Cook Co. Clerk Orr shines spotlight on TIF districts

Revenues from tax-increment financing districts rose 13 percent in the suburbs last year, while declining in Chicago with the expiration of the Central Loop district, Cook County Clerk David Orr said Tuesday.

The districts initially were created to spur growth in blighted areas, but have come under criticism in recent years for potentially giving local politicians funds not subject to the usual public budget scrutiny.

"Even though TIF revenue dipped," Orr said, "taxpayers still contributed a walloping $875 million into funds with little transparency and less accountability."

In suburban Cook County, revenues from the special taxing districts rose to $380 million last year, the largest being the Hoffman Estates-Sears district with $30 million, according to a report released by Orr. They declined 11 percent to just under $500 million in Chicago, thanks to the expiration of the Central Loop district, which took in $111 million alone in 2007.

The districts are aimed at raising money for redevelopment by freezing the tax levy in a certain area over a set time, so that as it's developed and property values rise, the additional taxes go into a special fund to be spent by localities on continued development.

But critics maintain they actually cause taxes to rise, because although the tax levy is frozen in a certain area, it typically rises overall countywide by law to keep pace with inflation - for instance 4.2 percent in the most recent tax rates set by Orr's office. Everyone pays to make up the difference.

With that in mind, Orr announced a new tool on his Web site at cookcountyclerk.com so that property owners can enter a permanent index number and see just how much of their tax bill is going into these districts, if any. (About 11 percent of all county properties are in TIF districts.)

"TIFs are an increasingly controversial subject, but it shouldn't require a Ph.D. to pierce the shroud of secrecy," Orr said. "Our new TIF tool shows taxpayers where their money is going. Now they find out what they're getting for it and demand accountability."

U.S. Rep. Mike Quigley, a Democrat from Chicago, had pushed for TIF levies to be itemized on Cook property-tax bills when he was a county commissioner, but couldn't get it passed before being elected to Congress. Since then the county board has showed little interest in the measure, although Orr's new initiative in effect does the same thing, only online.