Study Finds Chicago’s $16 B TIF Program Favored Downtown Over Citywide Needs
Researchers led by Juan González at the University of Illinois Chicago report that Chicago spent about $16 billion in tax increment financing on downtown projects, widening economic gaps.
A team from the University of Illinois Chicago, headed by Juan González, released a detailed study showing that over the past 40 years the city redirected roughly $16 billion of property-tax revenue through Tax Increment Financing to fund downtown development. Although the program was meant to eliminate urban blight, the analysis finds that more than half of the money went to central neighborhoods, leaving the other 70 community areas with the remaining share and deepening inequality.
Why it matters
It reveals how a major city financing tool may have increased the gap between downtown Chicago and its surrounding neighborhoods.
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