SLASH AND BURN PART 2

In October of 2010, Chicago Inspector General Joseph Ferguson outlined his ideas on how Chicago could reduce the city budget deficit by $250 million in a 51 page report.  I wrote about it in “Slash and Burn”on October 27th.

I pointed out that “While previous Inspectors General have not considered the budget part of their job description, Ferguson’s writes in his cover letter, ‘The IGO is charged by ordinance with promoting economy, efficiency, effectiveness and integrity in the operations of the City government. This report is our first attempt in doing so through the analysis of budget options and is modeled after reports done by both the Congressional Budget Office at the federal level and the Independent Budget Office in New York City.’”

At the time I listed what I thought were his worst ideas in 2010 and why no aldermen would ever vote for them.  They were:

“(1) Eliminate subsidized water and sewer usage for not for profits;

(2) Charge a fee for not for profits that receive city garbage collection;

(3) Eliminate free sewer service for seniors;

(4)  Eliminate property tax relief grants;

(5)  Eliminate the Jumping Jack programs at parks and festivals. (The aldermen already voted against eliminating that 2 years ago.);

(6)  Charge for Blue Cart Recycling. (Hardly anybody is using that program now, so if it costs money, who will pay for it?);

(7)  Eliminate home buying assistance for police officers, firefighters and teachers;

(8)  Eliminate city funding for tuberculosis;

(9)  Cut traffic aides in the Loop;

And drum roll please for the worst idea to save money:

(10) Reduce fire staffing apparatus to four persons.”

As I predicted, none of those 10 ideas came to fruition.

Ferguson just came out with his 2011 report and this time it is 136 pages long and outlines $3 billion in possible savings or new revenue.  The report   is a lot prettier, containing lots of charts and graphs that no one (except me) will probably ever study.  He kept many of the same ideas from last year’s report, but added lots of new ones.

I will again list what I thought his top worst ideas are that Aldermen will never pass:

(1)  Income taxes- Ferguson wants to create a City Income tax that will generate $500 million in revenue. If he had suggested that last year, he could have had a one paragraph report that would have generated twice as much revenue as his 51 pages for $250 million.

(2)  Create a Commuter Tax- This would be a tax on the wages of nonresidents.  He predicts $300 million will come from that.

(3)  Implement Congestion Pricing- The City would charge a $5 fee both for entering or exiting the Central Area in a motor vehicle during weekday rush hours (6 am to 9:30 am and 3 p.m. to 7 p.m.).  That would result in a net gain of $235 million after paying for the costs of implementing the system.

(4) Place tolls on Lake Shore Drive- The city could gain $87 million. Under this option, the City would place tolls on LSD at each entrance and exit point. To maintain traffic flow, the City could install open road tolling, using the same technology as the State’s I-Pass System. The toll would be based on the distance traveled on LSD with a full trip from the south or north end to downtown costing $5 and shorter trips costing a lesser amount.

(5) Institute a Pay as You Throw Garbage Collection Fee that would add $125 million to the city’s coffers. Under this option, the City would begin charging for City-provided garbage collection services by implementing a pay-as-you-throw (PAYT) system. Using the City’s existing garbage infrastructure, the City would charge property owners $100 per year for each 96-gallon garbage cart the building used. Billing property owners instead of each individual household would make administration easier for the City and is similar to the City’s method of billing for water service. Property owners would have the option of reducing or increasing the number of carts they use.

(6) Eliminate Free Sewer Service for Seniors and Eliminate Reduced Rate City Sticker for Seniors- those two would raise about $25 million for the city.  Along with that would come a guarantee that every voter would pull a level in the voting booth for anyone running against Mayor Emanuel.

(7)  Eliminate City Funding for After School and Summer Employment Programs—That would save the city $6.5 million and punish thousands of students who benefit greatly from these programs.

(8)  Eliminate Jumping Jack Program-This was tried once before; the Aldermen refused to pass the change.  Residents who love these silly games went wild at the thought of losing the Jacks.

(9) Eliminate the Marine and Helicopter Unit- That would only save the city $6.2 million and I think a city that borders on water really needs a helicopter unit for emergencies on Lake Michigan.

And my favorite option for saving money:

(10) Require Double-sided Printing on All Printers and Copiers- Why does this $200,000 savings make me laugh?

Because the inspector General’s Report was printed on single sided paper!