POLITICS: Chicago Funnels A Third Of Property Taxes To Mayor-Managed Slush Funds

Friday, July 27, 2018

How corruption in Chicago works:

In Chicago, nearly a third of all property tax revenue is diverted into private TIF funds appropriated for the city’s 143 TIF districts. And despite the fact that TIFs are meant to encourage development in blighted neighborhoods, these districts aren’t limited to underserved areas. Nearly half of the $660 million Chicago collected in TIF revenue last year was captured by TIF districts located in affluent neighborhoods, including the Loop. The LaSalle Central TIF district, which is only 12 years old, brought in nearly $57 million in revenue in 2017, the highest among Chicago-area TIF districts.

This leaves taxing bodies such as Chicago Public Schools scrambling for funding to make up for revenue diverted to TIF funds. In order to make up for revenue lost to TIF districts, local taxing bodies resort to raising their property tax levies. This only adds to Illinoisans’ already heavy property tax burden.

Abuses of the TIF system are well documented, but lawmakers have done little to correct these issues. In fact, Chicago is currently considering a new TIF district encompassing industrial land in affluent Lincoln Park. This follows another recent TIF district established at the site of the former Lathrop Homes.

Read the full article here: 
Chicago Funnels A Third Of Property Taxes To Mayor-Managed Slush Funds

P-B