>> 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REPEALED AND ALDERMEN SUPPORTED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