-- Connecting the dots between our economy, government and business --
CPS expects to once again increase property taxes to the cap next year at around 3%, pulling in an additional $166 million. Another $53 million in state funding is estimated to help fund operations and pay for pensions. But CPS projects it’ll lose $118 million in state tax dollars, plus face higher costs because of inflation, health care increases and debt payments. The state doesn’t pay CPS teacher pensions like other districts in Illinois, amounting to another $700 million Chicago doesn’t have available to spend.
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Everybody needs a side hustle these days, and mine is Ukraine, where I am now.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
Audio and summary
CPS: Best-paying jobs available for mediocre college-grads who had ACT 18 scores.
An 18 ACT score is still better than 40-45% of students.
There is something off about that statement. The state picks up the normal cost of the pension contribution, CPS pays for the 7% pension pick-up and Chicago (via the property tax levy) pays the amortized debt. CTPF has debt because Chicago/CPS chose to divert pension payments to cover operating costs (much like TRS). That debt is on the city, not the state.
I wish the two downvoting you would argue their case.
I used to follow your comments on Chicago Tonight’s reporting (back in the day when the commenters were smart and interesting) when pensions and strikes were top of mind issues in the Chicago area.
Nobody knows this stuff better than you. Nobody… whoever you are 🙂
LOL – I see *they* took back their downvotes and gave them to me, plus a few more.
Chicago, and downstate as well, has used the Covid funding as if it was a permanent funding situation. So, should not some type of bailout be on the horizon, the only solution is to cut spending or raise taxes. I have a strong feeling that spending will not only not be cut but most probably spending will, in true Illinois style, be increased. Pritzker has already imposed tax and fee hikes in the 5 billion dollar range but, as we see, it is not enough. Prepare for round 2 of a push for a graduated income tax and despite all… Read more »
Gosh, remember when politicians and government used to use Millions as their unit of measure. Notice none of them do that anymore…Billions is now the standard unit of budget discussion and program funding. It is stunning how they so glibly state Billions of dollars that are needed and should be spent.
Pretty soon and your talking about real money……..
At some point doesn’t CPS have to manage it’s budget like everyone else? That means making choices to balance the budget, not demanding more from overtaxed citizens. This is basic management 101.
A budget is balanced when revenue and expenses are equal. When you have more expenses than revenue, you can cut expenses OR increase revenue. This is basic management 101. The choices can also include raising revenue.
Your thinking has helped destroy the quality of life for millions of people. Give them Zero education and charge top dollar for nothing. The world needs more people like you.
The CPS property tax levy will go to max as usual. Brandons new city budget taps out the TIF $bucks$ for city, so that leaves no TIF $bucks$ for CPS? or am I confused how TIF $bucks$ work?
This is a never ending issue. Every year, every month it is the same. CPS is broke. Close it, they don’t teach anyway. This is simply a patronage job that tries to provide Transportation, Food Service and Daycare operation. No teaching here…no measurement, no accountability… a Complete waste of money. Might as well burn it in your driveway.
This is going to play out all across the country in blue states. Trillions (yes trillions) in Covid bucks were passed out like candy at Halloween, and billions haven’t been dropped into the economy yet. That is at least part of the reason why the economy continues to look “okay”, but the underpinnings are not going to be sustained without continued massive federal bailouts. Blue states have done nothing to address structural budget deficits and are counting on Uncle Sam to bail them out yet again. If Dems control Congress you can count on it.
Well there’s plenty of money to spend on illegals.
“Mayor Brandon Johnson, CPS CEO Pedro Martinez and Chicago Teachers Union President Stacy Davis Gates have all vowed to appeal to Springfield lawmakers to help close the gap and avoid cuts next year.”
Is it possible that county (Cook) and state taxes will be raised to cover the shortfall?
Nope. Chicago’s property taxes are relatively low compared to the rest of Cook.
True- Chicago taxes were for residential at around 1% of value for decades. Now they are at approx 1.75% and commercial/industrial were a little higher. In Rockford we were at the highest 5.25% of value now just under 4% meaning a $1M property pays around $40,000 way higher than Chicago. But the low tax rates increased the values while here in Rockford the high taxes kept values from appreciating mostly depreciating.
And I assume the $391 mil deficit doesn’t include what ever CTU/Brandons going to award (give away) to his buddies at CTU in new contract next year. He’ll claim its out of his hands