By: Diane Benjamin
Did you know Tax Increment Financing (TIF) was outlawed in California?
Way too much money was going to developers and campaign contributors and costing taxpayers money – so they were outlawed. (Note: California!)
Bloomington wants one on the east side, one downtown, and it’s unclear if the downtown TIF would expand to the property Tari wants to buy Monday night (so he can control what is built there) or if that’s another TIF.
The east side TIF includes Bloomington schools because they would more than likely oppose it if they weren’t included. District 87 would see no additional revenue for up to 23 years without inclusion. Being in a TIF is no guarantee of getting money however, the payouts aren’t very transparent.
This 7 minute video perfectly explains TIF’s. It was done by a group in Chicago, just substitute Bloomington or Normal for Chicago. The results are the same here as there. It’s the best 7 minutes you can spend to understand the process.
One result will be higher taxes for everybody because all other taxing bodies will be shut out of future property value increases. If the TIF fails, taxpayers are on the hook for borrowed money. If it succeeds, the mayor has a slush fund for projects he wants.
Take time to watch: