Results tagged “budgetapocalypse”

With the release of his 2010 budget approaching next week and a budget gap of over $550 million in the city budget, Mayor Daley's going to have to get creative if he wants to close that gap. He'll have to be even more creative now that's he promised he won't raise any taxes, fines, or fees. Said Daley yesterday, "I understand that times are very tough for people. I don't feel right asking them to pay for city government right now." The most likely option being bandied about, it seems, is still dipping into reserve funds from the city's parking meter and Skyway leases.

With the CTA facing a budget gap in the hundreds of millions of dollars and another potential CTA fare hike looming, everyone involved is looking for ways to save some cash. The Regional Transportation Authority has now suggested tweaking the free rides for seniors program implemented by then-governor Rod Blagojevich. Instead of giving free rides to all seniors, the RTA has suggested providing free rides to low-income seniors who make below a suggested threshold of $22,000 a year. The RTA cited a study by the University of Illinois in Chicago which estimated the CTA lost between $38 million and $112 million from the new program. According to the RTA, setting the new limit would account for a boost of around $37 million for the CTA.

Mayor Daley responded yesterday to the CTA's proposed 2010 budget, calling the potential fare hikes and cuts in service, “very, very ugly" while also trying to reinforce that nothing has been approved, adding, "This is only proposed. And like anything else, that's the last resort. No one wants to see fare increases or service cuts. But they are in a very difficult position." The proposed budget includes the cutting of several express bus routes, trimming back time-tables for bus and rail service, and, most famously (or infamously), raising rail and express bus route fares by 75-cents to $3 per ride.

Not content with the $1 billion-plus the city has already received in federal stimulus funding, Mayor Daley is appealing to President Obama for even more cash. $800 million more, to be exact. Said Da Mayor, "This is not pork barrel. This is not wasted money. This is all about the future of this country." According to the Tribune:

This Monday, August 17, is the first of what will probably be many "reduced service days" for the City of Chicago as it tries to save money in the face of a growing budget deficit. What does this mean for you, the average person who probably has to go to work anyway? According to a release sent out by the city earlier this week, and available for viewing here:

After announcing that he's holding the line on property tax hikes and giving Chicagoans an "abatement" by raising the property tax below the full amount allowed, Mayor Daley expounded on the fundamental unfairness of excluding city teachers from the state pensions system. “We pay a double-tax. The pension is picked up by state government for all teachers outside Chicago. As a taxpayer in Chicago, you pay a tax there. Then, you pay another tax because the state excludes Chicago teachers. So, you’re paying two pension taxes: one for the state and one for the city,” Daley said Wednesday. “We’re the only, only local government doing that in the whole state. That puts a huge burden upon the school system. ... You’re paying two taxes. This is really unfair and we have to do something about it immediately.”

Chicago Public School officials are proposing raising property taxes. But instead of referring to the hike as an increase, Mayor Daley is calling it an "abatement." But rather than increasing the tax by the maximum allowable rater - 4.1 percent - the rate would be increased by about 1.5 percent, garnering $43 million, instead of "$83 or $100 million." Although the mayor had a lot to say about the tax hike and his proposals to cut pay in the schools, as well as his demands that federal employees take Chicago-style furlough days, he refused to discuss the $900 million projected deficit in the public schools 2010 budget.

In craptastic but unsurprising news, the Illinois Arts Council (IAC) got kicked in the proverbial balls by the 2010 Illinois budget. Its $7.8 million allocation is 51% less than that in the 2008 budget, which, thanks to Blago’s veto of the General Assembly’s approved $23.1 million appropriation, was $15.2 million. For a good explanation of that mess, check out this Gaper’s Block interview with Illinois Arts Alliance Executive Director Ra Joy from last spring.

The Reader's Mick Dumke has an interesting solution for how to help the City close that budget gap: legalize marijuana and tax it. Mayor Daley has supported decriminalizing marijuana in the past (before he was against it). And Lord knows he loves to tax stuff. This could possibly work. But it's only a matter of time before he privatizes

With all the doom and gloom about the city's 2010 budget, it seems the always-on-top-of-things Whet Moser of The Reader has zeroed in on a pretty easy solution: TIFs.

After a lot of hootin' and hollerin', it's finally done: we have a state budget. And one without an income tax hike. But with the state facing somewhere in the neighborhood of a $9 billion budget gap, how will the state actually manage to make ends meet? In a word: borrowing. The $26 billion spending plan depends on borrowing $3.5 billion to pay state worker pensions and around $3.2 billion in bills is pushed off to next year's budget, but the move means that most of the state services that were on the brink of getting cut will now remain. For now, anyway, as Gov. Quinn has the option to cut any additional money as he sees fit. Still, Quinn said the budget still puts the state between $4 billion and $5 billion down.