Thread: Chicago: Mayor Daley Trims Budget

Daley trims budget

March 14, 2008
By Fran Spielman, Sun-Times News Group

Acknowledging that city services will suffer and layoffs may follow, Mayor Richard Daley on Thursday ordered $21 million in midyear budget cuts to brace Chicago for the impact of an economy "in a recession."

Three months after raising taxes, fines and fees by $276.5 million - including the largest property tax increase in Chicago history - Daley acknowledged that without belt-tightening, his tax-laden 2008 budget still may be in the hole.

As a result, he's ordering the city to save:

• $11 million through a citywide hiring freeze that exempts public safety.

• $5 million by slashing nonpersonnel costs by 3 percent. The police and fire departments and the Office of Emergency Management and Communications will share the pain.

• $2 million by cutting police, fire and 911 center overtime not critical to public safety and by eliminating nonsafety overtime in all other city departments, including building maintenance.

• $2.5 million by renegotiating existing contracts with city vendors.

• $500,000 by suspending some out-of-town travel and by encouraging city managers to take more unpaid furlough days. They've already taken six unpaid days since 2002.

At a city hall news conference, Daley made no effort to sugarcoat the impact of the cuts, noting that the city has "substantially reduced spending" in recent years.

"We're at that point where people may begin to feel an impact in some service delivery. We will work to minimize it. But there is no alternative," he said.

He didn't hesitate when asked if he was prepared to order layoffs if nonpersonnel cuts were not enough.

"If we have to, yes. You better believe it," he said.

Asked why Chicago's budget was in a pinch when it should be flush with cash from all the new taxes, Daley said: "I wish we were. But this is an economy that, I think, is going to keep slipping and slipping."

Chicago has plowed through its $18.5 million snow-removal budget for the entire winter - with $23.4 million spent. Rising gasoline prices also have had an impact on city spending.

On the revenue side, chief financial officer Paul Volpe said he's concerned about a continued decline in revenue from the real estate transaction tax caused by a prolonged downturn in the housing market and about a possible drop-off in sales tax revenue made worse by recent Cook County and Chicago Transit Authority increases that could drive big-ticket purchases to the suburbs.

Civic Federation president Laurence Msall said it's wise for the mayor to rein in spending at a time when the national and local economies are "in a state of decline and economically sensitive revenues may be impacted by the recession."


http://www.southtownstar.com/news/84277 ... ey.article

They would have a surplus if the cut the "No Shows" from the payroll

Chicago..........a major home to ILLEGAL ALIENS. Hmmmmm, wonder what THEY cost the taxpayers?

Maybe its time to deport your illegals....every single state that is overwhelmed with illegals is going broke, schools, hospitals,and whole cities....WAKE UP AND SMELL THE COFFEE!!!