Chicago budget for 2021 features property tax increase, layoffs in Mayor Lightfoot's proposal

Wednesday, October 21, 2020
Chicago budget for 2021 features property tax increase, layoffs in Mayor Lightfoot's proposal
The Chicago budget for 2021 includes a property tax increase and layoffs to deal with a $1.2 billion deficit, according to Mayor Lori Lightfoot's budget proposal.

CHICAGO (WLS) -- Mayor Lori Lightfoot presented her 2021 budget proposal for Chicago, which includes a property tax increase and layoffs to address the city's more than $1 billion budget deficit amid the COVID-19 pandemic.

Under Mayor Lightfoot's $12.8 billion budget plan, property taxes would increase by $94 million and the gas tax will increase by three cents a gallon.

WATCH: Full address from Mayor Lightfoot

Mayor Lori Lightfoot delivers 2021 budget address (1 of 4)

"Chicago's 2021 Budget represents our city's roadmap toward an inclusive and fiscally responsible recovery from the extensive challenges of the unprecedented COVID-19 crisis," said Mayor Lightfoot. "These decisions were developed through a robust community engagement process, prioritizing the long-term health and stability of our all our families and businesses, and rooted in our shared commitment to expanding opportunity across our entire city. It's these same values that have guided us throughout this crisis and will continue to carry our great city through the choices we face now, and in the successes that await us in the months and years ahead."

Lightfoot called the property tax increase modest, but said it was still necessary after making other cuts and adjustments to a budget situation that began as dire, and was only made worse during the pandemic.

2021 Chicago Budget: Read full overview here

In addition to the $94 million she must raise through property taxes, the budget going forward will also include an automatic 2.3% increase to keep up with the Consumer Price Index.

For a home worth $250,000, the property tax increase translates into a $56 increase, while a $500,000 home the property tax would go up $120.

"It is a concern for my family and I, and you could say, when will it ever end?" said Mark Buciak, homeowner.

"I fully expected to see a property tax increase. I don't know where else the funds are going to come from," said Mark Zambardo, homeowner.

Lightfoot said her proposal features more than $573 million in savings. Included in that is $106 million in personnel cuts through eliminating vacant positions, layoffs and furloughs.

The cuts mean layoffs for 350 workers and eliminating more than 1,000 vacant positions as well as furlough days. The budget assumes no layoff notices will be issued until 2021, Lightfoot said, and any layoffs won't be effective until March 1.

"While we cannot do nothing, hoping for an election to forecast different, better days ahead, this budget assumes that no layoff notices will be issued until next year, and any layoffs won't be effective until March 1," Lightfoot said. "This schedule will allow us to see if there is any new federal stimulus on the horizon. If that happens, then we can make any appropriate pivots at that time.

ABC7 Political Analyst Laura Washington on Mayor Lightfoot's budget proposal

ABC7 Political Analyst Laura Washington reacts to Mayor Lori Lightfoot's budget proposal.

All non-union workers will also be asked to take five furlough days, with Mayor Lightfoot saying she would take one herself.

Mayor Lightfoot cited down revenues from COVID-19 due in 2020, with a 77.5% decline in the hotel tax and a 49.5% decline in the amusement tax. However, the mayor pointed to studies by the Brookings Institution and Bank of America which she said showing Chicago's economic recovery is ahead of other big cities.

Additional revenue sources for the budget include $76 million of TIF surplus funding and $30 million form the city's rainy day fund.

City of Chicago

Many of the vacant positions could come from the police department, which currently has 700 sworn, non-exempt vacancies, further straining relations with the union which is negotiating a new contract for the rank and file.

RELATED: Chicago budget shortfall estimated to be $1.2 billion in 2021, Mayor Lori Lightfoot says

"It's pretty ridiculous to think you're going to cut spots on the police budget in this very violent year," said Chicago FOP president John Catanzara.

City of Chicago

A budget watchdog group calls the property tax increase a tough sell during a pandemic.

"You're putting already beleaguered taxpayers, citizens, people that are fighting to hang on to their homes and their businesses in a much more difficult place," said Laurence Msall, president of the Civic Federation.

ABC7 Political Analyst Laura Washington says there are simply no good options.

"It's looking like she is going to have to insist on a tax increase, perhaps a small one," Washington said. "There is no way to get out of this budget crisis without a property tax increase."

Starting next Monday, there will be a series of public hearings. If any federal stimulus money comes through, the budget can be revisited. It must be approved by December 31.