The Illinois Policy Institute announced on Mar. 30 that in 2024, more than $450 million of nearly $600 million in police and fire property tax levies for Cook County municipalities outside Chicago were used to fund pensions rather than public safety services. Only about $150 million went toward actual police and fire operations.
This situation highlights a growing concern for taxpayers who are seeing higher bills without a corresponding increase in public safety services. The institute said the rising pension costs are crowding out resources that would otherwise go to essential services like policing and firefighting.
From 1996 to 2024, the amount of property taxes allocated by these municipalities for police and fire pensions increased by over 400 percent, while funds for direct services did not even double during the same period. Between 2023 and 2024 alone, protection levies grew by about $2 million compared to a $27 million rise in pension-related costs. In Chicago itself, although operations are funded through its corporate fund instead of property taxes, pension debt has been identified as the main reason behind recent property tax increases. More than two-thirds of Chicago’s 2024 property tax levy was dedicated to police and fire pension obligations.
“The reality for taxpayers is they’re paying more every year but not seeing better public safety,” said LyLena Estabine, senior policy analyst at the Illinois Policy Institute. “Police officers and firefighters deserve strong retirement benefits, but Illinois’ pension system has become so costly it is crowding out the very services residents expect their tax dollars to support. Meanwhile the property tax bill delays are causing additional strain on government agencies and taxpayers. Last year’s delays meant Evanston needed to borrow to maintain operations, costing taxpayers over $1 million.”
Both Chicago’s police and fire funds face significant financial challenges as they approach insolvency. Recent benefit increases signed into law by Governor J.B. Pritzker may further strain these systems’ ability to pay future retirees.
Institute experts say only structural reform can provide meaningful relief from rising property taxes. A bill under consideration in Springfield proposes expanding buyout programs for Chicago police and fire officers’ pensions.
“Without reform, taxpayers will continue to see higher bills while public safety resources remain constrained” Estabine said. “Illinois needs a system that protects both retirees and taxpayers.”
The Illinois Policy Institute works as an independent nonprofit think tank focused on policy analysis according to its official website. It offers data-driven analysis on state budgets, education issues such as pensions according to its official website, seeks fiscal responsibility according to its official website, promotes free-market principles according to its official website, concentrates efforts within Illinois according to its official website, and maintains headquarters in Chicago according to its official website.
