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Mayor announces he will declare a partial TIF 'surplus'... How much will go to the Board of Education and what the Board will do with it is unclear, although Rahm wants it to go for pensions for non-teacher CPS workers

George N. Schmidt - October 13, 2011

Buried in more than 30 pages of various documents sent out by Chicago Mayor Rahm Emanuel's press office is a short note indicating that the mayor will declare a partial TIF surplus in response to pressure from various groups. One of the oddest things about the announcement (in addition to the fact that it is truly buried in a larger document) is that Emanuel claims that the declaration of the partial TIF surplus is in response to urgings by groups including the Civic Federation and aldermen, while ignoring the fact that the largest number of groups urging the TIF surplus (for more time than Rahm's been mayor) have been the city's unions, specifically the Chicago Teachers Union and the Service Employees International Union.

For the past six months, union members have protested, among other things urging the TIF surplus. Union members have also testified at every meeting of the Chicago Board of Education since Rahm Emanuel appointed his Board in June 2011, urging the Board members to sign the pledge to ask for TIF funds for the schools. (All refused, at the September 28 Board meeting, Board President David Vitale refused several times...).

Since Rahm Emanuel's Board of Education took office in June 2011, Chicago Teachers Union President Karen Lewis has been asking members of the Board of Education to ask the mayor to declare a TIF surplus so that the money could go to the schools. Above, Lewis speaking with the press after her remarks to the August 24, 2011 meeting of the Board. Substance photo by George N. Schmidt.The announcement came buried in a document sent to the press by the Mayor's Press Office entitled "A few facts about the Emanuel administration's 2012 Budget" (reprinted in its entirety below). The part about TIFs was the fourth entry in a list of stuff.

According to a City Hall press release dated October 12, 2011:

Declaring a TIF surplus

The Mayor's Office acknowledges the consensus around declaring a surplus to ensure taxpayer dollars are invested in the city rather than sitting in savings accounts. As the Mayor's staff develops performance metrics to target specific districts for surplus, they have been urged by aldermen, and budget watchdogs like the Civic Federation, the Inspector General and others to declare a surplus in 2012 and put those unencumbered funds to use for Chicagoans. In the short term, the City will take the TIF Task Force’s recommendation to conservatively declare a surplus of 20 percent of uncommitted funds while a more comprehensive, long-term evaluation system is put in place.

From "no deal" to a "done deal."

The question now is how many of those dollars will wind up at CPS.

The Chicago Tribune had reported the deal involving the TIF surplus as of 6:00 a.m. in their on line and print editions. The Sun-Times reports in its print edition that Rahm is going to ask that the TIF surplus go from the Board of Education for pension costs for non-teaching people.

A FEW FACTS ABOUT THE 2012 BUDGET (Chicago press release dated October 12, 2011):

A Few Facts About the Emanuel Administration’s 2012 Budget

Hotel Tax

A small increase of approximately $1.78 will put Chicago on an equal level with other major cities like Los Angeles and New York City and it will help increase revenue that supports tourism, not deters it. With the anticipated 5-7% increase in hotel occupancies due to the next year’s G8 and NATO summits, as well as several other major conventions and conferences in Chicago, the City does not foresee a decrease in tourism revenue as a result of this modest increase.

In 2010, Chicago hosted 39 million domestic and overseas visitors, including 28 million domestic leisure travelers, 10 million domestic business travelers and 1 million overseas visitors. The contribution to our local economy and the jobs created and maintained by their visit to our city is essential. In fact, the tourism industry supports 125,000 jobs in the city. To avoid eliminating any of the events that millions of people from around the world come to see, we will impose this small fee – one that will put us on par with Los Angeles and New York City – on those visitors who stay in Chicago’s hotels.

Congestion Fee

Traffic costs the region $7.3 billion a year – nearly double previous estimates – in lost time, fuel and environmental damages. Our streets are crowded, roads in need of repair and pollution created by drivers is unhealthy for Chicagoans. Suburban drivers who use city services and infrastructure need to help pay for the costs. The congestion fee is an incentive for drivers to take public transportation or pay more to park downtown. Evidence shows that a small increase in parking fees like this leads to a decline in the use of automobiles for transportation, which reduces congestion, pollution, and the need for road maintenance. The City will use revenue from the congestion fee to rebuild two of the busiest “L” stations in the downtown area and build a new bus rapid transit system in the downtown area. The Metropolitan Planning Council and Inspector General have endorsed congestion pricing.

Grid System for Garbage Collection

We owe it to our residents to deliver services in the most efficient and cost effective manner possible. Chicago’s ward-based garbage system is obsolete and other cities offer the same service at substantially less cost because it’s done on a grid. We are the only major city that is not on a grid system and it is unacceptable that collecting garbage in Chicago costs $110 more than it does in Los Angeles. A grid system will not eliminate superintendents who will continue to ensure quality service delivery for Chicagoans, and it will allow the city to use the achieved savings to potentially expand recycling across the city.

Declaring a TIF surplus

The Mayor's Office acknowledges the consensus around declaring a surplus to ensure taxpayer dollars are invested in the city rather than sitting in savings accounts. As the Mayor's staff develops performance metrics to target specific districts for surplus, they have been urged by aldermen, and budget watchdogs like the Civic Federation, the Inspector General and others to declare a surplus in 2012 and put those unencumbered funds to use for Chicagoans. In the short term, the City will take the TIF Task Force’s recommendation to conservatively declare a surplus of 20 percent of uncommitted funds while a more comprehensive, long-term evaluation system is put in place.

Reduction in Library Hours

While many other cities across the country are shuttering libraries in these tough economic times, Chicago will keep all of its libraries open by reducing service hours across the board. Despite reducing the weekly hours, all of the programs and services Chicagoans use at the libraries will remain intact.

Coordinating Public Safety

The Chicago Police Department has significantly reduced high-level bureaucracy through a reorganization of top-level staff that created a streamlined command staff structure that is more efficient, works smarter, and saved one million taxpayer dollars. The Department is going to do a similar consolidation at the district and area levels to ensure that we are getting the most out of every single officer, every single resource, and serving every single community and resident. Additionally the Fire Department Headquarters will merged with Police Department Headquarters to further strengthen the collaboration between these critical first responders. Having Fire and Police together will allow for daily interactions and coordinated planning that will help identify overlaps, and facilitate a more efficient division of administration responsibilities.

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