Comptroller, Chicago officials debate tax fund sweeps
(The Center Square) – Illinois Comptroller Susana Mendoza and Chicago Mayor Brandon Johnson’s administration are at odds over legislation that would limit municipalities’ ability to reallocate tax increment financing dollars.
Mendoza joined state Rep. Bob Rita, D-Blue Island, to explain HB 4712 to the Illinois House Revenue and Finance Committee on Thursday. She said state Sen. Bill Cunningham, D-Chicago, introduced companion legislation in the Senate.
Mendoza said TIF legislation was enacted over 65 years ago.
“TIFs are intended to revitalize under-resourced neighborhoods where development would be less likely to occur if not for the TIF,” Mendoza said.
Chicago Director of Intergovernmental Affairs John Arena said HB 4712 would produce an unwelcome outcome for the city and its taxpayers.
“As presented, the bill takes away the city’s autonomy to determine the highest and best use of locally-generated property tax revenue by capping surpluses at five percent every ten years,” Arena said.
Arena said the bill takes away local jurisdictions’ ability to manage cash flow and defended the city’s recent TIF sweeps to Chicago Public Schools.
“Sweeping is a tool to help close budget gaps for our schools without doing layoffs or increasing property taxes to backfill if we are barred from using money that is readily available,” Arena said.
Days after the city council approved a $1 billion TIF sweep to CPS last December, the Chicago Board of Education raised the property tax levy by the maximum allowed by law.
Illinois Comptroller Susana Mendoza said CPS raised taxes by $25 million and got $550 million more from taxpayers through the TIF sweep.
“Raiding TIFs to get 50 cents on the dollar for unspecified random education projects is not in any student’s long-term interests,” Mendoza said.
The comptroller said the TIF sweeps take dollars intended for neighborhoods and distribute them to taxing bodies outside the city.
Mendoza said HB 4712 would keep TIF funds in neighborhoods to help schools in those communities.
The comptroller previously told The Center Square she is considering a run for Chicago mayor.
Illinois Municipal League CEO Brad Cole said his group supports Chicago’s opposition to HB 4712 but also supports other municipalities that are likely in favor of the bill.
Cole said IML records show 1,506 TIF districts in 537 municipalities across the state.
Chance Showers And Thunderstorms
Latest News Stories
Will County Treasurer’s Investment Strategy Yields $6 Million in Income
Lobbyists Outline Strategy for Federal Funding and Grundy County Expansion
Route 52 Closures Approved for Irish Fest Parade
Capital Imp Committee Debates ‘Human Factor’ in Drafting New Artificial Intelligence Policy
Highway Commissioner Reports Surge in Winter Salt Usage
Manhattan Village Board Selects Vendor for Four-Year Landscaping Contract
HBO Max Orders Cop Drama Pilot ‘American Blue’ to Film in Joliet
JJC Administration Proposes Tuition Increase Amidst Future Budget Concerns
Will County Public Works Advances $1.9 Million Improvement for Wilmington-Peotone Road
Will County Public Works: Access Will County Dial-a-Ride Expands to All 24 Townships, Eliminating Borders
Suspect Captured in Execution-Style Murder of Momence Bar Owner
Jackson Township Board Approves Tax Levies Amid Rising Property Values
