Daley: No tax hikes in 2007
Proposed budget has election year written all over it
Aldermen in Chicago cheer Daley proposal
By Gary Washburn
Copyright © 2006, Chicago Tribune
Published October 11, 2006
Mayor Richard Daley's proposed budget for 2007 will seek no increase in property taxes and no raises in any other in the long list of city levies, the chairman of the City Council's Budget Committee said Tuesday.
"No tax increase, no layoffs," said Ald. William Beavers (7th), the committee's chairman. "It's a real good budget."
Beavers said it will "go over good, real good" with his aldermanic colleagues.
The news may be positive for homeowners and other taxpayers, but it also permits Daley and aldermen to avoid heat from voters as they approach February's election.
The mayor has not announced his plans but widely is expected to seek his sixth term in office. Virtually all of the council's 50 aldermen will be seeking re-election.
Also not part of the mayor's proposed spending plan--expected to be more than $5 billion--are any increases in fees and fines, according to aldermen who attended closed-door briefings on Tuesday.
"Nothing, nothing, nothing," declared Ald. Bernard Stone (50th). "It's a good election year budget," he chuckled, describing the spending plan as "bland."
Ald. Ray Suarez (31st) suppressed a smile when he was asked if the budget proposal was drafted with the election in mind.
"Nobody likes tax increases, and I know this mayor doesn't like tax increases," he said. "Sometimes you are forced to, but I want to think of this as a positive, that we are doing this because we have been able to cut and trim."
Beavers said that some minor new revenue may be generated by selling permits that would allow real estate agents to park in neighborhoods that have residents-only parking. However, he said, "That is not set in stone."
Rising city operating costs next year are expected to be offset by increases in sales taxes, hotel taxes and other revenue streams that are benefiting from an improving economy, the alderman said.
"Everything is up," Beavers said.
Projections made by the city's budget and management office in July forecast a 3.5 percent increase in base income tax revenues in 2007, a nearly 2 percent rise in sales tax collections and a hotel tax increase of 1.5 percent.
A preliminary budget released in July showed a $64.5 million shortfall for next year, the lowest figure in five years, and one that signaled little pressure for major tax and fee increases after management efficiencies and spending cuts were put in place.
Ald. George Cardenas (12th), who sided with Daley in the mayoral veto of the "big-box" minimum wage ordinance, contended that the financial picture will get even better because more large retail stores will be built because of the measure's demise.
Cardenas also applauded the budget proposal.
"We can't nickel and dime city taxpayers anymore," he said. "I think they will be pleased we are keeping the line on any property tax increases or fee increases. People are sick of it."
The improved revenue picture is expected to allow Daley to increase spending for some social service programs.
Under one proposal in the budget, for example, $1 million in new funding will be added to existing programs to create job opportunities for ex-offenders, according to Daley administration sources.
Another $500,000 will be added to a program for qualified senior citizens that provides them with various types of assistance, including occasional in-house visits by caregivers.
Meanwhile, about $1.4 million in money from the 2005 lease of the Chicago Skyway will be used to add nearly 1,000 senior citizens to a program that features home-delivered meals.
Under a controversial initiative, Daley is financing a major school construction program without raising taxes. The City Council last week approved a measure that would earmark $500 million in existing property tax revenues collected in economic development zones citywide. Critics have questioned whether school construction represents an appropriate use of money meant to spur economic regeneration.
Though the city's budget contains no property tax increases, Daley gave his blessing to a Board of Education spending plan earlier this year that calls for the schools' real estate levy to rise by $55 million.
----------
gwashburn@tribune.com
Aldermen in Chicago cheer Daley proposal
By Gary Washburn
Copyright © 2006, Chicago Tribune
Published October 11, 2006
Mayor Richard Daley's proposed budget for 2007 will seek no increase in property taxes and no raises in any other in the long list of city levies, the chairman of the City Council's Budget Committee said Tuesday.
"No tax increase, no layoffs," said Ald. William Beavers (7th), the committee's chairman. "It's a real good budget."
Beavers said it will "go over good, real good" with his aldermanic colleagues.
The news may be positive for homeowners and other taxpayers, but it also permits Daley and aldermen to avoid heat from voters as they approach February's election.
The mayor has not announced his plans but widely is expected to seek his sixth term in office. Virtually all of the council's 50 aldermen will be seeking re-election.
Also not part of the mayor's proposed spending plan--expected to be more than $5 billion--are any increases in fees and fines, according to aldermen who attended closed-door briefings on Tuesday.
"Nothing, nothing, nothing," declared Ald. Bernard Stone (50th). "It's a good election year budget," he chuckled, describing the spending plan as "bland."
Ald. Ray Suarez (31st) suppressed a smile when he was asked if the budget proposal was drafted with the election in mind.
"Nobody likes tax increases, and I know this mayor doesn't like tax increases," he said. "Sometimes you are forced to, but I want to think of this as a positive, that we are doing this because we have been able to cut and trim."
Beavers said that some minor new revenue may be generated by selling permits that would allow real estate agents to park in neighborhoods that have residents-only parking. However, he said, "That is not set in stone."
Rising city operating costs next year are expected to be offset by increases in sales taxes, hotel taxes and other revenue streams that are benefiting from an improving economy, the alderman said.
"Everything is up," Beavers said.
Projections made by the city's budget and management office in July forecast a 3.5 percent increase in base income tax revenues in 2007, a nearly 2 percent rise in sales tax collections and a hotel tax increase of 1.5 percent.
A preliminary budget released in July showed a $64.5 million shortfall for next year, the lowest figure in five years, and one that signaled little pressure for major tax and fee increases after management efficiencies and spending cuts were put in place.
Ald. George Cardenas (12th), who sided with Daley in the mayoral veto of the "big-box" minimum wage ordinance, contended that the financial picture will get even better because more large retail stores will be built because of the measure's demise.
Cardenas also applauded the budget proposal.
"We can't nickel and dime city taxpayers anymore," he said. "I think they will be pleased we are keeping the line on any property tax increases or fee increases. People are sick of it."
The improved revenue picture is expected to allow Daley to increase spending for some social service programs.
Under one proposal in the budget, for example, $1 million in new funding will be added to existing programs to create job opportunities for ex-offenders, according to Daley administration sources.
Another $500,000 will be added to a program for qualified senior citizens that provides them with various types of assistance, including occasional in-house visits by caregivers.
Meanwhile, about $1.4 million in money from the 2005 lease of the Chicago Skyway will be used to add nearly 1,000 senior citizens to a program that features home-delivered meals.
Under a controversial initiative, Daley is financing a major school construction program without raising taxes. The City Council last week approved a measure that would earmark $500 million in existing property tax revenues collected in economic development zones citywide. Critics have questioned whether school construction represents an appropriate use of money meant to spur economic regeneration.
Though the city's budget contains no property tax increases, Daley gave his blessing to a Board of Education spending plan earlier this year that calls for the schools' real estate levy to rise by $55 million.
----------
gwashburn@tribune.com
posted by Carlos T Mock @ 3:13 PM
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