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State Rep. Mark Batinick’s plan would designate a flat 25% of
the state budget to the state’s traditional pension payment each
year, and add a new property tax relief component. He said this
would ensure that as the pension payment drops, so would the
overall property tax burden.
Batinick said this would rejuvenate areas of the state burdened
by high property taxes.
“This would really spur growth in the areas that need it the
most and have a compounding effect,” Batinick, R-Plainfield,
said. “You bring jobs to an area, you bring investment to an
area, that is when you start to see crime drop and you start to
see schools get more revenue organically and those are all good
things.”
Batinick notes that more than half of current state workers now
are in the cheaper Tier 2 pension system that went into effect
for those hired after January 2011. Beyond that, the state has
increased its payments, and investment returns on those payments
have increased. The state has a goal of 90% funding for the
state's pension system by 2045. The most recent funded ratio the
Illinois Auditor General reports is around 42.4%.
Illinois has the second highest property taxes in the country to
New Jersey. The statewide average effective tax rate is 2.16%,
nearly double the national average. The typical Illinois
homeowner pays $4,527 annually in property taxes. According to
SmartAsset, part of the reason for the high property taxes is
that there are over 8,000 different taxing authorities in
Illinois.
Batinick said with his plan, the projected relief begins at over
$1 billion in the next fiscal year and is projected to increase
to over $5 billion in 2045.
“I urge my colleagues in the House to consider and debate this
proposed solution as we approach veto session this fall,”
Batinick said.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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