Chicago schools budget includes 2.4 percent property tax hike

Chicago taxpayers will face a property tax increase for theseventh straight year if the Chicago public schools budget isapproved later this month, school officials announced Tuesday.

Schools CEO Arne Duncan will ask the Board of Education to approvea 2.4 percent increase, the maximum allowed by the state. This meansan increase of $14.53 for the owner of a $100,000 home.

Three hearings are scheduled before the Aug 25 board meeting andsome resistance is likely. Still, the budget is expected to pass.

Taxes have gone up eight times in the last 10 years. Since 1995,the average taxpayer has seen the schools portion of his tax billjump by 60 percent, or about $350, said Lawrence Msall, of the CivicFederation, a watchdog group that analyzes government budgets.

"We're disappointed that the CPS staff is proposing to once againraise property taxes," Msall said, noting that Mayor Daley froze hisportion of the tax bill this year. Cook County President John Strogeralso held the line on a county tax increase, though he approved aslight increase for the forest preserve district.

The budget announcement, usually in July, was delayed because ofthe stalemate over the state budget in the Legislature. It wasfurther delayed this week while CPS waited for approval from themayor's office, said CPS Budget Director Pedro Martinez.

Duncan said he needs the money after receiving only $105 millionof $150 million in new money he hoped to get from the state. Thatleft him with a $45 million deficit. He plans to cut $5 million inadministrative spending, leaving him with a $40 million hole to befilled by the tax increase.

CPS already cut $100 million from its budget, primarily byeliminating 1,600 administrative and non-teaching jobs.

"We've come too far to cut at the classroom level," said Duncan,citing an announcement he made last week of major gains on statetests by Chicago students.

Duncan said his budget does not include any programming cuts andwill increase spending in key areas. For example, it allows for 51more reading specialists, bringing the total number to about 500. Italso allows for more preschool slots and for about 30 more schoolsthat will stay open late with classes for parents and students.

CPS also announced $366 million in new capital spending, including$110 million in state money that isn't guaranteed. Duncan said heexpects to secure it in the legislative veto session.