{"id":86727,"date":"2020-02-22T10:36:29","date_gmt":"2020-02-22T16:36:29","guid":{"rendered":"https:\/\/news.medill.northwestern.edu\/chicago\/?p=86727"},"modified":"2020-02-26T12:40:15","modified_gmt":"2020-02-26T18:40:15","slug":"how-chicagos-controversial-tif-program-took-over-a-third-of-the-city","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/how-chicagos-controversial-tif-program-took-over-a-third-of-the-city\/","title":{"rendered":"How Chicago\u2019s controversial TIF program took over a third of the city"},"content":{"rendered":"

By Joel Jacobs<\/strong>
\nMedill Reports<\/strong><\/em><\/p>\n

Mayor Lori Lightfoot announced reforms to Chicago\u2019s controversial Tax Increment Financing program (TIF) earlier this month, promising transparency and more oversight.<\/p>\n

\u201cFor too long, the City\u2019s TIF spending decisions have occurred in the shadows,\u201d she stated in a press release.<\/p>\n

The press release<\/a> also included a statement from Deputy Mayor of Economic and Neighborhood Development Samir Mayekar. \u201cEach year, the City receives hundreds of millions of dollars in property taxes through the TIF program \u2013 and residents deserve to know that their money is being used well.\u201d<\/p>\n

It took decades for the TIF program to evolve from an obscure tax law passed in the 1970s to what critics call a \u201cslush fund\u201d that rakes in hundreds of millions of dollars a year and sparks protests outside City Hall over developments such as Lincoln Yards on the North Side.
\n
\nThe TIF program is meant to spur development in \u201cblighted\u201d areas by declaring them TIF districts, which means that for the next 23 years, any increase in property tax revenue in that area goes into a TIF fund. This fund is set aside for development projects in that area \u2014 the logic being that new development will increase property values, generating TIF revenue that the city can use to subsidize that development.<\/p>\n

However, for years critics have argued that TIF lacks transparency and has been used to subsidize development in non-blighted areas that don\u2019t need it. In addition, TIF districts capture property taxes that would otherwise be split between schools, the city and special taxing districts such as the Chicago Park District. Around half of the property tax revenue collected by TIFs would otherwise go to Chicago Public Schools.<\/p>\n

\"\"
A chart showing the distribution of property taxes in Chicago in 2018. TIF revenues accounted for 12.5% of all property taxes in the city. (Source: Cook County Clerk)<\/figcaption><\/figure>\n

The current 136 TIF districts in Chicago cover about a third of the city. In 2018, Chicago TIF districts collected $841 million in property taxes, accounting for 12.5% of all property taxes collected in the city.<\/p>\n

The timeline below highlights some of the major trends and events in Chicago\u2019s TIF history:
\n