Posted on 08/13/2022 4:00:05 PM PDT by simpson96
Chicago is hiking property tax bills by $42.7 million, keeping the city’s long-running tax hike tradition alive as it tries to manage its runaway pension debt.
Mayor Lori Lightfoot chose in 2020 to tie property tax hikes to inflation with a maximum of 5%. After inflation reached a 40-year high, the city will instead use a 2.5% adjustment for tax hikes.
Lightfoot said the increase will cost the owner of a $250,000 home $34 more each year, equating it to extra toppings at lunch.
“To put that in terms that I can understand, that’s about the price of an Al’s Italian Beef – hot, dipped, with extra cheese – for a family of four,” the mayor said, adding, “A $34 increase?… I think people can live with that.”
When you pay extra at lunch, you’re getting something in return. Instead of funding new and improved city services, Chicagoans are paying for unfunded pensions.
Of the city’s $1.7 billion property tax levy in 2022, $1.4 billion was dedicated to pension payments, including 100% of the property tax hike.
“While increasing property taxes is a last resort, the city also needs to be able to keep up with rising pension costs to ensure long-term financial stability and to honor the service of the police, fire, streets and sanitation and other city workers that serve to keep our city safe, clean and running efficiently,” Chief Financial Officer Jennie Huang Bennett said in a press release.
Chicago’s property tax levy more than doubled in the past decade. It’s disingenuous to call something a last resort when you do it every year.
Even after eating up the bulk of property tax dollars, Chicago still holds more pension debt than 45 states. Government pensions have become a black hole for new revenue.
For example, Chicago’s upcoming casino development will exclusively pay for pensions. In the best-case scenario, casino revenue will cover 9% of the city’s pension debt, hardly a solution. Pension reform is the only way to get Chicago out of its crippling debt.
The solutuion is to get the hell out of the state.
politicians & pensions are a bad combination
the taxpayer is not represented
outlaw public unions
Time for a Prop 13 for the entire state! Go back 5 years re taxes as the new base line.
Any place ruled over by the vile BeetleJuice demon is a place to get as far away from as humanly possible yet still be in the the USA.
Yep. I just left after 65 years. I miss family and friends, but the taxes, crime and corruption, nah. You can have it. I hope all those public sector pensioners enjoy paying for their benefits more and more, ‘cause everyone else who can afford it is leaving. Bye bye.
When, will they stop paying teachers’ and cops’ salaries and their health benefits as well as retirement pay.
Should’ve let Al run the city
Do you think a conservative might run for Chicago mayor? If so, who might run?
From the victims to the victimizers.
This is why I’m not moving back to Chicago. I grew up there and love the city, but I ain’t paying fo dat.
That will never happen in my lifetime.
Highly unlikely. The city is overrun with illegals of every kind, public sector union members and their pensioners, minorities are more than 70% of the city, liberal progressives live downtown and along the northside lake front, etc. Democrat to the bone. It’s a religion there. Last time there was a Republican mayor was Big Bill Thompson, 1931. 90 years ago. And he was corrupt to the core. A favorite of Al Capone. The city and county and state are bankrupt, but until it implodes, it’ll limp along. And those that can vote with their feet, will continue to flee. Sad to see a once great city go to hell, however it’s been going on for awhile, decades actually. Lightfoot just poured gasoline on a dumpster fire. Dumb as a stone, politically. You deserve the government you elect, over and over again. Drowning in a stew of its own making. Adios.
Can’t believe you aren’t sticking around for the opening of the Caliph Baraq prez library...
I’m surprised it wasn’t a priority for the Biden admin to absorb all these pension debts. There’s still some semblance of sanity that the city has to own up to it. I wonder if they still offer the pension plan to new hires?
Lightfoot calling from college to her father:
“Daddy, send more money. I need it right away or I may drop out.”
Dad: “What happened to the money I just sent you?”
Lightfoot: “Uh, it’s all gone. I spent it the first night. I felt like I was watching someone else at the bar when I kept saying ‘The next round for everyone is on me!’ over and over.”
I agree with most of your last comment. I lived in the Chicago area for 18 years. There’s no such thing as a progressive liberal because liberals don’t cause progress.
It’s funny how many illinois retirees come to Florida with pension in hand. Honestly Chicago probably needs to do something to pay these pensions or the federal government will get stuck with the bill.
What is needed is a stronger pandemic virus that kills off retired people fast.
Lighthead will be re-elected without a problem. Chicago has a version of ranked choice voting - the more candidates, the easier for the incumbent.
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