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Activists, alderman zero in on TIF ‘taxation without representation’Medill Reports - ChicagoFebruary 13, 2008Click here to read the blog post in its original form on the Medill News Service's website. And after attending a meeting of the Greater Lincoln Park chapter of Democracy for America, some Chicago residents appalled by what they view as rampant abuse of TIFs are vowing to act as well. The alderman, Scott Waguespack, who represents the Northwest Side’s 32nd Ward, said, “I’ve already received a ton of feedback. It’s basically taxation without representation.” Tax increment financing is a program administered by the City of Chicago’s Department of Planning and Development that freezes the amount of money schools and other services can take from property taxes for 23 years. As property values rise, any additional money collected from property taxes goes into a citywide TIF fund. The money is supposed to be used to encourage and pay for redevelopment projects in blighted or low-income areas, or in areas at risk of becoming blighted. But TIFs have many problems associated with them, said Democracy for America’s guest speaker, Ben Joravsky. Joravsky, a reporter for the Chicago Reader, has written extensively about TIFs in hopes of educating Chicago residents about what is happening to their tax money. Joravsky let loose a laundry list of complaints about TIFs. Some audience members gasped; others shook their heads in disbelief. For one thing, he said, some TIF districts are not located in blighted or economically struggling areas. Another is that no official body is charged with overseeing how TIF money is spent. In addition, the true cost of TIFs is not recorded on property tax bills. “Your tax bills are lying to you, people!” Joravsky said. To top it off, Joravsky added, because the tax money collected from TIFs is frozen, when the cost of schools and city services rises, other property tax bills go up disproportionately, forcing people who live outside TIF districts to pick up the slack. According to statistics compiled by Cook County Clerk David Orr’s office, the city collected more than $500 million from TIFs in fiscal year 2006. Part of the solution, Waguespack said, requires action by the Illinois General Assembly, which created the laws governing TIFs. Last week, Rep. John Fritchey (D-Chicago) proposed legislation that would require taxpayers be given information about the purpose of TIF districts and their impact on people’s tax bills. Cook County Commissioner Mike Quigley (D-Chicago) has also been a vocal champion of similar legislation. But Waguespack added that he, too, can call for greater oversight of the TIF fund or tightening the requirements for creating a TIF district. Although he is not on the Finance Committee, he can still vote no when measures proposing a new TIF come before the full council. The challenge, he said, will be trying to separate the TIF legislation, which is usually bundled with proposals for municipal bonds as a way to discourage aldermen from voting against the full package. The members of Democracy for America in attendance at last night’s meeting are also developing a plan for fighting any new TIFs, said Tom Tresser, a member of the group. The group is organizing a committee to prepare a one-page flyer that could quickly and easily educate other concerned residents about TIFs, he said. “This seems to be an issue that holds currency across the city,” Tresser said. When asked if he was willing to defy Mayor Richard M. Daley, a vocal proponent of TIFs, Waguespack said he would – as long as it was in his constituents’ and the city’s best interests. He also acknowledged that he may face a challenge from a machine-backed opponent. “I already know that’s coming,” he said. “But I ran against the machine before. I’m not interested in staying in office just to make the mayor happy.” Waguespack was elected in a runoff election last April, in which he narrowly defeated longtime incumbent Ald. Ted Matlak, 51 percent to 49 percent. After the meeting, Joravsky said he hoped his speech would prompt some residents to rise up and reform TIFs. But he said the issue should be highlighted more by candidates running for office and by members of the media. “The Tribune, the Sun-Times don’t report on it. Nobody runs for office on a major platform of reforming TIFs,” Joravsky said. “It may be so far removed from the public consciousness that people just don’t get it.”
Copyright 2007, Sun-Times News Wire |
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