Jobs and TIF

An Analysis of Job Creation and Tax Increment Financing

Illinois PIRG’s report “Jobs and TIF: An Analysis of Job Creation and Tax Increment Financing” analyzes the records of 21 TIF-funded projects from the last decade with the biggest number of promised jobs – each project examined was required to create at least 200 jobs. The report checked to see whether the city is making sure developers are living up to their promises.  Since TIF projects are typically justified byusing their purported job-creation benefits, and because the number of jobs created is relatively easy for the city to track, we obtained and examined records on projects with job-creations requirements above 200 from in the years 2000 through 2010. These projects should ought to be the most scrutinized TIF projects in the city. The results suggest, however, that Chicago’s TIF programs remain largely impervious to scrutiny and unaccountable to the public.  The findings show that among projects that promised to create the most jobs, there are unacceptably low levels of tracking and enforcement: • The city could demonstrate consistent tracking of job-creation for only three (14 percent%) of these major TIF projects • Out of 21 projects with some kind of jobs goal, 15 (71 percent%) did not provide annual evidence that the jobs goals were being met, but the city only asked only two2 of the projects to give money back. • Not a single project complies with existing the 2009 “Sunshine Ordinance” that requires posting of five5 major documents online; most projects provide less than half. • A significant number of projects (19 percent%) did not even have specific job-creation goals in their official agreements with the city. To show the relative degree of overall transparency and accountability for each project, we created a scorecard to assign each a letter grade from “A” to “F” based on four criteria: whether enforceable standards were created, whether the developers hit their jobs goals and reported it to the city, whether the city reclaimed the TIF funds in instances where developers failed to hit their jobs goals, and whether all the information required to be available to the public is accessible.            



Illinois PIRG