* Crain’s Chicago Business on the “hidden costs” of Mayor Rahm Emanuel’s proposed budget…
After imposing more than $1.1 billion in new taxes last year, Emanuel apparently has decided not to push the limits of the public’s patience any further. His negotiators largely caved to the Chicago Teachers Union, particularly on the mayor’s previous insistence that teachers contribute more to their pensions. Sources involved in the negotiations tell Crain’s political columnist Greg Hinz that CPS teacher costs over the four years covered in the tentative contract will rise 3.7 percent—twice the 1.75 percent hike proposed in the deal teachers rejected early this year.
Meanwhile, Emanuel’s $3.72 billion budget proposal draws down $175 million in cash from the city’s tax-increment financing kitty, a far bigger diversion than the mayor has allowed in recent years. That drawdown represents almost 40 percent of the $460 million the city is taking in from all TIF districts this year.
Emanuel is dipping into the same TIF honeypot that his predecessor, Richard M. Daley, liked to raid when he needed fast dough. The trouble is, TIF funds exist for a reason: to finance needed infrastructure and neighborhood improvements. And yet, time and again, TIF proceeds are treated like a convenient mayoral rainy-day fund, a place to look for extra money when tougher choices prove politically unpalatable.
With that TIF money in hand, Emanuel’s CPS team didn’t have to really squeeze teachers. And with that TIF money in hand, Emanuel didn’t have to force Chicagoans to face facts: Our government still costs more than it brings in.
The mayor may have rehabilitated his re-election prospects, but Chicago’s financial rehabilitation remains very much incomplete.
- City Zen - Monday, Oct 17, 16 @ 2:36 pm:
To which seriously under-funded municipal pension fund will Rahm be transferring ownership of the DePaul arena?
- VanillaMan - Monday, Oct 17, 16 @ 3:16 pm:
Is Crain’s suggesting that Chicago government take more than it needs?
- DuPage - Monday, Oct 17, 16 @ 3:36 pm:
Even with the increases, Chicago taxes are still lower then the collar counties. Water rates and garbage bills are also still far lower.
- James Knell - Monday, Oct 17, 16 @ 3:47 pm:
Sounds like someone wants to beat up on teachers like Scott Walker.
- Ron - Monday, Oct 17, 16 @ 5:34 pm:
The deal with CTU is a slap in the face to Chicago taxpayers.
- Ron - Monday, Oct 17, 16 @ 5:35 pm:
CityZen, McPier was always going to own the new convention facility.
- Anonymous - Monday, Oct 17, 16 @ 6:34 pm:
TIF proceeds are treated like a rainy day fund? Hah. At least there is a dedicated fund. Try teacher pensions. That money never made it to a fund to be raided. It just never went there in the first place. So now its TIF’s turn.
- Hugo Stiglitz - Monday, Oct 17, 16 @ 9:18 pm:
Chicago is still run like it’s 1950. The city has ONE MILLION less people than 66 years ago, not to mention thousands less decent jobs. Yet, we somehow still need 50 aldermen and still have way too many teachers and schools. Way too much money is spent on unaccountable “anti-violence” and “community outreach” programs. Nobody wants to move here or stay here. Houston will be nipping at the heels of Chicago as 3rd largest city at the next census, if it doesn’t already outright surpass it. It’s time to live up to reality: Chicago is stuck in the mud while cities in Texas and elsewhere in the South are eclipsing us left and right. Our amenities, architecture, etc. only get us so far these days.