How Much TIF Money Has the City Pledged to Job Training?

In addition to the LISC fund, money from other TIF districts that have accumulated new property tax revenue can be used for job training provided the local Alderman agrees to have TIF districts in his/her ward participate in TIFWORKS. Budgets of Chicago’s 120-plus TIF districts total nearly $310 million. Job training money can be spent throughout a TIF district’s 23-year life span. Unfortunately, the proposed 2003 City budget does not disclose how much money – other than the $5 million borrowed from LISC – will be spent on job training in TIF districts.

How Will the City Be Held Accountable on TIFWORKS?

NCBG and its partners will work closely with community-based organizations to monitor TIFWORKS and evaluate whether the program is benefiting our neighborhoods.

Who is Eligible for TIFWORKS Funds?

TIFWORKS funds will be available to:

• An individual company (or single employer)


• Employers with common training needs who apply to the City as a group (“Multiple Employer Group”)
  
• Other groups, including business and trade associations, labor organizations, economic development corporations, industrial councils, chambers of commerce, public and private education and/or training institutions, and proprietary schools which provide training programs (“Multiple Employer Groups”)
  
• Not-for-profit job training organizations that:
  
  • Provide skill training for employers in TIF districts, including skill training of prospective new employees or skill upgrades for current employees (called “incumbent workers”)
    
  • Develop and provide skill training programs for multiple employer groups
    
  • Offer training and placement services for community residents who will be placed with employers in TIF districts
• Agencies or programs that simply refer people to possible job openings (placement-only programs) will not be eligible for TIFWORKS funds.
  

To What Extent Can Not-For-Profit Job Trainers Take Part in TIFWORKS?

Up to 25% of total TIFWORKS funding is set-aside each year for exclusive use of not-for-profit trainers. Not-for-profits can also participate in other categories of TIFWORKS funding, for example by being the Lead Applicant for a Multiple Employer Program.

How Will Funding be Delivered?

Funding will be in the form of grants that will pay for:

• 100% of eligible job training costs for non-for-profits
  
• Up to 75% of eligible costs for companies
  • Companies that apply for TIFWORKS are required to make a 25% match in job training costs.
  
  
  • Wages paid to employees during training may be credited toward the required match


• The match will be waived for small businesses meeting the following criteria:
  • Commercial businesses with a maximum of $1.5 million in annual sales each year for the past three years, or a business plan for a new business showing the same level of projected maximum sales for 3 years.
  • Industrial businesses currently employing a maximum of 40 full-time equivalent employees.

What Job Training Activities are Eligible for TIFWORKS FUNDS?

• Must be job or skill-specific training
• Eligible training activities include (but are not limited to):
  • Training for any job classification that offers enhanced or new skills to incumbent or new workers, particularly in support of:
    • New or additional product lines
    • New machinery or equipment
    • New or changing technology
    • Businesses expanding into new markets
  • Occupationally or industry-mandated training related to compliance
  • Curriculum customized for a particular employer or group of employers
  • Work-based basic and/or remedial training designed to improve job performance
  • Work-based English-as-a-Second Language (ESL) instruction
  • Workplace skills gap assessments and related activities-only when followed by training resulting directly from assessments/activities

Eligible training formats:

• Classroom training
• Computer-assisted training
• On-the-job training
• Seminars
• Workshops
• Pre-packaged courses

Are Job Placement Activities Eligible for TIFWORKS FUNDS?

Job placement services can be offered in conjunction with job training, but will not be funded by TIFWORKS as a separate activity.

Will All Chicago TIF Districts Participate in TIFWORKS?

Aldermen whose jurisdictions cover TIF districts can determine whether a TIF district will participate in TIFWORKS.

Does My Neighborhood TIF District Have Funds Earmarked For Job Training?

You can get details on your neighborhood TIF district plan and budget and further information on tax increment financing by contacting John Paul Jones, Director of Outreach, or Helene Berlin, Research Director, at Neighborhood Capital Budget Group, 312-939-7198, www.ncbg.org.