Outside of Chicago, municipal property taxes across Illinois are being consumed by police and fire pensions, leaving fewer resources for public safety.
Out of the $5.12 billion that 1,297 municipalities levied across Illinois in 2023 – excluding Chicago – $1.03 billion went to police and fire pensions and $327.67 million went to protecting taxpayers.
That means for every $5 cities levied in property taxes, $1 paid police and fire pensions and only 32 cents went to fire and police protection. In 1996 the ratio for every $5 was 30 cents for pensions and 26 cents for protection.
Since 1996, Illinois cities have increased the amount taxpayers are contributing to police and fire pensions by nearly five-fold. The amount they paid toward protective services is less than double.
Out of the $1.3 billion Illinois municipalities in 2023 took in property taxes for police and firefighters, 76% went for pension obligations. In some counties, the share municipalities gave to pensions was even higher. Use the table below to see how your county measures up.
Police and firemen receive generous pensions, and rightly so given the dangerous nature of their work. However, when those benefits become overpromised – as they have become in Illinois – they undermine retirement security and reduce the amount of money available for service. Suburban and downstate police and fire pensions reported combined liabilities of $34.7 billion in 2024.
At 1.83% of their home’s value each year, Illinoisans pay the highest median effective property tax rates in the nation. Rather than funding better service, they are mostly funding retirement benefits.
That means less essential equipment police and firefighters need to stay safe. It means fewer resources to protect their communities.
Changing the Illinois Constitution, local pension buyouts and optional defined contribution plans are all solutions that could balance out the rising costs of pension obligations to keep these retirement systems intact. To keep Illinois communities safe, state leaders must allow responsible reform.
