Fact check: Will Illinois raise property taxes once again to cover their pension shortfall?

1. Summary of the results

While a significant $300 million property tax increase was initially proposed for Chicago's 2025 budget, it was ultimately rejected following community and aldermen pushback ^{[1] [2]}. However, the question of future property tax increases remains complex due to several factors:

• The state faces a massive $4.9 billion annual pension funding shortfall ^[3]
• Current pension obligations consume 80% of Chicago's property tax levy ^[1]
• Since 1996, property tax extensions have increased 52% after inflation ^[4]

2. Missing context/alternative viewpoints

Several alternative approaches to address the pension crisis are being considered:

• A temporary increase in personal income tax to 5.54% and corporate tax to 10.2% ^[5]
• A new state income tax on retirement income over $100,000 ^[5]
• A "millionaire tax" adding 3% for incomes over $1 million, though this would only raise $3-4.3 billion ^[3]

Critical context often overlooked:

• 66% of additional state education spending goes to teacher pensions instead of classrooms ^[4]
• Illinois has one of the worst pension funding ratios in the nation ^[6]
• A constitutional amendment would be required for meaningful pension reform ^[6]
• Local polling shows majority support for constitutional pension reform ^[7]

3. Potential misinformation/bias in the original statement

The question oversimplifies a complex issue by:

• Focusing solely on property taxes when multiple tax solutions are being considered ^[5]
• Implying property taxes are the primary solution, when even proposed tax increases wouldn't fully address the shortfall ^[3]
• Not acknowledging that without constitutional reform, any tax increases might be insufficient ^[6]

Who benefits from different narratives:

• Public sector unions benefit from maintaining the current constitutional pension protections
• Politicians benefit from avoiding unpopular property tax increases, as evidenced by Mayor Brandon Johnson's reversal of his proposed tax hike ^[2]
• Wealthy individuals would be most impacted by proposed solutions like the "millionaire tax" ^[3]
• Property owners and residents benefit from pushing for constitutional pension reform as a long-term solution ^[7]