Capitol Fax.com - Your Illinois News Radar » Today’s number: $750 million
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
* Rauner vetoes DHFS managed care performance audit bill as part of another big Friday dump
* Rauner vetoes Geolocation Privacy Protection Act
* Rauner plans three bond sales
* Caption contest!
* *** UPDATED x1 *** SUBSCRIBERS ONLY - HB40 update
* SUBSCRIBERS ONLY - More candidate announcements
* Logrolling?
* Ricketts' Wrigleyville rooftops benefit from "mom and pop" tax break
* It would've been a very tough campaign for Lisa Madigan
* Question of the day
* Legislative move shines light on antiquated law
* Chicago FOP wants halt to new use of force policy
* GOP turkey shoot event image with Madigan's visage pulled down
* Drury could benefit from contribution cap loophole
* *** UPDATED x1 - ILGOP responds *** Report: Madigan pushing back against pop tax
* Poshard backs Pritzker
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

...............
<


Loading


* SNEED: Lisa Madigan’s bailing out may have had .....
* SNEED: Lisa Madigan's bailing out may have had .....
* Candidates scramble in unexpected open attorney.....
* Editorial: Pension problems persist for city..
* Bruce Rauner Stops In Lexington During Route 66.....


* EXCHANGE: Woman creates balms, teas with plants from garden
* EXCHANGE: Creator of makeup line had paper route at 1 time
* Candidates scramble in unexpected open attorney general race
* Candidates scramble in unexpected open attorney general race
* Report: Payments for mental health treatment often denied
* Researchers to study pulmonary disorders in Sangamon County
* Shedd Aquarium highlights growing problem of marine debris
* Chicago man charged with pointing gun at city boot worker
* Gary shooting leaves 1 dead, 2 hurt, car falling 23 feet
* Authorities: Skeletal remains belong to missing boy, 13

* Scramble begins in Illinois attorney general race
* Abortion bill is hot potato for Gov. Rauner
* New Illinois law will let adults earn high school diplomas
* Raoul enters AG race, apologizes for 'Miss America' comment
* AG candidate Raoul apologizes for 'bad characterization' of opponent
* Report: Payments for treatment of addictions, mental illness often denied
* Republican McClure will run against McCann in 50th Senate district
* Republican McClure will run against McCann in the 50th Senate district
* Rep. Drury leaves governor's race to run for attorney general
* Rauner signs revamp of EDGE business tax-credit

* Like our roundup? Share it around.
* How Tock aims to get bigger piece of the restaurant reservations market
* Guess where manufacturing jobs are back?
* Downtown becoming one big candy shop
* Time for Preckwinkle & Co. to answer questions on soda tax


* Muti, Mutter, CSO combine for triumphant series opener
* At least 6 people injured in church shooting outside Nashville
* SNEED: Lisa Madigan’s bailing out may have had more to do with father
* Man critically wounded in South Shore shooting
* Superstar saint’s relics expected to draw thousands
* Record-breaking heat wave to end this week — with a bang
* Police: Man killed in Austin drive-by shooting
* United Center to host international tennis tournament next year
* Josh Sitton out; Kyle Long, Markus Wheaton among Bears debuting
* Steelers will stay in locker room for anthem; Bears release statement


* Week 3: Bears lead Steelers 17-7 at halftime
* Chicago to host tennis' Laver Cup, all-star team tournament, in 2018
* Joe Maddon clarifies remark on 'respecting' White House
* LINDA C. BLACK HOROSCOPES for 9/24/17
* NFL players protest during national anthem
* Aurora boy, 11, drowns in Fox River
* Pittsburgh Penguins announce they will attend White House Stanley Cup celebration
* Merkel seen winning 4th term, nationalists strong in Germany
* NFL owners speak out in support of players, against Trump
* Over dinner, Chicago residents connect with homeless


» State Week: IL Attorney General Candidates, The Soda Tax, and Courting Amazon
» State Week: IL Attorney General Candidates, The Soda Tax and Courting Amazon
» Governor Running Out Of Time On Location Tracking Regulation
» In Cook County, 3 Prosecutors Are Handling Hundreds Of Wrongful Conviction Claims
» An Accounting For Meteorological Violence Among Insurers
» Illinois Supreme Court Upholds Murder Conviction Of Drew Peterson
» State Sen Raoul To Run For Illinois Attorney General In 2018
» Suit: Pregnant Illinois Officer Forced To Take Unpaid Leave
» Palestinian Activist To Be Deported To Jordan From Chicago
» Looking For Analog: Old Button-Mashing Arcades Come Back For A New Generation


* Scramble begins in Illinois attorney general race
* Statehouse Insider: Illinois finances not the worst? Believe it or not.
* Angie Muhs: New content coming to Sunday SJ-R
* Our View: Path to health care reform is bipartisan compromise
* State employees, retirees have opportunity for giving
* Citizens weigh in on the community
* Abortion bill is hot potato for Gov. Rauner
* Bernard Schoenburg: Sen. McCann takes on Cellini in tiff with Bruner
* Guest Column: Let’s help Illinois get back on track with 'College Changes Everything' month
* Guest Column: Let’s help Illinois get Bback on track with 'College Changes Everything' month


* Our Past: Faulstich Building provided entertainment for men of Alton
* Modern Farmer September 2017
* Camp Jackson Fire rescues unconscious man from burning house
* Week in Review: Here are some stories you may have missed last week
* OUT & ABOUT: Open mic night at Cool Beanz in Rock Island
* Sept. 24 Asmussen Top 25
* OUTTAKES
* Mid-State team bands together
* Gallery: Photos from Outlook 2017
* Looking Beyond Tomorrow: Stories from Outlook 2017


* At first Wheaton College game since hazing charges, fans support players
* As opioid crisis worsens, demand for detox in suburban hospitals rises
* Fire breaks out at Fox Valley Ice Arena
* Steelers plan to stay in locker room for anthem
* AP Top 25: Georgia, TCU jump into top 10, 'Noles fall out

* Rep. Randy Hultgren announces 2017 Congres...
* Congressman Randy Hultgren Visits Raue Cen...
* Hultgren pushes for CHIP funding ahead of ...
* Indivisible billboard targets Hultgren, Ro...
* Hultgren Comments on CAT Closure, Hurrican...
* Montgomery mayor hosts health care forum a...
* Good government - The Daily Progress
* Hultgren pleads for continued funding of f...
* Naperville's Lauren Underwood to run for R...
* What suburban members of Congress say abou...

* Durbin to speak Oct. 10 at SIU - Randolph ......
* Durbin to speak Oct. 10 at SIU - Randolph ......
* Durbin to speak Oct. 10 at SIU - Daily Reg......

* Illinois receives $110M in emergency prepa......
* Durbin, Duckworth ask President Trump to c......

* Trump makes the threats. Democrats vote to back him up.
* Take a knee Sunday.
* Last Outdoor Movie In The Park At Buttercup Park On Saturday, September 30th
* Ora Oral Surgery Opens Its Uptown Branch On Monday
* Join Buena Park Neighbors Invites You to A Family Puppet Show and Clean & Green
* EXTRA: Rauner "gettin' his kicks" down Route 66; or at least a part of it
* Why Self-Esteem Is Self-Defeating
* Trump-supporting mayor's home vandalized with swastikas and resignation demands
* Higher cigarette taxes are fueling the illicit trade in non-brand cigarettes—and possibly terrorism
* Illinois Left panics over Graham-Cassidy; ignores state's shrinking insurer numbers


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Pioneer Working to Resolve iOS 11 Compatibility Issue With Select Receivers
* How to Force Restart or Hard Reset the iPhone 8 and iPhone 8 Plus
* Chronicles of a Windows user gone iPhone (part 3)
* Folding Galaxy X (SM-G888) seen at Korean regulator
* Apple iPhone 8 and iPhone 8 Plus have arrived! (Video)
* Qualcomm loses two battles in patent war with Apple
* iPhone 8 Plus rated best camera, HTC U11 Plus rumors & more – Pocketnow Daily

* Shields thinks White Sox can contend in '18
* Giolito looking to slow Royals in rubber game
* Brad Ausmus worked out as well as Robin Ventura
* Abreu in exclusive company with 100th RBI
* White Sox slowed after fast start against KC
* Royals 8, White Sox 2: Jose Abreu reaches milestone
* Giolito looking to slow Royals in rubber game


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

Archives
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
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




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