Chicago Schools and Teachers Union Push for TIF Funds to Bridge Budget Gap

CPS CEO and CTU leaders urge the city to allocate tax increment financing surplus to address financial shortfalls in education funding.

Chicago Public Schools CEO Pedro Martinez and the Chicago Teachers Union are advocating for the use of TIF surplus funds to cover budget deficits, including non-teacher pensions and union contracts.
Martinez's proposal requests $462 million from TIF surplus, while the CTU suggests a broader phaseout of TIF districts to redirect up to $1 billion annually to the school system.
Mayor Brandon Johnson has expressed support for using TIF surplus funds for CPS but faces political challenges from city council members and developers reliant on TIF for projects.
The school board, undergoing a leadership transition, has resisted taking on a proposed $300 million short-term loan due to concerns about high interest rates and future financial stability.
The CTU's call to end TIF districts faces skepticism about feasibility and potential negative impacts on ongoing development projects and city finances.