Chicago Public Schools Board Raises Property Taxes to Bridge Budget Gap

The Chicago Public Schools (CPS) Board has officially decided to raise property taxes to address ongoing budgetary challenges. This decision, made during a special meeting, reflects the Board’s need to secure additional funds amidst tight financial conditions affecting local families.

Details of the Tax Hike Decision

During the special meeting, Board members voted to raise the property tax levy to the legal limit. This is significant as CPS relies heavily on local property taxes for funding. With recent federal funding cuts and other fiscal pressures, the levy increase was deemed necessary.

Budget Context

In August, CPS faced a substantial $729 million budget deficit. To manage this, the Board previously raised the levy just below the maximum permissible rate. The current increase raises it to the full legal limit allowed under state regulations, which is either 5% or the rate of inflation, whichever is lower.

Impact on Homeowners

• Homeowners with a property valued at $250,000 will see an additional $8 in their tax bill.
• Those with $500,000 homes will face a hike of about $16.

While some Board members view this increase as minimal, others express concerns about the impact on local residents already facing elevated property assessments.

Mixed Reactions from Board Members

The decision has garnered varying opinions among Board members. Supporters argue that the increase is necessary to safeguard educational services, especially in light of potential cuts that would directly affect students. Board member Jenni Custer emphasized that the extra revenue could prevent harmful program reductions.

Conversely, dissenters like Angel Gutierrez criticized the tax hike. He highlighted the burden placed on families already struggling with high property taxes. Other Board members, such as Ellen Rosenfeld, urged for budgetary restraint and called for CPS to prioritize efficient spending before shifting costs onto taxpayers.

Looking Towards the Future

While the immediate fiscal concerns are somewhat alleviated, the Board recognizes that the upcoming years will present more challenges. The 2027 election will bring further scrutiny and potential changes to the composition of the Board, influencing future financial decisions.

As CPS navigates through its funding issues, community sentiment will play a crucial role in shaping the Board’s priorities and strategies moving forward.