Widespread non-compliance with TIF district reporting requirements
A study from professors at the University of Chicago and Lake Forest College showed that Illinois communities with TIF districts grew substantially slower than non-adopters.
Tax Increment Financing, or TIF, districts are a controversial economic development tool and there is no concrete evidence they actually work. In fact, a study from professors at the University of Chicago and Lake Forest College showed that Illinois communities with TIF districts grew substantially slower than non-adopters.
By law, TIFs are intended to promote economic development in blighted areas.
But the Chicago-based Tax Integrity and Fairness (TIF) alliance calls TIF districts slush-funds typically used for corporate welfare and political back scratching.
A new concerning TIF development is the fact that these special districts arent complying with state reporting requirements.
An April report from the Illinois Comptrollers office shows municipalities all over the state are failing to meet state reporting standards.
The TIF Non-Compliance Report shows that as of April 16, 2013, 152 municipalities were in violation of state law, and statewide there were 531 non-compliance violations.
This may be an incomplete look at the problem because the comptrollers website only released a report for the 2010 through 2012 fiscal years. Many communities show habitual problems in not providing their TIF district reports to the state comptroller and have failed to report three consecutive years. It is possible that many municipalities have failed to report for much longer than the past three years.
According to state law, 180 days after the end of a fiscal year municipalities in charge of TIF districts must file a report with the comptrollers office, and to all taxing districts overlapping the TIF district. The comptroller then must post the TIF reports online within 45 days of receiving them.
The requirements of the report include:
Amendments to a redevelopment plan
Audited financial statements
Executive and legal statements certifying compliance with state TIF law
Description of property purchased
Itemized list of all expenditures
List of intergovernmental agreements
Information regarding contracts with third parties
Without proper reporting it is impossible for the public to hold taxing bodies accountable for their decisions. A lack of transparency is a recipe for fraud, waste and abuse of taxpayer dollars.
State reforms are necessary to fix this problem.
Suggestions for reform
Unfortunately, there are no penalties for communities that dont comply with Illinois TIF law. Essentially, communities only receive a light slap on the wrist when they fail to comply. This must change.
TIF law should be reformed to include strong penalties for communities failing to provide their TIF reports to the public on a timely basis.
If the comptroller finds that an annual TIF report is more than 90 days late, the offending municipality should be prohibited from issuing any new bonds or approving any new expenditures for anything other than compiling or filing its TIF reports.
If an annual report is filed more than 180 days late, TIF districts should face stiff financial penalties. If a TIF district were to have its tax increment base adjusted by its rate of inflation for each year they failed to file a report, we likely would see compliance rates improve dramatically.
Additionally, municipalities should be required to post annual TIF reports on their own website as soon as they are filed with the comptroller. Local residents footing the tab for TIF district spending are much more likely to visit their municipality’s website than the comptrollers.
TIF district reporting non-compliant communities
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Municipality
Alorton
Beardstown
Bellwood
Bolingbrook
Bradley
Braidwood
Brooklyn
Byron
Cairo
Calumet City
Cambridge
Canton
Carbon Cliff
Carthage
Centralia
Centreville
Champaign
Chenoa
Chicago Heights
Colchester
Country Club Hills
Crainville
Creve Coeur
Dalzell
Delavan
Divernon
Dixmoor
Dixon
Dolton
Dupo
Dwight
East Alton
East Dubuque
East Peoria
East St. Louis
Elkhart
Farina
Farmersville
Forest Park
Franklin Park
Freeburg
Freeport
Galva
Gibson
Goreville
Grafton
Grant Park
Gridley
Hampshire
Hanover Park
Harvey
Hazel Crest
Heyworth
Highwood
Hodgkins
Hudson
Jacksonville
Johnston City
Justice
Kewanee
Keyesport
Kirkland
Knoxville
La Grange
La Salle
Lacon
Lanark
Lansing
Long Grove
Lostant
Lynwood
Lyons
Macon
Malta
Manlius
Marion
Markham
Matteson
Mattoon
Maywood
McLeansboro
Mendota
Meredosia
Milan
Minonk
Monticello
Morris
Mounds
Mt. Carroll
Mt. Pulaski
New Athens
New Baden
Niantic
North Chicago
North Utica
Oak Park
Oakwood
Oblong
Oglesby
Olympia Fields
Ottawa
Paris
Pecatonica
Peru
Phoenix
Pittsfield
Polo
Pontiac
Richton Park
River Grove
Riverdale
Robbins
Robinson
Rochelle
Romeoville
Rushville
Salem
Sauk Village
Savoy
Sherman
Sherrard
Shiloh
Silvis
South Chicago Heights
South Roxana
Southern View
Spring Valley
Steger
Stone Park
Strasburg
Streator
Table Grove
Thayer
Thornton
Tilton
Tolono
Trenton
Troy
Ullin
University Park
Villa Park
Viola
Washington Park
Waterman
Watseka
Wenona
West Dundee
West Peoria
Williamsville
Willow Springs
Wyoming
Zion |
County
St. Clair
Cass
Cook
Will, DuPage
Kankakee
Will
St. Clair
Ogle
Alexander
Cook
Henry
Fulton
Rock Island
Hancock
Marion, Clinton, Washington, and Jefferson
St. Clair
Champaign
McLean
Cook
McDonough
Cook
Williamson
Tazewell
Bureau, LaSalle
Tazewell
Sangamon
Cook
Lee
Cook
St. Clair
Livingston, Grundy
Madison
Jo Daviess
Tazewell
St. Clair
Logan
Fayette
Montgomery
Cook
Cook
St. Clair
Stephenson
Henry
Ford
Johnson
Jersey
Kankakee
McLean
Kane
DuPage, Cook
Cook
Cook
McLean
Lake
Cook
McLean
Morgan
Williamson
Cook
Henry
Clinton, Bond
DeKalb
Knox
Cook
LaSalle
Marshall
Carroll
Cook
Lake
LaSalle
Cook
Cook
Macon
DeKalb
Bureau
Williamson
Cook
Cook, Will
Coles
Cook
Hamilton
LaSalle
Morgan
Rock Island
Woodford
Piatt
Grundy
Pulaski
Carroll
Logan
St. Clair
Clinton
Macon
Lake
LaSalle
Cook
Vermilion
Crawford
LaSalle
Cook
LaSalle
Edgar
Winnebago
LaSalle
Cook
Pike
Ogle
Livingston
Cook
Cook
Cook
Cook
Crawford
Ogle
Will
Schuyler
Marion
Cook
Champaign
Sangamon
Mercer
St. Clair
Rock Island
Cook
Madison
Sangamon
Bureau
Will, Cook
Cook
Shelby
LaSalle
Fulton
Sangamon
Cook
Vermilion
Champaign
Clinton
Madison
Pulaski
Will
DuPage
Mercer
St. Clair
DeKalb
Iroquois
Marshall, LaSalle
Kane
Peoria
Sangamon
Cook, DuPage
Stark
Lake |
Non-compliance violations
3
3
11
6
9
2
3
1
2
10
3
4
4
1
8
3
3
1
10
1
4
1
4
1
1
3
6
2
3
2
3
6
4
3
10
3
2
1
4
7
1
6
3
3
5
1
1
1
2
3
15
5
3
1
1
1
1
1
4
15
3
2
2
1
7
3
1
3
3
2
2
8
1
2
1
10
8
5
8
9
1
8
3
3
3
2
1
2
3
2
1
2
1
2
5
6
1
2
5
2
6
2
1
4
2
1
1
6
5
3
5
3
2
2
6
3
9
8
1
3
1
4
8
2
4
1
2
4
3
1
2
2
2
2
1
1
1
2
2
15
4
1
3
3
4
1
4
1
2
1
3
4 |
Oldest due date
10/27/2010
10/27/2012
6/28/2012
10/27/2011
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4/29/2011
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10/27/2011
11/27/2012
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10/27/2011
12/27/2011
10/27/2010
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