Chicago Aldermen Upset by CEO Request $500M in TIF Funds, Property Tax Increase to Fund CPS

CPS CEO Pedro Martinez wants City Council to support his request for TIF funds, property tax increases to provide another $1B for a short term solution to CPS financial difficulties

Photo byKen Lund/flickr [CC BY-SA 2.0}

CHICAGO – During a tense five-hour meeting of the Committee on Education and Child Development, Chicago Public Schools (CPS) CEO Pedro Martinez pushed for a $500 million infusion from Tax Increment Financing (TIF) funds to address the district's mounting financial crisis. His proposal, alongside Mayor Brandon Johnson’s call for a property tax increase to support CPS, sparked intense opposition from several aldermen.

The ongoing conflict between Martinez and Mayor Johnson stems from the worsening financial challenges facing CPS, including looming pension payments and contracts with the Chicago Teachers Union (CTU) and the newly organized principals' union. Johnson has advocated for a short-term, high-interest loan to address this year's deficit, but Martinez warned this would only deepen CPS’s financial troubles in the long run, potentially pushing next year’s deficit close to $1 billion. He also pointed out that when you using a high-interest loan to pay down a debt will only incur further debt and not solve the problem.

At the center of Wednesday's heated discussion was Martinez’s push for TIF funds, which he claimed CPS had a rightful stake in. However, his suggestion that these funds should automatically go to CPS as they expire ignited backlash from aldermen who saw the request as unfair to other communities.

Aldermen expressed strong reservations about Martinez’s approach. When pressed about the total amount of TIF funds requested, Martinez was vague, stating only that "some of every dollar" should go to CPS. He framed his request as a temporary fix, urging aldermen to support the move while long-term solutions were developed. Martinez emphasized he was not asking for all TIF funds to be allocated immediately, but rather that CPS should receive them as they expire.

West Side Alderman Jason Ervin emerged as one of Martinez’s most vocal critics, questioning why funds meant for low-income neighborhoods should be diverted to bail out CPS. “It’s not fair for blighted communities on the West and South Side to give up their TIF money when those same communities have schools in dire need,” Ervin argued. He raised concerns about school closures and the consolidation of resources in underserved areas, calling the proposal a “disservice” to the very communities CPS claims to support.

The issue of school closures, particularly on the South and West sides, was another point of contention. Aldermen recalled the closure of 50 schools in those areas and expressed frustration that seven charter schools on the Southwest Side were being shut down without input from parents, educators, or students. When pressed about the fate of the 2,000 students who would be affected, Martinez admitted he was unaware of specific plans but promised to provide updates.

Martinez also insisted that he had never recommended school closures and would not do so in the future—a statement met with skepticism by some aldermen.

Martinez’s proposal to redirect TIF funds to CPS as a short-term fix was met with significant resistance. He argued that using TIF money to help make a pension payment would ultimately benefit the communities that were losing out, as it would be reinvested in those areas. In return, he promised to work with aldermen on finding more sustainable, long-term financial solutions for the district.

However, many aldermen were unconvinced, especially those representing communities that had not recovered from previous school closures. The frustration over a lack of transparency and proper planning for students displaced by recent school closures further deepened their opposition.

Adding to the tension was Martinez’s suggestion to raise property taxes, particularly targeting wealthier neighborhoods, to generate $1 billion in additional funding for CPS. While the idea was floated during the meeting, it garnered little support as the primary focus remained on the contentious TIF proposal.

As the meeting drew to a close, it remained unclear whether the Education and Child Development Committee would support Martinez’s TIF proposal and recommend it to the full City Council. Aldermen expressed concerns not only about the immediate financial impact on their communities but also about the long-term implications of Martinez’s plans.

Other potential revenue-generating options, such as increasing the sales tax or directing proceeds from the lottery to CPS, were briefly mentioned but did not gain traction during the heated session.