Mayor Harold Washington unveiled Chicago`s first $2 billion budget Thursday, calling for several tax reforms and pledging to support a variety of social programs.
The proposed 1986 budget recommends a cap on the city`s utility tax and a reduction in a widely disliked business levy. However, the administration expects to raise $50 million in additional revenue from businesses and residential properties.
Washington`s budget includes funds for an additional 500 police officers, raising the authorized number to 12,500, and reduces the number of workers on garbage trucks from four to three.
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There also is funding for more than a dozen social programs, including $2.5 million for maternal and child health programs and an additional $1.3 million for the city`s antigang program.
The mayor`s budget message was criticized by anti-administration aldermen as soon as he completed his presentation.
Ald. Edward Vrdolyak (10th), leader of the Chicago City Council`s majority bloc, challenged the mayor`s message, saying it was only ”a speech, not a budget” and did not include a line-item breakdown.
By state law, the city`s budget must be presented by Nov. 15. However, in an executive order, the mayor said he would present the budget by Oct. 15 to allow an additional month for public discussion.
The admistration issued several documents Thursday, including a ”1986 program and budget summary.” A line-item breakdown won`t be available until Nov. 15.
The budget was referred to the council`s Finance Committee. Council approval is required by Dec. 31.
Washington contended the budget includes no increase in the property tax rate, which would be frozen at the 1984 level. Additional property tax revenue in the budget would come about through the normal reassessment of properties and tax income from new development.
The revenue projections for 1986 rely on the scheduled reassessment of two Cook County real estate quadrants–the northwest, which will be reassessed this year, and the southwest, reassessed next year. When the assessed value of property goes up, tax revenue increases, although the tax rate may remain the same.
Washington`s theme for the budget was ”fairness.” The mayor began sporting a pin with that slogan several weeks ago, and administration officials carrying his message to business and community groups are stressing the ”fair share” spirit.
Noting that business would be picking up a larger responsibility because of reassessments and new development, the mayor said, there was not an intent to create a burden, but rather ”a conscious effort” that the taxes be fair. ”There is no attempt to sock anybody,” he said in an interview before presenting his budget. ”The idea is to be fair.”
A major problem facing a balanced budget, however, is the city`s pending labor contracts with 49 bargaining units. A pay raise of 3 percent could trigger a potential $30 million deficit, according to the administration`s financial experts.
But Washington defended the absence of dollars in the budget for pay increases, arguing, ”You can`t negotiate by providing `X` dollars without tipping your hand.”
He said a low rate could be regarded as an insult and a high rate as
”giving it away.”
Among the initiatives in the mayor`s budget is an additional $500,000 for meals for the elderly and handicapped, an additional $500,000 for shelters for the homeless and an additional $100,000 for educating the public on the growing AIDS problem.
A total of $1 million has been budgeted for two job programs aimed at providing additional employment.
Washington`s budget also includes $500,000 to reopen portions of Navy Pier for seven months and $200,000 to teach paramedics Spanish.
In reducing the garbage crews to three, Washington said that for the most part, the fourth man would be reassigned within the Department of Streets and Sanitation.
The administration will lobby for state legislation to allow the city to cap its tax on gas and electricity by basing the rate on power usage rather than the dollar amount of customers` utility bills. The projected revenue loss would be $10 million.
By reducing the controversial ”head tax” for businesses to $4 from $5 a month per employee, the administration expects a projected revenue loss of $7 million.
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