Putting Chicago Pension Costs in Context

April 2014

Public pensions are under threat of cuts in Chicago. Rhetoric surrounding the issue seems to ignore the influence of Tax Increment Financing (TIF) on reducing critical revenues for the City of Chicago. Nearly one out of every ten property tax dollars collected gets diverted into TIF accounts. Good Jobs First seeks to put current pension costs (known as employer normal costs) into comparative context with revenue diverted into TIF accounts. Any fair budgeting discussion of pensions must include the enormous revenues diverted by TIF.

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