Looming Pension Payment Could Drive City Taxes To Highest In U.S.

Looming Pension Payment Could Drive City's Taxes To Highest In U.S.
ADVANCE FOR USE SUNDAY, DEC. 22 AND THEREAFTER - FILE - In this Jan. 3, 2013 file photo, a sign is carried during a rally by Illinois state union members and supporters in support for fair pension reform at the Illinois State Capitol in Springfield. In december Gov. Pat Quinn signed the pension overhaul legislation bill in Chicago. The passing of the landmark $160 billion legislation was voted the top story in Illinois for 2013. (AP Photo/Seth Perlman, File)
ADVANCE FOR USE SUNDAY, DEC. 22 AND THEREAFTER - FILE - In this Jan. 3, 2013 file photo, a sign is carried during a rally by Illinois state union members and supporters in support for fair pension reform at the Illinois State Capitol in Springfield. In december Gov. Pat Quinn signed the pension overhaul legislation bill in Chicago. The passing of the landmark $160 billion legislation was voted the top story in Illinois for 2013. (AP Photo/Seth Perlman, File)

It's possible that Chicken Little was right.

Next year, Chicago must come up with a state-mandated $590 million increase in its contribution to police and fire pension funds. A Crain's analysis of the city's tax and budget options shows that payment could lead to the highest commercial property tax rate in the nation and still leave the city needing to make millions of dollars in spending cuts that could decimate many services.

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