80% of tax revenue in Chicago goes to public official pensions - Google Search

AI Overview

The statement that 80% of Chicago's total tax revenue goes to pensions is an oversimplification, but it's accurate that over 80% of Chicago's property tax levy is dedicated to funding the city's public employee pensions, including police, fire, and other municipal worker funds, creating a significant burden on the city's budget. This high allocation to pensions means less property tax money is available for other city services, contributing to high property taxes for residents. 

Key Details:
Property Tax Focus: The "80%" figure primarily refers to the portion of property tax dollars directed to pensions, not all city tax revenue (like sales tax, etc.).

Escalating Costs: Pension costs have skyrocketed, increasing nearly sixfold from $478 million in 2014 to $2.75 billion in 2024.

Budget Strain: These pension obligations consume a huge chunk of the city's budget, with some estimates showing pensions taking up about $1 in every $5 of the city's overall budget.

Reasons for Crisis: Years of underfunding, poor investment returns, and constitutionally protected benefits have built up massive pension debt. 

In essence, Chicago's property taxes are heavily skewed toward paying down pension debt, a major financial challenge for the city. 

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