Source: Chicago Sun Times —
Chicago property taxes will rise by $42.7 million — half of what an automatic escalator allowed — thanks to a $127.9 million budget shortfall for 2023 that’s the lowest in recent memory, Mayor Lori Lightfoot said Wednesday.
By exercising fiscal discipline and making “tough choices,” Lightfoot said she has managed to reduce the deficit in a budget that will serve as her reelection platform from $733 million last year and $1.2 billion during the height of the pandemic.
The automatic escalator that mayoral challenger Paul Vallas and others have vowed to repeal allows Lightfoot to raise property taxes by 5% or the inflation rate, whichever is less.
But with inflation now soaring to levels not seen in 40 years — 8.5% in July, down from 9.1% in June — the mayor had vowed to “put some guardrails” up to shield beleaguered Chicago homeowners and businesses and prevent the city from seeking the full amount.
On Wednesday, City Hall revealed those “guardrails” would cut the automatic property tax increase, which is tied to the Consumer Price Increase, in half.
“We will not seek a CPI of 8.5%. We will not seek a CPI of 5%. Instead, we will provide taxpayers with a much-needed break and lower the CPI to 2.5%, which is the five-year CPI average,” Lightfoot said during a lengthy campaign-style address at the Chicago Cultural Center.
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