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The sobering numbers are highlighted in a new Lincoln Institute
of Land Policy study that also outlines how the rising rates are
taking a toll on the city across the board, including leading to
fewer overall businesses and growing inequalities in various
communities.
Illinois Policy Institute’s Dylan Sharkey is among those taking
notice.
“Chicago has incredibly high commercial property taxes even
compared to other big cities and pensions are one of the biggest
reasons,” Sharkey told The Center Square. “This puts the city
one big step closer to insolvency, to bankruptcy, and the state
is going to be on the hook for that if that day ever comes.”
While some worry the persistent struggle could leave the city in
the same place as Detroit when that city became insolvent,
Sharkey said the situation here at home is much worse.
“When Detroit went bankrupt, Michigan as a state wasn't broke,”
he said. “Illinois as a state is broke. It's like a father and
son going bankrupt together. The head of the household in
Michigan was able to help out with the money. Illinois doesn't
have that type of money to give out because the state is also
broke.”
As the city’s struggles have lingered, Sharkey said he wouldn’t
be surprised to see Chicago Mayor Brandon Johnson resort to
pushing a measure similar to the $300 million property tax hike
he introduced last year as part of the city’s budget before it
was unanimously rejected by the Chicago City Council.
“It was the first time ever where you had all 50 council members
voting no on something from the Mayor for property tax hikes,”
he said. “I wouldn't be surprised if he tries something like
that again, given this new $11 billion in pension debt and
Chicago's budget shortfall.”
Gov. J.B. Pritzker recently signed legislation enhancing the
pensions for Tier II police and firefighters in Chicago, a move
Johnson said was “incomplete” without more tax dollars going to
the city.
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