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Tax Increment Financing

The injudicious use of Tax Increment Financing has exacerbated the strain on schools and property taxes. What was once a powerful development tool to reinvigorate blighted areas has now become a weed, choking off school revenue and redoubling property tax burdens.

Cook County Commissioner Mike Quigley's report, published this April, explains the reform measures that are needed. Some steps have been taken but more work needs to be done, including:

• Report TIF information on property tax bills. 
  
• Require each local taxing entity to analyze the fiscal effects,
  including potential losses, on TIF redevelopment plans.
  
• Adjust the base by inflation on an annual basis to keep pace
  with increases in the cost of providing services.
  
• Develop meaningful independent oversight.
  
• Restrict the movement, or "porting" of TIF money to ensure
  funds are used appropriately.