The city council, voting along factional lines, Wednesday approved a $2.1 billion budget drafted by majority bloc aldermen that would cut administration programs by $23.2 million and impose an aviation-fuel tax.
Mayor Harold Washington vowed to veto the measure–drafted by Ald. Edward Burke (14th), Finance Committee chairman–and to submit a new budget of his own. State law requires that a budget be approved by midnight Dec. 31.
In more than three hours of debate, aldermen aligned with the mayor charged that the plan would jeopardize key social programs, including antigang programs and critical city services.
The council voted 27-16 to approve the budget, but not before Ald. Edward Vrdolyak (10th) promised to restore $1.3 million in antigang-program funding. Vrdolyak introduced an amendment to restore the funds, and the measure was referred to the Finance Committee without action.
The mayor`s next budget would be his third since October, when closed-door negotiations between the council factions got underway. Both sides concede that they are not far apart on 90 percent of the budget.
The fight Wednesday centered on administration charges that Burke`s budget would eliminate the Crisis Intervention Network, established last year to combat gang activities, by stripping the Department of Human Services of $1.3 million and 97 jobs.
Ald. Miguel Santiago (31st), a proponent of the network who voted for the budget, said there was no plan to eliminate the program. He said the administration was raising a ”phony issue” as a ”public relations gimmick.”
Vrdolyak`s amendment also would strip the mayor`s support staff. It would cut $557,000 in pay and would eliminate nine jobs in the press office and six in the office of intergovernmental affairs, headed by Thomas Coffey. Other cuts would come in the Department of Economic Development, Personnel, the Mayor`s Office of Inquiry and Information, Purchasing and the Office of Cable Communications.
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Burke`s budget was criticized for its 5-cent-a-gallon tax on aviation fuel sold at O`Hare International Airport. Fuel sales at Meigs and Midway Airports were exempted.
The mayor`s first budget called for freezing tax rates. But it would have raised $50 million in new revenue from real estate tax reassessments and taxes on new developments. His budget also would have added 500 police jobs, capped utility taxes, cut the employee head tax on businesses to $4 from $5 and reduced garbage crews to three workers from four.
A major issue separating the two sides is Washington`s proposal to raise revenue through property taxes, which majority bloc aldermen call a tax increase. The majority bloc argued that the fuel tax, which they said would raise $42 million, would be more palatable to Chicago residents.
The mayor`s forces have not ruled out the fuel tax, but Washington is concerned the plan will end up in court, leaving a $42 million budget shortfall.
Burke`s budget would cut property taxes by $62 million. The fuel tax would make up much of that loss. The city also would have to cut 750 of its 3,200 vacant positions; cap utility taxes; eliminate $7 million from the judgment fund, which the city uses to pay legal judgments against it; and restructure the corporation counsel`s department.
The budget would also add 700 police, bringing the department to 12,700 sworn personnel.
Several minority aldermen urged the mayor to quickly veto Burke`s budget.