City Proposes Tax Hike to Fund Schools, Daley Calls it an Abatement

By Kevin Robinson in News on Aug 12, 2009 3:20PM

Chicago Public School officials are proposing raising property taxes. But instead of referring to the hike as an increase, Mayor Daley is calling it an "abatement." But rather than increasing the tax by the maximum allowable rater - 4.1 percent - the rate would be increased by about 1.5 percent, garnering $43 million, instead of "$83 or $100 million." Although the mayor had a lot to say about the tax hike and his proposals to cut pay in the schools, as well as his demands that federal employees take Chicago-style furlough days, he refused to discuss the $900 million projected deficit in the public schools 2010 budget.

“This is a very serious financial problem. That’s why ... I’ve asked even the federal government to start taking 12 to 15 furlough days. ... I hope all federal employees … [and] all state employees … understand that this is a very difficult time for the taxpayers of America — not just for Chicago,” Daley said. “This is a very difficult recession and every [little] bit helps.” At a press conference yesterday, schools CEO Ron Huberman called the financial situation "dire". "This year, [students and parents] should not see any difference at the classroom level," Huberman said. "If we don't figure out something different for next year" they will, he said.

But don't call it a tax increase. "They’re not raising property taxes. We’re abating 50 percent of the property tax," Daley said. We’re abating almost 50 percent. That’s what we’re doing." When asked if he would ask teachers to give back a four percent pay increase, he said he didn't know, but that he wouldn't support increasing class size. The increase would amount to about $18 per year per property owner.