Chicago Can No Longer Kick the Can Down the Road

They called the tune, and now it is time to pay the piper. Emanuel scrambles to craft property tax break before bills hit | Chicago Sun-Times

They have to raise property taxes to pay for police and fire and other pensions and school construction/maintenance. 318 million dollars in new taxes need to be raised this year. With a total of $588 million of new taxes overall. (I’m not sure when that other $270 million is due to hit, but in the next year or 3 certainly.)

For years – decades – Chicago has promised the unions everything, and not funded much of anything. Now the bill has come due, and the politicos are running scared because this is going to hit people in the wallet. Where it counts.

So now they are trying to come up with a way to shift the burden away from homeowners who live in the city (and voted for this madness for 80 years or more) and onto the other property owners. Of course that assumes they can figure out how to pay for it.

[Civic Federation President Laurence Msall] it is “difficult to see how the city could afford a property tax rebate plan given the current state of its finances and lack of reserves.”

You can’t wish away the net-present-value of a string of payments, just because it is easier than really negotiating with the unions.