Title LayoutSubtitle

What is TIFTIF?

*TIF explanation material and diagrams borrowed from

Chicago Coalition for the Homeless’ Sweet Home Chicago campaign

What does TIF TIF do?TTax IIncrement FFinancing or TIFTIF is an economic development tool the City of Chicago uses to develop a community with property taxes.

General Expenses:

•Schools

•Libraries

•Parks

$100 $100 $100

$100 $100 $100TOTAL:TOTAL:

$600$600

$100 $100

$100$100

$100

$100

General Expenses:

•Schools

•Libraries

•Parks

TIF (Tax Increment Financing) District

(Can last for up to 23 years)

$125$125 $125

$125$125 $125

$125$125 $125

$100 $100 $100

$100 $100 $100$25 $25

$25

$25

$25 $25

$125 $125 $125

TOTAL:TOTAL:

$600$600

Total Money Collected (After TIF):

$1125$1125

TIF Fund:TIF Fund:

TOTAL:TOTAL:

$525$525

NEW NEWNEW

TIF Equity & Racial Justice

▪Have you seen cutbacks in your community? What was the impact?

*Diagram from Chicago Reader article by Ben Joravsky and Mick Dumke

Real Impact of TIF 2002-2010▪Downtown Job Growth = 41,197 ( 7.1% )▪Englewood Job Loss = 537 (21.8%)▪West Englewood Job Loss = 903 (25.7%)▪Auburn Gresham Job Loss = 1490 (21.8%)▪Oswego, IL Job Gain = 834 ( 123.9% )

*Information based on Longitudinal Employment Household Dynamic Data 2002-2010

*Diagram from Chicago Reader article by Ben Joravsky and Mick Dumke

TIF's Take in 2011

Board of Ed, $239M

School Bldg & Improv Fund, $9.9M City of Chicago,

$83M

Library Fund, $9.2M

Park District, $28.8M

Water Reclamation, $22.7M

City Colleges, $13.7M

County, $38.4M

Forest Preserve, $4.8M

Total: $453.7M

▪Cut public safety, close 3 police districts - $82 million

▪Cut library hours - $7 million

▪Shut down 6 mental health clinics - $7 million

▪Forced the cut of $87 million in auxiliary/after-school programs

Rahm’s First Budget Cuts

Rahm’s First Budget Taxes/Fees

▪Raised water fees - $147 million, $120/family

▪Raise city sticker cost - $15 million

▪Raised CPS property taxes - $150 million, $84/family

▪Additonal $204 per family in 2012

▪Eliminating the Corporate Head Tax

▪Annual revenue = $35 million

Rahm’s First Corp Handout

TIF Corporate Welfare▪ Ground Breaking at River Point Tower▪ $29.5 M for Corporate Plaza

▪ More office buildings proposed despite a 14.9% vacancy rate at end of 2012

▪ In 2011, there were no revenues generated for LaSalle Central TIF

Interest Rate Swaps

▪$73 million from the City

▪$35 million from Chicago Public Schools

▪$4.8 million goes to Bank of America

▪Closing 9 schools in order to pay Tim Maloney

IL Income Tax’s Uneven Burden

Whose side are you on?

VS

Shared Prosperity

▪End TIF Corporate Welfare

▪Renegotiate Interest Rate Swaps

▪Change IL Income taxes