Daley: State property tax hike would be 'disaster'

November 30, 2010 2:15:41 PM PST
Mayor Daley warns that Chicago faces financial disaster if the state tries to fund city pensions by taxing property owners.

The mayor spoke Tuesday after city officials explained plans to cope with winter cold and snow.

City Council Finance Committee Chairman Ed Burke warned last month that Chicago faces a ticking pension time bomb.

Daley said the solution includes police and firefighters making higher pension contributions, and reduced pensions for new hires. He said some lawmakers favor boosting property taxes.

"You can't place the financial problems on the back of every homeowner in the City of Chicago," said Daley. "Besides that, every business in the City of Chicago. That will make our city, basically-- a city will have a financial disaster of increasing a tax levy by almost $800 million in 2015."

Daley said tenants would also suffer, because landlords would raise rents to pay higher property taxes.


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