Illinois Property Taxes Rise 27 Percent Under Governor Pritzker, Pension Debt Drives School District Levies Higher
Governor JB Pritzker has blamed local school boards for driving up Illinois property taxes, but state policy decisions and pension obligations have played a significant role in the problem.
Under the governor, Illinois property taxes have increased nearly 27 percent — from $31.8 billion in 2018 when he took office to $40.37 billion in 2024, according to a report from Illinois Policy.
Pritzker told reporters last month that property taxes are determined by local governments and not the state. But the governor has signed legislation that directly affects how much money local governments must raise to meet state requirements.
State mandates, pension obligations and funding choices overseen by the governor have contributed significantly to the rising tax bills.
Pensions Consume Nearly 40 Percent of Education Budget
Illinois public schools rely primarily on property taxes for funding. But school districts are forced to depend so heavily on those taxes because the state diverts an increasing share of education spending to pensions instead of classrooms.
From 1996 to 2016, state education spending increased by $5.4 billion. Two-thirds of that growth, or $3.6 billion, went to pensions rather than students.
During that period, pension costs grew from just over 8 percent of state education spending to more than one-third. The trend has continued since then.
Since 2016, general fund payments to the Teachers Retirement System of Illinois have grown 68 percent, outpacing the 55 percent increase in preK-12 education spending.
Pensions now consume nearly 40 percent of Illinois education budget. With more state money tied up in retirement debt, school districts must fill the gap with property taxes.
Some pension obligations predate Pritzker, but last year he signed a pension sweetener for Chicago fire and police pensions that will add an estimated $11.1 billion in liabilities by 2055. Roughly 80 percent of Chicago property taxes go to the city pensions.
State Law Allows Taxes to Rise Faster Than Inflation
A report from Cook County Treasurer Maria Pappas found that state law has allowed property tax collections to rise at double the inflation rate over the past three decades.
Local taxing bodies operate within the framework created by the General Assembly and overseen by the governor.
School Boards Did Not Take the Hint
When responding to the Pappas report, Pritzker laid blame at the feet of local school districts. He said school boards have continued to ratchet up property taxes despite state efforts to increase K-12 funding.
The evidence-based funding formula signed into law by then-Governor Bruce Rauner in 2017 has increased annual K-12 funding by more than $2.5 billion.
But the state funding increase has not kept pace with the pension obligations that local governments must now fund.
No Easy Solutions
Illinois ranks first in the nation for the highest number of taxing bodies, with more than 7,000 local governmental units and more than 800 school districts.
Pritzker has proposed legislation on government consolidation but has not used his Democratic supermajority to achieve the goal.
Part of the revenue from a proposed millionaire tax amendment could go toward property tax relief, but the governor said it would not do much on its own.
The Illinois Department of Revenue is completing its own study of the state property tax system, due by the end of July.
Until the governor recognizes his part in the problem, Illinois residents can expect their tax bills to keep growing.
Sources
- https://www.illinoispolicy.org/illinois-property-taxes-up-27-under-pritzker/
- https://www.chicagotribune.com/2026/04/09/opinion-jb-pritzker-illinois-affordability-taxes/
- https://muddyrivernews.com/politics/pritzker-school-boards-didnt-take-the-hint-on-property-taxes/20260407081023/