You are hereHome >
Transparent & Accountable Government
AVOIDING BAD DEALS — Illinois PIRG volunteers set up in front of City Hall to raise awareness of the need for government transparency. The long-term impact on Chicago taxpayers resulting from the parking meter privatization might have been avoided had city officials been transparent about the plan and given citizens a chance to influence the terms of the lease before it was approved.
BUDGET DEALS AND THE PUBLIC INTEREST
As our cities and state confront budget deficits, accountability and transparency should be the rule. That includes avoiding budget gimmicks like last-minute privatization deals and borrowing against future tax revenues (called tax increment financing) to give handouts to special interests.
From Springfield to local City Halls, Illinois PIRG advocates improving fiscal policy to stop special-interest giveaways, increase budget transparency and accountability, eliminate waste, and ensure that subsidies or tax breaks serve the public.
Specifically, Illinois PIRG is working to protect the public from bad deals in so-called tax increment financing by:
- Making sure that any borrowing against future tax revenue is targeted and temporary. This policy should only be used in service of a specific development strategy, and it should only be directed to areas in special need of development, and for projects that are unlikely to occur without public intervention and with a defined time limit.
- Subsidy recipients must be held accountable for meeting goals. Contract agreements should include measurable targets for success and regular performance reviews. And if development promises are not fulfilled, municipalities should be able to demand the return of some or all of the money.
- Information on these deals must be transparent. Because of the long-term implications, the decision to borrow against future tax revenues should come with the highest level of transparency and public participation. Citizens must have the tools to evaluate the benefits and trade-offs in their own community.
Read more on our blog, Tax Dollars and Sense.
Your donation supports Illinois PIRG’s work to stand up for consumers on the issues that matter, especially when powerful interests are blocking progress.