Gov. Pat Quinn has signed legislation that would help Chicago reduce a multi billion-dollar pension shortfall but could lead to a property tax increase.
Quinn had given little hint of his plans ahead of the signing, aside from saying that he opposes raising property taxes. Chicago has the worst-funded pension systems of any major U.S. city.
Mayor Rahm Emanuel pushed for the law. It would affect about 57,000 laborers and municipal employees and retirees. It would nearly eliminate the $9.4 billion shortfall in those funds by cutting benefits and increasing contributions for the city and employees. Emanuel has said he wants the additional contributions to come from a property tax increase.