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Finance

Do Taxes Pay for Police Officers? Law Enforcement Funding Explained

According to Marketplace, local governments decide how to allocate tax dollars, and city councils serve that role in metropolises. “Most of the money tends to go to city salaries or city services or maintaining parks and roads and things we expect from year to year to year,” Milken Institute economist Kevin Klowden told the site.

However, these local governments can face challenges if they spend too much on employee salaries, pensions, and benefits, the site adds.

In fact, some municipalities devote most of their property tax earnings to public pensions, as was recently the case in a few Chicago suburbs, according to the Daily Herald. The suburb of Lombard, for example, collected around $9.3 million in property taxes in 2018 but contributed around 91 percent of that total—nearly $8.6 million—to pensions as it worked toward a 2040 deadline for its police and fire pension programs.

In 2020, City Journal reported that the New York Police Department’s pensions account for more than half of the department’s $2.8 billion budget increase over the last 10 years—and that pensions, fringe benefits, and debt service account for 49 percent of the NYPD’s budget.

View more information: https://marketrealist.com/p/do-taxes-pay-for-police-officers/

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