Daley Backs Off Tax Hike

By Kevin Robinson in News on Jul 25, 2008 3:30PM

Citing the poor economy, Daley announced yesterday that the city wouldn't raise property taxes to fund education, in spite of his threats to the contrary. "Does this plan mean that we are able to expand all the programs we'd like to next year? No. Like every student and parent, I had hoped we'd be able to do more next year," Daley said. "But Chicago taxpayers have been generous and supported our school improvements, and they deserve a break."

Instead, said Chicago Public Schools CEO Arne Duncan, the city will reach into the school's reserves. "The economy is hitting everybody hard...today we know people are hurting and they are having a hard time trying to make ends meet and we refuse to add to that burden," Duncan said. "This year they simply need a break." The city will draw on $100 million of its reserves, double what they had planned to use this year. The district will also get about $97 million in additional state funds, and will cut transportation spending by $12 million. The schools also plan to delay a bond issue at a debt-service savings of $35 million. The Board of Education has raised property taxes to the maximum 11 of the last 13 years, but Daley decided this year was enough, saying, "When I saw layoffs at Tribune. When you start seeing layoffs in the newspaper industry, that's a big sign...That says a lot...This economy is getting more and more challenging."

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