useapen
2024-12-16 06:09:05 UTC
Aldermen are set to vote Friday on a 2025 city of Chicago budget featuring
$234 million in assorted tax hikes to finance yet more spending growth
that, if passed, would mean a huge 62% increase in city spending since
2019, the year before the pandemic took hold.
A sizable group of aldermen has pushed for spending cuts and been rebuffed
by Mayor Brandon Johnson, who refuses even to look for efficiencies in a
bloated city government. Johnsons primary concession over the last month-
plus of budget battles hes waged with balky aldermen has been to nix a
planned continuation of the guaranteed basic income program begun by
predecessor Mayor Lori Lightfoot, which provides $500 a month to
Chicagoans who qualify based on need.
What Johnson and his aldermanic supporters wont do is consider cuts that
would require meaningful sacrifice from the citys workforce.
When looking more broadly at Chicagos budget travails compared with other
large U.S. cities, it becomes abundantly clear that this citys fiscal
woes stem in large part from out-of-control spending.
Consider New York, Los Angeles and Houston, the nations first, second and
fourth largest cities. Since 2019, as Chicago has boosted spending by 62%,
budgets in New York and LA have increased just 28% and 29%, respectively.
Fast-growing Houstons spending is up 40% over that period. Even the
operating budget in Philadelphia the sixth largest U.S. city and (like
Chicago) a city without NYCs financial muscle, LAs glitz or Houstons
growth has risen just 36%.
Astute observers of local politics might wonder if Chicagos pension
crisis is at the root of this difference. The citys pensions, underfunded
at levels worse than any other major U.S. city, certainly arent helping,
but they dont explain the disparity alone. Excluding the $1.6 billion in
additional pension contributions Chicago is making in 2025 compared with
2019, our citys budget still has increased 47% since 2019.
And some of these other cities are struggling with deficits, too. Los
Angeles, for example, managed earlier this year to cut its fiscal 2024-25
budget by 2% in the face of a bleak multiyear outlook. Bob Blumenfield,
chairman of the Los Angeles City Councils Budget Committee, said it
wasnt a budget I want to go running down the street (shouting out) how
excited I am. But I think we can be proud of what weve done with what
we had.
If only Chicago had more politicians with the same philosophy. Johnson and
his supporters have behaved as if the sky would fall if they were
compelled to cut spending. Surely, there are efficiencies to be found
given how profligate Chicago has been compared with its peers. The $17.3
billion budget on which the City Council will vote doesnt even keep
spending at the 2024 level. It proposes an increase of more than 4% over
the current years $16.6 billion.
To be fair, the blame lies not just with Johnson but also with Lightfoot,
who pumped too much of the federal pandemic assistance the city obtained
into new programs and additional hiring. But Johnson is in charge now, and
its on him to change course.
Unfortunately, he shows no signs of doing so.
After the humiliation last month of a 50-0 council vote to reject his $300
million property tax hike proposal, Johnson reduced his property tax ask
to $150 million and now it sits at $68.5 million. He filled the gap with
an array of other tax hikes, led by a job-killing $128 million increase in
what effectively is a sales tax on cloud-based software licenses, a
necessity of modern business life. Shoppers would have to pay 10 cents
rather than 7 cents for a disposable bag at retailers. There would be more
speed cameras, resulting in more fines in the mail for Chicagoans
regardless of income level if they exceed the speed limit in designated
areas by more than 5 miles per hour. The amusement tax rate on streaming
and live events would increase to an absurd 10.25% from 9%. Theres more,
but well stop.
Johnson calls this level of spending investing in people. But the money
for those investments comes, too, from people. Those people must invest in
themselves and their families, and with each year the city is making that
harder to do.
More broadly speaking, the direction Johnson and his council supporters
are heading is a road to oblivion, leading to more economic stagnation and
potentially shrinkage. For the first time since 2019 (leaving out the
pandemic year of 2020), the Chicago metro area (dominated by employment in
the city) saw a slight reduction in total jobs in the year that ended in
October, according to state data.
So aldermen, who to their credit have flexed their policymaking muscles as
citywide confidence in the mayor has plunged, must set the new course.
They have a chance to do so on Friday.
As we write, though, it appears there will be just enough votes to push
this budget through, as a few council rebels appear to have concluded
theres not enough time in the year to work out an alternative. If so,
that weak, short-term thinking only will put off the day of reckoning.
A property tax revolt of proportions not seen in these parts in many years
likely is coming in 2025, as weve written before. Aldermen who vote for
this budget wont be spared the blame just because a $300 million property
tax increase was reduced by three-quarters with the difference mostly made
up with other taxes. Once angered, voters dont tend to make those sorts
of distinctions.
Aldermen are hoping short memories, and the political donations of
grateful public sector unions, will save them in 2027 when they face
voters again. We think those who vote yes will wear the jacket for the tax
anger to come, as well they should.
Submit a letter, of no more than 400 words, to the editor here or email
***@chicagotribune.com.
https://www.chicagotribune.com/2024/12/12/editorial-chicago-budget-
aldermen-brandon-johnson/
$234 million in assorted tax hikes to finance yet more spending growth
that, if passed, would mean a huge 62% increase in city spending since
2019, the year before the pandemic took hold.
A sizable group of aldermen has pushed for spending cuts and been rebuffed
by Mayor Brandon Johnson, who refuses even to look for efficiencies in a
bloated city government. Johnsons primary concession over the last month-
plus of budget battles hes waged with balky aldermen has been to nix a
planned continuation of the guaranteed basic income program begun by
predecessor Mayor Lori Lightfoot, which provides $500 a month to
Chicagoans who qualify based on need.
What Johnson and his aldermanic supporters wont do is consider cuts that
would require meaningful sacrifice from the citys workforce.
When looking more broadly at Chicagos budget travails compared with other
large U.S. cities, it becomes abundantly clear that this citys fiscal
woes stem in large part from out-of-control spending.
Consider New York, Los Angeles and Houston, the nations first, second and
fourth largest cities. Since 2019, as Chicago has boosted spending by 62%,
budgets in New York and LA have increased just 28% and 29%, respectively.
Fast-growing Houstons spending is up 40% over that period. Even the
operating budget in Philadelphia the sixth largest U.S. city and (like
Chicago) a city without NYCs financial muscle, LAs glitz or Houstons
growth has risen just 36%.
Astute observers of local politics might wonder if Chicagos pension
crisis is at the root of this difference. The citys pensions, underfunded
at levels worse than any other major U.S. city, certainly arent helping,
but they dont explain the disparity alone. Excluding the $1.6 billion in
additional pension contributions Chicago is making in 2025 compared with
2019, our citys budget still has increased 47% since 2019.
And some of these other cities are struggling with deficits, too. Los
Angeles, for example, managed earlier this year to cut its fiscal 2024-25
budget by 2% in the face of a bleak multiyear outlook. Bob Blumenfield,
chairman of the Los Angeles City Councils Budget Committee, said it
wasnt a budget I want to go running down the street (shouting out) how
excited I am. But I think we can be proud of what weve done with what
we had.
If only Chicago had more politicians with the same philosophy. Johnson and
his supporters have behaved as if the sky would fall if they were
compelled to cut spending. Surely, there are efficiencies to be found
given how profligate Chicago has been compared with its peers. The $17.3
billion budget on which the City Council will vote doesnt even keep
spending at the 2024 level. It proposes an increase of more than 4% over
the current years $16.6 billion.
To be fair, the blame lies not just with Johnson but also with Lightfoot,
who pumped too much of the federal pandemic assistance the city obtained
into new programs and additional hiring. But Johnson is in charge now, and
its on him to change course.
Unfortunately, he shows no signs of doing so.
After the humiliation last month of a 50-0 council vote to reject his $300
million property tax hike proposal, Johnson reduced his property tax ask
to $150 million and now it sits at $68.5 million. He filled the gap with
an array of other tax hikes, led by a job-killing $128 million increase in
what effectively is a sales tax on cloud-based software licenses, a
necessity of modern business life. Shoppers would have to pay 10 cents
rather than 7 cents for a disposable bag at retailers. There would be more
speed cameras, resulting in more fines in the mail for Chicagoans
regardless of income level if they exceed the speed limit in designated
areas by more than 5 miles per hour. The amusement tax rate on streaming
and live events would increase to an absurd 10.25% from 9%. Theres more,
but well stop.
Johnson calls this level of spending investing in people. But the money
for those investments comes, too, from people. Those people must invest in
themselves and their families, and with each year the city is making that
harder to do.
More broadly speaking, the direction Johnson and his council supporters
are heading is a road to oblivion, leading to more economic stagnation and
potentially shrinkage. For the first time since 2019 (leaving out the
pandemic year of 2020), the Chicago metro area (dominated by employment in
the city) saw a slight reduction in total jobs in the year that ended in
October, according to state data.
So aldermen, who to their credit have flexed their policymaking muscles as
citywide confidence in the mayor has plunged, must set the new course.
They have a chance to do so on Friday.
As we write, though, it appears there will be just enough votes to push
this budget through, as a few council rebels appear to have concluded
theres not enough time in the year to work out an alternative. If so,
that weak, short-term thinking only will put off the day of reckoning.
A property tax revolt of proportions not seen in these parts in many years
likely is coming in 2025, as weve written before. Aldermen who vote for
this budget wont be spared the blame just because a $300 million property
tax increase was reduced by three-quarters with the difference mostly made
up with other taxes. Once angered, voters dont tend to make those sorts
of distinctions.
Aldermen are hoping short memories, and the political donations of
grateful public sector unions, will save them in 2027 when they face
voters again. We think those who vote yes will wear the jacket for the tax
anger to come, as well they should.
Submit a letter, of no more than 400 words, to the editor here or email
***@chicagotribune.com.
https://www.chicagotribune.com/2024/12/12/editorial-chicago-budget-
aldermen-brandon-johnson/