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* The Tribune has a good story about what the four tops are discussing during their private negotiations…
Top lawmakers are discussing giving CPS the authority to raise its property tax levy above a state cap, which limits an increase to 5 percent or the rate of inflation, whichever is lower. The state granted similar power last year, paving the way for a $250 million tax increase to boost contributions to the pension fund for CPS teachers.
The state also would pick up much more of CPS teacher pension costs, which now top more than $700 million per year. Illinois already covers pension costs for school districts outside the city. However, that change might not be written into the school code but instead included with laws governing the state’s retirement systems — reflecting a change Rauner wanted.
Meanwhile, voters in school districts with a surplus of education money may be allowed to determine via a referendum if they want to cut property taxes. This would apply predominately to communities in the suburbs and collar counties, and a decrease would likely be limited to no more than 10 percent.
Another possible change would require the property value in any new TIF districts to be counted toward a school district’s ability to generate property taxes. It’s a nod to a change pushed by Rauner, who has argued that Chicago is using a large number of TIF districts to hide property wealth and is therefore getting more than its fair share of state money.
There’s more, so go read the whole thing.
posted by Rich Miller
Thursday, Aug 24, 17 @ 1:39 pm
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Lot of plates spinning there.
Comment by wordslinger Thursday, Aug 24, 17 @ 1:48 pm
There is the trade-off:
(1) Higher property taxes in Chicago.
(2) Even More State money for Chicago pensions.
(3) Voters can vote to reduce their property taxes, in anywhere else except Chicago.
(4) Give other schools the freedom CPS has had since 1995.
(5) Some restrictions only on NEW TIFs.
(6) Vouchers (tax credits) for any and all private schools.
Comment by winners and losers Thursday, Aug 24, 17 @ 1:51 pm
I’d just note that he couldn’t win support for these things during the regular session. But now, using the threat of the looming crisis, he’s trying to win by blackmail what he couldn’t win by majority vote.
Comment by 47th Ward Thursday, Aug 24, 17 @ 1:51 pm
So… When is the vote?
Comment by H-W Thursday, Aug 24, 17 @ 2:00 pm
The question is whether Rauner will back whatever is negotiated. He’s not in the room, and it appears that his people aren’t in the room. Rauner has a history of flipping on these deals. If he does it again, that might be it for enough Republicans to override another veto.
Comment by Pot calling kettle Thursday, Aug 24, 17 @ 2:16 pm
If this sort of deal had happened instead of the Give Daley All The Power Except To Pay Bills Act of 1995 CPS wouldn’t be in this mess today.
Comment by Will Caskey Thursday, Aug 24, 17 @ 2:26 pm
You don’t need a referendum to lower property taxes. Districts can simply ask for a smaller levy - like that is ever going to happen.
Comment by allknowingmasterofracoondom Thursday, Aug 24, 17 @ 2:27 pm
=Districts can simply ask for a smaller levy - like that is ever going to happen.=
It has and does, it won’t in districts under PTELL, not much lately due to state underfunding, but you are too lazy and intellectually dishonest to do the research.
Comment by JS Mill Thursday, Aug 24, 17 @ 2:31 pm
===You don’t need a referendum to lower property taxes. Districts can simply ask for a smaller levy - like that is ever going to happen. ===
You do realize you just contradicted yourself and made the case for these sorts of referendums, right?
Comment by Rich Miller Thursday, Aug 24, 17 @ 2:31 pm
A critical issue and the governor is nowhere to be found because he’s such a toxic mess. We don’t need to re-elect weak leader like Rauner.
Comment by Precinct Captain Thursday, Aug 24, 17 @ 2:40 pm
The old pot-kettle has hit the head on the nail- these all sound like things that could lead to a reasonable compromise- except that the “Rauner factor” has not yet reared it’s rather intrusive ugly head. 3…2….1…….
Comment by Elliott Ness Thursday, Aug 24, 17 @ 2:41 pm
==Top lawmakers are discussing giving CPS the authority to raise its property tax levy above a state cap, which limits an increase to 5 percent or the rate of inflation, whichever is lower.==
Love it. I’m sure all the progressives from Roosevelt to Irving Park will be more than willing to pay their fair share.
Comment by City Zen Thursday, Aug 24, 17 @ 2:42 pm
If CPS is going to have its PTELL lifted it also likely means that part of any deal could involve SB 1 not giving CPS credit for pension contributions that would move it down to tier 1 in the evidence based model scheme. Also the idea that the compromise would involve according to the Tribune including TIF districts value as part of the total EAV of a district fits into this too. Hence the need for more revenue.
Whatever, the State adds in terms of payments to the CPS pension fund moved over to the laws controlling public sector retirement systems likely won’t be much more than the Governor has offered before.
The problem with this is that our property taxes in the City have been rising very rapidly already, this will increase the speed of that increase. While the Mayor’s finger prints are not directly on this tax increase, he will have to take the heat for this especially from many of us with plus half million dollar plus homes in the City. If you go on Zillow right now you will find 520 single family homes for sale inside the City at $500,000 or more, there are a lot more condos in that range too for sale. This is where the hit will come, not for lower valued homes relatively speaking. This is also a big part of the Mayor’s political base of support in the City.
A huge percentage off those living in the higher end city homes and condos are already paying for private schools if they have school aged children and likely make more than $120 k a year, no voucher deal for them either.
Not a word in the Tribune article about the tax credit voucher bill however. That was interesting too.
Comment by Rod Thursday, Aug 24, 17 @ 2:42 pm
Having recently owned an almost half million dollar home I am more than okay with such owners taking most of the hit to actually pay for CPS’ bills for once.
Comment by Will Caskey Thursday, Aug 24, 17 @ 2:47 pm
There are too many open items still being ‘negotiated’. Perhaps, this is a slow stall until the override vote deadline next week.
Comment by PragmaticR Thursday, Aug 24, 17 @ 2:49 pm
Why would voters in Chicago not be allowed to reduce RE taxes? But everyone else can?
Comment by Ron Thursday, Aug 24, 17 @ 3:29 pm