LIVING IN CHICAGO - It's Likely to Cost You More in 2009!
NEW CITY TAXES, INCREASED TRANSIT FARES LIKELY NEXT YEAR!
Here's some more bad news for Chicago Residents already pummeled by news of falling stock values and frozen credit: it appears likely that higher Chicago Taxes, and Higher CTA Fares, are in the offing for 2009!
Who would get pinched?
Chicago Homeowners, first and foremost - last year's city budget included $86 Million in increased real estate taxes. These taxes will take effect for the 2008 tax year, not due until Fall, 2009. This year, many Chicago homeowners have suffered double-digit increases on their 2007 Property Tax Bills, due November 3rd, as these tax rates were calculated before the local real estate market started to sour late last year.
Chicago Mayor Richard Daley plans no additional real estate tax increases in the 2009 City of Chicago Budget. Not yet, anyway.
CTA El and Bus Riders will get stung as well. Last Friday, Chicago Transit Authority Chairman Ron Huberman announced fare increases affecting all passengers - those who pay cash, riders who purchase a monthly Unlimited Rides pass, and regular riders who hold a CTA Chicago Card or Chicago Card Plus fare debit card. The fare increase would take effect January, 2009, if approved.
Cash fares will increase to $2.25 for El and Bus Riders, slightly lower for those with transit debit cards. Further, the incentive bonus of 10% on those Chicago Card holders who place more than $20 in their fare account - a program geared to getting more riders to try the transit card option - is slated to be discontinued.
Despite a sales tax increased approved last March to fund CTA Service, a companion program to allow free rides for Senior Citizens and Disabled Veterans is costing more than anticipated - $35.8 Million, versus the original projection of $20 Million. Also, the recent economic downturn has resulted in lower sales tax proceeds to the CTA than anticipated. The fare increase, hopes Huberman, will close their budget gap.
Finally, Chicago Mayor Daley will also institute additional tax increases - on items such as concert and sports tickets and downtown parking, as well as Chicago Fire Department Ambulance Service. In addition, Daley plans the layoff of as many as 1,080 city workers, and leaving 3,000 open city positions vacant instead of filling them.
These new proposals would cover roughly $65 Million of a projected $469 Million Budget Shortfall in Chicago over the next two years.
The remaining $404 Million City Budget Gap? The Mayor hopes to raise $150 Million by leasing Chicago Parking Meters, and another $40 Million from leasing Chicago Midway Airport, on the Southwest Side, to a private firm to operate.
Restructuring City of Chicago Debt would save an additional $60 Million. Also, using some of the proceeds from the Meter and Midway Airport Leasing Programs could save $13 Million, as city infrastructure improvements would come from these funds rather than the City Capital Budget.
The balance of the shortfall - another $141 Million? The city is still working on that one! The Mayor's Budget will be released this Wednesday.
Chicagoans - you need to consider Spandex Wallets next year!
For more information, see Hal Dardick's story in yesterday's Chicago Tribune discussing Mayor Daley's planned 2009 Chicago Budget. Read Jon Hilkevitch's story in Friday's Tribune for more info on the contemplated CTA Fare Increase.
DEAN MOSS & DEAN'S TEAM CHICAGO
