Chicago Sun-Times
By Steve Patterson, Staff Reporter
March 2, 2008
Move puts Chicago's sales tax among highest of nation's
big cities
A drink at the bar, a fast-food meal and back-to-school shopping
are among those things about to get a bit more expensive in
Cook County.
Early Saturday, Cook County commissioners voted 9-8 to approve
a 1 percentage point increase in the sales tax -- driving
Chicago's overall sales tax to double digits at 10.25 percent,
easily among the highest of any big city in America.
And the new higher tax will take effect just in time for the
Christmas shopping season.
Commissioners had until midnight Friday to pass a balanced
budget and, according to the clock in the room, it was 11:55
p.m.
But all other clocks showed it was 12:14 a.m. Saturday when
the board finally adjourned with a budget passed.
"Cook County remains open for business," board President
Todd Stroger said to applause. "The board has brought
life into this county government."
Stroger successfully passed the new tax by agreeing to give
up control of the county hospital system that has long been
a patronage dumping ground for decades' worth of politicians.
In exchange, Commissioner Larry Suffredin agreed to provide
the swing vote for the sales tax.
Parking tax hike may be next
It's still possible, commissioners said, for a planned doubling
of the county parking tax to be revived this week, to help
make ends meet this year.
But a 1 percent sales tax will bring in $71 million this year
and $400 million every year after. Commissioners filled a
$234 million deficit by borrowing against next year's surplus.
Still, that surplus likely means Stroger, who promised this
budget will now allow for "real reform," can avoid
having to seek a tax increase in 2009 and possibly in 2010,
when he's up for re-election.
Stroger had been one vote away from hiking the sales tax to
2.75 percent and, after months of bartering, said he refused
to go below 2 percent.
Friday afternoon, Stroger and other officials filed suit against
the County Board, in case a budget wasn't passed by midnight.
A judge was set to intervene in the budget process.
That lawsuit led to a day of heavy negotiating -- including
much intervention by Dennis Gannon, of the Chicago Federation
of Labor, and Cook County Sheriff Tom Dart.
Sources said Stroger was willing to barter, but advisers close
to him kept talking him out of it. That led to shouting matches
and bruised egos on both sides. Finally, a breakthrough came
Friday afternoon.
Hospital board was compromise
And though Suffredin campaigned for state's attorney on a
boast that he had "stood up to Todd Stroger's tax increases,"
and as of Friday night, his Web site still quoted him as saying
"at this point, I see no need for any increase in taxes,"
he insisted his change of heart was for the good of the health
system.
The compromise proposal calls for 15 officials from the medical,
civic and labor community to pick 20 nominees to a hospital
governing board. From there, Stroger will pick nine, to be
approved by the County Board.
Suffredin says the new hospital board, to sit for at least
three years, will bring true independence and professionalism
to the hospital system and limit patronage.
Commissioner Roberto Maldonado cast the only vote against
the new board setup, saying he wanted more Latino voices on
it.
And while the hospital governance got overwhelming approval,
a new sales tax drew immediate scorn.
"Chicago now has the unfortunate notoriety of having
the highest sales tax in the country, and our region will
now be a more expensive place to visit, live, work and operate
a business," said Jerry Roper, head of the Chicagoland
Chamber of Commerce. "The people of our region should
be outraged."
Suffredin scoffed at that.
"I've heard them say that for 30 years," he said.
"I look downtown and only see cranes."
