The way I read the Illinois Property Tax Law, the Chicago Public Schools may be hard put to increase taxes enough to cover the additional expenses it will incur under the proposed contract with the Chicago Teachers Union especially in consideration of the deficits in its budget that are already known. Those include its present $600 million some-odd deficit and next year’s $600 million some-odd deferred payment into the teachers’ retirement fund. It is my understanding that in order to increases taxes faster the CPS must seek approval in referendum from the voters of the district. Perhaps someone better informed than I on this subject could weigh in and correct or affirm my reading as required.
2013 may be an interesting year. Interesting in the “may you live in interesting times” sense.
Maybe that’s a little too cryptic. Under Illinois law certain taxing entities like school districts, for example, are limited in how fast they can raise taxes. County assessors are instructed under the law to limit the amount taxes can increase to no more than a certain percentage over the previous year’s taxes. That can be overridden by referendum.
There are other complications. For example, cities over 500,000 in population (read: Chicago) may also have a School Finance Authority that has certain obligations. I don’t read that to remove the requirement for a referendum in order to increase taxes faster than the statutory limit, however.
They could always seek a remedy from the state legislature. That could be fun.