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.


* Reader comments closed for the weekend
* *** UPDATED *** THIS JUST IN... Judge orders permanent stay on pension law
* Today's number: 10 percent
* Unclear on the concept
* Could be a big day
* Question of the day
* Illinois leaders react to Obama's immigration order
* TrackBill – An Introduction
* Caption contest!
* 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

          
        * Apple Watch price, Lollipop updates, MS Office mobile comments & more – Pocketnow Daily Recap
        * Google’s Nexus 6 Might Be Too Big For Right Now, But Right-Sized For The Future
        * You Should Play: Monster Strike is a delightful mashup of monster battles and pinball
        * HTC Desire Eye Review: Welcome to the (selfie) machine
        * The Week in iPad Cases: Extra storage, ultra rugged, and everything in between
        * Apple's $450 million e-books settlement gets final approval
        * Do you really care about health tracking wearables?

        * Huawei Ascend P7 Available for Sale in India for Rs 27,999
        * Samsung Galaxy Note Edge Launch In The UK Delayed
        * Lenovo REACHit Pulls All Your Files Into One Place
        * Philips Puts Their New SlimStyle Light Bulb On a Diet
        * Show us your best Grumpy Cat scowl
        * This Week's Top Downloads
        * These are the tablets to put on your Black Friday hit list

        * With LaRoche on board, Abreu will benefit
        * Sources: White Sox land LaRoche with two-year deal
        * Sources: White Sox land LaRoche with two-year deal
        * Sources: White Sox land LaRoche with two-year deal
        * Abreu will benefit from LaRoche's presence
        * White Sox sign Adam LaRoche to two-year, $25 million deal
        * Sources: White Sox land LaRoche with two-year deal

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


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

        Archives
        November 2014
        October 2014
        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


        * 'Hoops for Peace' tournament aims to curb viole.....
        * Money cant buy Christie love - Politico..
        * Illinois' Rauner tackles full transition agenda.....
        * Finke: Let's hope Rauner has some good pension .....
        * Blackhawks crush Oilers..
        * Rauner Says Financial Condition "Horrible"..
        * Bruce Rauner tackles full agenda in transition .....
        * Children's Theater Project Lands $5 Million Sta.....


        * Illinois' Rauner tackles full transition agenda
        * Immigrants urged to take advantage of Obama action
        * Door County fish business subject of federal probe
        * Springfield firefighter arrested for wielding gun
        * Pekin man sentenced for dealing deadly heroin
        * Attorney general warns of immigration scams
        * Suspect in 2011 slaying enters guilty plea
        * New study shows impact of military in Illinois
        * Congressman says he still deciding what to do next
        * Judge rules Illinois pension law unconstitutional

        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court next
        * State to refund $60 million in retiree health care money
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court likely
        * Illinois pension case likely headed to high court
        * Judge: Pension ruling to come Friday
        * Rauner mum on fixes for ‘dire’ state finances, wants Quinn to freeze hiring
        * Rauner mum on fixes for ‘dire’ state finances
        * Judge to hear pension law arguments today

        * AndroGel giving AbbVie performance anxiety
        * Turning the kitchen into a tech hot spot
        * What does Michael Madigan do next?
        * Are Chicago's manufacturing districts vulnerable?
        * United's Smisek back in analysts' good graces


        * University of Chicago’s Dr. Donald F. Steiner, pioneer in diabetes research, dead at 84
        * University of Chicago’s Dr. Donald F. Steiner, pioneer in diabetes research, dead at 84
        * University of Chicago’s Dr. Donald F. Steiner, pioneer in diabetes research, dead at 84
        * University of Chicago’s Dr. Donald F. Steiner, pioneer in diabetes research, dead at 84
        * Police: Girl, 10, struck by drunk driver who fled scene
        * Business owners seeking pot shop licenses in Illinois faced lawsuits elsewhere
        * Time for all-new plan on pensions
        * Illinois pension reform law is unconstitutional, judge rules
        * Dr. Lawrence Solomon: Renowned dermatologist, book collector loved a mystery
        * 3 Daley scandals cost Chicago taxpayers over $6 million


        * Police warn of robberies in Lake View neighborhood
        * 5 injured in shootings, including 2 teens, on South, West side
        * Mag Mile Lights Festival: 'Nice to start the holiday season'
        * Teens address top city issues at annual speech competition
        * Emanuel: 'What the president did was create an opportunity'
        * $900K bail for man accused in fatal East Hyde Park shooting
        * Impaired Divvy bicyclist hit by 2 cars on Lake Shore Drive
        * Tourist robbed at gunpoint near Buckingham Fountain
        * Slain woman was thoughtful colleague, co-workers say
        * 3 charged with gun, drug offenses in Beach Park


        * Listen to State Week - November 21, 2014
        * State To Refund Retiree Health Care Money
        * Labor unions celebrate judge's ruling against Illinois pension law
        * Judge Finds Reductions In Pension Benefits Unconstitutional
        * Pension Ruling Imminent
        * Hoosiers divided over Obama’s executive action on immigration
        * Illinois Symphony Orchestra Joins The Circus For Holiday Pops
        * School Funding Testimony Taken At Capitol
        * Incoming U of I President Speaks To Springfield Audience
        * To Restore Executive Mansion, Rauner Plans Private Funds


        * Our Opinion: Illiana project too risky for tapped-out Illinois
        * Bernard Schoenburg: Sen. Manar backs aide Watson over Cahnman, Proctor in Ward 5
        * Karen Cox: Shop for a cause
        * Andy Shaw: Protect Illinois’ FOIA law from unnecessary tinkering
        * Quote of the Day: Sunday, Nov. 23, 2014
        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * Deckle McLean: Plagiarism comes with a price
        * Charles Krauthammer: The climate pact swindle
        * Quote of the Day: Nov. 22, 2014


        * Tristan Stricklin attends Congress of Future Medical Leaders in Washington, D.C.
        * Marion High School Model UN Delegation places at SEMO conference
        * Bird signs to play golf at Indiana University-Purdue University at Fort Wayne
        * Shawnee Community College to host job fair Dec. 3
        * Six local schools awarded $500 grants from Touchstone Energy
        * Students awarded scholarships to attend SEMO
        * Thomas awarded $10,000 Minority Doctoral Scholarship
        * One district's story: Unity Point works on new teacher evaluation system
        * Thanksgiving Day Fitness
        * Union County Court Report


        * Families get coats, food from Lake Zurich church
        * Minnesota survives test from UMBC
        * Rhode Island upsets No. 21 Nebraska
        * Freshman leads Indiana past Lamar, 85-72
        * Fremd rolls past Cary-Grove at Lakes

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Guest lineups for the Sunday news shows...
        * Conflict mineral law update and the war in......
        * Conflict mineral law update and the war in......
        * Conflict mineral law update and the war in......
        * Conflict mineral law update and the war in......

        * Algonquin chief recommended to be next U.S......
        * GOP senator: 'Hopefully we'll get a seriou......

        * Tower of Power
        * Tribune: 'Vulnerable' cafe makes a stand in a tough part of town
        * Duckworth-Bowlsbey welcome new baby girl
        * WWI-themed Christmas ad goes viral
        * State Rep. Andre Thapedi HR1348 Press ReleaseClir
        * State Rep. Andre Thapedi HR1348 Press Release
        * Going to GRI in Peoria? Find session schedules #ILGRIturns50
        * IAR Government Affairs monitors veto session
        * Coming Thursday: Illinois October Home Sales Report
        * Infographic: October Illinois Housing Snapshot #IARMarketStats


        * Illinois Residents Asked to Put the Tobacco Down - Support the Great American Smokeout – November 20
        * Governor Quinn Statement on President Obama’s Executive Action
        * Governor Quinn Statement on Selection of New University of Illinois President
        * Governor Quinn Statement on Senate Committee Passage of Minimum Wage Legislation
        * Governor Quinn Statement on the Installation of Archbishop Blase Cupich




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