CHICAGO (CBS) — A respected financial watchdog group has thrown its support behind Mayor Rahm Emanuel’s budget plan, but it comes with a warning.
The Civic Federation called the mayor’s proposed $543 million property tax hike long overdue to address severely underfunded public safety pension funds, but said the mayor’s property tax plan will not solve the city’s financial woes.
“There’s going to have to be a continued effort to address the growing disparity between revenue and expenditures, and the bad past practices of borrowing for operating expenses,” Civic Federation president Laurence Msall said. “Reckless borrowing that pushes our principal out without any benefit to the taxpayers has to be stopped.”
Msall acknowledged homeowners would take a big hit from the property tax hike, but he said it would be worth the cost.
“It will be far cheaper in the long run for them if we pay our government expenses, rather than pushing the can down the road, ignoring our liabilities, and potentially watching the financial decay and collapse of the city of Chicago,” he said.