The City of Chicago's Budget Shortfall

[NorthSideSox72]

The City of Chicago is projecting a $635MM shortfall in the next fiscal year, and similar numbers in future years.

 

The Office of the Inspector General was tasked with finding ideas to cut that deficit - both revenue increases and service/department cuts. He released a list of 63 potential items to do so, mostly but not entirely cuts.

 

Here is the drill. I will list here the items from the list that I can find (the ones at $1M or higher, to make this easier), and their potential positive effect. You choose the ones you want, that add up to at least $635MM...

 

REVENUE INCREASES ($2.3B total)

 

One percent city income tax: $500M

Expand sales tax footprint (the Emmanuel plan from last year): $450M

Raise water and sewer rates to national averages: $380M

$5 downtown congestion toll (a la London) during rush hour: $375M (even after 20% reduction in traffic as a result)

One percent commuter income tax (work in city, live elsewhere): $300M

Impose a pay-per-throw garbage collection fee: $125M

Broadening the amusement tax (not sure what it is broadening to): $105M

Toll booths on LSD @ $2.50: $87.5M (after capital costs)

Transaction tax on major exchanges (not sure the fee level, apparently small): $37M

Impose a blue cart recycling fee: $18M

Eliminate free sewer service for Senior Citizens: $17M

Eliminate free water for hospitals and non-profits: $15.2M

Double ambulance fees (currently $750, and was recently doubled anyway): $13.2M

Eliminate reduced rate city stickers for Seniors: $7.6M

Increase city cigarette tax: $3.1M

Double the boat mooring tax: $1.3M

Increase health insurance contribition for city employees making over 90k: $1M

 

 

SERVICE/DEPARTMENT CUTS ($907M Total)

 

Eliminate supervisory personnel redundencies (includes 707 from CFD who have a 3.5-1 ratio, and 309 from CPD currently 8-1): $190M

**Privatize garbage and recycling programs entirely: $165M

**OR... switching to a grid system and reducing to one the laborers per truck: $66.1M

Fire 595 Firefighters: $145M

Fire 161 general laborers: $65M

Reduce firefighting teams from 5 to 4 per vehicle (this proposal caused the 1980 CFD strike): $57M

Get rid of on call pay for CPD and CFD: $52M

Convert 20% of firefighting apparatus to ambulance/EMS: $41.5M

Switch all employees to a 40 hour workweek from 35 and reduce accordingly: $40M

Fire 75 downtown traffic control aides: $37M

Transfer City Dept of Public Health to the Cook County Health and Hospital System (LOLOLOLOL): $33.7M

Eliminate 200 motor pool truck drivers who just transport to jobs: $19M

Transfer all election management oversight to Cook County: $16.1M

Eliminate quarterly pay for supervisors (not sure exactly what this means): $9.6M

Eliminate Chicago Career Tech (job training program): $8.4M

Eliminate tuition reimbursement programs for city employees: $7.3M

Eliminate funding for after school and summer employment programs for youth: $6.5M

Disband CPD marine and helicopter units: $6.2M

Eliminate Condo Refuse Rebate Program: $6M

Eliminate city-funded delegate agency programs for small business: $5.6M

Merge City and Park District agencies: $5M

Reduce spending on janitorial services: $5M

Reduce number of holidays for city employees from 12 to 10: $4.9M

Charge more for health insurance for city employees who smoke: $4.8M

Eliminate "Personal Computer Operators": $4M

Hold municipal elections on same day as statewide elections: $3M

Close down the CFD Commisary contract and use just the uniform allowance: $2M

Reduce number of fire districts and district-level personnel from 6 to 4: $1.9M

Eliminate city TB clinics: $1.4M

Eliminate subsidy to "World Business Chicago" economic development office: $1.4M

Privatize CFD Internal Affairs investigations: $1.2M

Civilianize CPD Forensic Services: $1.1M

Privatize parking enforcement: $1.1M

Independent commission to redistrict ward boundaries apolitically: $1M

 

 

OTHER

 

Eliminate the TIF program entirely: $100M

 

 

See the complete report here: http://chicagoinspectorgeneral.org/major-i...online-version/

 

Go...

[NorthSideSox72]

Alright, I'll strike the first blow.

 

 

 

REVENUE INCREASES ($130.4M total)

 

Impose a pay-per-throw garbage collection fee: $125M

Increase city cigarette tax: $3.1M

Double the boat mooring tax: $1.3M

Increase health insurance contribition for city employees making over 90k: $1M

 

 

SERVICE/DEPARTMENT CUTS (~$692M Total)

 

Eliminate supervisory personnel redundencies (includes 707 from CFD who have a 3.5-1 ratio, and 309 from CPD currently 8-1): $190M

**Privatize garbage and recycling programs entirely: $165M

Fire 161 general laborers: $65M

Get rid of on call pay for CPD and CFD: $52M

Convert 20% of firefighting apparatus to ambulance/EMS: $41.5M

Switch all employees to a 40 hour workweek from 35 and reduce accordingly: $40M

Fire 75 downtown traffic control aides: $37M

Transfer City Dept of Public Health to the Cook County Health and Hospital System (LOLOLOLOL): $33.7M

Eliminate 200 motor pool truck drivers who just transport to jobs: $19M

Transfer all election management oversight to Cook County: $16.1M

Eliminate quarterly pay for supervisors (not sure exactly what this means): $9.6M

Eliminate tuition reimbursement programs for city employees: $7.3M

Eliminate Condo Refuse Rebate Program: $6M

Merge City and Park District agencies: $5M

Reduce spending on janitorial services: $5M

Reduce number of holidays for city employees from 12 to 10: $4.9M

Charge more for health insurance for city employees who smoke: $4.8M

Eliminate "Personal Computer Operators": $4M

Hold municipal elections on same day as statewide elections: $3M

Reduce number of fire districts and district-level personnel from 6 to 4: $1.9M

Eliminate city TB clinics: $1.4M

Privatize CFD Internal Affairs investigations: $1.2M

Civilianize CPD Forensic Services: $1.1M

Privatize parking enforcement: $1.1M

Independent commission to redistrict ward boundaries apolitically: $1M

 

 

So, mostly I am using cuts, but also a few revenue increases. Total savings: around $830M, leaving a roughly $195M surplus.

 

Surplus goes where? Two places. One, the pension system has a bubble in a couple or three years from now, and will need re-tooling, either way it's money we need to save up for. Second, the CTA may have waste, but it also has infrastructure needs it cannot meet. City should step in on that.

 

Not on the list but, I'd look at privatizing Midway as well, and use the money towards the above two issues.

 

That would be my plan.

[mr_genius]

REVENUE INCREASES (150.1)

 

Impose a pay-per-throw garbage collection fee: $125M

Eliminate free water for hospitals and non-profits: $15.2M

Eliminate reduced rate city stickers for Seniors: $7.6M

Double the boat mooring tax: $1.3M

Increase health insurance contribition for city employees making over 90k: $1M (would increase this more)

 

 

SERVICE/DEPARTMENT CUTS (780.3)

 

Eliminate supervisory personnel redundencies (includes 707 from CFD who have a 3.5-1 ratio, and 309 from CPD currently 8-1): $190M

Fire 595 Firefighters: $145M

Fire 161 general laborers: $65M

Reduce firefighting teams from 5 to 4 per vehicle (this proposal caused the 1980 CFD strike): $57M

Get rid of on call pay for CPD and CFD: $52M

Convert 20% of firefighting apparatus to ambulance/EMS: $41.5M

Switch all employees to a 40 hour workweek from 35 and reduce accordingly: $40M

Fire 75 downtown traffic control aides: $37M

Transfer City Dept of Public Health to the Cook County Health and Hospital System: $33.7M

Eliminate 200 motor pool truck drivers who just transport to jobs: $19M

Transfer all election management oversight to Cook County: $16.1M

Eliminate quarterly pay for supervisors: $9.6M

Eliminate Chicago Career Tech (job training program): $8.4M

Eliminate tuition reimbursement programs for city employees: $7.3M

Eliminate funding for after school and summer employment programs for youth: $6.5M

Disband CPD marine and helicopter units: $6.2M

Eliminate Condo Refuse Rebate Program: $6M

Eliminate city-funded delegate agency programs for small business: $5.6M

Merge City and Park District agencies: $5M

Reduce spending on janitorial services: $5M

Reduce number of holidays for city employees from 12 to 10: $4.9M

Charge more for health insurance for city employees who smoke: $4.8M (would also increase for overweight workers)

Eliminate "Personal Computer Operators": $4M

Hold municipal elections on same day as statewide elections: $3M

Close down the CFD Commisary contract and use just the uniform allowance: $2M

Reduce number of fire districts and district-level personnel from 6 to 4: $1.9M

Eliminate city TB clinics: $1.4M

Eliminate subsidy to "World Business Chicago" economic development office: $1.4M

Independent commission to redistrict ward boundaries apolitically: $1M

 

 

OTHER

 

Eliminate the TIF program entirely: $100M

Edited September 27, 2011 by mr_genius

[RockRaines]

People who work downtown and drive in from the burbs should have to pay a tax as well as an extra parking fee. f***ing day trippers.

 

 

Also, legalize marijuana, HUGE revenue boost.

[NorthSideSox72]

People who work downtown and drive in from the burbs should have to pay a tax as well as an extra parking fee. f***ing day trippers.

 

Problem with that is, you will give more incentive for businesses to flee to the suburbs, which is the opposite of what the city wants right now. Most sane people who can do so, commute via trainfrom the burbs. But that doesn't work for some people, for a variety of reasons. And the top execs of larger firms tend to drive or be driven because they don't want to take mass transit, and they are the ones who most influence the decision on where to locate the company, so I'm not sure you want to give them more reason to leave.

 

Also, legalize marijuana, HUGE revenue boost.

 

The City of Chicago does very little in the way of mary jane law enforcement, so the impact on that end would be minimal. But, you could put a city tax on it, and that would work.

 

[RockRaines]

Problem with that is, you will give more incentive for businesses to flee to the suburbs, which is the opposite of what the city wants right now. Most sane people who can do so, commute via trainfrom the burbs. But that doesn't work for some people, for a variety of reasons. And the top execs of larger firms tend to drive or be driven because they don't want to take mass transit, and they are the ones who most influence the decision on where to locate the company, so I'm not sure you want to give them more reason to leave.

 

 

 

The City of Chicago does very little in the way of mary jane law enforcement, so the impact on that end would be minimal. But, you could put a city tax on it, and that would work.

I disagree just because of the sheer population in the city. I personally wouldnt take a job in the burbs if I had to commute. I also debate the "most" comment on commuters coming into the city. The number is staggering, much worse than you think. And even if its not taxing them, they should have to pay for a Chicago parking permit like the rest of us to park on the streets, thats only fair.

[Y2HH]

...also let me add that they're overdoing the cigarette tax, and it's starting to come to a head, due to the short-mindedness the government usually displays. They've gone to that well too many times already and the current taxes on cigarettes is at a sticking point where it's almost so high it's priced out of smokers range of affordability (hence why so many people have quit or are simply buying them from Indiana since it's like...you know, 2 minutes away)...raising it more and more every time they need money cuts off more and more revenue from what was once a very consistent stream. Eventually, it'll fall off a cliff and they'll have a new budget shortfall of quadjillions of tax dollars they're no longer getting from cigarettes...because they effectively forced everyone to quit smoking and/or go to Indiana...

 

...then they'll move that 4$ tax to gasoline, or liquor, or soda...or water...or whatever sells the most, because it's not really being done out of concern for our health anyway...it's done because a lot of people used to smoke.

 

So they need to start looking elsewhere before they totally collapse the tax revenue they're getting from that well.

 

EDIT: Disclaimer, I do not nor have I ever smoked.

Edited September 27, 2011 by Y2HH

[Y2HH]

The City of Chicago does very little in the way of mary jane law enforcement, so the impact on that end would be minimal. But, you could put a city tax on it, and that would work.

 

If they tax it anything like cigarettes (and they will), it'll just price the black market lower than the legal market...

 

It's not like mary jane costs a lot now...if anything, they'll find a way to make it 3x as expensive for no better quality.

[Balta1701]

...also let me add that they're overdoing the cigarette tax, and it's starting to come to a head, due to the short-mindedness the government usually displays. They've gone to that well too many times already and the current taxes on cigarettes is at a sticking point where it's almost so high it's priced out of smokers range of affordability (hence why so many people have quit or are simply buying them from Indiana since it's like...you know, 2 minutes away)...raising it more and more every time they need money cuts off more and more revenue from what was once a very consistent stream. Eventually, it'll fall off a cliff and they'll have a new budget shortfall of quadjillions of tax dollars they're no longer getting from cigarettes...because they effectively forced everyone to quit smoking and/or go to Indiana...

 

...then they'll move that 4$ tax to gasoline, or liquor, or soda...or water...or whatever sells the most, because it's not really being done out of concern for our health anyway...it's done because a lot of people used to smoke.

 

So they need to start looking elsewhere before they totally collapse the tax revenue they're getting from that well.

The nice thing though is that as that revenue stream collapses, you also save a lot on health care costs from your employees, as they're not smoking, more productive, not laid up in the hospital, and not dead.

[Y2HH]

The nice thing though is that as that revenue stream collapses, you also save a lot on health care costs from your employees, as they're not smoking, more productive, not laid up in the hospital, and not dead.

 

You really do live in a dream world, don't you?

 

You need to start thinking with some logic that's applicable to reality. Though I must confess, what you say *SHOULD* happen, sadly, it won't happen, and historically hasn't happened.

 

I ask these questions with all sincerity...

 

Do you honestly think they'll magically lower the health care premiums you're paying (which are skyrocketing as we speak, btw) because people quit smoking? I mean it...do you honestly think that? Because I have the answer for you right now.

 

No.

 

Do you honestly think ex-smokers will suddenly become more productive? Eh, it's possible...but what cost savings will that be to anyone other than the company they work for, which will just pocket the additional profits? The company they work for *MIGHT* benefit, but even then, they'll probably just waste time in another form/fashion instead of becoming more productive as you suggest.

Edited September 27, 2011 by Y2HH

[NorthSideSox72]

I disagree just because of the sheer population in the city. I personally wouldnt take a job in the burbs if I had to commute. I also debate the "most" comment on commuters coming into the city. The number is staggering, much worse than you think. And even if its not taxing them, they should have to pay for a Chicago parking permit like the rest of us to park on the streets, thats only fair.

I said, "most" commuters who CAN, take a train. For a lot of people it isn't a realistic option, because they live too far away, or have to take multiple lines, etc.

 

And while it may seem "fair" to charge them, fairness isn't going to jive with impact here. I agree it would seem fair, I just think it may have a negative effect.

 

I would be open to the idea of, say, just having people buy a city parking sticker - $100 a year or so - to park in the city. For people who only visit occasionally, provide $2 daily permits or something, kind of like making the whole city have zoned parking. It is a small enough amount to not be a massive increase in costs to people, it would force more folks to take transit (which is good), and give the city more money for its infrastructure. But doing a congestion toll like they suggest, even at just $1 a pop, that's $20 a month or $240 a year for a commuter. Do it at $5 like they suggest, it becomes $1200 a year.

 

[Y2HH]

I said, "most" commuters who CAN, take a train. For a lot of people it isn't a realistic option, because they live too far away, or have to take multiple lines, etc.

 

And while it may seem "fair" to charge them, fairness isn't going to jive with impact here. I agree it would seem fair, I just think it may have a negative effect.

 

I would be open to the idea of, say, just having people buy a city parking sticker - $100 a year or so - to park in the city. For people who only visit occasionally, provide $2 daily permits or something, kind of like making the whole city have zoned parking. It is a small enough amount to not be a massive increase in costs to people, it would force more folks to take transit (which is good), and give the city more money for its infrastructure. But doing a congestion toll like they suggest, even at just $1 a pop, that's $20 a month or $240 a year for a commuter. Do it at $5 like they suggest, it becomes $1200 a year.

 

Our transit system/infrastructure, in it's current state...I have to go ahead and disagree that it's a good thing that more people would be forced to use that pile of monkey crap we call public transportation.

 

Chicago should be ashamed of itself and it's transit infrastructure. It's garbage. Total garbage.

 

I feel sorry for people that have to use it.

[NorthSideSox72]

Our transit system/infrastructure, in it's current state...I have to go ahead and disagree that it's a good thing that more people would be forced to use that pile of monkey crap we call public transportation.

 

Chicago should be ashamed of itself and it's transit infrastructure. It's garbage. Total garbage.

 

I feel sorry for people that have to use it.

LOL

 

You do understand that the more people use it, the more money they make to fix it, right? And that the more people use it, if it's in bad shape, the more voices and voters will look to prioritize funding for it?

 

If you think it should be fixed, you should love the idea of more people riding it. If you think it shouldn't be fixed, then have fun on the streets and highways of Chicago when we add 1.75 million more people a day to the roads who can no longer commute via mass transit. That should be fun.

 

[mr_genius]

People who work downtown and drive in from the burbs should have to pay a tax as well as an extra parking fee. f***ing day trippers.

 

haha yea. i do kind of like that idea.

[NorthSideSox72]

Our transit system/infrastructure, in it's current state...I have to go ahead and disagree that it's a good thing that more people would be forced to use that pile of monkey crap we call public transportation.

 

Chicago should be ashamed of itself and it's transit infrastructure. It's garbage. Total garbage.

 

I feel sorry for people that have to use it.

Also, Mr. Superior, how about you take a crack at the original topic of the post? Try your hand at it, see what you can come up with.

 

[Y2HH]

LOL

 

You do understand that the more people use it, the more money they make to fix it, right? And that the more people use it, if it's in bad shape, the more voices and voters will look to prioritize funding for it?

 

If you think it should be fixed, you should love the idea of more people riding it. If you think it shouldn't be fixed, then have fun on the streets and highways of Chicago when we add 1.75 million more people a day to the roads who can no longer commute via mass transit. That should be fun.

 

LOL again, while you think with logic, it doesn't jive with reality.

 

Do you think that they'd actually use that extra money to "fix it"? Because I don't. They'll upkeep it, but honestly, what we have cannot be "fixed"...it has to be ENTIRELY REBUILT, from scratch. I'm not even talking about a partial teardown, but entirely NEW construction.

 

IE, won't happen, and if it did, it would take them so long to implement it, we'd never get to use it.

[Y2HH]

Also, Mr. Superior, how about you take a crack at the original topic of the post? Try your hand at it, see what you can come up with.

 

In order to take a serious "crack" at this, I'd need to see the city books, how much money they REALLY have, how much money they're REALLY spending, and how big/small these departments are...

 

Otherwise it's just stupid guessing games IMO.

 

In other words, I'd need to know FAR more than I know in order to start making such large scale suggestions.

[NorthSideSox72]

In order to take a serious "crack" at this, I'd need to see the city books, how much money they REALLY have, how much money they're REALLY spending, and how big/small these departments are...

 

Otherwise it's just stupid guessing games IMO.

 

In other words, I'd need to know FAR more than I know in order to start making such large scale suggestions.

Thought so.

 

You'd obviously prefer to point to some non-existent boogie man, than try to suggest a solution.

 

[RockRaines]

I said, "most" commuters who CAN, take a train. For a lot of people it isn't a realistic option, because they live too far away, or have to take multiple lines, etc.

 

And while it may seem "fair" to charge them, fairness isn't going to jive with impact here. I agree it would seem fair, I just think it may have a negative effect.

 

I would be open to the idea of, say, just having people buy a city parking sticker - $100 a year or so - to park in the city. For people who only visit occasionally, provide $2 daily permits or something, kind of like making the whole city have zoned parking. It is a small enough amount to not be a massive increase in costs to people, it would force more folks to take transit (which is good), and give the city more money for its infrastructure. But doing a congestion toll like they suggest, even at just $1 a pop, that's $20 a month or $240 a year for a commuter. Do it at $5 like they suggest, it becomes $1200 a year.

Agreed in principle. On any day 80 percent of the open parking spaces on my 2 block stretch are occupied with non-Chicago resident's cars. I know this because I did a survey in preparation for making my block a zoned parking area (A big f*** you goes out to Alderman Burnett who has yet to read my petition after 6 months). Those people should all have city parking stickers or be subject to a 50 dollar per day fine.

[Y2HH]

Thought so.

 

You'd obviously prefer to point to some non-existent boogie man, than try to suggest a solution.

 

On the other hand, I can be like you people and pretend I know what I'm talking about when I suggest solutions for all the City's woes...which is pretty much what all of our modern day politicians are. People that "don't know" that "pretend to know".

 

Difference is, I'm ok with saying "I don't know how to solve this massive set of problems they've created", whereas you aren't...which makes you exactly like the people you elect. A bunch of people implementing a bunch of "solutions" that do nothing but make things even worse.

 

If the people who actually DID know how to fix this were elected, it'd get fixed. Until then, they're just a bunch of group-think forum posters that pretend they have all the f***ing answers, when in reality...they don't...but they're too "smart" to admit it.

 

Thought so that.

 

And this is a forum, where I guess I can post how I want, so long as I don't call you names...so while you call it a non-existant boogie man, I call it shooting holes into the "solutions" you've thus far proposed, which have ALREADY BEEN proposed time and time again, only to fail...time and time again.

 

Let's see, transit? Yeah, because reforming our transit system hasn't already been proposed and attempted 50 times.

 

What else did we suggest off the list of mind numbingly stupid suggestions so far...raising more taxes of some sort? Implementing some sort of additional fees perhaps?

 

Riiiiight...because nobody's EVER suggested THOSE things 500 times before!

 

You're a f***ing genius, Gump!

Edited September 27, 2011 by Y2HH

[mr_genius]

...also let me add that they're overdoing the cigarette tax, and it's starting to come to a head, due to the short-mindedness the government usually displays. They've gone to that well too many times already and the current taxes on cigarettes is at a sticking point where it's almost so high it's priced out of smokers range of affordability (hence why so many people have quit or are simply buying them from Indiana since it's like...you know, 2 minutes away)...

 

agreed, cigarette tax is at a point where raising it will not increase funds raised from the tax.

[StrangeSox]

Well you could always go Naperville's route: they just passed a $50 fine if you get arrested, and it's non-refundable even if you're never charged or found innocent. No perverse incentives there.

[iamshack]

The nice thing though is that as that revenue stream collapses, you also save a lot on health care costs from your employees, as they're not smoking, more productive, not laid up in the hospital, and not dead.

I think most of the health problems endured by smokers are not going to disappear overnight because cigarettes cost $11/pack in the City.

 

I agree that the City has gone to that well a few too many times to the point where a lot of smokers are buying outside of Cook County. I don't know if they've reached the breaking point to where they are actually taking in less revenue due to less volume sold, but additional raises would seem to be close to that tipping point, if they're not there already.

 

 

[southsider2k5]

Well you could always go Naperville's route: they just passed a $50 fine if you get arrested, and it's non-refundable even if you're never charged or found innocent. No perverse incentives there.

 

Chicago has the same sort of structure on appeals. You can appeal any ticket, it just costs you a bunch of money, which you don't get back even if you win.

[southsider2k5]

I think most of the health problems endured by smokers are not going to disappear overnight because cigarettes cost $11/pack in the City.

 

I agree that the City has gone to that well a few too many times to the point where a lot of smokers are buying outside of Cook County. I don't know if they've reached the breaking point to where they are actually taking in less revenue due to less volume sold, but additional raises would seem to be close to that tipping point, if they're not there already.

 

They have reached that tipping point on many things. It is why people leave the city to buy gas, cigs, major purchases, houses etc. The taxes are ridiculous, and to some extent it is to support Chicago's inherent corruption.

 

More than just taking the City of Chicagos figures at their word, I would love to be able to take apart some of the itemization's and compare them to other cities and towns around the country.