The non-partisan organization recently published analyses and informational reports on the finances of local governments and the impact on their taxpayers.
CHICAGO – The Civic Federation released six reports in October and November, covering an array of local government finance and tax topics, including the estimated full market value of real estate in Cook County, Cook County’s pension fund, effective property tax rates, the City of Chicago debt burden, and the State of Illinois’ FY2025 capital budget, among others.
“Our goal is to inform the local taxpayer about aspects of their governments’ fiscal standing,” said Joe Ferguson, president of the Civic Federation. “Our latest research focuses on the issues impacting the residents of Chicago, Cook County, and Illinois. Are your property taxes increasing? Is debt influencing your city’s finances? These topics matter.”
The Civic Federation’s biannual full value report - “Estimated Full Value of Real Property in Cook County: 2013-2022” – breaks down real estate values by region – Chicago, North Cook, and South Cook suburbs – and by property assessment class. In Cook County, the full market value in tax year 2022 increased by 64.6% from 2013. Cook County’s nearly $757 billion market value reached 2006 levels for only the second time since the Great Recession decline. This research report is available at civicfed.org/Full-Value-2013-2022.
The Federation’s analysis in “Cook County Effective Tax Rates Return to Pre-2008 Patterns” revealed that in the twelve Cook County communities studied, effective property taxes have mostly decreased since 2013, indicating a reduction in property tax burdens relative to full market value. This decline also represents a return to the levels of property taxes before the Great Recession in Cook County, though changes vary significantly across communities due to factors such as property value appreciation and adjustments to rates and assessment.
The “Cook County Pension Fund 2023 Update”, covering the membership trends and positive fiscal indicators such as supplemental employer contributions, continues the Federation’s cyclical pension work. This analysis was based on Cook County’s FY2023 actuarial report. Despite a decrease in active employees, the report finds that Cook County’s pension fund has improved, with a funded ratio rising from 57.5% in 2014 to 65.9% in 2023, a comparatively better financial situation than many Illinois pension funds. However, unfunded liabilities, or the commitment to pay future benefits, increased to $7.1 billion, and healthcare benefits for retirees continue to be a significant cost.
In its most recent report, the Civic Federation presents property tax trends, which indicate that the total tax burden on Chicago property owners rose by $2.7 billion, or 53.3%, between FY2014 and FY2023. The largest contributors to this increase are Chicago Public Schools, which raised property taxes by 60.6%, and the City of Chicago, which increased by 96.4%. The short report is available here.
Focusing on the City of Chicago government, the Federation examined a significant contributor to the City’s projected $982.4 million FY2025 budget gap: its rising debt. The City's total net debt outstanding rose by 32.8% from FY2014 through FY2023, from $22 billion to $29.2 billion. The City’s debt service ratio, or the government’s available cash to pay its debt obligations, averaged 19.4% between FY2021 and FY2025, a number considered high by rating agencies. This increase in debt was primarily driven by infrastructure projects and pension obligations.
Finally, the Civic Federation published its annual analysis of the State of Illinois’ enacted capital budget. The analysis covers the various funding sources for the $50.9 billion FY2025 capital budget, the revenues supporting the budget, and new appropriations and reappropriations. Highlights include $27.8 billion allocated to the Illinois Department of Transportation for road and bridge work under the Rebuild Illinois plan, an increase in bond issues, and new capital spending for various development and modernization projects.