image
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.


* Schilling endorses LaHood
* Reader comments closed for the weekend
* Duckworth to announce on Monday
* Rauner mulls selling Thompson Center
* Question of the day
* It's just a bill...
* *** UPDATED x1 *** Brown: Exploring an exploratory committee is "under review"
* Rauner administration denies union report of progress on fair share suit
* *** UPDATED x2 - Durbin out of the running? *** Illinois Republicans react to potential Durbin elevation
* Is a new era finally dawning in Illinois?
* Meanwhile, in Opposite Land...
* Good morning!
* 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

          
        * HTC’s One E9+ gets quietly announced with high resolution 5.5-inch screen
        * Apple Watch thoughts, New Moto 360, Tag Heuer comments & more – Pocketnow Daily Recap
        * Our 5 favourite new Windows Phone apps of the week
        * Drowning In The Live Streams
        * 5 top #TileArt tips from March’s top #TileArt artist
        * Did HTC do enough to improve the One M9?
        * Mobile Marketing Trends To Follow From The Israeli Elections

        * Seagate Seven Review: A Fun Hard Drive with a Clever Retro Design
        * Apple Watch to Be Offered by Appointment
        * Emvio Smartwatch Can Detect And Manage Your Stress Levels
        * Apple To Offer Virtual Try-Ons And Setup For The Apple Watch
        * Apple Watch Edition Customers Will Be Given Preferential Treatment
        * HTC One E9+ Makes An Appearance On HTC China’s Website
        * Vine For iOS Updated With 720p Support, Android Coming Soon

        * 'Athletic' Sale makes progress during simulated game
        * 'Athletic' Sale makes progress during simulated game
        * Danks complimented by comparison with old pal Buehrle
        * Johnson has edge in second-base competition
        * Robertson throws sharp inning in return to mound
        * Johnson, Flowers, Kottaras lead offense with flurry of doubles
        * Drabek throws bullpen session on first day in White Sox camp

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


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

        Archives
        March 2015
        February 2015
        January 2015
        December 2014
        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


        * Bill pushes for possible municipal bankruptcies.....
        * Senator starts petition to save University of I.....
        * Taylor Swift early winner at iHeartRadio Music .....
        * Gov. Bruce Rauner's business prescriptions are .....
        * Some cities in Illinois was the option to file .....
        * Gov. Bruce Rauner says he has a plan to make Il.....
        * Stripped of funding, auto theft task forces shu.....
        * Looming Pension Crisis Roils Chicago’s Mayoral .....
        * Police: 2 bodies found in NYC building explosio.....
        * Illinois Governor Bruce Rauner Discusses Budget.....


        * Chicago-area community college to offer free tuition
        * Illinois auto-theft task forces closing due to budget crisis
        * 7-year-old plane crash survivor to live with half-sister
        * Former opponent endorses Emanuel in Chicago mayor's race
        * Illinois school district provides Internet to needy families
        * Skunks stinking up spring season in suburban Chicago
        * Bill pushes for possible municipal bankruptcies in Illinois
        * Chicago mayoral runoff election pulling in early voters
        * 12-year-old shot to death in Quincy
        * Chicago's retired Cardinal George readmitted to hospital

        * Bill pushes for possible municipal bankruptcies in Illinois
        * Stripped of funding, auto theft task forces shutting down
        * Rauner looks to Kentucky right-to-work zones as labor model
        * Rauner's business prescriptions are popular, but no cure-all
        * Stripped of funding, Illinois auto theft task forces are shutting down
        * Statehouse Insider: Now the tough budget talks begin
        * Effingham native Jim Schultz brings entrepreneurial spirit to state agency
        * Rauner's 'right-to-work' proposal focus of larger debate on business climate
        * Effingham native Schultz brings entrepreneurial spirit to state agency
        * Irresistable force, immovable object on business reform

        * Former opponent Fioretti endorses Emanuel
        * Indiana governor supports bill to 'clarify intent' of religious-objection law
        * Indiana governor defends religious-objections law: 'This is not about discrimination'
        * Chicago likely to get sacked by NFL draft
        * Would Cat be better off at half the size?


          * Blue minivan involved in Brighton Park robberies
          * Fioretti reverses course, endorses Emanuel
          * Cupich says Cardinal George, recently hospitalized, is in good spirits
          * East Garfield Park man wounded during shooting
          * Officials: No injuries in Lakeview blaze
          * Churchgoers urging higher minimum wage march into Logan Square McDonald's
          * Aspiring budtenders seek training to run medical marijuana dispensaries
          * Elgin man loses arm in industrial accident
          * Woman dies following car, semi wreck
          * Man charged with misdemeanor after 2-year-old son is found in the street


          * With GOP votes, Indiana House approves religious objection bill
          * After spending scandals, Rep. Aaron Schock says goodbye
          * Legislature to consider Madigan plan to fill state budget gap
          * Rauner signs into law compromise plan to fix budget hole
          * Where can a politician wield more influence? Chicago's City Council vs. Illinois' Statehouse
          * More people moved away from Illinois last year than any other state
          * Flamin' Hot Cheetos top Chicago Public School vending machines
          * Flamin' Hot Cheetos top some Chicago Public School vending machines
          * Flamin' Hot Cheetos top Chicago Public School vending machines
          * ACLU: Chicago police make more stops than New York at its peak


          * Bill pushes for possible municipal bankruptcies in Illinois
          * Stripped of funding, auto theft task forces shutting down
          * Rauner looks to Kentucky right-to-work zones as labor model
          * Rauner's business prescriptions are popular, but no cure-all
          * Statehouse Insider: Now the tough budget talks begin
          * Statehouse Insider: Now the tough budget talks begin
          * Bernard Schoenburg: Use of city seal on campaign materials becomes issue in Ward 7 race
          * Our Opinion: In Springfield mayor's race, Jim Langfelder gets our endorsement
          * Effingham native Jim Schultz brings entrepreneurial spirit to state agency
          * Andy Shaw: Illinois' legislative scholarship program like a zombie that won't die


          * Change of plans: As soon as custard's gone, Champaign's 'Cup' to close
          * Teen credits Scouting for his desire to succeed
          * Galesburg anti-bullying club inspires acts of kindness
          * Hundreds flock to see new Trinity heart center, ER
          * Early morning fire damages Davenport home
          * Illinois auto-theft task forces closing due to budget crisis
          * Top girls' soccer teams: University Laboratory High at No. 3
          *
          * Saturday accident kills man
          * Danville man critical after rescue from burning home


          * ‘Home' bests ‘Get Hard' at box office with $54M
          * Alternative schools experience March Madness
          * Bouma scores 2 goals to lead Flames over Predators 5-2
          * Miles: Position players poised to make NL MVP bids
          * Gregor: Trout has the tools to repeat as AL MVP

          * Things are looking up for Republicans in N...
          * US Rep. Randy Hultgren joins bipartisan gr...
          * Congressman helps anti-drug overdose clini...
          * Tammy Duckworth to Challenge for Mark Kirk...
          * St. Louis-area members of Congress votes f...
          * Tammy Duckworth to Challenge for Mark Kirk...
          * Kinzinger gives foreign policy lecture to ...
          * ‘Smelled it, tasted it, felt it’: VFW lead...
          * Why a one-term congressman’s endorsement m...
          * As relations with Israel collapse, Obama p...

          * More changes in the wind for the U.S. Senate...
          * Kathleen Parker: Wacko birds nesting in US......
          * Schumer comments on Senate leadership race...

          * Boehner's goal? Keeping '218 frogs in a wh......
          * McConnell in Jerusalem: We Will Vote on Le......
          * Things are looking up for Republicans in N......

          * The Chuy we have been waiting for.
          * When it comes to unions and Fair Share, Governor Private Equity brings out that don’t-tell-me-what-to-do spirit.
          * Ho, Ho, Ho, It's Magic!
          * Senate bill enhances notice requirements for local governments
          * Opportunity Race: RPAC postcards back Hale
          * I can’t resist posting this comment about the Tribune and Hinsdale senior Marissa Dupont.
          * Chicago 10th Ward debate.
          * Rauner sinking to Blago-level approval levels. No support for his attack on Fair Share.
          * The White Sox Report: Enter Courtney Hawkins
          * Enter Courtney Hawkins


          * Governor Rauner Takes Bill Action
          * Nominating Petitions Available For Illinois Commodity Board Seats
          * Health Matters: 2015 Illinois Minority Health Efforts - Creating & Sustaining Healthy Communities
          * ‘Text First, Talk Second’ Often Best Way to Contact Loved Ones When Disaster Strikes - IEMA Encourages People to Have Plan for Communicating with Family Members, Friends during Emergencies
          * New Illinois Server Training Law effective July 1 - State currently offering FREE responsible beverage server classes




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