Property Tax Circuit Breakers Work

We are writing in response to Commissioner George Cardenas’ commentary advocating for the implementation of property tax circuit breakers in Illinois (“Circuit breakers’ would ease burden of soaring Cook County property taxes”).

We couldn’t agree more with Commissioner Cardenas’ call to action.

Last year, Kids First Chicago conducted workshops with more than 160 parents from across Chicago, exploring the root causes driving families to leave the city. These conversations, which involved over 1,500 people-hours of in-depth discussions, revealed a clear consensus: Chicago’s high cost of living is a significant factor driving families away.

Our subsequent report, “Chicago’s Enrollment Crisis: Adopting Parent-led Solutions,” underscored that property taxes, in particular, are a critical issue for Chicago’s low- and middle-income families.

As Cardenas highlighted, Illinois’ current property tax system is regressive, disproportionately burdening those who can least afford it. This reality is especially troubling in gentrifying areas, where rising property taxes threaten to displace long-term residents.

Circuit breaker programs offer a potentially powerful solution by providing targeted property tax relief based on a household’s income. Importantly, these programs can be designed to benefit both property owners and renters alike.

In Chicago, the burden of increased property taxes is often passed on to renters, leading to higher rents. This has created an unsustainable situation where nearly 1 in 2 renter households in Chicago is “housing cost-burdened,” meaning they spend 30% or more of their monthly income on rent and utilities. Even more alarming, our analysis found about 1 in 4 of all Chicago renter households is “severely housing cost burdened,” with 50% or more of their income going to landlords and utility companies.

The parents we engaged overwhelmingly supported the idea of a circuit breaker program, which would make property taxation fairer and help stabilize communities by reducing the financial pressures that force families to leave their homes and neighborhoods.

Incorporating circuit breakers into Illinois’ tax policy is a necessary step toward making Chicago a more affordable and attractive place for families.

We urge state policymakers to prioritize the adoption of a circuit breaker program as part of a broader strategy to keep families in Chicago and make our city a place where everyone can thrive.

-Hal Woods, chief of policy, and Tierra Pearson, community engagement coordinator, Kids First Chicago

This Letter to the Editor appeared on September 7, 2024.