Cook County property taxes funding pensions more than service

Cook County homeowners face rising property taxes. Three-fourths of that money is going to police and fire pensions instead of services.

Property tax bills are due Dec. 15th, and Cook County homeowners are facing tax bills that have grown 16%.

With more money being collected, it makes sense residents would expect better services from the public safety institutions funded by their tax dollars, such as police and fire departments. But Illinois Department of Revenue data from 2023 shows 74% of the money for these entities is going to fund pensions, with little left for public safety.

Since 1996, the amount of money municipalities in Cook County outside of Chicago have levied to keep up with police and fire pensions has grown nearly five times. The amount levied to keep up services has not even doubled.

Police and firemen receive generous pensions, and rightly so given the dangerous nature of their work. When those benefits become overpromised – as they have become in Illinois – they undermine retirement security and reduce the amount of money available for service.

In Chicago, police and fire pensions are on the brink of insolvency after a recent benefit sweetener signed by Gov. J.B. Pritzker. He approved the law even after receiving a warning about the instability of the funds from Mayor Brandon Johnson’s office. For Chicago’s fire pension to avoid emergency asset sales, the mayor had to use some of the city’s reserve funds to pay out September benefits.

The city of Chicago pays for police and fire protective services from the corporate fund, which does not receive property tax dollars. And even though property taxes are not the only source of funding for the city’s pensions, keeping up with pension debt is the main driver of property taxes in the city.

On net, every new property tax dollar raised since 2014 has gone to fund pension costs. In the 2024 Chicago budget, police and fire pensions were responsible for more than 66% of the property tax levy.

Cook County residents need property tax relief, and that will only come when elected leaders decide to pursue fiscal responsibility.

Structural pension reform that extends buyouts to police and fire retirees and optional 401(k) plans would be the right place to start. State lawmakers should also reform the Illinois Constitution so moderate reforms to not-yet-earned benefits can be implemented to keep spending under control.