CHICAGO (CBS) — The Chicago Teachers Union wants the city to take money used to entice developers and re-direct it to Chicago Public Schools, saying it could generate $1 billion for the school district.
The union said, instead of tax increment financing (TIF) money going to developers or big corporations, it should be spent on CPS students. CTU wants the city to end all TIF districts in the city, and send any funds not already dedicated to specific projects back to the various taxing bodies in Chicago, including CPS.
“Our plan to de-TIF the entire city of Chicago by expiring all TIFs and sweeping fund balances would generate well over $1 billion in surplus immediately, ensuring that our schools are stabilized instead of facing down cuts,” said CTU director of research Pavlyn Jankov.
TIF districts essentially freeze property taxes collected from a specific area, with the extra tax money generated from improved property values going to a fund intended to support development projects in blighted communities. But critics of TIF districts have said they amount to slush funds for elected officials to subsidize real estate developers without properly addressing the needs of low-income communities.
CTU officials said their plan to sweep TIF funds back to CPS would help the district avoid mass program and personnel cuts, but it doesn’t end there.
They also said it would prevent school closures and staff furloughs, all of which they insist are currently on the table under CPS CEO Pedro Martinez’s leadership.
Martinez has denied the claim about closing schools, noting the Chicago Board of Education approved a resolution last month promising no school closures until at least 2027.
At issue is the $500 million budget deficit CPS is facing next year.
Sources said Mayor Brandon Johnson and the CTU are in favor of CPS taking out a $300 million high-interest loan to pay for teacher raises currently being negotiated with the union, and some pension costs for non-teaching staff that until the past few years had been funded by the city rather than CPS.
CTU officials said spending TIF money on schools is – at least for now – a viable solution for the district’s ongoing budget problems.
CPS will also be a big topic before the Chicago City Council on Wednesday. Aldermen have scheduled a special meeting for 2 p.m. to discuss the recent resignation of the entire Chicago Board of Education, and Mayor Brandon Johnson’s picks for six new board members.
