The Chicago Public Education Revitalization Ordinance popularly known as The Garza-Cardenas TIF Ordinance
The Chicago Public Education Revitalization Ordinance popularly known as the Garza-Cardenas Ordinance provides the City of Chicago (the City) a process for directly aiding the Chicago Public Schools (CPS) by declaring TIF surplus and providing a supplement grant from the City’s share of TIF surplus. Currently there is no process for providing TIF dollars to schools.
Currently, the City determines the amount of TIF surplus by privately analyzing TIF funding requirements and surplus availability.
When the school district faces financial distress, this ordinance will require the City to annually calculate and distribute available TIF surplus based on clearly defined standards for:
- Incremental tax collections
- Existing contractual agreements
- Financial obligations
This proposal would end the practice of excluding “potential” future project obligations, which may or may not occur, from calculations of the available TIF surplus at these times of financial distress in the schools.
The Ordinance would require the City to provide its annual TIF surplus calculations on the City’s website detailing its assumptions and contractual obligations.
Increased City Support of Public Education:
In addition to the CPS receiving its proportional share of TIF surplus distribution (approximately 53%), the proposed Ordinance would require the City to contribute its proportional share of TIF surplus distribution (approximately 20%) as a Public School Revitalization Grant to pay for CPS operating costs.
The Ordinance also requires the City to encourage other taxing districts (e.g. Cook County, Chicago Park District, Metropolitan Water Reclamation District, and City Colleges of Chicago) to contribute their respective proportional shares of TIF surplus as additional Public School Revitalization Grants.
From the Fall 2015 TIF collections of approximately $371 million and fund balances, the City of Chicago declared TIF surplus of $116 million during through June 30, 2016, of which CPS received an estimated $61 million (53% of surplus distribution) for operations.
Fall 2016 collections are projected to be $461 million or $89 million more than 2015 (Source: Office of the Cook County Clerk).
Under the proposed ordinance, if the City contributed $205 million of TIF surplus by December 31, 2016, CPS would receive an estimated $150 million (73% of surplus distribution) for operations.
Comparison of the Cardenas-Garza TIF Ordinance and the Emanuel-Pawar proposed TIF Ordinance