Can TIF funds be used to balance the budget?
No, TIF funds can only be used for costs directly related to a TIF-funded capital project. CPS cannot use TIF funds to reduce the FY 2011 operating budget deficit since this would not be a proper, lawful use of funds. However, indirectly, TIF funding does free operating dollars that would be needed to support debt service on capital projects such as the building, renovation and expansion of schools at CPS. The use of TIF to fund schools projects and issue bonds means that CPS does not have to issue bonds and use its operating dollars to pay debt service. These resources can be used to fund CPS operating costs while still allowing capital projects to move forward.
Related Questions
- Section E of budget form – Budget Estimates of Federal Funds Needed for Balance of the Project – Is this section used if we the project not being final until after the five-year grant period?
- What are the guidelines for how a Member’s budget can be used? How are funds assigned to each Member office?
- What are the guidelines for how a Members budget can be used? How are funds assigned to each Member office?
