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Property Tax Increase Removed From Pension Bill

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    NEWSLETTERS

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    (file photo)

    Language imposing a property tax hike for Chicagoans has been removed from legislation overhauling two city pension funds.

    House Speaker Michael Madigan filed an amendment to the legislation Monday that included language removing the property tax increases.

    Mayor Rahm Emanuel last week announced an agreement with city unions to cut a $20 billion deficit in two pension accounts over 40 years. He had said it would happen in part through a $750 million increase in property taxes over five years.

    While Chicago City Council members would vote on a property tax increase, state lawmakers who have to approve the legislation felt they were unfairly shouldering the burden of raising taxes.

    Emanuel's office said Monday the legislation "can move forward" now that concerns from labor leaders and lawmakers have been addressed.

    According to the Chicago Sun-Times, the move comes hours after Gov. Pat Quinn announced he would not support the plan with the property tax provision included.

    With just 35 percent of the money needed to fulfill its promises to retirees, Chicago's pensions are the worst-funded of any big U.S. city.