TIF for That: Comprehensive TIF Reform Coming to Chicago?

23 08 2010

State Representative John Fritchey, who will be giving up his seat in the state house representing the 11th District to replace Forrest Claypool on the Cook County Board of Commissioners (assuming he wins in November), is teaming up with the Chicago Teachers Union and the Raise Your Hand Coalition to push comprehensive reform of the tax increment financing, or TIF, program. The reforms could end the exploitation of TIFs by the Mayor’s office as a cudgel, and restore significant funds to taxing bodies–particularly the schools–that have seen billions of dollars disappear over the last couple decades.

Tax increment financing was created by state statute in the 1970s as a way to provide incentives to develop blighted areas. TIF areas are designated by municipalities; within those areas, property tax assessments are frozen at the level they were at when the zone was designated. The land is still assessed and the taxes on the increase are still collected, but they are diverted into a site-specific fund rather than being paid to the various taxing bodies that typically collect them. Those bodies are, primarily, school districts, counties, the municipality itself, and sanitation and fire districts, among others. The idea is that without the incentive, that tax money would never have been raised in the first place, and so those taxing bodies are not actually losing anything.
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Never Mind the Millionaires, Here Come the Teachers Unions

1 03 2010

The crusade to privatize Chicago’s (and America’s) public schools is not the same thing as a desire to reform our schools. You can believe in charter schools within a public school system to innovate curriculum (I do) and believe that there has to be some peer review process to allow schools to get rid of bad teachers more easily (I also believe this) without buying into the massive privatization scheme being sold as the only way to reform education. Our schools are failing and we need to address that problem. Is injecting the profit motive into school districts, unraveling civil service protections and slashing pay and benefits for teachers, and allowing “problem” children to fail the only way to do it? Privatization zealots want so desperately for you to believe that, but in order to believe it, you have to make some extraordinary and irrational assumptions.

For the school privatization behind Renaissance 2010 to make any sense, you’d have to think that something in the order of 1/3rd of Chicago’s teachers are bad teachers that should be fired (the union has shrunk by an estimated 5,000 teachers in the last ten years), you’d have to answer “yes” to the first follow up, and have to be oblivious to the fact that it was highly-paid “education professionals” who hired them (and kept them long enough for them to get tenure).

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