News|Increasing TIF districts irk school districts

TIF districts have been on the rise since their
inception in the 70’s.  
       Local villages have adapted TIFs as a source for
economic growth and development but the increased use
of these has continued to put a strain on local school
districts.  
      A TIF is an economic tool that is used to develop
blighted areas in a community.  
      These areas include sections of a village that do not
generate tax revenue or are underperforming.  
      Unfortunately, TIFs have become controversial.  
According to Chris Slowik, the Organizational
Director for the South Cooperative Organization for
Change in Education (S.C.O.P.E.), municipalities have
been allowed by state law to redirect portions of the
tax levies from the schools.  
      Through TIF districts local taxing bodies including
park districts, library districts and school districts
have been losing funds because state law allows
municipalities to redirect those funds out of these
bodies’ coffers.
      This means that while development is occurring in
these TIF districts schools, parks or libraries are
not allowed a portion of the increasing revenue. 
Their tax levy is frozen at the rate that existed when
the TIF began.  
      School District 104’s Superintendent Kevin Cronin
said that he doesn’t believe that all TIFs are bad and
gave the Frito-Lay/Mack Truck TIF as an example of a
good TIF but he said that the school boards have no
authority to stop or negotiate a TIF.  
      Cronin said that schools take the biggest hit when it
comes to redistributing funds and he believes that
there should be more than just an advisory role for
the school districts when it comes to decisions on a
TIF.  
       Since schools are primarily funded through property
taxes TIFs greatly affect the school’s ability to
generate additional funds and according to Cronin can
“curtail the funds that a school may anticipate
receiving before the TIF is implemented.”        
      There is also little room for flexibility for the
school district throughout the life of a TIF.  
      A TIF is in place for 23 years so the local school
districts can lose out on additional revenue for the
life of the TIF but at the same time its student body
can grow and the school district would not have the
funds to support the additional students.  
      Cronin said that while there are long term benefits
for the district involving TIFs there are day to day
expenses that a school district needs to take care of.
      School District 104’s Board President Maria T.
Roche said that TIF districts along with tax appeals,
6B’s etc. are a “big problem for school districts and
local tax payers.”  
      Roche agreed with Cronin and said that these type of
incentives for developers reduce taxes that could go
into local school districts.
      One controversial enterprise zone includes Corn
Products.  
Roche said that over the last several years the school
board has had to repay the company “hundreds of
thousands of dollars per year,” and will continue to
pay them back for a couple more years because of tax
breaks and tax objections filed by Corn Products.   
      The Village of Summit is also currently looking to
implement a TIF district that includes condo and
commercial property.  
      This TIF could add students to the district but it
would freeze the school district out of new revenue
generated by the development.  
      Within Argo’s school district 217 in 2004 there were
five TIF districts affecting the schools tax revenue. 
Corn Products tax objections also affected this school
district according to the Cook County Financial Report
in 2004. 
     “The Property Tax Assessment Board (PTAB) decisions
and Tax Objection Complaints (TOC), including our settlement

with Corn Products, have taken $1.4 million off the top of our
property tax revenue for the 2002-03 school year.

The settlement with Corn Products permanently removed

$31 million from our total EAV beginning in the 2000 Tax Year.”
      District 217’s Superintendent Frank Stout was not
immediately available for comment.  
     Meanwhile TIFs continue to be the solution for local
municipalities Bedford Park just added an amendment to
its TIF at 72nd and Cicero while Lyons added a TIF at
the quarry where the new municipal complex will be
located and the Village of Summit is considering a
condo project in one of its TIFs.   
     S.C.O.P.E. is not as active in the TIF front as much
because local school districts are participating more
but Slowik’s organization provides information for
school districts in the south and southwest suburban
areas.  
     The group’s “goal is to provide schools with
legislative information and to provide legislators and
the Governor with educational information,” according
to the organization’s website at