By: Ted Dabrowski and John Klingner
Watch out for more property tax hikes. Chicago governments are bleeding and officials won’t reform spending, so it’s hard to see how they avoid going after both homeowners and businesses.
Start with the city. Chicago’s Chief Financial Officer Jill Jaworski says a property tax increase is “likely” needed to cover the city’s $1 billion budget hole. (Mayor Johnson later downplayed the need for a hike even though he proposed a $300 million hike last year.)
Then there’s Chicago Public Schools’ own $734 million deficit and the likely need for a property tax hike there, too. Pile on top of that the tax hikes needed to bail out the $771 million shortfall at the Regional Transit Authority.
Oh, and property taxes will go up even further if Gov. Pritzker signs the police and fire pension booster bill that’s sitting on his desk right now. It calls for nearly $7 billion more in taxpayer contributions to the public safety pension plans through 2055.
Everyday Chicagoans and businesses are being taxed out because government officials simply won’t stop spending.
The city’s budget is up a whopping $6.6 billion, or 62%, since 2019, and yet Chicago keeps spending more than it takes in. CPS has been on a hiring spree in recent years, dramatically boosting support and administrative staff, even as CPS enrollment shrinks. The district, which runs many nearly-empty and failing schools, now spends more than $30,000 per student.
The transit agencies also continue to run trains and buses at 20-year highs!…even though ridership remains at 60% to 70% of its pre-covid levels.
The property tax hikes keep coming despite the fact that those taxes have already grown three times faster than inflation over the past decade.
Chicago politicians have made a mess of the city and they keep hiking taxes because Chicagoans let them. That will only change when city residents finally say “no”.
Appendix.
Read more from Wirepoints:
- Broken Chicago public safety pension math: Just $6 B in assets for $68 B in payouts
- Chicago pension sweeteners: Threatening public safety retirement security, soaking future Chicagoans
- Chicago’s weak luxury real estate market goes beyond Ken Griffin
- Chicago property taxes rise 3.5 times faster than inflation in last decade
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
Audio and summary 
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.
yet they still voted the same. They chose higher taxes
100 percent chose this.
Of course they are. When will Chicago voters learn electing a Democrat mayor is a one-way ticket to the poor house?
Nashville: thriving
Houston: thriving
Charlotte: thriving
Orlando: thriving
Hmmm I wonder what those cities all have in common?
Those cities all have Democrat mayors, too…
More taxes for the Chicagoians – Cool!
I’m not into the “misery loves company” thing in this case. Chicago’s PTs are way too high, and Chicago suburban PTs are … whatever is worse than “way too high.”
Yes I understand and it is not a misery loves company thing. The Chicago voters seem quite often to want more and more spending programs and vote accordingly. In view of this I think these fine individuals should pay their fair share don’t you think? Want more spending then pay more taxes is the way I see it
and Chicago suburban PTs are … whatever is worse than “way too high.”
Try extortionate.
adjective
“extortionate ticket prices”
That circle on table says it all. The amount collected increased at a 7.35% annual rate but inflation was only 2.90%; a difference of 4.45% annually.
No private sector worker exists that recieved an annual wage increase of that magnitude for a decade straight.
ts not “are,” the question is by how much?
I’m counting the minutes til JB uses $40g SALT tax cap lift as political cover to try and go for graduated/ millionaires tax once again and sell to dopey taxpayers as property tax relief, “progressive tax”, alternative to bail out CPS, CTA, etc….but of course there will be no relief, just more total taxation.
Democrats never cut spending, especially for left , progressive programs. Dems need to cut frivolous spy, or all the taxpayers will leave IL. All they’ll be left with recipients and no one to pay.
Da Illinois property tax BLACK HOLE.
Leave now Illinoisians!!
The property tax hikes keep coming despite the fact that those taxes have already grown three times faster than inflation over the past decade.
No. Because people won’t vote the old guard out or when they do they vote in inept clowns like Mayor Banjo the Clown
Homie won’t raise property taxes, but from now on your monthly bill for garbage pickup will be 1K. Homie has lots of schemes to redistribute your money.
It should say Chicago and the suburbs are all getting tax increases. It looks like it will never stop. The pension shortfall is so large and getting larger by the day. The public sector has won the money game. Stay and pay or Run for the sun (Texas, Florida or anywhere else).
Florida has exploding insurance rates & property taxes too.
Indiana is the smarter choice.
Texas also has a dysfunctional power grid.
Yes, one has to do much research before choosing a state to relocate to. One of many factors to consider is the degree of a state’s current and projected financial soundness.
“After the Units file their annual tax levies, the County Clerk computes the annual tax rate for each Unit by dividing the levy of each Unit by the Assessment Base of the respective Unit.The County Clerk then computes the total tax rate applicable to each parcel of real property by aggregating the tax rates of all the Units having jurisdiction over the particular parcel.” The ONLY way taxes will ever go down is if the entities spend less. If you look at historical data government income has never gone down. Even during the housing crash-assessed values went down so they… Read more »
I was so furious over that. Still am. I hope President DJT revisits local taxing bodies’ crimes against homeowners after he releases the Epstein Files.
Thanks for the laugh. That truly made my day. If that doesn’t work, perhaps you could write a letter to Santa Claus.
PPF – I just read Mary Pat Campbell’s analysis of Chicago’ pension woes. If Pritzker signs the pension sweetener bill, which appears very likely, how does Chicago move forward with police and fire pensions. Mary Pat thinks at that level of funding a pay as you go circumstance arrives sooner than later. Perhaps Mary Pat is wrong and you can suggest she take an accounting course? There isn’t enough money in any city budget even with huge unprecedented tax increases to pay pensions as legally required in Illinois on a pay as you go basis. I don’t think the politicians… Read more »
Due to its size Chicago is probably the most advanced cancer. Perhaps big enough to bring down the whole state. Why not bankrupt Chicago & CPS as a necessary amputation to save what’s left AND make it possible to revive Chicago? Private and public investment might flow in as with the Marshall Plan. Sure, there’d be collateral damage but worst hit would be the public sector which contributed massively to the economic and social collapse.
…”worst hit would be the public sector.” Maybe, but you can’t be so sure of it. Personally I doubt that’s the legal expectation. Detroit’s bankruptcy several years ago was an example to the contrary. In general, public employee retirees get better treatment than do bond holders as an example, and you lose a lot of public services in any reduced governmental services that likely result as well. You may think that’s desirable, but some of your neighbors, friends and extended family may think otherwise.
You are 100 percent correct James. Bankruptcy would stiff bondholders and leave pensions mostly intact. One only needs to look at Detroit or Puerto Rico if they have any doubts.
Hold on and don’t take that so far. First, bonds that are secured properly get paid first. General obligation bonds that are not secured get are supposed to be treated like all other unsecured ordinary creditors, which also include the unfunded pension liabilities, the law says. However, courts have tended to find ways to favor pensioners, which is what I think you are alluding to. The bottom line is that it depends on the facts, though pensions tend to get some preference. As a general rule, however, it would not be fair to say pensions get left mostly intact and… Read more »
Mostly correct, but in the future, no one will lend Chicago money so they would be left living within their means. They cannot raise taxes much more as the rich are fleeing in record numbers and leaving the poor uneducated immigrants to pay the bills. Can not get blood from a stone.