By Illinois Radio Network/Cole Lauterbach
SPRINGFIELD – Illinois lawmakers must change state pension laws and allow for new taxes, Chicago Mayor Lori Lightfoot said Wednesday.
The freshman mayor unveiled her budget proposal Wednesday. In it, she specifically relies on $50 million in revenue from a new progressive real estate transfer tax, which would have to be approved by the Illinois General Assembly and governor. She also said the state must rethink its the tax structure proposed for Chicago casino and make changes to state pension laws.
“We will need cooperation from Springfield in order to get this done,” she said, adding that “… if we don’t get the authorization we need, we will be forced to make more painful choices when it comes to new sources of revenue.”
City residents are dealing with the effects of a historic property tax increase and a reorganization of city property tax valuations under a new county assessor.
The city’s budget is being squeezed by its legacy pension debt. At an estimated $46 billion, Chicago has higher pension liabilities than some states. Lightfoot’s budget said the city’s total pension contribution has increased by $346 million to $1.7 billion.
The state has historically been unable to find the political will to change pension laws. The state constitution includes a provision protecting pension benefits, which the Illinois Supreme Court has determined is absolute.
Lightfoot’s budget included an additional $163 million in revenue from “emergency services reimbursements.” Crain’s Chicago Business reported that a deal struck with Gov. J.B. Pritzker would have most of that amount come from the state’s coffers.
Pritzker’s office wouldn’t respond to requests for comment on the budget, but the governor told the Chicago Sun-Times that he will “encourage the [General Assembly] to give the mayor’s proposals their full consideration during the veto session” and that “balancing Chicago’s budget is an important step in stabilizing our overall fiscal health to benefit all our state’s residents.”
Spokesmen for Speaker Madigan and Senate President John Cullerton said the legislative leaders speak to Lightfoot regularly.
The city is expected to see a boost in income tax revenue as a result of federal tax law changes.
