Report: Proposed constitutional amendment could lead to tax hikes

(The Center Square) – A measure on the November ballot that aims to codify collective bargaining issues in the Illinois state constitution could raise property taxes, one expert says.

Amendment 1 on Illinois’ November ballot enshrines union protections regarding what can be negotiated in contracts, including wages, hours, and working conditions.

A new report by the Illinois Policy Institute claims that passing Amendment 1 would put Illinois at risk of facing higher property taxes.

The report says that the change would “prevent commonsense reforms” to reduce homeowners’ tax burdens while giving government union leaders virtually limitless new ways to demand higher costs on taxpayers.

Adam Schuster, vice president of policy for IPI, said Amendment 1 could cost Illinoisans nearly $2,200 more in property taxes over the next four years.

“The reality is that this is nothing more than a tax hike in disguise, and in many ways, you could see it as a second effort from the same groups that pushed the ‘Fair Tax Act,’” Schuster said, reflecting on the proposed constitutional amendment for a progressive income tax that failed in 2020. “The reason [Amendment 1] guarantees a $2,100 property tax hike is that it would give unions some of the most extreme powers in the nation.”

According to Schuster, Amendment 1 would grant government unions unprecedented bargaining powers as a “fundamental right,” including the power to override voters and state lawmakers.

“So a lot of the commonsense reforms to reduce costs for home owners such as pension reforms, consolidating local governments, or cutting down on administrative waste in schools, could be blocked,” he said.

Democratic lawmakers have been in support of the amendment. At a news conference in April, state Sen. Ram Villivalam, D-Chicago, said if approved by voters, the amendment will help union workers he said have been earning less.

“The falling rate of unionization has lowered wages, not only because some workers no longer received the higher union wage, but also because there is less pressure on nonunion employers to raise wages,” Villavalam said.

Earlier this month, a Sangamon County Circuit Court judge denied a petition that sought to block the amendment from appearing on the November ballot. The petition was filed by Chicago Public School parents, the Liberty Justice Center and the Illinois Policy Institute. The IPI says they do plan on appealing the ruling.

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