensive set of forty recommendations to improve the City’s long-term fiscal condition. The reforms could be implemented over the next few fiscal years and covered a wide array of functions from pensions to public safety. Next month the City will release its…
The Civic Federation supports the Chicago Park District FY2012 Budget of $407.5 million because it holds the property tax levy flat for the seventh year in a row and emphasizes cost containment and revenue diversification. The Federation supports the District’s development of a fund balance policy and its efforts to eliminate the structural deficit through a multi-year plan. While we support the…
