Eric Z.

Turner
4505 N. Lincoln Ave.
Chicago, IL 60625
Representative Greg Harris
253-S Stratton Office Building
Springfield, IL 62706

May 3, 2014

Dear Representative Harris,

As both a Chicagoan and a State Representative, youre undoubtedly aware of how local problems
become statewide problems. When Chicago has to cut services and school funding, and struggles to pay
its pension bills, the state of Illinois has to pick up the costs. A major factor in these problems is our
states broken Tax Increment Financing system. For too long, cities have created TIF districts in areas that
do not need them, driving investment away from truly blighted neighborhoods, and giving up significant
future property tax revenues in the process. TIF may seem like a local issue, but the inequality and
revenue gaps caused by TIFs ultimately affect everyone in Illinois.

TIF is no longer working for Illinois. As Illinois cities find themselves in unprecedented budget crises,
they have cut services, closed schools, and raised taxes. As municipalities create TIF districts in areas that
dont need help in attracting investment, struggling neighborhoods find it harder to attract investment.
TIF Districts, meanwhile, continue to absorb hundreds of millions of dollars in property tax revenues.
Because TIF freezes property tax revenues for up to twenty three years, cities bind themselves in trying to
solve budget deficits. If property taxes are raised, the extra revenues generated in TIF districts do not go
to the city, but back into the TIF district. This means cities have to raise taxes even higher on ordinary
property owners.

For these reasons, I am writing to urge you to support my Making TIF Work proposal. This proposal
would amend the Tax Increment Allocation Act in three ways. First, if property taxes are raised, all
revenues generated as a result of that tax increase go to traditional revenues, even in TIF districts. Second,
the revenues that TIF districts pay towards traditional revenues will be tied to inflation, ensuring that
cities truly receive the same amount of tax dollars that they received on the date the TIF District was
created. Third, the statutes definitions of blighted and conservation areawhich municipalities have
to find in order to create a TIF districtare made more difficult. Third, the requirements to create a TIF
District are toughened: requiring blighting factors existing throughout 75% of the district, that blight is
expected to worsen, that property values have shrunk, and that but-for the TIF district, the area will not
see property value growth. These factors help ensure that TIF Districts are created only in areas that need
them.

With your help, we can make TIF work for Illinois. Thank you for considering this proposal.

Sincerely,
Eric Turner