This Alderman Thinks Rahm's $543 Million Property Tax Hike Isn't Big Enough

By Kate Shepherd in News on Oct 19, 2015 9:11PM

Photo by Brooke Collins/City of Chicago

Does Chicago need an even bigger property tax raise than the $543 million hike proposed by Mayor Rahm Emanuel? One powerful alderman says yes.

Emanuel's proposed 2016 budget relies on Gov. Bruce Rauner signing a bill to give the city more time on police and fire pensions, according to the Sun-Times. But the assumption that Rauner will help is risky and too optimistic for some city lawmakers.

"What I'm detecting here is an appetite to get this over with one way or the other and not keep coming back and doing it again and again," Ald. Edward Burke (14th Ward), chairman of the City Council's Finance Committee, said on Monday.

The legislation, which would give Chicago 15 more years to get up to 90 percent funding for police and fire pension funds, has already passed the House and Senate but hasn't hit Rauner's desk yet. It would give the city a $220 million break on payments for the two funds in 2016.

"Would it not be more intelligent to levy at that [higher] amount-$220 million or whatever it is-and then abate...when the governor signs it?" Burke said at one of four public hearings held by the City Council's Finance Committee.

If Rauner doesn't sign the bill into law, the financial hit absorbed to Chicago taxpayers would be much worse.

Emanuel's administration had already decided against Burke's idea before presenting the 2016 budget proposal, according to City Budget Director Alex Holt.

"Our concern is that the current law actually requires a $700 million increase in a two-year period vs. the $428 million we're discussing. And we're confident and hopeful that the governor should accept [it] for a couple of reasons," Holt said at the hearing.

The issue is about local control which is a tenet of Rauner's administration and he even included Chicago's proposal in his own pension proposal, she said.

The mayor has been winning support for the property tax hike because there's little choice for aldermen. The state can withhold the city's share of state income and sales tax revenues within 90 days of a missed pension payment.

It's less likely that Rauner will approve Emanuel's homeowner's exemption on the property tax hike. It would double the exemption from $7,000 to $14,000 and homes worth less than $250,000 would be shielded from the record property tax increase.

The finance committee is expected to vote on the budget Tuesday.