After years of maneuvering, Chicago taxpayers finally know the size of the tax bill they're getting to stabilize City Hall's major government pension plans: roughly $1.1 billion a year.But as big as that number is, it's only preliminary, with changes going upward a distinct possibility based on factors such as return on investments and the outcomes of labor negotiations. And concern is rising in the business community, which will pick up much of the tab and is worried that the tax hikes are starting to take a toll on the city's economy. The $1.1 billion figure is based on a series of deals Mayor Rahm Emanuel has struck with state lawmakers and local unions to refinance retirement systems that, in some cases, had faced insolvency within a few years if they didn't get help. The first deal was enacted nearly a year ago for the police and fire department funds; the most recent, two weeks ago affecting white-collar city workers. Each deal requires a series of tax hikes, generally to be implemented over a five-year period. When fully in force, the four city funds—and a related one that covers Chicago Public Schools teachers—in theory will be getting the actuarially required amounts needed to reach the 90 percent-funded level in 40 years or so. Unlike predecessor Richard M. Daley, who repeatedly paid less than the actuarial level, Emanuel has been willing to expend political capital to finally grapple with the city's pension debt. But the cost is huge. CLICK FOR MORE
