The 2009 budget that was passed last week by the City Council by a vote of 49-1 addressed the city’s $469 million shortfall and calls for no more than 635 layoffs, down from the 929 previously proposed by Mayor Richard M. Daley.
The 2009 budget that was passed last week by the City Council by a vote of 49-1 addressed the city’s $469 million shortfall and calls for no more than 635 layoffs, down from the 929 previously proposed by Mayor Richard M. Daley.
But it also means taxpayers will now pay more to live and work–and play–in Chicago.
Among the changes that will take effect as of Jan. 1 is an amusement tax increase to 5 percent on live theatrical, musical and cultural performances in venues seating more than 750 seats, and 9 percent for sporting events, concerts and movies; parking tax will go from $2.25 per car to $3 on motorists who pay more than $12 to park; the Denver boot qualifying threshold will lower from three unpaid parking tickets to two tickets that are older than one year; daily library fines double from 10 to 20 cents; and ambulance fees will go from $325 and $8 a mile to $600 and $13 a mile for basic life support, and from $400 and $8 a mile to $700 and $13 a mile for advanced life support.
The Department of Streets and Sanitation is comprised mostly of Blacks and Hispanics and is the city’s third largest department.
The department, which is responsible for, among other things, trash and snow removal will be hard hit by the layoffs.
The mayor had proposed 307 layoffs for the department but the Laborer’s Union Local 1001, which represents the workers, was able to get the proposed job losses significantly reduced.
The department will now face 120 to 170 layoffs depending on how many employees take advantage of an early retirement package being offered, said Lou Phillips, business manager for the Laborer’s Union Local 1001. And although fewer Streets and San employees will lose their jobs, Phillips said there will still be families hurt by the layoffs.
“I am happy the impact won’t be as great as we had thought, but I am never satisfied when people have to be laid off,” he said.
But city officials said layoffs were inevitable.
“We had no choice but to seek layoffs and raise fees to close the budget loophole,” said Bennett Johnson III, the city’s budget director. “This was the best course of action we could have taken to prevent a property tax increase, which no one wants to see happen.”
However, raising property taxes may be what ends up happening if a deal cannot be made to privatize the city’s 35,000 parking meters, said Joseph Blum, an economist with Citi Smith Barney, a financial services firm.
By privatizing meters, Daley said an additional $150 million could be raised to apply toward the deficit. Otherwise, the city will have to seek a new source of revenue to cover the $150 million.
“More layoffs and higher fees are an option should the city not be able to swing a deal in time, but it would seem more logical to bump up property taxes,” Blum said.
Johnson added that he is confident a deal to privatize parking meters will occur soon.
And even though every alderman voted for the budget except 26th Ward Alderman Billy Ocasio, some aldermen said they did so with trepidation.
“I have some concerns about this budget. I voted for it because the city cannot operate without a balanced budget and it did address issues important to my constituents,” said 20th ward Alderman Smith. “The concerns I have are city services like snow removal and trash pickup being slowed down in impoverished neighborhoods.”
Alderman Carrie Austin (34th), who chairs the City Council’s budget committee, also voted for the budget but she, too, had concerns.
“I was never for the Jumping Jack program being cut out because that is something that affects all wards,” she said. “The trash pickup was another concern I had because it meant that no garbage would be picked up until the Monday following Thanksgiving, and that’s too long for trash to be out sitting on the streets.”
She also said she is concerned about the hike in ambulance fees considering so many people do not have health insurance.
Alderman Pat Dowell (3rd) also expressed concerns about the budget.
“One fee increase that I reluctantly supported after working to find a viable revenue replacement was the commercial refuse container permit or ‘dumpster fee.’ I was one of five aldermen that proposed alternatives to this fee that was ultimately rejected by the budget office,” Dowell said in a statement. “Although the fee passed the City Council, the mayor has agreed to work with the Council to find another revenue source before the fee goes into effect. I will continue to press the mayor on this issue.”
Johnson said the budget would benefit tax payers in many ways.
•Trash pickup will take place the day after Thanksgiving
•The Jumping Jack program for neighborhood festivals was maintained after the city increased fees for vendors at Maxwell Street on the West Side.
•Six-week amnesty for 3.5 million overdue parking and red-light tickets will be offered Dec. 1 to Feb.14.
•The city will establish a five-year, $100 million annuity with discretionary proceeds from the Midway Airport lease and spend $20 million a year through 2012.
•Red-light cameras will be installed at 50 more intersections around the city to catch traffic scofflaws
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