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Massive property tax hikes hurt Chicago’s low-income families

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Massive property tax hikes hurt Chicago’s low-income families



Chicago homeowners on the South and West Sides are bracing for huge property tax hikes, driven by surging assessments and government spending tied to pensions.

Property tax bills are about to spike for tens of thousands of Chicago homeowners.

A new investigation from Illinois Answers and the Chicago Tribune found assessments doubled or even tripled for more than 37,000 homes on the South and West Sides, setting the stage for punishing tax bills this fall. In Englewood, Roseland and North Lawndale, median assessments jumped between 119% and 160%, far outpacing the 22% citywide median.

For many longtime residents, this means higher tax bills they can’t afford and fewer options to relocate. One homeowner put it bluntly: “Even if I did sell, where would I go?”

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These assessment spikes don’t exist in a vacuum. Property taxes are the primary funding source for local governments. Chicago continues to seek out more funding rather than lowering spending.

Illinois homeowners already pay the highest effective property tax rate in the nation, at about 1.83% a year of their property’s value. In Cook County, the effective rate is 1.98%. That burden has contributed to tens of thousands of residents leaving Illinois, shrinking the tax base and forcing those who remain to shoulder an even heavier load.

It’s also led to more than 1,000 homeowners in Cook County – including 125 senior citizens – since 2019 losing their homes and all of their equity over a property tax debt smaller than the price of a 10-year-old Chevy Impala. The U.S. Supreme Court has found the practice of taking more than the tax owed to be unconstitutional, but Illinois state lawmakers have yet to change the law to stop equity theft.

In May 2022, 37,000 properties in Cook County were planned for delinquent tax sale. Of those, 54% had tax debts of less than $1,000. High property tax rates are punishing low-income residents and making home ownership more difficult.

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It’s time for Chicago policy leaders to look into reforms that can provide relief, especially to low-income communities that need it most.

Reforming costly tax increment financing districts would be one place to look. These districts set aside property tax revenue into a special fund to pay for commercial development projects such as land purchases, demolition or site prep.

These public dollars benefit private developers rather than schools, parks, or other public services. They also put local government in the role of picking winners and losers in the marketplace by subsidizing one business over another.

In 2023, $1.36 million in property tax revenue – 42% of Chicago’s $3.23 million total tax levy – was diverted into tax increment financing funds. In suburban Cook County, $428.3 million, or 25% of $1.69 billion in total property taxes, was allocated to these zones.

Lawmakers should cap how long tax increment financing districts can last and limit the number of times they can be extended. Returning those dollars to general use would bring much-needed transparency and real property tax relief for Illinois residents.

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They should also look to reform the property tax appeals process. The process favors wealthier taxpayers and businesses that have the time and resources to appeal their assessments, leading to increased rates for homeowners who don’t. In higher-income communities, nearly 46% of properties filed appeals. In lower-income communities, just 11% appealed.

Between 2021 and 2023, businesses in Cook County, which already face some of the highest commercial property taxes in the nation, successfully appealed their property assessments and shifted $1.9 billion to homeowners.

Another complication is sitting lawmakers can act as property tax appeal attorneys and profit from a system of ever-growing tax hikes. Imprisoned former Illinois House Speaker Mike Madigan did that, as well as confined former Chicago Ald. Ed Burke. That source of corruption shouldn’t be allowed.

Finally, the best way to reduce the burden on low-income residents is to reduce the tax burden for everyone. That can only be achieved through constitutional pension reform.

Chicago sees 80% of the property taxes go toward its growing pension debt. Rather than seeking to control spending, Gov. J.B. Pritzker recently signed a “pension sweetener” for Chicago police and firefighters that will increase liabilities by $11.1 billion.

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Constitutional reform would allow for moderate pension changes. It would increase the fiscal health of these systems and reduce the property tax burden on Chicago homeowners.

Lawmakers can ease the pressure on neighborhoods such as Englewood, Roseland and North Lawndale by reforming pensions and eliminating the practices that drive up the costs. Structural reforms will give families stability and let communities thrive.





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Illinois

PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals

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PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals


JOLIET, IL —Attorney General Kwame Raoul issued a press release on Monday is alleging a Will County woman fraudulently received a Paycheck Protection Program (PPP) loan for more than $20,000 while employed by the Illinois Department of Corrections.

The Attorney General’s office charged Jamilah Franklin, 48, of Joliet, with one count of loan fraud of more than $10,000, a Class 2 felony punishable by up to seven years in prison; and three counts of forgery, Class 3 felonies punishable by up to five years in prison. Sentences are ultimately determined by the court. Franklin’s first court appearance is June 18.

“Federal assistance programs served as a lifeline for small businesses and unemployed Americans during the COVID-19 pandemic, and it is unacceptable that government employees would abuse that vital support,” Raoul said. “I will continue to collaborate with other agencies to hold public workers accountable for abusing these programs.”

Attorney General Raoul’s office alleges Franklin was employed by the DOC as a lieutenant when she fraudulently applied for a PPP loan from the U.S. Small Business Administration by falsely claiming she owned a business. According to Raoul’s office, Franklin received $20,516 in 2021 as a result.

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The Attorney General’s office is prosecuting this case based on a referral by the Office of Executive Inspector General and following an investigation by the Illinois State Police Division of Internal Investigation.

“The Illinois State Police pursues any state employee committing criminal behavior and will continue to work with Attorney General Raoul’s office to hold employees accountable and ensure justice,” said ISP Director Brendan F. Kelly.

Raoul’s office has prosecuted dozens of individuals for PPP loan fraud and referred other investigations to the appropriate state’s attorneys for further evaluation.

Deputy Chief Jonas Harger is prosecuting the case for Raoul’s Public Integrity Bureau.





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The Weekly: Illinois detention centers, Canvas breach and AI policies

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The Weekly: Illinois detention centers, Canvas breach and AI policies


The Daily Northwestern · The Weekly: Illinois detention centers, Canvas breach and AI policies   WALLIS ROGIN: Last week, The Daily reported on Illinois legislation defining where “detention center facilities” can be located, Northwestern professors’ policies on artificial intelligence and a Canvas hack that targeted over 9,000 schools. From The Daily Northwestern, I’m Wallis Rogin….



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Thousands of birds could migrate over the Chicago area this week, and here’s how to protect them

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Thousands of birds could migrate over the Chicago area this week, and here’s how to protect them


Thousands upon thousands of birds are expected to cross over Illinois as part of their spring migrations in coming days.

Thursday night saw the highest migration totals of the season so far, but researchers at Cornell believe that Sunday and Monday nights could see even more avian traffic in the skies over the Chicago area, with hundreds of thousands of birds expected to traverse the area.

According to estimates from Birdcast, Sunday night and into Monday morning there could be “medium” activity for migrating birds, with thousands of birds per kilometer flying over the area.

Even more birds are expected to take flight Monday night and into Tuesday morning thanks to favorable weather conditions, with a “high” number of birds expected to take to the skies over the Chicago area.

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According to estimates, up to 383 million birds could be in flight over the central United States during the peak of the migration overnight.

On Thursday night the Chicago area experienced its busiest night of the spring migration season so far, with more than 367,000 birds having been estimated to have passed over Cook County alone.

In all, more than 23,000,000 birds are believed to have crossed the state of Illinois so far during the spring migration.  

Among the primary birds expected to be flying through the area are American Redstarts, Magnolia Warblers, Baltimore Orioles and Indigo Buntings, according to researchers at the CornellLab.

As millions of birds continue visiting the Chicago area, here are some steps that residents can take to keep them safe.

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When do birds typically migrate?

Peak migration for birds over the state of Illinois occurs in mid-to-late May, with hundreds of different species heading north for the summer breeding season.

Those migration flights for songbirds and other species typically take place in the overnight hours. According to experts, birds typically take flight 30-to-45 minutes after sunset, with the greatest number of birds in flight typically seen approximately two-to-three hours later.

When should residents turn lights off?

One of the best ways to help protect birds is to turn off lights during peak migration times.

According to Birdcast, the best time to turn off or dim exterior lights and interior lights is between the hours of 11 p.m. and 6 a.m., when most birds are active.

Bright lights can disorient and attract birds, making them vulnerable to collisions and to predators on the ground, according to the website.

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Hundreds of millions of birds are killed each year in collisions with buildings, and residents and businesses are being asked to do their part to keep the creatures safe.

In addition to turning off unneeded exterior lights, residents and businesses are also asked to dim or turn off lights in lobbies, and to draw blinds to help keep light from escaping through windows.

Finally, exterior lights should be aimed downward and be well-shielded so that birds aren’t attracted to them.

Are there other steps?

Another key step in protecting birds is to bring pet cats inside during overnight hours.

According to the American Bird Conservancy, cats kill an estimated 2.4 billion birds in the United States every year, and during migration season those impacts can be even more devastating, as exhausted birds typically seek refuge in plants and trees to rest on their journeys, making them vulnerable to attack.

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Since cats like to hunt at night, active migrating birds can be a target, leading to experts asking residents to keep animals inside when possible.



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