Chicago’s inspector general is offering Mayor Rahm Emanuel a $3 billion roadmap to financial stability that includes everything from a city income tax, commuter tax and tolls on Lake Shore Drive to privatizing garbage collection and converting 20 percent of all fire suppression apparatus to ambulances.Last year, Inspector General Joe Ferguson rocked the boat with a $247.3 million menu of cost-cutting options that called for the city to fire 595 firefighters, 161 laborers and 75 downtown traffic control aides, impose a recycling fee and snatch away subsidies for senior citizens, condominium owners and non-profits.
This year’s version makes the earlier blueprint look like child’s play.
Although Emanuel has emphatically ruled out higher taxes, Ferguson is serving up 19 revenue generating ideas with tantalizing earning potential of $2.3 billion-a-year.
Chicago could raise $500 million-a-year by imposing a one percent city income tax, following New York City’s lead, the inspector general said.
A one percent commuter tax would have an annual take of $300 million. Resurrecting Emanuel’s controversial campaign promise to broaden the sales tax to an array of services not now covered — branded the “Rahm tax” by rivals — could yield $450 million.
Imposing a $5, London-style congestion fee on vehicles entering the city’s Central Business District during the morning and evening rush periods could raise $375 million, even after a 20 percent reduction in traffic to 400,000 vehicles-a-day.
Installing toll booths on Lake Shore Drive—and charging the average vehicle $2.50 — could raise $87.5 million, even after hefty capital costs.
The inspector general’s revenue menu also includes: raising water and sewer rates to the national average ($380 million); imposing a “pay-as-you-throw” garbage collection fee ($125 million); broadening the amusement tax ($105 million); and imposing a transaction tax on the major exchanges ($37 million) and imposing a blue cart recycling fee ($18 million).
Although Emanuel wants to reform, but keep tax-increment-financing districts, Ferguson says the city could save $100 million by eliminating all 160-plus TIF’s.
The list also includes eliminating free sewer service for senior citizens ($17 million); turning off the free water spigot for hospitals and non-profits ($15.2 million) and doubling ambulance fees ($13.2 million).
The $660 million in spending cuts are also politically-explosive.
The inspector general is tossing out the idea of merging the city and Chicago Park District to save $5 million.
In the Chicago Fire Department, where Emanuel has demanded a 20 percent cut, Ferguson is playing with fire by proposing that 20 percent of fire suppression apparatus be converted to ambulances to cut annual costs by $41.5 million.
To save $57 million-a-year, the inspector general is resurrecting his proposal to reduce — from five employees to four — the minimum required to staff every piece of fire apparatus. That’s the issue that touched off the bitter 1980 firefighters strike.
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Ferguson also wants to disband the police marine and helicopter units ($6.2 million), eliminate quarterly pay for supervisors ($9.6 million) and get rid of duty availability pay that essentially compensates police officers and firefighters for being on call at all times ($52 million).
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The inspector general wants to save $190 million by eliminating redundant layers of supervisory personnel, 707 of them in the Fire Department, where there are 3.58 supervisors for every rank-and-file employee and 309 in the Police Department, where the current ratio if 8-to-1.
Next week, Emanuel is scheduled to launch a ground-breaking “managed competition” between city crews and private recycling contractors.
But, that didn’t stop Ferguson from resurrecting his proposal to have the city choose between privatizing both recycling and garbage collection to save $165 million and keeping it in-house, but switching to a grid system ($46.7 million) and reducing to one the number of laborers on a truck ($19.4 million). He also wants to switch all employees to a 40-hour work week ($40 million) and eliminate the jobs of 200 motor truck drivers who do little more than transport city crews to job sites and wait for them to finish the job. The driver cuts would save $19 million.
Last year, Ferguson’s budget ideas were shot down right out of the box.
Aldermen were so incensed by the suggestions, they summoned city department heads to denounce the proposals as irresponsible.
Then-Budget Director Eugene Munin went so far as to suggest that Ferguson’s ideas could “put public safety at risk” and force nearly $90 million in new fees.
This time, the political climate is dramatically different and so is the reception.
“Pretty radical stuff, but everything should be on the table. Nothing should be dismissed out of hand,” said Ald. Joe Moore (49th).
“Some of it would prove to be politically challenging, however we’re running out of ideas. Everyone is saying next year’s budget is gonna be worse than this year’s. Thing that may have appeared politically impossible a few years ago may now be something we have no choice but to do.”
Emanuel has promised to erase the city’s $635.7 million shortfall without raising taxes, cutting police officers or using one-time or casino revenues. He has vowed to entertain any and all ideas that meet those criteria.
The question now is whether the mayor is open to suggestions from an inspector general with whom he has a strained relationship.
“There are serious fiscal challenges ahead, and we welcome any and all ideas that will protect Chicago’s taxpayers,” said Chris Mather, the mayor’s communications director.
