CHICAGO (CBS) — The Chicago Teachers Union wants the city to take money used to lure developers and redirect it to Chicago Public Schools, saying it could generate $1 billion for the school district.
Instead of tax increment financing (TIF) money going to developers or big companies, it should be spent on CPS students, the union said. CTU wants the city to terminate all TIF districts in the city, and send any money that is not already legally obligated for specific projects to Chicago’s various taxing bodies, including CPS.
“Our plan to eliminate TIF for the entire city of Chicago by expiring all TIFs and sweeping fund balances will generate a surplus of more than $1 billion immediately, ensuring our schools are stable rather than facing cuts,” said Pavlin Jankov, director of research at CTU. .
TIF districts essentially freeze property taxes collected from a particular area, with the additional tax money generated by improving property values going into a fund intended to support development projects in distressed communities. But critics of TIF districts said they amount to big money for elected officials to subsidize real estate developers without properly addressing the needs of low-income communities.
CTU officials said their plan to restore all unallocated TIF funds to CPS will help the district avoid overall program and staff cuts, but it doesn’t end there.
They also said it would prevent school closures and employee furloughs, all of which they insist are currently on the table under CPS CEO Pedro Martinez.
Martinez denied the claim about school closures, noting that the Chicago Board of Education approved a resolution last month promising not to close schools until at least 2027.
The debate is over the $500 million budget shortfall CPS will face next year.
Mayor Brandon Johnson and the CTU are in favor of CPS getting a $300 million high-interest loan to pay for teacher raises that are currently being negotiated with the union, and some non-teaching employee pension costs that until the last few years were funded by the city rather than CPS, sources said. .
CTU officials said spending TIF money on schools is — at least for now — a viable solution to the district’s ongoing budget problems.
While Johnson has expressed support for phasing out the city’s reliance on TIF districts, he has not called for them to end before they currently expire. TIF districts are typically allowed to remain in place for 23 years, but can be extended to a maximum of 35 years.
Johnson said he was willing to listen to the CTU plan, but would not commit to supporting it.
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