Open Illinois.org

Elk Grove Village–a Chicago suburb–recently retired its TIF district because, as village Mayor Craig Johnson said, the TIF’s purpose had been accomplished.

The Daily Herald reports Elk Grove will rebate $300,000 yearly in excess revenue from the TIF to area school and park districts.

“Sometimes government entities have a tendency to extend (TIFs) or milk it,” Johnson said. “We want to use it for exactly what it was intended – to give a jolt to start an economically deprived area. We don’t want to make it into a cash cow.”

Elk Grove Village is the exception to the TIF rule. Chicagoans know TIFs in the city are almost never retired early as they can be used successfully as slush funds for aldermen and the mayor. In fact, Ben Joravsky of the Chicago Reader reported last week on Chicago’s “shadow budget” comprised of millions of dollars of TIF funds from throughout the city.

Chicago suburb Schaumburg could also learn from its neighbor Elk Grove. Liberty Leader Brian Costin used the news of Elk Grove’s TIF early retirement to highlight the massive corporate subsidies provided through the Old Schaumburg Center TIF district, which has cost taxpayers nearly $50 million since 1989. Now, the village is considering another $7 million in taxpayer resources for a private developer to build a subdivision.

Somehow I doubt those homes will be sold at a reduced cost to Schaumburg taxpayers.