-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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Remember they take an average of % of home value for the entire state. The sheer number of homes in Chicago brings down the average. Chicago for a long time was approx 1% of value now approaching 2%. That is why homes appreciated faster in Chicago plus there are not too many empty lots in good neighborhoods. In many northern counties the % is over 3% some with 4% like here in Rockford, Belvidere is around 3%. Rockford was over 5% for awhile. A $1M home in Rockford (only a few) pay around $40K ( was over $50K) in taxes… Read more »
If the average price home in an area is 100k and the average price home in another is 300k, does it cost 1/3 of the cost for teachers, fire, police and other services? Sometimes the percentage is high because home values are so low in less desirable areas. The high priced areas are still spending more actual dollars than the “Rockfords” of Illinois. So the cook county homeowner pays around $5000 while the Winnebago county taxpayer pays around $3500. You’re already paying less money just a higher percentage because your home is worth less. What’s the business climate in Rockford?… Read more »
True-Most of the building for many years now in Rockford has been non taxable properties. $505M just for the new Mercy health hospital/ Almost $200M in additions for the other two hospitals/$250M for schools/some public housing and on and on. Those who are building commercial properties are getting tax breaks and because of Ptell the tax rate goes up for everyone else. But there have been many articles here on the high tax rates are and have lowered home values but because of Ptell the taxes keep going up. My home is valued at approx $190K now but taxes are… Read more »
Freddy, We’ve discussed this in the past but it needs repeating. Real estate value is an awful way to determine who should be paying taxes. If your home value had sky rocketed in value to 500k, you still would have the same challenges paying the $7200 tax bill but your percentage would be much lower. Sure you would have more equity but you would still feel the same pressure to afford your home. Most people recognize this around property taxes but lack the political will to change it. That’s because in order to cut property taxes other taxes will need… Read more »
If you’re planning on moving, go to a warm weather red state.