Property Taxes Going Up Indefinitely; City Council Passes Budget

CHICAGO — Property taxes are going up indefinitely. The City Council on Tuesday approved the city's pandemic budget, and a $94 million property tax hike with annual spikes tied to the consumer price index.

Aldermen voted 28-22 in favor of the property tax increase, and 29-21 to approve the 2021 $12.8 billion budget. The city's spending plan includes a 3-cents per gallon tax on gasoline, and a plan to issue tickets to drivers caught by speed cameras going more than 6 miles over the limit.

Tuesday's vote closed a historic $1.2 billion funding gap by refinancing more than $500 million in bonds, a controversial practice known as "scoop-and-toss" financing that provides an immediate revenue boost but costs taxpayers more in the long run.

The budget includes funding aimed at improving the quality of life in poor and minority neighborhoods historically plagues with violent crime and aggressive policing.

The spending plan earmarks $65 million earmarked for affordable housing and homelessness prevention, $36 million for community-based violence prevention, $38 million for youth programs, and $20 million for mental health services, including $1 million for an alternative responder pilot program that includes mental health professionals in response to appropriate 911 calls.

“Budgets are more than just math problems, they are statements on our values as a city and a community of nearly three million people to develop solutions for our families and businesses in the face of unprecedented fiscal challenges,” Lightfoot said Tuesday.

“Rather than abandon our values, we chose to lean into them even more to meet this historic moment and seize our once-in-a-generation opportunity to move our city forward. As we look ahead to the new year, our success will continue to be rooted in those same values that have guided us throughout our incredible journey to transform our city and will continue to light our way in the months and years ahead.”

The mayor earned a budget win in part by winning over the Chicago Federation of Labor with a compromise that eliminated plans for 350 layoffs, which City Hall sources say stopped the labor organization from quietly lobbying aldermen to vote no.

"Chicago's public service workers have stepped up and protected this city during a deadly public health crisis not seen before in our lifetime and for that, we will always be in their debt. That's why since the start of this budget process, we have worked day and night with this administration to ensure not a single Chicago public worker loses their job or health insurance. This year's budget does just that by not only averting layoffs but further protecting the critical services that our residents rely on every single day," Chicago Federation of Labor President Bob Reiter said.

Still, the budget plan was met with the most dissenting votes since the '80s.

Frequent Lightfoot critic, Ald. Anthony Beale said in a letter to 9th Ward residents that he didn't vote for the budget because he believes like "the last budget, this one is a scam."

Beale cited the "scam of scoop and toss — in which the Mayor is putting off truly balancing the budget — allowing her to announce small tax increase but with a likely big one in the next two years and which we and our children will pay for decades."

He accused the mayor of hiding the real cost of the property tax increase.

"This budget contains a provision for an automatic yearly tax increases of up to 5 percent. That's right — automatic — meaning you will no longer have a voice in city council as whether your taxes get raised," Beale wrote.

Beale was joined in casting a no vote by: Aldermen Daniel LaSpata (1st), Brian Hopkins (2nd), Patrick Daley Thompson (11th), Marty Quinn (13th); Edward Burke (14th), Raymond Lopez (15th), Stephanie Coleman (16th), Matt O’Shea (19th), Jeanette Taylor (20th), Silvana Tabares (23rd), Byron Sigcho-Lopez (25th), Roberto Maldonado (26th), Rossana Rodriguez-Sanchez (33rd), Carlos Ramirez-Rosa (35th), Samantha Nugent (39th), Anthony Napolitano (41st), Brendan Reilly (42nd), Tom Tunney (44th), James Gardiner (45th), Matt Martin (47th) and Debra Silverstein (50th).

Despite the heavy opposition, Lightfoot called the tight vote a victory for a collaborative budget she says pushes the city toward her administration's "north stars" — equity and inclusion — which "shine through this budget like a beacon of hope to our residents who are most in need."

The mayor also extended an olive branch to aldermen who voted against the spending plan, calling for the City Council to find a way to move forward, together, and "look for ways to find common ground even with those we disagree with."

Onward," the mayor said, "the journey continues."

Lightfoot said she plans to celebrate the budget's passage with a steak, a glass of Lagavulin scotch and "whatever cigar that has not dried out in my humidor."