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* Click here for the mayor’s official budget recommendation briefing. Click here for the mayor’s budget address as prepared. Tribune…
Mayor Brandon Johnson on Wednesday will propose Chicago’s largest property tax hike in almost a decade as part of his $17.3 billion budget plan for next year.
The $300 million increase that would hit Chicago homeowners, landlords and other property owners is a major flip-flop from Johnson’s campaign vow not to employ the widely unpopular, and often politically toxic, revenue-raising tactic. It is also one his team justified as necessary in order to balance a projected $982.4 million shortfall in 2025, along with sweeping tax increment financing funds and eliminating hundreds of vacant positions across city government. More than half of those will come from the Chicago Police Department.
In unveiling his second budget proposal as mayor, Johnson acknowledged his earlier red line against raising property taxes, but blamed his predecessors for the city’s financial predicament and said the primary alternative — layoffs — would be devastating to the city’s workforce.
“Look, this a very difficult decision, but to be quite frank with you … we’ve just have had irresponsible administration after administration that has kicked the can down the road, and now it’s in front of my door,” Johnson said about his backtrack when talking to reporters Tuesday about the tax hike. “This was a very excruciating process, but it’s one that I recognize in this moment that the alternative is just not acceptable.”
His own budget forecast published a year ago predicted the coming deficit almost to the dollar. Instead of mitigating the upcoming damage, he waited several months to do things like impose a hiring freeze that was nowhere near freezing levels.
* More…
The owners of a property worth $250,000 will likely pay approximately $240 more a year, if Johnson’s proposed tax hike is approved by at least 26 members of the Chicago City Council, based on my analysis.
A city spokesperson did not provide their own analysis. https://t.co/q2j1miiVS0— Heather Cherone (@HeatherCherone) October 30, 2024
But keep this in mind…
Former WBBM-Ch. 2 investigative reporter Pam Zekman on Oct. 21 sold her six-bedroom, Prairie-style house in Uptown’s Buena Park area for $1.5 million. … Zekman … first listed the house on May 7 for $2.1 million, and she reduced her asking price later that month to $1.89 million. … The house had a $15,883 property tax bill in the 2023 tax year.
If you click here and scroll through, you can look up the property tax bills of comparably priced homes in Naperville. Those taxes are far higher.
* NBC 5…
In order for a proposal to pass, Johnson needs 26 votes by Dec. 31. As of Wednesday, 14 alderman signed onto a letter to Johnson yesterday, sharing their community’s demands and concerns and saying they would not support a budget that includes a tax hike.
“We cannot support a budget that includes a property tax increase,” the letter read in part. “Period. The recently released poll shows that 90% of Chicagoans oppose increasing property taxes as an action the city could take to raise revenue. Of those 90% of residents, 79% strongly oppose raising property taxes. This is a non-starter for us and our constituents.”
The letter also supported a renewed ShotSpotter contract, finalizing a a contract for Chicago firefighters and keeping the police budget intact.
More from that poll…
New poll, 14% Favorable Rating for @ChicagosMayor
Change Research
854 interviewed pic.twitter.com/CAgFeaNd40— Mary Ann Ahern (@MaryAnnAhernNBC) October 29, 2024
Whew.
* Gov. Pritzker was asked about this topic today. Prepare yourself for a very long answer…
Q: Mayor Johnson is set to announce a property tax hike today. You have previously said the state has provided enough assistance so that municipalities can lower property taxes. Do you think that’s true in Chicago today?
Pritzker: I would not characterize my comments the way you just did. Enough assistance? [Beginning of optional reading skip] I think that all of us who believe in a better public education for kids across the state of Illinois believe that there are more resources needed for public education, and we’ve been doing that every single year that I’ve been in office. And indeed, I think the total amount of new funding that’s been provided since I took office is more than $4 billion. We’ve added $350 million each year, except for one where we had a lot of federal funding coming in at the beginning of the pandemic, where the state was also challenged. But in addition to that, hundreds of millions of dollars more to education that are not part of the evidence based funding model. So more than the 350 a year.
So as to the question of whether the state should provide more money to local governments, in other ways, I’ve been doing that literally every year in every other way. Schools is one major important part of the issue of property taxes, right? Illinois, just to remind you, this is maybe a longer answer than you wanted, but just to remind you when I came into office, Illinois, the state, was providing 24% of education funding. That’s the worst in the country when I came into office. The rest of it being provided by property taxes, vast majority and a little bit 10% or so from the federal government. Today, we’re up in the 30s, so we’ve gone from 24% to better. The average state is providing 46% of funding from state government, so we have a long way to go, but in the meantime, we’re doing a lot better than we’ve ever done before, putting more resources into schools. And what does that do? It allows local governments to at least abate the pressure to increase property taxes. Many have not taken us up on that, which is just disturbing to me. I know that there’s a need for more funding that people feel like, you know, there isn’t ever enough, but property taxes are already too high, and so the more that attention can be given, and that is by local school boards, including the one in Chicago, but the local school board when it is fully convened and elected, but across the state of Illinois, it’s local school boards that impose property taxes related to schools, and honestly, they’ve received more money than ever before from us. I think that they should take that seriously and try to abate the increases in property taxes.
[End of optional reading skip]
Q: [Tries to refocus the governor on the mayor’s announcement today]
Pritzker: Well, yeah, the city’s in a little bit different position. But look, I you know, property taxes are too high for everybody. I mean, if you’re asking me that question, I think that’s an easy one for everybody. And I understand, though, that there is stress in the city budget. You know, they’ve got to figure out. I have talked about the need for efficiencies, the need to make sure that you’re not, you know, haven’t put your ARPA dollars entirely into your operating budget. And I don’t know what the percentage is for the state, for the city rather, but it’s, it’s a reasonably high percentage. And so that obviously caused problems. We tried not to do that at the state level. We also have, you know, tight budgets, and you know, we’ll continue to but I would like to see some recognition that property taxes already are a burden.
Q: Would you support layoffs and furloughs instead of property taxes?
Pritzker: I can’t tell you what all the levers are. I know that’s been talked about. I you know, nobody wants to lay anybody off. That’s a hardship on the people who get laid off, for sure. I can tell you that when we were faced at the state level, just to go back to a day when it was really hard during my term in office, was when the pandemic hit, and we were in the spring of 2020 and putting forward our FY 21 budget. We had a budget we passed, and then going into FY 21 it was clear, it seemed clear, that we needed to make cuts at that point because, you know, revenues were falling off a cliff, and we didn’t have what ended up being the American Rescue Plan Act. And so we found $700 million of cuts to make. I mean, that is not easy. I’m not suggesting anybody wants to do that, but we did it. We did it without laying people off. But you know, we did it, and I know I don’t want to see anybody laid off. There are lots of solutions to these problems that need to be brought to the fore. I’m sure the mayor is examining all those. I have no idea what he’s saying in his speech today about that.
…Adding… Predictable…
Chicago's left has traditionally opposed property tax hikes and budget cuts in favor of the magic beans approach https://t.co/BfHYgA8B4U
— Capitol Fax (@capitolfax) October 30, 2024
posted by Rich Miller
Wednesday, Oct 30, 24 @ 11:55 am
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I’ll give the mayor some credit here, this is putting skin in the game. CTU would be wise to jump on board.
Comment by Excitable Boy Wednesday, Oct 30, 24 @ 11:58 am
I can’t blame the Governor for not wanting to talk about City of Chicago property taxes.
Comment by Candy Dogood Wednesday, Oct 30, 24 @ 12:20 pm
As a Chicago resident, I hate the proposed tax increase. This budget is a bunch of lazy nonsense. MBJ delayed the announcement so he can go to London and watch a Bears game. No shared sacrifice, no creativity, just a bunch of false choices and logical fallacies.
Comment by Three Dimensional Checkers Wednesday, Oct 30, 24 @ 12:22 pm
Only Brandon Johnson can make you long for the halcyon days of Lori Lightfoot.
Comment by DougChicago Wednesday, Oct 30, 24 @ 12:36 pm
=to balance a projected $982.4 million shortfall in 2025=
Local problems require local funding to solve. I can’t imagine that budget cuts would ever be proposed or able to close this huge shortfall. Face facts: property tax increases are coming.
Comment by Donnie Elgin Wednesday, Oct 30, 24 @ 12:52 pm
Taxes need to increase. However, I do not believe MBJ has looked at every option before going there.
Comment by You win more bees with honey Wednesday, Oct 30, 24 @ 12:58 pm
Mayor’s budget deck also says it is closing gap with $215,000,000 in “Improved Revenue Projections” and boy am I curious to find out what that means since I don’t recall COGFA exactly throwing a party with their last few State 2025 revenue predictions.
Comment by ChicagoBars Wednesday, Oct 30, 24 @ 1:08 pm
In other words, 14% of the population is either related to Johnson, has been paid by Johnson, or has been blissfully not paying attention to the news.
Comment by TJ Wednesday, Oct 30, 24 @ 1:11 pm
If everything is on the table for CPS, than does that include a referendum? The CTU contract could be contingent on the referendum passing. Maybe the leader of CPS needs to advocate for additional funding from the taxpayers of CPS.
Comment by Two Left Feet Wednesday, Oct 30, 24 @ 1:14 pm
So much for one of his central campaign promises…
Comment by Responsa Wednesday, Oct 30, 24 @ 1:24 pm
==Mayor’s budget deck also says it is closing gap with $215,000,000 in “Improved Revenue Projections” and boy am I curious to find out what that means==
Chicago’s alcohol tax will increase as well. Combined with he massive property tax increase, homeowners will be drinking heavily.
Comment by City Zen Wednesday, Oct 30, 24 @ 1:40 pm
while it is true that reducing personnel costs can’t totally make up for $$$ needs,the Mayor should look in his own shop for savings. he is paying questionable staff with big titles huge salaries. what are they actually doing? the recent hires aside from public safety personnel make him look hoggish.
Comment by Amalia Wednesday, Oct 30, 24 @ 1:48 pm
Get ready for MBJ to feather the bed of the CTU for the next 2.5 years. He truly has nothing to lose at this point.
Comment by Old IL Dude Wednesday, Oct 30, 24 @ 1:56 pm
Love me some magic beans. So, let me propose a lottery. Everyone in the city throws their credit card into a hat and the lucky one selected pays an extra 300m in taxes and declares bankruptcy. I think there was a South Park episode like that.
Comment by Just Another Anon Wednesday, Oct 30, 24 @ 2:08 pm
If this goes through, combined with the expected rent increases in the next few years due to a lack of new housing stock coming online, wonder if Chicago will start catching up with other high cost of living cities on the coasts
Comment by CornAl DoGooder Wednesday, Oct 30, 24 @ 2:23 pm
It will be interesting to see how he structures a vote to get 25.. Today I am not sure I see 25 members of the city council willing to walk the property tax plank with this guy..
Comment by NotRich Wednesday, Oct 30, 24 @ 2:26 pm
If the Mayor does pursue a huge property tax increase in Chicago, look for increased support for SB20230…
Provides that, for taxable years 2024 and thereafter, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption is $75,000 for all qualified property. Effective immediately.
Comment by Donnie Elgin Wednesday, Oct 30, 24 @ 2:28 pm
Doesn’t Sigcho-Lopez realize he has to govern now?
Comment by Chicagonk Wednesday, Oct 30, 24 @ 2:48 pm
My downstate house is assessed at a little over a quarter of what Pam Z. sold hers for, but my property tax bill is 70% of hers. I have a tough time feeling bad for Cook County residents on property tax.
Comment by SAP Wednesday, Oct 30, 24 @ 2:48 pm
Would love to know who the polling folks spoke with and what the questions were to end up with a Vallas net positive rating.
Comment by Benniefly2 Wednesday, Oct 30, 24 @ 2:55 pm
Hate to say it…but Chicago residential property tax rates are much lower than what is sustainable.
Comment by Dan Johnson Wednesday, Oct 30, 24 @ 3:09 pm
- Dan Johnson - Wednesday, Oct 30, 24 @ 3:09 pm:
Hate to say it…but Chicago residential property tax rates are much lower than what is sustainable.
- Or the bloat and fiscal mismanagement that has occurred within the city is much higher/worse than it should be.
Comment by Just a guy Wednesday, Oct 30, 24 @ 4:17 pm
The residents of Chicago want more value for their tax dollars. The Mayor is trying to hit the property tax button out of laziness really. Like with the CTA, more revenue without reform is not acceptable.
Comment by Three Dimensional Checkers Wednesday, Oct 30, 24 @ 4:36 pm
It’s about time he raised property taxes. Chicago has considerably lower taxes than the collar counties. They continue to scream the narrative, “Why can’t Chicago have what Lake County has or Will County or Dupage in terms of, libraries, of parks, schools etc.”
These are paid through mostly property taxes. At least 18 school district tax increases are on ballots throughout the collars. Local people take care of their local issues. It’s good that Chicago is catching up.
Comment by Frida's Boss Wednesday, Oct 30, 24 @ 4:51 pm
I understand JB needs to tip toe around the Mayor’s escapades- BUT given the Mayor’s shrinking support one would hope at some point in the very near future JB finds some mechanism to intervene before Brandon totally implodes and takes Chicago with him - JB’s own political future is somewhat tied to Chicago avoiding becoming a truly national embarrassment
Comment by Sue Wednesday, Oct 30, 24 @ 4:55 pm
In Monmouth Zeckmans Property Tax would be 52000
Comment by Downstate Property Tax Payer Wednesday, Oct 30, 24 @ 5:46 pm
===with a Vallas net positive rating===
Vallas lost the only poll that matters and as messy as it has been, I’d still take Brandon Johnson over Vallas.
But I question the methodology of any polling group that shows up with “Yes, of course people don’t want their taxes to go up.”
Comment by Candy Dogood Wednesday, Oct 30, 24 @ 7:38 pm
As a Naperville resident I have always been supportive of our higher real estate taxes for the benefits they bring. And wondered why Chicago’s were so low and they complain.
Comment by I.T. Guy Wednesday, Oct 30, 24 @ 8:15 pm
Somehow, CPD’s proposed budget manages to cut constitutional policing, CAPS, mental health services, and its training department while spending more than last year.
Comment by Three Dimensional Checkers Wednesday, Oct 30, 24 @ 8:16 pm
My house is worth about 10% of the example house above, and I pay about half of the taxes that they pay. Clearly something is out of whack in Cook County.
Comment by Jibba Wednesday, Oct 30, 24 @ 8:30 pm
Out of curiosity I looked it up and as of 4 days ago, Eric Adams is flexing a 12% approval rating in New York City. So MBJ is 2% ahead of a guy being fitted for pinstripes. Karen Bass doing a lot of heavy lifting for big city mayors’ standing in the world right now.
Comment by granville Wednesday, Oct 30, 24 @ 9:50 pm