The Civic Federation released its annual review of Mayor Rahm Emanuel’s proposed budget for the coming fiscal year. The Civic Federation came out in support of the $8.9 billion budget proposal.
In the Chicago Sun-Times, Fran Spielman summarized the Civic Federation’s review as follows:
“Mayor Rahm Emanuel’s feel-good final budget is a “reasonable one-year financial plan” that keeps the city’s hand out of taxpayers’ pockets but “ignores an enormous elephant in the room,” the Civic Federation warned Wednesday.”
One might argue that it isn’t possible to have a reasonable one-year plan if it ignores an enormous elephant in the room. One could also argue that the city isn’t really taking its hand out of taxpayers’ pockets; the hand is still in there, just waiting for more money when it comes down the road.
In its full report, the Civic Federation cited the city’s projected $100 million shortfall in the Corporate Fund, calling it a “budget deficit.” A footnote that follows states “The City of Chicago is required by law to pass a balanced budget so it does not have a budget ‘deficit’ in the same sense that the federal government has a deficit.” The Civic Federation squared this circle by noting that the city ultimately balances the budget by measures introduced in the annual budget ordinance.
Trouble is, the city of Chicago’s expenses have exceeded revenue every year since 2010 by an average of $2 billion a year. How can you “balance a budget” every year, but spend more than you take in every year? Political math and bad accounting rules provide the answer.
Below is a compilation of the Civic Federation’s summary of this annual report from 2003 to 2018. Each year, the group introduces the report with a statement of support or opposition to the budget proposal. The Civic Federation supported the budget proposal in 13 of those 16 years.
Consider the arguments supporting the appraisal issued in 2010 (for FY2011), the last time the Civic Federation opposed the budget proposal, in light of the concerns cited in the Chicago Sun-Times article cited above.
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October 31, 2018
The Civic Federation supports the City of Chicago’s proposed $8.9 billion FY2019 budget because it is a reasonable one-year financial plan that does not include any new taxes or fees, makes important public safety investments and funds the increased 2019 pension contribution of $32 million to the police and fire pension funds without a property tax increase.
November 8, 2017
The Civic Federation supports the proposed FY2018 City of Chicago budget of $8.6 billion because it continues to work toward stabilizing the City’s finances, puts its four pension funds on a path toward solvency and works to incorporate short-term capital expenses into the operating budget rather than funding them through borrowing.
November 1, 2016
In a report released today, the Civic Federation announced its support for the City of Chicago’s proposed FY2017 budget of approximately $8.2 billion because it continues to work toward addressing the City’s unfunded pension liabilities and makes significant improvements over past financial practices.
October 14, 2015
The Civic Federation supports the City of Chicago’s proposed $7.8 billion budget and necessary property tax increase as a long overdue action to address the City’s public safety pension funding crisis.
November 3, 2014
The Civic Federation supports the City of Chicago's proposed $7.3 billion budget because it reflects both reasonable structural changes and significant actions toward long-term stability, including the 2014 pension reform law for the City's Municipal and Laborers' pension funds and the continued phase out of the City's retiree health care subsidy.
November 13, 2013
The Civic Federation supports the City of Chicago’s proposed $7.0 billion budget as a reasonable short-term plan that closes approximately two-thirds of a $338.7 million budget gap with structural changes that will continue to reduce the City’s ongoing deficit.
October 31, 2012
The Civic Federation supports the City of Chicago’s FY2013 proposed $6.5 billion budget which reduces the City’s reliance on one-time revenue sources while restructuring City government through better managing personnel expenditures.
November 2, 2011
The Civic Federation supports the proposed FY2012 City of Chicago budget of nearly $6.3 billion because it takes effective action to reduce the City’s structural deficit through significant expenditure reductions and targeted revenue increases.
November 3, 2010
The Civic Federation opposes the proposed FY2011 City of Chicago budget of nearly $6.2 billion because it does not effectively address the structural deficit and relies too heavily on asset lease reserve funds and debt restructuring to close the $654.8 million budget deficit. The proposed budget would defer costs and postpone changes needed to align current year expenditures with recurring revenues.
November 18, 2009
The Civic Federation opposes the FY2010 City of Chicago budget of $6.14 billion because it is unsustainable and relies too heavily on one-time reserve funds to close a $520.0 million budget deficit.
November 5, 2008
The Civic Federation supports the FY2009 City of Chicago budget of $5.97 billion because it does not rely on raising property tax and begins the painful yet necessary step of reducing payroll by 2,618 full-time equivalent positions to balance the budget.
October 31, 2007
The Civic Federation opposes the City of Chicago's proposed $5.9 billion budget. The budget proposes an additional $266.6 million in new spending and includes a $108.0 million property tax increase, the largest in recent Chicago history. We believe that the 15.1% property tax increase should be rejected and the city should maintain its self-imposed property tax cap.
November 1, 2006
The Civic Federation supports the City of Chicago's proposed $5.7 billion budget but has serious concerns about the poor health of the City's pension funds and the low level of reserve funds for contingencies.
November 30, 2005
The Civic Federation supported the City's holding the property tax levy constant for the third year in a row and eliminating vacancies, but was concerned by the lack of transparency regarding the funding for operations at Millennium Park, and by the use of borrowing to finance those operations.
December 1, 2004
The Civic Federation supported the City's holding the property tax levy constant for the second year in a row and cutting positions, but was concerned that further measures to control personnel expenditures should be taken and was disappointed that the City did not dedicate more Skyway sale revenues for long-term obligations.
November 5, 2003
The Civic Federation supported Chicago’s FY2004 budget of $4.8 billion because: 1) the City has made continued efforts to control personal services costs by reducing personnel over time; 2) The City’s net appropriation has increased an average of 2.6% per year over the last five years, on par with inflation; and 3) The City did not increase its property tax levy.