Mayor Richard M. Daley of Chicago has renewed his support for a state income tax increase after an eleventh-hour agreement last week allowed the cash-strapped Chicago Public School system to balance its $2.6 billion fiscal 1993 budget.

Noelle Gaffney, the mayor's spokeswoman, said his aides are working on the logistics of a plan that would couple an income tax increase with a state property tax decrease. A timetable for the plan's completion has not been set, she said.

In June, Mayor Daley voiced his support for an income tax increase instead of a property tax rise proposed by Chicago Public Schools Superintendent Ted D. Kimbrough. The mayor said that higher property tax levies would drive away businesses and residents.

Gov. Jim Edgar reportedly has said he would support the mayor's proposal if the public was convinced that the income tax increase would be offset by a property tax cut.

The governor last week provided key assistance in balancing the Chicago school budget by agreeing to an early $42.3 million state aid payment to help close an $84.6 million budget gap.

The Chicago Teachers Union agreed to concede $14.9 million in teachers raises and bonuses, while the Board of Education agreed to cut $5.7 million in administrative costs. The final portion of assistance was provided by the Chicago School Finance Authority, the board's financial oversight panel, which agreed to release $21.7 million in reserve funds.

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