SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s number: $750 million

Tuesday, Apr 1, 2014

* Greg Hinz reports on Mayor Rahm Emanuel’s supposed pension reform “deal.” It’s a whole lot more expensive than advertised…

Crain’s and other outlets reported this morning that the city’s property tax levy would go up $250 million over the next five years to pay for the deal. The figure came from briefings by city officials, officials who stuck with that figure even when repeatedly challenged.

But this morning, citing “confusion” amid a flurry of announcements and briefings, a city spokeswoman conceded that, in fact, the tax hike will be $750 million over five years.

Specifically, the city now says, the city’s property tax levy will rise $50 million in 2015, and keep rising by an additional $50 million a year over the following four years. Thus, the city’s gross property levy will be $50 million higher in fiscal 2015 than it is now, $100 million higher than now in 2016, and so forth, reaching a level $250 million higher than now in five years.

Thus, over the five years cumulatively, the city would pull in $750 million more for worker pensions than now. That’s somewhat different than the $250 million tax hike over five years” that was widely reported today.

- Posted by Rich Miller        


33 Comments
  1. - James the Intolerant - Tuesday, Apr 1, 14 @ 12:38 pm:

    That’s a pretty big mistake for the Spin Doctor to make.


  2. - wordslinger - Tuesday, Apr 1, 14 @ 12:39 pm:

    Oops.

    The folks that Rahm ran out there seem rather challenged by the arithmetic.

    Geez, how can you be that weak on elementary math when you’re asking for that much money?

    Maybe they should do their work in pencil and check it next time before a press conference.


  3. - Bogart - Tuesday, Apr 1, 14 @ 12:51 pm:

    That’s not the worst of it. The City and the media are ignoring the staggering cost increase that coming down the pike as a result of the Police and Fire pension increases. Add that $600m on going increase over the next five years and you have a $3.75 billion dollar increase over 5 years. Where is that money coming from Rahm?


  4. - PublicServant - Tuesday, Apr 1, 14 @ 12:51 pm:

    Aggregate Schmaggregate. Was the $290 over five years correct?


  5. - thechampaignlife - Tuesday, Apr 1, 14 @ 12:52 pm:

    Ah, compounding “interest”. Kinda like a COLA.


  6. - But yet - Tuesday, Apr 1, 14 @ 12:56 pm:

    And on top of that the park district and the schools will be adding to the Chicago tax bills for their share of pension. Plus the city will be back for more for police and fire pension along with city operating costs which will be climbing. What will be the impact all together?


  7. - Chi - Tuesday, Apr 1, 14 @ 1:03 pm:

    Maybe the journalists got it wrong? It does seem like the City will gradually raise the tax levy $250 million dollars higher than it is now over the course of the next five years. That will obviously add up to more than $250 million dollars when the increased amount collected each year is added up.


  8. - 47th Ward - Tuesday, Apr 1, 14 @ 1:04 pm:

    $750 million? That’s a lot of yogurt.


  9. - Arthur Andersen - Tuesday, Apr 1, 14 @ 1:08 pm:

    Okay, so does that also mean that the “average homeowner” quoted in the other post will see a property tax increase of $750 instead of $250 over the five years? My head hurts today, but it seems like one follows the other


  10. - Rod - Tuesday, Apr 1, 14 @ 1:12 pm:

    The chickens are coming home to roost for those of us with more expensive homes in the City. Once the tab for everything is completed I suspect Chicago’s total property taxes will end up on the higher end of the average tab in Cook county.

    One immediate impact I suspect will be a down turn in the building of $1 million plus single family homes on the north side/ near loop west and south sides of the city and very expensive conversions of two flats into $1 million plus homes. All good things have to come to an end.


  11. - Mokenavince - Tuesday, Apr 1, 14 @ 1:13 pm:

    Lots of fuzzy math going on. My adding machine says $150 million for 5 years.
    Oh well Rahms a Cub fan years and years of suffering means its normal.


  12. - Anon - Tuesday, Apr 1, 14 @ 1:13 pm:

    City property owners pay the lowest property taxes in the state. Their tax rate is 50% lower than northwest Cook. Even with the Rahm hikes City residents will pay less than the rest of us.


  13. - Rich Miller - Tuesday, Apr 1, 14 @ 1:14 pm:

    ===I suspect Chicago’s total property taxes will end up on the higher end of the average tab in Cook county.===

    You clearly have no idea how much higher taxes are in, say, the southland.


  14. - Hannah Errant - Tuesday, Apr 1, 14 @ 1:23 pm:

    Yes Chi, in this case Greg Hinz is the elementary math failure. If the property tax levy was increased $250 million all at once, rather than phased in over five years, the total extra amount of property tax collected over the following five years would $1.25 billion. The City is correct in saying that the levy is being raised $250 million. To get to the $250 million Hinz thinks the increase needs to SUM to over the five years, the City would have to only raise the levy $50 million and leave it at that level going forward. Only there do you get a sum total of $250 million over five years. (And $275M over 6 and so forth).


  15. - Anon - Tuesday, Apr 1, 14 @ 1:39 pm:

    Good plan on raising property taxes in Chicago.

    Chicago homeowners enjoy some of the cheapest property taxes in Illinois.

    The time for an increase is well past due.


  16. - RNUG - Tuesday, Apr 1, 14 @ 1:45 pm:

    copied from the other pension thread …

    Read this story late last night / early this morning. I probably had a bit different take on it than a lot of you.

    Other than the fact it isn’t a done deal, I had to admire the way it was structured. Everyone pays some and Rahm gets to defer a payment a lot of years. Brilliant (and yes, I’m being somewhat sarcastic)! It’s a good enough mix it could get passed if done quickly. I realize a bill hasn’t been drafted yet and the devil is in the details, but I see it as a pre-emptive strike by Rahm who well knows the COLA and work rule changes will most likely be struck down by the ISC (which is why it needs to be passed NOW before the SB0001 ruling comes down). I think Rahm doesn’t care if that part gets tossed out because he will have gotten his tax increase and his payment deferment (about 70% of his wish list), both of which he really needs.


  17. - From the 'Dale to HP - Tuesday, Apr 1, 14 @ 1:49 pm:

    Maybe this is just an April Fools joke from City Hall? Those numbers from yesterday… APRIL FOOLS!!!!


  18. - Judgment Day (Road Trip) - Tuesday, Apr 1, 14 @ 2:02 pm:

    City of Chicago equalized assessed value (EAV; After all multipliers) is $65,250,387,267 (2012 tax year).

    The number does not include SSA (Special Service Area) values, but it might include TIF (Tax Increment Financing) increment value, which would need to be deducted. Can’t tell from the Clerk report.

    So, if the actual taxable EAV for Chicago is $65 bil, that means a tax rate increase (per year) of approximately:

    IF $50 mil per year…. .0766 per $100 of taxable value

    -IF- 5 years, the tax rate increase for year 5 (over year 0) would be approx. $0.383 per $100 of taxable value. That’s assuming no changes in taxable value, etc., etc.

    IF $250 mil per year…. .3831 per $100 of taxable value. I’ll let you do the calc. for this one.

    Remember, these numbers represent a single ‘per year’ calculation. If the tax rates are going up that much for each year, start adding.


  19. - PMcP - Tuesday, Apr 1, 14 @ 2:25 pm:

    Every newspaper needs a finance person to review anything before it gets posted. They’re just looking for large numbers to shock people rather than how much the hike will be and are confusing with how much it will raise. By their math any tax hike is infinite because it can be extrapolated to eternity… So stupid.


  20. - Been There - Tuesday, Apr 1, 14 @ 2:52 pm:

    I think its time to pass that gaming bill. It will take a couple of years to get up and running but they could postpone some pain by doing it now.


  21. - Downstater - Tuesday, Apr 1, 14 @ 3:23 pm:

    Now, that average $750 increase over 5 years doesn’t make for a good campaign mailer for Rham.


  22. - Cook County Commoner - Tuesday, Apr 1, 14 @ 3:33 pm:

    Luckily, the job market is buoyant, and wages are increasing for everyone. This will easily be absorbed. Right?


  23. - Skeptic - Tuesday, Apr 1, 14 @ 4:18 pm:

    Didn’t Blago try that kind of math? Save a $1M this year, and $1M next year, you’ve saved $3M.


  24. - Sir Reel - Tuesday, Apr 1, 14 @ 4:26 pm:

    Details, details.

    These folks are big picture thinkers.


  25. - truthteller - Tuesday, Apr 1, 14 @ 4:31 pm:

    Where is the discussion of TIFs????? They take in $500 million per year. If everyone needs to share in the sacrifice why aren’t we starting at the political goodies doled out under the TIF program?


  26. - Rod - Tuesday, Apr 1, 14 @ 4:58 pm:

    Rich actually I do have an idea of what the property tax rates are in south suburban Cook, Rep Will Davis has made that point repeatedly in committee. But the tax rates particularly in suburbs like Robbins are well above the average rate in Cook County. Harvey I think has the highest effective property tax rate in the county. Currently the City of Chicago has one of the very lowest effective property tax rates in Cook County at least according to the Civic Federation.

    So Chicago can easily go to the high average range and not be anywhere near Harvey or many other south suburban communities.


  27. - Pacman - Tuesday, Apr 1, 14 @ 6:52 pm:

    RNUG Does this deal Rahm worked out apply to retirees also? If so it won’t be long after a bill passes before a suit is filed by a retiree who will say the unions can’t bargain away their constitutionally protected pension.


  28. - DuPage Moderate - Tuesday, Apr 1, 14 @ 9:03 pm:

    If the Unions will not come to the table in good faith, then why don’t we let the whole thing implode.

    Either way, the trough is going to run empty.


  29. - RNUG - Tuesday, Apr 1, 14 @ 9:12 pm:

    - Pacman - Tuesday, Apr 1, 14 @ 6:52 pm:

    I have to rely on the newspaper articles to get the details right, but it is reported to also affect retirees in the articles Rich linked to, including the one I read early this AM.

    BTW: I don’t know if this is exactly what was actually said, but I loved this line in the one version of the Crain’s story:

    The agreement does not require the approval by union members, a spokeswoman for Mayor Rahm Emanuel said.

    ———

    This proposal is guaranteed to be challenged in court immediately upon passage.


  30. - Plutocrat03 - Tuesday, Apr 1, 14 @ 9:52 pm:

    If this is a step towards the city operating within its means is A good thing


  31. - Cold - Tuesday, Apr 1, 14 @ 11:43 pm:

    Former (non-unionized) City employee here. Tell Rahm I would be happy to run to the courthouse and file my own lawsuit pro se even if unions sell out retirees and near-retirees.


  32. - PublicServant - Wednesday, Apr 2, 14 @ 6:39 am:

    Once the courts get done with this particular attempt at pension theft, people have two choices:
    (1) Pay
    (2) Move

    Pick one.


  33. - RNUG - Wednesday, Apr 2, 14 @ 8:02 am:

    According to today’s Sun Times story, at least one union leader agrees with me. Bill Dougherty, acting president of the Fraternal Order of Police:

    “It’s totally against the state constitution. Your benefits cannot be diminished,” Dougherty said. “There was something passed for state employees. That’s already being challenged. The mayor is rushing to get something done before that challenge comes through because he knows it’s gonna be declared unconstitutional.”


Sorry, comments for this post are now closed.


* Where do these people learn to talk like that???
* Suarez stands by her ad, produces evidence
* Question of the day
* *** UPDATED x1 *** Lifestyles of the rich and famous
* A very good point
* Rauner outspent 2-1 on Chicago TV last month
* So far, it's still stuntish
* Politico report: Enyart slipping fast, Callis dumped
* *** UPDATED x1 - Another poll shows single digits *** Poll: Durbin with a single digit lead and slightly below 50
* *** UPDATED x1 - Suarez produces evidence *** A big swing and an even bigger miss
* Schneider up with first TV ad
* This year's best test of party strength
* A boldfaced lie
* Rate Gov. Quinn's new TV ad
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Sony Xperia Z3 specs leak with 4K video capture
        * Sony’s latest lens-style camera leaks, reveals multi-lens support
        * ASUS Zenwatch to have voice control, cheaper price
        * Apple says iCloud flaw not at root of celebrity photo hack
        * Automate your Mac: The smart way to handle repetitive Mac chores
        * iWatch manufacturing stages confirm a 2015 launch?
        * Vortex VR puts LG G3 inside 3D printed VR headset

        * Only in SF: Of Course, There’s a Burning Man Special at the Car Wash Today
        * Six Factors that Explain Why You Have Off Days When Exercising
        * Heat Seek is Using The Internet of Things to Fight NYC Slumlords
        * UberFRESH Offers a New Meal Every Day for $12 (in Santa Monica)
        * Judge Approves eBay Settlement With DOJ Over No-Poaching Deal
        * LA USD Halts $1 Billion Plan to Give Every Student an iPad
        * Samsung Will Soon Open its Smart Home Platform to Third Parties

        * Season Review: 2014 Charlotte Knights
        * White Sox call up Josh Phegley, Marcus Semien, Jordan Danks, Scott...
        * Prospect Rodon not among White Sox callups
        * White Sox unburden themselves for September
        * White Sox Minor League Update: End of the regular season
        * Noesi looks to continue push toward season's end
        * Williams conveys important message to Little Leaguers


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * State accepting patient applications for medica.....
        * Rauner criticizes Quinn on veterans..
        * Quinn, Rauner Should Get On Board With Region’s.....
        * Bruce Rauner spends more on wine than average I.....
        * School starts in Chicago with more safety guards..
        * California regulatory judges issue $1.4B fine a.....
        * Governor’s mansion question revived..
        * School starts in Chicago with more safety officers..
        * Can youth football be a safer game?..
        * Ill. Invests $102M On High-Speed Rail Line Upgr.....


        * Gubernatorial candidates discuss jobs, veterans
        * Suburban Chicago man sentenced for killing infant
        * Rauner criticizes Quinn on veterans
        * Illinois woman rescued after day stuck in mud
        * First medical marijuana tally expected next week
        * School starts in Chicago with more safety guards
        * Climatologist says August warmed up in Illinois
        * Quinn: Eating crackers on minimum wage challenge
        * Illinois prisons dealing with backup power issues
        * Fargo is site for national ag research center

        * Rauner criticizes Quinn on veterans
        * Quinn: Eating crackers on minimum wage challenge
        * Illinois prisons struggle with backup power issues
        * State starts accepting medical marijuana requests
        * Audit finds state lax in reviewing eligibility for children’s health insurance program
        * Does the governor need to live in the Executive Mansion?
        * Statehouse Insider: Hands off investments
        * State of unions: AFSCME wins some, loses some on outsourcing
        * State of unions: Domination of Illinois' workforce becomes campaign issue
        * State of unions: Lawmakers approved keeping some workers out of unions

        * A new, improved commuter bike for $325? Well, sort of
        * Hinshaw merger sets up law firm for more growth
        * Thoma Bravo to buy Compuware
        * Thoma Bravo makes its biggest deal yet
        * Medical marijuana applications start rolling in for Illinois


        * 30-year sentence for man who smothered baby, tossed him in garbage
        * New school year brings changes to Gresham
        * 30 years for man who smothered baby, tossed him in garbage
        * Convicted felon accused of fatally stabbing girlfriend 22 times
        * Quinn announces $102 million investment for high-speed rail
        * Quinn to live on minimum wage for a week
        * Moms, dads get kids ready for school
        * Chicago school year begins with more safety guards
        * Ex-cop convicted of protecting crooks is back on public payroll
        * Ald. Pope rehired city worker who quit after sex harassment allegations


        * Home Depot investigating possible data breach
        * Young man critically injured after being hit by train in Lake Zurich
        * Garrett Popcorn sued over 'Chicago Mix'
        * High school placed on lockdown after reports of shots fired
        * Man charged with trying to meet Stickney girl, 12, for sex
        * Lawyer: Federal agents investigating shootings by Chicago cops
        * No bail for man accused of Northwest Side fatal stabbing
        * Today's the deadline to transfer old CTA fare card balances
        * Prosecutors: Man plotted obstruction after slaying off-duty cop
        * Man sentenced to 30 years for dumping baby's body in trash


        * Decatur's Kirkland - From Beethoven To The Beatles
        * Big Predators In Illinois Inspire New Law
        * WUIS/SJ-R Business Report: Casey's Expansion; Parsons In Court; Farmland Prices Fall
        * Opposition Research Key Part Of Political Dark Arts
        * Digging up political dirt? That's their job
        * State Starts Accepting Medical Marijuana Requests
        * Newborn Found Alive In Jacksonville Trash Bin
        * DNR Releases Fracking Rules
        * Listen to State Week - August 29, 2014
        * 'Belleville' The Movie Is NOT A Documentary


        * Rauner criticizes Quinn on veterans
        * Quinn: Eating crackers on minimum wage challenge
        * Illinois prisons struggle with backup power issues
        * State starts accepting medical marijuana requests
        * Couple’s wedding gifts help the community
        * Angela Bertoni: How to raise awareness of domestic violence in October
        * Catherine Rampell: Tech firms’ poor record of diversity
        * Audit finds state lax in reviewing eligibility for children’s health insurance program
        * Does the governor need to live in the Executive Mansion?
        * Our Opinion: Driving into floodwater a deadly practice


        * Police: Highland High teen dies in high-speed Corvette crash
        * Police: Highland High School teen dies in high-speed Corvette crash
        * Clutterbugs to host fall shopping expo
        * SIU enrollment increases for first time in 10 years
        * MJ's minute: Sept. 2, 2014
        * Is it no longer safe to recline your airplane seat?
        * School Daze: the first day - or week - can be a challenge
        * Boil order issued for part of Carbondale
        * Popcorn Days walk/run and fun run
        * UI Volleyball vs North Carolina


        * Barbecue hogs the spotlight at Rock 'n Ribs in Lake Zurich
        * West Chicago Park District ready to show off 70,000-square-foot, $15.5M indoor rec center
        * Zion man sentenced to 30 years in prison for killing 5-month-old baby
        * Rodon won't be joining White Sox -- for now
        * Kane County Cougars announce big projects for 2015

        * Feds fine Jesse Jackson Jr.'s campaign com...
        * IRS enforcement agent numbers could drop t...
        * Jesse Jackson Jr. political fund fined nea...
        * Jackson Jr.'s political fund fined nearly ...
        * 'Celebrity Crime Files' Season Three, With...
        * Welcome to the state's Bult Field - Chicag...
        * US Rep. Lipinski accepting service academy...
        * Dem Explains Why He Voted 'Present' on DAC...
        * Immigration dominates Lipinski's town hall...
        * US Rep. Lipinski accepting service academy...

        * Amtrak demands probe of CN freight trains...
        * Construction Industry Continues to Raise C......
        * Construction Industry Continues to Raise C......
        * Who Leaked Nude Photos Of Jennifer Lawrenc......
        * Who Leaked Nude Photos Of Jennifer Lawrenc......

        * Rauner criticizes Quinn on veterans...
        * Construction Industry Continues to Raise C......
        * Ex-HP chief to speak at Downers Grove orga......

        * O'Brien: Yes We Tan. Obama Concedes to ISIS in "Taupe and Change" suit
        * Rauner Rolls Out Veterans Coalition
        * Hultgren talks health care with community leaders
        * Quinn plays up minimum wage diet to appeal to voters
        * Patriot group organizes 60 day prayer list for November elections
        * Foster: Oberweis' flip-flop on immigration cost him my vote
        * Illinois climatologist: August was warmer than July
        * GOP challenger Brannigan goes after U.S. Rep. Lipinski for anti-privacy vote
        * Equality Illinois, Planned Parenthood says "Doris wants your vCard"
        * Muslims in Dearborn, Michigan and Britain condemn ISIS; Illinois Muslims silent


        * When it comes to jobs and hiring, Pat Quinn is veteran unfriendly
        * Pat Quinn’s Blagojevich-style Hiring Hurts Veterans
        * Rauner Rolls Out Veterans Coalition
        * ICYMI: Capitol Fax: “A Very Good Point”
        * Like All Illinoisans, Veterans Are Hurting Under Pat Quinn




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller