In Cook County, 75% of police, fire property taxes go to pensions

Outside Chicago, only a fourth of municipal property taxes collected this year for police and fire are going to services.

The vast majority of the police and fire levies in last year’s Cook County property tax bills funded pensions, not protection.

The 2024 police and fire levies for cities outside Chicago total $599 million. Just over $450 million of that is for pensions, according to the Illinois Department of Revenue.

First-installment bills are due April 1. Many in the county may still be recovering from the delayed property tax bills that were due Dec. 15. Some of those bills grew by record-setting amounts.

Since 1996, the amount Cook County municipalities outside Chicago have levied to keep up with police and fire pensions has grown by 416%, while the amount levied for services hasn’t even doubled.

The amount going to fund protection increased by about $2 million in 2024 levies over 2023. The amount for pensions rose $27 million.

Police and firemen deserve generous pensions given the risk in their work. But when those benefits become too generous — as they are 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 Gov. J.B. Pritzker recently signed a benefit sweetener. He approved it even after Mayor Brandon Johnson’s office warned him about the funds’ instability.

For Chicago’s fire pension to avoid emergency asset sales, the mayor had to use city reserve funds to pay September benefits.

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 city property taxes.

Chicago pays for police and fire protection from the corporate fund, which does not receive property tax dollars.

On net, every new property tax dollar the city has raised since 2014 has gone to pension costs. In Chicago’s 2024 budget, police and fire pensions made up more than 66% of the property tax levy.

Property tax relief for Cook County residents will come only when elected leaders pursue fiscal responsibility.

Structural pension reform that extends buyouts to police and fire retirees and optional 401(k) plans for all public sector workers is a good place to start. Lawmakers also should reform the Illinois Constitution to allow moderate reforms to not-yet-earned benefits.