Pension costs drive up Schaumburg property taxes – Wirepoints Original

By: Ted Dabrowski* I was recently invited to speak on a panel in Schaumburg on the topic of pensions. Skyrocketing pension costs are pushing property taxes higher and higher and suburban residents want to know what’s driving those increases. My handout is attached here. The answer, in large part, is that government worker salaries and benefits have become increasingly unaffordable for the residents that pay for them. For example: Nearly 80 percent of full-time Schaumburg workers cost local taxpayers more than $100,000 in total annual compensation, according to the village’s compensation database. Top retired school district administrators can expect $3.8 to $6.9

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New York also grappling with constitutional impediments to pension reform

Crain’s New York had a good piece yesterday on efforts in New York to amend its state constitutional pension protection clause. Our clause is modeled on New York’s. The primary issue is that even if you amend the state constitution to allow benefit cuts, the Contracts Clause in the United States Constitution still forbids states from passing any “law impairing the obligation of contracts.” Legal opinions differ on whether that clause would allow for benefit cuts as the article explains. That’s critical because cutting unfunded pension liabilities means cutting pension benefits, which Illinois courts won’t allow under our pension protection

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COGFA Monthly Report

The Illinois Commission on Government Forecasting and Accountability: Illinois’ economy continues to lag the nation as well as surrounding states even as the current economic recovery, while comparatively long in historical terms, remains the weakest in the post WWII period.
Income tax receipts increased compared to last October thanks to the rate increase, though sales tax receipts were basically flat.
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Think your property taxes are unfairly high? You’re right. – Belleville News-Democrat

Illinois’ median property tax rate is 2.67 percent, or about $1,000 on a $35,000 house. That is double the national median. So our O’Fallon house example is in line with the rest of Illinois. But our East St. Louis example is four times the national median. How fair is any of that? And who does the tax injustice hit the hardest? Our poor. Our students who typically get two-thirds of our property taxes. Our elderly being taxed out of the homes they own. There has to be a better way.

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