Local aldermen reject budget

Dowell, Reilly and Fioretti vote no on 2010 spending plan

12/09/2009 10:00 PM

By MICAH MAIDNEBERG
Editor

1 Comment - Add Your Comment

A budget that leans heavily on cash the City of Chicago gained by privatizing the parking meter system found no purchase among a trio of freshman aldermen in adjacent lakefront wards that stretch from Old Town to Bronzeville.

Aldermen Pat Dowell (3rd), Brendan Reilly (42nd) and Robert Fioretti (2nd) were among the city council members who voted to reject the 2010 budget proposed by Mayor Richard Daley.

The $6.14 billion budget passed 38-12, but the dozen no votes were a rare show of dissent on what’s considered the most important council vote of the year.

To plug a gap of approximately $520 million, next year’s budget uses $370 million from two reserve funds filled by dollars the city gained by leasing its parking meters. The remainder of the hole will be filled through debt restructuring.

When the city council approved the $1.1 billion meter lease in Dec. 2008 — a move supported by Reilly, Fioretti and Dowell, as well as 37 other aldermen — $400 million was to be placed in a long-term reserve fund that would generate up to $20 million in annual interest payments.

Now, much of those funds will be used up next year, a fact cited by Dowell, Fioretti and Reilly in explaining their opposition to the mayor’s approach.

In a press statement, Daley said falling revenues tied to the poor economy and increased personnel costs forced his hand.

“Chicago was far-sighted in creating these reserves and now is the time we must draw on them,” he said.

Dowell said she supported the meter lease, because of the city’s ability to sock away a big part of its proceeds.

“Unfortunately we’re using 70 percent of that reserve fund in less than a year,” she said.

Fioretti acknowledged he could have agreed with using the meter reserve funds had a written plan been offered detailing how those dollars would be paid back. No such document or ordinance was passed, however.

“We’ve borrowed too heavily on the future,” he said.

Reilly, who could not be reached, characterized using the reserves as a “raid” in an e-mail he sent Friday to constituents.

“I strongly believe using asset sale revenues to fund city operating expenses is totally unsustainable and represents irresponsible fiscal policy,” Reilly said.

The three aldermen’s criticisms echo those made by the Civic Federation, a watchdog group that analyzes fiscal policy of local governments and agencies.

The Federation accused the Daley Administration of crafting the budget with little regard to the future, perpetuating a “crisis” that will force painful cuts down the road.

Dowell said a fundamental overhaul of local government was needed — a shift toward a more efficient, less expensive and “leaner and meaner” operation.

She and Fioretti said potential savings and revenue sources existed, from examining the number of middle managers employed by the city to reconfiguring garbage pickup.

Both suggested using money stashed in various tax increment financing districts in different ways.

According to the Cook County Clerk David Orr, more than $495 million was stationed in Chicago’s 153 TIF districts in 2008.

Designed to promote growth in blighted areas, such districts steer money collected above a base property tax rate for redevelopment projects within district boundaries.

Dowell agreed that on a case-by-case basis TIF money could be sent back to taxing bodies. Fioretti argued for making spending paid for out of the districts part of the regular budgeting process.

The aldermen criticized the process by which the city council handles the budget as well.

In his electronic note, Reilly wrote that cuts were given little hearing during the recent budget talks, and more needs to be done to reduce the city payroll and consolidate departments.

Fioretti called city council analysis of the budget rooted in “parochial issues” rather than the looming realities an imbalance between costs and revenues.

Dowell is hoping an ordinance she proposed to increase the amount of time city council allots for examining the budget will be ready for the discussions of the 2011 document.

“We definitely could use more time,” she said.

Contact: mmaidenberg@chicagojournal.com


1 Comment - Add Your Comment



By ChicagoMeter.com from Loop
Posted: 12/11/2009 10:15 AM

What is the Mayor going to do next year when the parking meter money is gone? What is he going to lease next? Richard Daily http://www.ChicagoMeter.com