>> THANK YOU.

>> IS THERE A LIGHT AT THE END

OF THE FISCAL TUNNEL FOR THE

CITY OF CHICAGO?

TODAY THE MAYOR LAID OUT HIS

BUDGET FOR THE YEAR UNDERSCORING

THE SMALLEST DEFICIT SINCE HE

HAS BEEN IN OFFICE AND

CELEBRATING AN IMPROVED OUTLOOK

ON STNSES FROM THE RAIDINGS

AGENCIES.

THIS AFTER A HOST OF TAX AND FEE

HIKES HAVE GONE INTO EFFECT.

PARIS SCHUTZ HAS THE LATEST.

WHAT CAN YOU TELL US?

>> HOURS AFTER THAT DEAL WAS

REACHED WITH TEACHERS, THE MAYOR

APPEARED BEFORE CITY COUNCIL TO

GIVE THIS BUDGET ADDRESS AND

SAID THIS $3.7 BILLION BUDGET IS

UNLIKE ANY OTHER IN RECENT

MEMORY WITH A DEFICIT IS ABOUT

ONE-FIFTH WHAT IT WAS HIS FIRST

YEAR IN OFFICE.

TAKING INTO ACCOUNT THE MASSIVE

588 MILLION PROPERTY TAX HIKE

PUT INTO EFFECT.

PART OF THAT WILL GO UP THIS

YEAR AND THEN THERE'S THE 30%

HIKE IN WATER AND SEWER FEES TO

STABILIZE THE CITY PENSIONS.

BEYOND THAT THERE IS A $137

MILLION BUDGET SHORTFALL THAT

WILL BE CLOSED THROUGH CUTS,

DEBT COLLECTION AND A TIF

SURPLUS OF $175 MILLION THAT THE

CITY IS GOING TO PUT AFTER TO

CPS AND HALF TO THE CITY AND

INCREASED ECONOMIC NUMBERS THAT

ARE DRIVING REVENUE INTO THE

COFFERS AND A NEW SEVEN CENT TAX

ON PLASTIC AND PAPER SHOPPING

BAGS.

THE MAYOR BELIEVES THIS HELPED

TURN THE CITY'S FISCAL TIDE.

>> IT IS A BUDGET FREE OF AN

IMMEDIATE PENSION CRISIS.

FREE OF A BLACK CLOUD OF

INSOLVENCY THREATENING THE

RETIREMENTS OF CITY EMPLOYEES

AND THE FINANCIAL FUTURE OF

CHICAGO.

FOR TOO LONG CHICAGO WAS NOT

HONEST WITH THE TAXPAYERS AND

EMPLOYEES.

ABOUT THE TRUE COST OF THEIR

PENSIONS.

>> AND THERE'S NEW SPENDING.

3s $36 MILLION FOR MENTORING

PROGRAMS THAT THE MAYOR

OUTLINED.

AND THEY ARE STARTING TO EXPAND

THE POLICE FORCE TO HAVE 970 NEW

POSITIONS.

NOW, AFTER CLOSE EXAMINATION

THIS YEAR'S BUDGET IS ADJUSTED

FOR THE NEW POSITIONS BUT IT'S

SUPPOSED TO HAPPEN OVER THREE

YEARS.

>> HOW MUCH MONEY IS SUPPOSED TO

BE RAISED BY THE NEW TAX ON

PLASTIC BAGS?

>> IT'S $9 MILLION BUT IT

REPLACES THE BAN THAT WILL BE

REPEALED AND ALDERMEN SUPPORTED

THIS NEW TAX SAYING THEY HOPE IT

HELPS MOVE CONSUMERS TOWARDS

REUSABLE BAGS.

>> FOLKS WHO FEEL LIKE THEY HAVE

BEEN HAVING TO BEAR THE BURDEN

IN OUR BUDGETS BUT WHEN YOU LOOK

AT USER FEES LOOK A BAG TAX,

THAT IS SOMETHING THE CONSUMER

CAN CONTROL.

>> AND WE HAVE TO SEE IF IS THAT

FEE IS HIGH ENOUGH AND --

>> IS IT?

>> I DON'T KNOW.

RIGHT NOW OTHER CITIES ARE

HIGHER SO WE HAVE TO LOOK AT

NATIONWIDE AND THE STUDIES AND

TALK TO THE EXPERTS.

BUT I THINK THIS IS THE RIGHT

APPROACH TO START CHANGING WHAT

WE SAW WAS A FAILED POLICY IN

TERMS OF A BAN.

>> ANOTHER ELEMENT IS A

COMMUNITY CATALYST FUND THAT

WILL HAVE PUBLIC MONEY AND

PRIVATE MONEY IT'S TASKED WITH

RAISING THAT MONEY AND INVEST TO

GO INTO BUSINESSES TO COME TO

DISADVANTAGED NEIGHBORHOODS.

>> THE CITY WILL INVEST $100

MILLION IN THIS FUND OVER THE

NEXT THREE YEARS.

I'VE ASKED AND CHARGED TREASURER

CURT SUMMERS THE CHAIRMAN TO

RAISE PRIVATE CAPITAL SO THAT

ADDITIONAL PRIVATE INVESTMENT

COULD DOUBLE OR TRIPLE THE SIZE

OF THE FUND.

THIS EXPANSION OF CAPITAL

AVAILABLE FOR THESE TYPES OF

BUSINESSES MEANS MORE JOBS AND

MORE HOPE IN OUR COMMUNITIES.

>> SO DO EVERYBODY IN AGREE WITH

THE SCENARIO THE MAYOR PAINTED?

>> WE SHOULD MENTION THE PLASTIC

BAG BAN IS ACKNOWLEDGED AS A

FAILURE BECAUSE THE PLASTIC BAGS

WERE REPLACED WITH A DIFFERENT

MATERIAL SIMILAR TO PLASTIC.

AND NOW THAT IS GOING TO BE --

TO GO BACK TO PLASTIC AND PAPER.

IT'S IMPORTANT TO REMEMBER THAT

THE WAY THE CITIES BELEAGUERED

PENSION FORMS CAUSED BACK LOADS

AND A LOT OF PAYMENTS.

THERE WILL HAVE TO BE A LOT OF

MONEY ACCOUNTED FOR YEARS DOWN

THE LINE.

THE LONG-TERM OUTLOOK IS MURKY

BUT IN THE SHORT-TERM THE

PICTURE INDEED IS IMPROVED.

>> THIS BUDGET IS A REASONABLE

BUDGET.

IT IS A GOOD NEWS BUDGET FOR THE

COMPANIES OF CHICAGO IN THAT IT

DOESN'T INCREASE GENERAL TTZS

MORE THAN THEY ARE.

HOWEVER, THE CITY IS STILL HAS A

ROPG WAY TO GO BEFORE IT IS AT

THE LEVEL IN WHICH THE BORROWS

COSTS WON REDUCED.

>> S&P HAS PUT CHICAGO IN A

POSITIVE OUTLOOK.

THAT DOES NOT MEAN IT'S GETTING

OUT OF JUNK STATUS BUT IT IS THE

FIRST TIME IN MOVING IN THE

RIGHT DRINKION.

>> MONDAY, EACH DEPARTMENT WILL