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>> THANK YOU.

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>> IS THERE A LIGHT AT THE END

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OF THE FISCAL TUNNEL FOR THE

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CITY OF CHICAGO?

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TODAY THE MAYOR LAID OUT HIS

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BUDGET FOR THE YEAR UNDERSCORING

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THE SMALLEST DEFICIT SINCE HE

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HAS BEEN IN OFFICE AND

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CELEBRATING AN IMPROVED OUTLOOK

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ON STNSES FROM THE RAIDINGS

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AGENCIES.

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THIS AFTER A HOST OF TAX AND FEE

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HIKES HAVE GONE INTO EFFECT.

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PARIS SCHUTZ HAS THE LATEST.

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WHAT CAN YOU TELL US?

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>> HOURS AFTER THAT DEAL WAS

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REACHED WITH TEACHERS, THE MAYOR

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APPEARED BEFORE CITY COUNCIL TO

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GIVE THIS BUDGET ADDRESS AND

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SAID THIS $3.7 BILLION BUDGET IS

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UNLIKE ANY OTHER IN RECENT

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MEMORY WITH A DEFICIT IS ABOUT

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ONE-FIFTH WHAT IT WAS HIS FIRST

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YEAR IN OFFICE.

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TAKING INTO ACCOUNT THE MASSIVE

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588 MILLION PROPERTY TAX HIKE

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PUT INTO EFFECT.

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PART OF THAT WILL GO UP THIS

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YEAR AND THEN THERE'S THE 30%

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HIKE IN WATER AND SEWER FEES TO

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STABILIZE THE CITY PENSIONS.

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BEYOND THAT THERE IS A $137

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MILLION BUDGET SHORTFALL THAT

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WILL BE CLOSED THROUGH CUTS,

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DEBT COLLECTION AND A TIF

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SURPLUS OF $175 MILLION THAT THE

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CITY IS GOING TO PUT AFTER TO

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CPS AND HALF TO THE CITY AND

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INCREASED ECONOMIC NUMBERS THAT

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ARE DRIVING REVENUE INTO THE

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COFFERS AND A NEW SEVEN CENT TAX

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ON PLASTIC AND PAPER SHOPPING

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BAGS.

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THE MAYOR BELIEVES THIS HELPED

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TURN THE CITY'S FISCAL TIDE.

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>> IT IS A BUDGET FREE OF AN

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IMMEDIATE PENSION CRISIS.

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FREE OF A BLACK CLOUD OF

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INSOLVENCY THREATENING THE

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RETIREMENTS OF CITY EMPLOYEES

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AND THE FINANCIAL FUTURE OF

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CHICAGO.

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FOR TOO LONG CHICAGO WAS NOT

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HONEST WITH THE TAXPAYERS AND

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EMPLOYEES.

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ABOUT THE TRUE COST OF THEIR

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PENSIONS.

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>> AND THERE'S NEW SPENDING.

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3s $36 MILLION FOR MENTORING

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PROGRAMS THAT THE MAYOR

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OUTLINED.

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AND THEY ARE STARTING TO EXPAND

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THE POLICE FORCE TO HAVE 970 NEW

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POSITIONS.

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NOW, AFTER CLOSE EXAMINATION

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THIS YEAR'S BUDGET IS ADJUSTED

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FOR THE NEW POSITIONS BUT IT'S

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SUPPOSED TO HAPPEN OVER THREE

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YEARS.

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>> HOW MUCH MONEY IS SUPPOSED TO

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BE RAISED BY THE NEW TAX ON

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PLASTIC BAGS?

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>> IT'S $9 MILLION BUT IT

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REPLACES THE BAN THAT WILL BE

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REPEALED AND ALDERMEN SUPPORTED

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THIS NEW TAX SAYING THEY HOPE IT

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HELPS MOVE CONSUMERS TOWARDS

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REUSABLE BAGS.

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>> FOLKS WHO FEEL LIKE THEY HAVE

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BEEN HAVING TO BEAR THE BURDEN

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IN OUR BUDGETS BUT WHEN YOU LOOK

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AT USER FEES LOOK A BAG TAX,

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THAT IS SOMETHING THE CONSUMER

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CAN CONTROL.

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>> AND WE HAVE TO SEE IF IS THAT

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FEE IS HIGH ENOUGH AND --

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>> IS IT?

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>> I DON'T KNOW.

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RIGHT NOW OTHER CITIES ARE

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HIGHER SO WE HAVE TO LOOK AT

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NATIONWIDE AND THE STUDIES AND

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TALK TO THE EXPERTS.

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BUT I THINK THIS IS THE RIGHT

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APPROACH TO START CHANGING WHAT

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WE SAW WAS A FAILED POLICY IN

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TERMS OF A BAN.

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>> ANOTHER ELEMENT IS A

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COMMUNITY CATALYST FUND THAT

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WILL HAVE PUBLIC MONEY AND

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PRIVATE MONEY IT'S TASKED WITH

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RAISING THAT MONEY AND INVEST TO

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GO INTO BUSINESSES TO COME TO

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DISADVANTAGED NEIGHBORHOODS.

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>> THE CITY WILL INVEST $100

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MILLION IN THIS FUND OVER THE

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NEXT THREE YEARS.

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I'VE ASKED AND CHARGED TREASURER

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CURT SUMMERS THE CHAIRMAN TO

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RAISE PRIVATE CAPITAL SO THAT

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ADDITIONAL PRIVATE INVESTMENT

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COULD DOUBLE OR TRIPLE THE SIZE

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OF THE FUND.

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THIS EXPANSION OF CAPITAL

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AVAILABLE FOR THESE TYPES OF

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BUSINESSES MEANS MORE JOBS AND

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MORE HOPE IN OUR COMMUNITIES.

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>> SO DO EVERYBODY IN AGREE WITH

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THE SCENARIO THE MAYOR PAINTED?

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>> WE SHOULD MENTION THE PLASTIC

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BAG BAN IS ACKNOWLEDGED AS A

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FAILURE BECAUSE THE PLASTIC BAGS

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WERE REPLACED WITH A DIFFERENT

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MATERIAL SIMILAR TO PLASTIC.

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AND NOW THAT IS GOING TO BE --

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TO GO BACK TO PLASTIC AND PAPER.

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IT'S IMPORTANT TO REMEMBER THAT

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THE WAY THE CITIES BELEAGUERED

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PENSION FORMS CAUSED BACK LOADS

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AND A LOT OF PAYMENTS.

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THERE WILL HAVE TO BE A LOT OF

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MONEY ACCOUNTED FOR YEARS DOWN

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THE LINE.

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THE LONG-TERM OUTLOOK IS MURKY

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BUT IN THE SHORT-TERM THE

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PICTURE INDEED IS IMPROVED.

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>> THIS BUDGET IS A REASONABLE

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BUDGET.

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IT IS A GOOD NEWS BUDGET FOR THE

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COMPANIES OF CHICAGO IN THAT IT

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DOESN'T INCREASE GENERAL TTZS

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MORE THAN THEY ARE.

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HOWEVER, THE CITY IS STILL HAS A

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ROPG WAY TO GO BEFORE IT IS AT

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THE LEVEL IN WHICH THE BORROWS

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COSTS WON REDUCED.

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>> S&P HAS PUT CHICAGO IN A

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POSITIVE OUTLOOK.

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THAT DOES NOT MEAN IT'S GETTING

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OUT OF JUNK STATUS BUT IT IS THE

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FIRST TIME IN MOVING IN THE

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RIGHT DRINKION.

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>> MONDAY, EACH DEPARTMENT WILL