As the Chicago Public Schools (CPS) grapple with a daunting budget crisis, both CPS CEO Pedro Martinez and the Chicago Teachers Union (CTU) are urging Mayor Brandon Johnson to tap into tax increment financing (TIF) funds to close the financial gap. In a recent appearance on WTTW News' "Chicago Tonight," Martinez requested an additional $462 million from TIF districts, emphasizing that the mayor had agreed to provide $160 million, which would cover new contracts and contribute to district operations.
However, this figure falls short of the district's needs, as Martinez later stated that a further $482 million would be necessary. This disparity has led to a request for state officials to cover a $300 million gap, a plea Martinez knew was "a longshot," according to a WTTW News interview. Amid these discussions, Johnson has rebuffed suggestions of significant cuts or layoffs, underscoring his commitment to investing in the city's children and families. "I’m not going to cut, and take away, layoff, fire, privatize so that other people can benefit, and the people of Chicago can lose. Not under my watch," Johnson said on "Chicago Tonight."
With tensions mounting, the CTU has also pressed Johnson to meet the school system's financial needs by utilizing the TIF surplus. The union's recent proposal is to recover all uncommitted funds from the TIF districts, amounting to approximately $2 billion, which would allocate around $1 billion to CPS, as reported by the Chicago Sun-Times. This move, however, would significantly shift the current political and economic dynamics of TIF utilization in the city.
Martinez has pointed to the ample TIF funds available, indicating that the city had $3 billion in TIF balances and collects $1.2 billion annually. In an interview obtained by the Chicago Sun-Times, he mentioned that "Fifty-two cents of every dollar would be going to CPS if TIFs didn’t exist." The mayor has voiced his historic support for redistributing TIF surpluses to the taxing bodies and indicated his intention to honor commitments in this regard.
The debate intensifies as the CTU calls for prioritizing school funding above other city developments. Jitu Brown, a CTU-endorsed candidate for the school board elections, told the Chicago Sun-Times, "It’s about the political will at the end of the day." With both CPS leadership and the teachers' union aligned on the source of funding, the ultimate decision now lies with the city's administration and its allocation of the TIF surplus.
