Join Wirepoints President Ted Dabrowski and Founder Mark Glennon on the eighth episode of Wirepoints Podcast. Mark and Ted attempt to simplify and make sense of the situation involving some 650 local pensions across Illinois.
Related Wirepoints articles:
- 175 Cities: Communities in Crisis. Hitting communities hard More than half of Illinois cities get “F” grades for local pensionsRising costs for Illinois’ 650 local pension.
- Rhode Island Supreme Court Shows Illinois The Way On Pension Reform –The Contract Clause does not spell doom for a constitutional amendment. Rhode Island indicates it would work.
- Special Report: Illinois state pensions: Overpromised, not underfunded – Illinois’ pension crisis is the result of overpromised benefits, not underfunding by taxpayers.
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.
Cant wait till lots of CPS seniors with 3rd grade math and reading scores get state and local jobs in Chicago and Illinois so they can have lucrative pensions also,they deserve it!
At some point isn’t it likely that property owners with a mortgage will not be able to pay the mortgage obligation AND the property taxes? However, the mortgage will be in default upon failure to pay property taxes. This is likely to present lenders with a decision whether or not to foreclose the mortgage. If the lender becomes owner of the property, that ownership will be subject to liens for unpaid taxes. (Of course multiple other factors will come into play.) A lender will probably have the right to go after the debtor on the note, but won’t many of… Read more »
You are dead on with your first point about the lenders vs prop tax obligation, and therein lies the story of what are called “zombie” foreclosures. We have linked to those stories as you can see here: https://wirepoints.org/?s=zombie It’s a big problem.
As to your questions about when and how this comes to a head, and whether that is better sooner than later, nobody knows, we think. But it will happen.
Chinese billionaires will buy up property cheap. See great reset
Here in Rockford the property taxes have been much higher than the average mortgage for many years. The taxes I pay during a 30 year mortgage are approx $213K but my home is valued at $182K. So in essence I am buying just over 2 homes but only have the deed to one. If interest rates go up that will devastate the property market in addition to the devastation the high property taxes have already done to equity. Almost 60% of those taxes go to the local school district. Need I say more.
What’s the magical ratio total local property tax rate you’d find as the reasonable maximum you’d rather pay? Also, please compare it as a percentage of your present total tax rate and tell us the downside locally of ever trying to reach that lower rate. The opposition could retort that there must be some kind of positive side to paying your present rate or a rate close to it.
Basically 1% of total value would be a start. My friend purchased a home in Phoenix and his taxes are 0.8% of value which went up 90K this year. My uncle in Centennial,Co pay approx .56% of value and values have gone up to the point I could not afford an empty lot.We are over 4% or 8 times more. I call it theft of equity by excessive taxation. He told me years ago to move there. He used to live in Woodstock,Il and Susan knows how taxes are there. His home he sold taxes were over $12K and the… Read more »
STOP complaining. Frank in Naples, the Rockford former building inspector, has a pension check coming next month. He has a cruise lined up and a boat payment make. Frank thanks you for his pension check.
That’s true. I am so glad that my payments via taxes ensure him of a great life and retirement and that by doing so my retirement is diminished and will never come. I can’t wait for my taxes to go higher so I can make some people even happier. Maybe we should just sign over the deeds to our homes to the taxing bodies since we only rent not own them. Don’t forget that pension payments are made to the Rockford airport super also. The airport is doing quite well and We the taxpayers have to make part of his… Read more »
Good, now go vote blue no matter who!
lol!-good one!!
You have expressed your point of view really well here. In the short term there isn’t lilkely much that can be done locally or by the state to improve your financial posture. I don’t know how easy or even reasonable to move elsewhere, but as an outsider it seems you’d want to ponder it. Your description otherwise here is a bit depressing. Just my two cents.
It is true that little if anything at all can be done with our current administration. Take a look at what they have done for only the well organized. Tax after tax has been raised or new ones created but I can’t think of any tax reform or reduction that was passed. One thing that could be done and in my opinion needs to be done is some sort of taxpayers union. This would be very difficult to achieve but it’s possible. Think of it. Having a dues paying ($10 or so/month) taxpayers union to represent the local chapter in… Read more »
Well, what you’ve suggested does have the aura of a collective push-back against ever-rising local taxes. That should start grabbing the attention of office holders who seek re-election and the news coverage locally as well. Personally, I think the collective push-back concept and accompanying media coverage is a promising strategy. I say gopher it!
It’s a lot like being the owner of a unit at Surfside Condominium. Once it’s occupied, the owners pay for everything. If there are vacant units, the remaining owners pick up the slack. On major issues, the owners can’t agree what to do. The building falls down and the surviving owners either pound sand or hire lawyers.
Cities collapse more slowly and city officials generally can’t be sued due to immunity laws. Eventually somebody may collect some money at Surfside; Illinois residents who are property owners can’t expect much beyond deciding when to hold and when to fold.
Massachusetts’ effective property tax rate is 1.23% and flat income tax rate is 5%. Let’s do that. Seems to be working fine for them as they rate near the top in health and educational services.