Mayor Daley: Property Taxes May Increase
Daley: Property taxes may increase
April 3, 2008
By Fran Spielman, Sun-Times News Group
Four months after pushing through the largest property tax increase in Chicago history, Mayor Richard Daley warned Wednesday to brace for another tax hit for the city's public schools.
Daley said the Chicago Board of Education needs $180 million in new state funds "to invest in new programs students need" or the only option will be to raise the property tax.
Eleven times in the past 13 years, Daley has given the school board the green light to raise the property tax to the maximum allowed. The increase was $55 million in each of the past two years.
On Wednesday, the mayor warned of another tax-to-the-max school budget - even after $90 million in additional spending cuts - unless Gov. Rod Blagojevich sweetens the pot.
Daley's 2008 budget was balanced with $276.5 million in taxes, fines and fees, including an $83.4 million property tax increase. The city council also approved a 40 percent increase in the city's real estate transfer tax tied to the Chicago Transit Authority bailout.
"The governor has proposed only $300 million in new spending for education statewide, which is the lowest amount he's proposed for schools since he took office. Chicago schools would get $60 million more, which is not enough," Daley said at Hanson Park Elementary School. "I want to make it clear: If the board of education is forced to raise property taxes this year, it will be because Springfield forced them."
Civic Federation president Laurence Msall said Daley is right to call for more state funding, but he doesn't agree that a property tax increase is the only way out.
He said the school system needs to reform its "pension and retiree health care costs, which are growing at a much faster rate than expected revenues."
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