This ARTICLE On Chicago Mayor Seeks Help From Illinois Lawmakers With Budget Shortage Was PUBLISHED On November 12th, 2019
Chicago is in financial chaos. Chicago is the highest taxed city in the Nation.
- The state of Illinois has its share of financial issues
- However, the city of Chicago is bleeding financially
- Mayor Lori Lightfoot has no other solution other than raising taxes
- Not only raising existing taxes, but Lightfoot is creating new taxes to meet its budget deficit
- Back in 2015, Rahm Emanuel increased $7 billion in taxes to fix the pension debt of the city
- However, the $7 billion in tax increases did not make a dent to resolve the pension debt crisis
- The pension debt is much higher today than ever before
- Chicago is scrambling to meet its pension debt crisis with the funds they have budgeting for hiring new police officers
- Until Chicago realizes that you need to cut spending, they are literally running a Ponzi Scheme
- You cannot live large when you do not have the money to support your lifestyle
- Another issue Chicago is having is the mass exodus of its individual taxpayers and businesses
- There are countless businesses that are fed up and are moving to neighboring states and/or states with lower taxes
- For example, Midland Metal Products, a company that has been based in Chicago for the past 98 years has just moved to neighboring Hammond, Indiana
- Chicago lost 150 high paying jobs. The newly elected Chicago Mayor is in a panic mode
- She seems clueless and lost
In this article, we will cover the Chicago Mayor Seeks Help From Illinois Lawmakers With Budget Shortage.
Chicago Mayor Seeks Help By Asking The State
The Chicago Teachers Union (CTU) recently came to a contract settlement with Mayor Lori Lightfoot.
- The CTU contract settlement price tag is $100 million annually
- $100 million Chicago does not have
- A large percentage of the $100 million annually is expected to come by increasing property taxes on homeowners and real estate of businesses
- Lori Lightfoot is out of options because the property tax increases will not be close to covering the budget deficit the city has
- She is planning on asking the state for help
Lori Lightfoot is expecting to ask Illinois lawmakers to pass legislation in giving the city of Chicago the right to increase taxes on real estate property transfers.
Chicago Mayor Seeks Help From Springfield To Increase Taxes
The Chicago real estate property transfers tax is supposed to affect sellers of higher-end properties. The city expects in raising $50 million dollars in the first year and $100 million annually thereafter. Lori Lightfoot is deadset in increasing the real estate property transfers tax and expects the projected additional revenues to possibly increase property taxes. There are 177 state lawmakers in Illinois.
Michael Gracz of Gustan Cho Associates issued the following statement:
Take the real estate transfer tax. Lightfoot wants Springfield’s permission to bring the tax to the Chicago City Council for approval without a citywide referendum. Her heaviest lift would be with the city’s 50 aldermen who ultimately would decide yes or no. She just needs to get over the state hurdle. Lightfoot’s proposal, to some, is too risky to support because it could result in a tax hike. Lawmakers see visions of campaign mailers from opponents accusing them of raising taxes on property owners and damaging the already-stressed real estate market in Chicago. Some lawmakers have no interest in helping Chicago balance its budget. They view the city’s financial wounds as self-inflicted. Who could blame them? The wounds are. Other lawmakers want strings attached to the money. Advocates for the homeless, for example, point out that the mayor, on the campaign trail, promised to send that money their way. They’ve wrangled support from enough House Democrats to block Lightfoot’s proposal so far. And still other lawmakers are opposed because they want Lightfoot to sweat it out. That’s a price she pays for taking on big city problems. It’s her budget.
The financial crisis in Chicago is nothing new. The city was running at a deficit for many years. The newly elected Lori Lightfoot inherited a lot of this mess. However, raising taxes and creating new taxes is not the solution. Businesses and taxpayers are fleeing the city in record numbers. Chicago is doing nothing to attract new businesses and new residents like other profitable major cities are.
Potential Solutions For Chicago
There is a mass exodus of businesses and taxpayers fleeing Chicago. Raising taxes is not the solution. Increasing and creating new taxes will backfire on politicians. Lightfoot and City Council members need to look and study what other profitable cities are doing to attract new taxpayers. It is a fact that taxpayers are fleeing to lower-tax cities and states. Some ideas politicians need to consider is to stop increasing taxes to stop the exodus of businesses and taxpayers. Merging wasteful government departments and divisions and privatizing. Pension reform is a must. The pension system in Chicago, as well as the state of Illinois, is like a Ponzi Scheme. They are using funds to hire new police and fire personnel to pay the pension debt shortage. If Chicago politicians do not shape up, the city will end up in bankruptcy as Detroit did. This is a developing story. We will keep our viewers updated in the coming days and weeks. Stay tuned!!!