Chicago Teachers Union Pushes for End of TIF Districts to Fund Schools

Union calls for $1B in tax funds to support Chicago Public Schools

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CHICAGO - The Chicago Teachers Union (CTU) is urging city officials to end tax increment financing (TIF) districts, proposing that the funds be redirected to Chicago Public Schools (CPS). This bold move, the union argues, could funnel $1 billion into the school district, helping stabilize the schools and avoid potential cuts.

The CTU contends that money currently allocated to developers through TIF districts would be better used to support CPS students and prevent impending financial strain on the district. Pavlyn Jankov, CTU's director of research, emphasized the union's position, stating, "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."

TIF districts work by freezing property taxes in specific areas, with any additional tax revenue from rising property values being directed toward development projects aimed at revitalizing underdeveloped or blighted communities. However, critics argue that these funds often end up benefiting real estate developers instead of addressing the needs of underserved neighborhoods. The CTU believes these funds should be rerouted to CPS, particularly as the district faces a potential $500 million budget shortfall next year.

The union's proposal to redirect TIF funds would, according to its officials, help the district avoid drastic measures such as school closures, staff layoffs, and program cuts. The CTU warns that these cuts could become a reality under the leadership of CPS CEO Pedro Martinez. While Martinez has denied claims of planned school closures, he has acknowledged the financial challenges facing the district. In fact, the Chicago Board of Education recently passed a resolution promising not to close any schools until at least 2027.

However, with a looming budget deficit and ongoing negotiations for teacher raises, financial pressure is mounting. Sources indicate that both Mayor Brandon Johnson and the CTU are supportive of CPS taking out a $300 million high-interest loan to cover some of the costs, including teacher raises and pension obligations for non-teaching staff. These pension costs were previously covered by the city but have now shifted to CPS.

The future of CPS funding will be a hot topic at the upcoming Chicago City Council meeting, where aldermen are set to discuss the recent resignation of the entire Chicago Board of Education. Mayor Brandon Johnson’s selection of six new board members will also be reviewed, along with broader discussions on the financial outlook for the district.