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Chicago budget
Quick Hit
by Micah Maidenberg
9:54am
Thu Oct 14, 2010

In Talking Budgets, Chico Hits "Washington"

There's been little substantive debate yet to demarcate who among the candidates seeking Chicago's open mayoral chair will break with Richard Daley's approach to critical city issues and who will offer continuity. Candidate Gery Chico, who served as a Daley chief of staff before moving into a legal career and leading a variety of important Daley-controlled public agencies, seemed to tilt toward a bit of both positions yesterday. Responding to a question on WIND's Big John and Amy show about whether the next mayor will have any resources after Daley's use of funds gained in the city's asset leases, Chico defended the mayor's "good job" before touting his own administrative prowess. Listen:

But later in the day, Chico told Crain's columnist Greg Hinz that Daley's proposed 2011 budget needs a fundamental reworking. "I would take a deep dive, tear it apart, and rebuild it," he said.

Note the campaign meme that appears in both the radio clip and in Hinz's piece: Chico's invocation of "Washington," meaning Rahm Emanuel, as something Chicagoans don't need. "I don't think what you want is Washington people coming from Washington, where they haven't balanced a budget in years trying to apply that kind of thinking to Chicago," is the way he put it on the Big John and Amy show. "It's really damaging."

Quick Hit
by Micah Maidenberg
3:47pm
Wed Oct 13, 2010

Daley's Bad News Balanced Budget

Outgoing Chicago Mayor Richard Daley's last budget (PDF) isn't pretty. To close a gaping deficit of nearly $655 million, Daley leans on the city's reserves ($120 million from the city's parking meter fund, $38 million from Chicago's tax increment financing districts), the city's employees (non-union workers will take furloughs and the mayor hopes unionized city staff will agree to something similar), $91.3 million in "more favorable revenues," and relatively undefined operational changes (a press release promises savings from "lease renegotiations, contract reductions, locked in lower utility costs, the reduction of custodial services, and savings in healthcare costs, among others").

The budget makes room for 150 to 200 new police officers next year but maintains a freeze on hiring new non-safety personnel. Thirteen million in savings is projected by cutting 277 budgeted positions. Recycling may be privatized.

While the budget doesn't raises taxes or fees for next year, by draining all but $76 million from the parking meter reserve fund, it does essentially take money from future generations of Chicagoans. From a statement released by the Illinois Public Interest Research Group:

The city received $1.16 billion for the parking meter lease. Of the $1.16 billion, $400 million was reserved for a long-term reserve/reinvestment fund, which was anticipated to provide $20 million per year to replace lost revenue from the meters. By raiding these reserves and leaving a mere $76 million in the rainy day fund, future generations of Chicagoans are going to be denied $16.2 million annually in accrued interest. Mayor Daley said today that these funds will be paid back over the next few years, after he leaves office, burdening future mayors with recovering this revenue.

City Council hearings about the budget start next Monday and are expected to last through early November. For more background about ways some aldermen would like to improve the city's budget process, check out our post from yesterday.

PI Original
by Micah Maidenberg
3:14pm
Tue Oct 12, 2010
1 comment

Fixing Daley's Broken Budget Process (VIDEO)

City Hall

Tomorrow, Chicago Mayor Richard Daley will give the final budget address of his long career, detailing precisely how he proposes closing a gaping $655 million shortfall in the city's main fund. With Daley on the way out, are aldermen ready to contribute more to drafting the city's annual spending plan?

Quick Hit
by Adam Doster
1:02pm
Fri Oct 8, 2010
1 comment

What About The Other $500 Million, Mr. Mayor?

That the Daley administration is even considering plugging a portion of Chicago's budget hole using tax increment financing (TIF) money is a watershed moment in city politics. The mayor has safeguarded those taxpayer funds with his life, draining revenue from other local taxing bodies to keep aldermen in line and developers happy.

But Daley's reported short-term budget fix, declaring as "surplus" $200 million of the TIF pot, begs an obvious question: What about the rest of the TIF money? It's important to keep in mind that there is roughly $700 million in the TIF piggy bank that isn't already earmarked for projects. In practical terms, that means the city has siphoned off nearly three-quarters of a billion more tax revenue than it can spend on "public improvement" projects. If City Hall would return the other $500 million that's collecting dust, another $100 million would be accessible to cover operating costs this year (and potentially save those 280 jobs). The city could also pass along $400 million to CPS, the park district, and other cash-strapped agencies. It's really a no-brainer.