TIFS: THE GIFT THAT KEEPS ON GIVING…TO THE POLS AND THEIR PALS

9/29/13

Today’s (i.e., Sunday, 9/29/13’s, page 6) Chicago Sun-Times contains an article by staff reporter David Roeder about tax increment financing districts (“TIF”s), which have been in use for decades now but that lately, and finally, have engendered the controversy they’ve long deserved.  People see that the city of Chicago is broke (See yesterday’s post,  CHICAGO PENSION PROBLEMS:  I’LL GLADLY PAY YOU TOMORROW FOR A HAMBURGER TODAY…AND THIS TIME, I REALLY, REALLY MEAN IT! for only the most salient manifestation of the city’s wretched financial condition.) but that Mayor Emanuel is seemingly able to summon boatloads of spondulicks from TIF funds for whatever will further his reelection and/or repay the myriad IOUs he has figuratively written to campaign contributors.  People are understandably upset; what makes TIF money so special that it is untouchable for any purposes except those that Super Rahm deems worthy?

           

The Sun-Time article states, correctly…

TIFs have been called a slush fund, a description that’s in the eye of the beholder.  But they are a mad money pot of off the books spending controlled by the mayor of Chicago based on priorities that can be mysterious.

The article goes on to describe various projects, some that have worked out and some that haven’t, that have been funded by TIF money and summarizes some recommendations for reforming the process.

Yours truly will leave the arguments regarding the pros and cons of TIFs for another post, other than to say that TIFs are another idea that makes eminent sense in theory but in practice turn into yet another mud pool for the porcines that we continue to re-elect.  However, I will take this opportunity for nearly shameless self-promotion.  In chapter 10 of my second book,   The Chairman’s Challenge, A Continuing Novel of Big City Politics, I describe a meeting between developer Jack Smith, his somewhat putzy son that he is trying to break into the family business, and Linas Siliunas, an old school alderman who has replaced the book’s title character as chairman of the city council Zoning Committee.  In one especially relevant portion of that chapter, the parties discuss TIF financing and the Smiths discover that the wily Siliunas is way ahead of them on this subject and correctly describes TIFs for what they are.  This excerpt starts with the elder Smith asking Alderman Siliunas for TIF money and thinking he is somehow enlightening the unenlightened:

“Good, Alderman, because I’ll need something I didn’t need before, but only because they weren’t much in use when we did the original project.  We’re going to need a tax increment financing district so any additional property taxes go back into the project instead of to the city.   It only makes sense, Alderman; if we didn’t do the development, there wouldn’t be any additional property taxes.   Why not let them go back into the property to make it better?  Provides a little more incentive, if you know what I mean.”

Alderman Siliunas smiled.  “And we get a lot of say over where the money goes.  It’s a great deal for everyone, Jack.   It’s sort of like our little pool of money to reward our friends and screw our enemies, as my old friend, the late, great Alderman Brancato used to say.  But Jack, I’m the Chairman of the Zoning Committee.  I’ve been an alderman for over thirty years.   You sound as if I don’t know what a TIF is.”

Smith immediately backtracked.  “I’m sorry, Alderman…”

“Don’t be sorry, Jack.  I know that it’s sometimes hard to conceive that people from the neighborhood could understand something as sophisticated as a TIF.”  Smith felt sufficiently put in his place.   Siliunas continued.   “But we do.   Hell, you know, if you’ve followed what’s going on in our town, that we’ve used TIFs more than anyone else.  We love them so much that, if you hadn’t suggested one, I would have suggested, no, demanded, that you use one.   We really like TIFs.”

“So it’ll be no problem.”

“No problem at all.”

(Emphasis mine)

You should read the book if you want to learn more about TIFs and other shenanigans that politicians around here (and everywhere) use to circumvent normal political channels to get their hands on scads of cash.

In fact,

See my two books, The Chairman, A Novel of Big City Politics and The Chairman’s Challenge, A Continuing Novel of Big City Politics, for further illumination on how things work in Chicago and Illinois politics.