One chart tells you much about Chicago’s property tax and its pensions – Wirepoints Quickpoint

What’s the impact of Chicago’s pension cost on its property taxes. This one chart from the city’s new budget forecast is an indication. It shows how the property tax levy increased over the last ten years. The levy is the total amount collected in property taxes. Note the red at the bottom, which is the portion of the levy the city has budgeted for pension contributions.

The above is only for taxes that fund the city’s main operating account — its Corporate Fund. Property tax bills in the city include separate charges for the school district and other overlapping taxing districts.

Also, since money is fungible, it’s a bit arbitrary for the city to budget a portion of the property tax to pensions. The city has other revenue sources, though the property tax is the biggest.

Still, the chart makes the point everybody should know: Pensions are a huge and growing crisis. They are the 800-pound gorilla in the room — for Chicago, the state and most of its municipalities.

We will be writing much more about the budget forecast when the budget is formally proposed next month.

-Mark Glennon