City Council Approves Daley's Final Budget
Updated: 11/17/10 7:08 p.m.
CHICAGO (CBS) -- After more than two hours of debate, the Chicago City Council approved Mayor Daley's final city budget. The vote was 43-7.
Newsradio 780's Craig Dellimore reports, the $6 billion plan maintains city services without raising taxes or fees.
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The budget is balanced by borrowing from money generated from the Chicago Skyway and parking meter lease deals.
As you pay to park, keep in mind the city's recent 75-year parking meter operating agreement brought $1.15 billion into city accounts. Just three years later, there's only $76 million left. The rest has been spent.
"You have to, that's why I did it," said Mayor Daley.
Daley says he had no choice. From declining property transfer taxes following fewer home sales, to unemployment reducing income tax, and more of us spending less which slashes sales taxes, the city has lost nearly a billion dollars in revenue since the recession began in 2007.
"The money for ex-offender programs, for youth programs and for senior services, none of that would be there," said Daley.
To keep policemen on the street, roads plowed in the winter and the rest of Chicago running, the city in its approved budget is tapping into $288 million of its "sale and lease funds."
What's left is $576 million. It includes $500 million from the Chicago Skyway sale.
"That's $576 million that would still be there, that's not chump change," said Ald. Carrie Austin.
The plan also requires city workers to take unpaid furlough days.
Ald. Ed Smith supports the plan.
"I don't have a problem with furlough days,'' he said. "I would have a serious problem if the garbage isn't picked up.''
In defending their balanced budget passed by a 43 to 7 vote, aldermen touted the fact they didn't raise any taxes or fees by tapping into the reserve funds.
"Right now, the people cannot afford to fork up any more money," said Ald. Anthony Beale.
But those who voted no say the city has just put off making tough economic decisions.
"It's a ticking time bomb for the future of the city," said Ald. Robert Fioretti.
He says the City Council is putting off tough choices on spending cuts.
"The way we're are dealing with the budget is not sustainable," he said, referring to borrowing from the reserve funds created when the city sold the rights to the Skyway and parking meters to private companies.
"Of course we have a balanced budget, we have revenue on one-time short-term fixes," said Ald. Joe Moore. The next mayor and next City Council will have decisions even more difficult to make."
Daley insists he did not purposely leave problems for the next administration. He also says those complaining about this budget did not offer one written amendment as an alternative.
CBS 2's Vince Gerasole contributed to this report.
