The City Budget Crisis: What No One is Talking About

Take a look at this everyone. The Civic Federation of Chicago has put out an alarming report about the city's budget crisis. And this morning's Chicago Tribune editorial talks about the vagueness in which the mayoral candidates speak about the city's lack of long term financial stability, extremely serious budget problems, and how they will deal with it.

The Civic Federation of Chicago Report:

http://civicfed.org/sites/default/files/financial%20challenges%20for%20the%20new%20mayor.pdf

Short-Term Recommendations:

1. Develop and publish multi-year financial forecasts that allow the mayor and other stakeholders to
project the effects that short-term actions will have on the City’s long-term fiscal health.
2. Implement immediate expenditure reductions in order to close the budget gap and begin to
address the structural deficit.
3. Adopt an asset lease reserves withdrawal policy that will protect the remaining reserves even
when economically-sensitive revenues begin to recover.
4. Adopt a fund balance policy that will build up Corporate Fund reserves as revenues recover.
5. Pursue alternative service delivery opportunities that will reduce costs and ensure quality service
provision.
6. Improve transparency in Tax Increment Financing reporting to better inform public debate over
the proper use of TIF revenues.

Long-Term Recommendations:

1. Develop a long-term financial plan in the first year in order to engage all stakeholders in the
difficult choices about taxation and service provision that are needed to regain fiscal balance and
sustain critical services in the future.
2. Stabilize the City’s critically underfunded pensions by implementing pension reforms, such as
increased contributions and reduced benefits.
3. Pursue creation of a separate retiree health care trust fund as the current retiree health care
agreement expires in 2013.

Those of us who have attended the aldermanic candidate forums around the ward, too, have noted how the aldermanic candidates avoid talk about the city budget (all but one candidate - Murphey addressed the city's budget deficit at every forum).

The city's budget deficit is the most critical issue facing every level of municipal government..it must be dealt with. Which one of the aldermanic candidates will work with the new mayor and city council to come up with a common sense corrective action plan?

Chicago Tribune Editorial:

Clueless in Chicago - chicagotribune.com