Chicago’s band-aid budget fix

Shia Kapos' must-read rundown of political news in the Land of Lincoln
Sep 10, 2024 View in browser
 
Illinois Playbook

By Shia Kapos

Good Tuesday morning, Illinois. The presidential debate is tonight, and here’s everything you need to know.

TOP TALKER

Chicago City Hall, at the left, on a quiet day on La Salle Street.

Chicago City Hall, at the left, on a quiet day on La Salle Street. | Shia Kapos/POLITICO

BUDGET BLUES: The city of Chicago’s budget problems have hit a breaking point, forcing Mayor Brandon Johnson to freeze hiring and travel across all city departments, including police and fire, his team announced Monday.

It’s a band-aid fix for a huge problem — a $223 million budget gap that needs to be filled this year and a looming $982.4 million deficit next year.

What it means: “We’ve kind of maxed out the credit card and maxed out the people who pay the credit card. That’s the taxpayer,” said Civic Federation President Joe Ferguson, referring to the city’s ability to raise taxes.

“There’s just no more give,” and it comes as Chicago Public Schools faces its own financial crisis, Ferguson told Playbook.

All up in the air: Johnson doesn’t want to raise property taxes, though he hasn’t ruled it out, reports Block Club’s Quinn Myers. State officials have signaled there’s little or limited help available from Springfield. And there’s concern the city’s financial situation could put recent positive bond ratings at risk.

This isn’t the first time the City of Chicago has been in dire financial straits.

“We’ve had budget deficits in the past, and under Rich Daley some assets were sold to plug their deficits. I don’t know what Johnson has to work with,” said Bill Singer, a former alderman and long-time civic leader, referring to the budget deficit faced by then-Mayor Richard M. Daley in 2007.

Back then, Daley tried to fix it with across-the-board cuts and rescinding pay raises for non-union employees. That helped, but it was the controversial parking meter deal that ultimately got the city out of its budget hole. In 2008, the city sold all 36,000 of its parking meter spots for 75 years for $1.15 billion.

Today is different: “The options are limited,” said Ald. Scott Waguespack, who was around in 2007 for the parking meter deal (and voted against it). “This time, there’s nothing to sell. They can’t really do anything but go for property tax.”

Another comparison: Daley also promoted downtown growth, which in turn helped boost the property tax base.

Budget directors can nip and tuck a budget, but revenue comes from development policies. “Money comes from growth,” Singer said, “and that’s what we need more of.”

Staying positive: Ferguson hopes City Hall looks for solutions for streamlining government. The Civic Federation is working on a report that will offer recommendations on how the city can pull itself out of debt.

What’s next: “The mayor is expected to recommend a budget to the City Council in October. He will then have until the end of the year to convince at least 26 of 50 aldermen to support the plan or make changes to get the majority he needs,” by the Tribune’s Alice Yin and Sam Charles.

RELATED

Mayor’s chief liaison to emboldened City Council resigns: “Sydney Holman’s resignation as deputy mayor of intergovernmental affairs could not come at a more difficult time. Mayor Brandon Johnson is heading into what is certain to be a difficult budget season and struggling to find the votes to confirm his choice for Zoning Committee chair, Ald. Byron Sigcho-Lopez,” by the Sun-Times’ Fran Spielman.

It’s now expected that Kennedy Bartley, a leader in Johnson's progressive movement, will head up the mayor’s budget efforts, by Crain’s Justin Laurence

Turnover roils Chicago’s cultural affairs department under new commissioner: “Some city cultural advisers worry the loss of institutional expertise could impact a department responsible for major events and artist grants,” by Courtney Kueppers for WBEZ.

THE BUZZ

MAKING MOVES: Congressman Jesus “Chuy” García has been recommended to be appointed to the powerful House Judiciary Committee.

A standout: García would be the only Illinois member of Congress on the committee if he's approved. Illinois Sen. Dick Durbin heads the Senate Judiciary Committee.

Props from leadership: “Rep. García has spent his entire career standing for what’s right and fighting for the least, the lost and the left behind in Chicagoland and beyond,” House Democratic Leader Hakeem Jeffries said in announcing that the Steering and Policy Committee has recommended García to serve on the committee.

“I know that Chuy will be a strong voice on this crucial committee, and I look forward to continuing to work together to keep our communities safe and fight back against MAGA extremism,” Jeffries said in the statement.

Also: García will continue serving in the House Transportation and Infrastructure Committee.

The committee is led by Ohio Congressman Jim Jordan, a staunch ally of GOP presidential candidate Donald Trump.

If you are Richard M. Daley, Playbook would like to hear from you! Email: skapos@politico.com

WHERE'S JB

At the Aspire Center for Workforce Innovation at 12:30 p.m. for a grant award presentation.

WHERE's BRANDON

No official public events.

Where's Toni

In Washington, D.C., to meet with Illinois congressional members.

Have a tip, suggestion, birthday, new job or (heaven forbid) a complaint? Email: skapos@politico.com

2024 WATCH

When it comes to funding state-level campaigns, Pritzker in a league of his own: “Even though he’s not running now, Gov. JB Pritzker has donated a whopping $25 million to his campaign committee this election cycle,” by the Daily Herald’s Russell Lissau.

Adam Kinzinger says he would accept a Cabinet position in a Harris administration; Calls election odds ‘a coin toss', by Matthew Carey in Deadline

— State Rep. Marty McLaughlin will talk taxes, pensions and immigration at a fundraising reception today. Details here

— Commentary: Getting property tax relief through the ballot box, writes former Gov. Pat Quinn in Crain’s.

THE STATEWIDES

Advocates seek mandatory training for Illinois judges, attorneys on legal needs of LGBTQ+ people: “Having such a requirement will increase the ability of attorneys, judges and courtroom staff to meet the social and cultural needs of a diversifying state,” their resolutions read, by WTTW’s Amanda Vinicky.

Illinois Republican claims new state flag would 'advance the far-left's political ideology': "The [state] seal represents the government," Democratic state Sen. Doris Turner said. "The flag should be a symbol that represents the people and not the government."... Republican state Rep. Adam Niemerg is leading a petition to fight a new state flag," by the State Journal Register’s Patrick Keck.

Mayors ask Biden to pardon Jesse Jackson Jr., by NBC News’ Jonathan Allen

Bribery trial of former AT&T boss to offer sneak preview of Madigan case, by the Tribune’s Jason Meisner

CHICAGO

City Council spars over ShotSpotter once again as end date in Chicago nears: “Johnson plans to phase out ShotSpotter over the course of two months starting Sept. 22, fulfilling a campaign pledge. Supporters argued Monday the city will be left without a critical tool that police need to get to gunshot victims faster and save lives,” by the Tribune’s Jake Sheridan.

Steel-conduit plant to close, eliminating 237 jobs on the Southwest Side, by Crain’s John Pletz

Bally’s Chicago celebrates one year at temporary casino, as demolition begins at permanent site, by the Tribune’s Robert Channick

On Printers Row and beyond, Chicago is a literary playground, by the Tribune’s Rick Kogan

Music Box Theatre reopens after major renovation, by Block Club’s Patrick Filbin

COOK COUNTY AND COLLARS

Ford Heights mayor's corruption case is nearing a conclusion — six years after he was charged: “Mayor Charles Griffin maintains his innocence against charges that he embezzled tens of thousands of dollars from the tiny cash-strapped south suburb, in a public corruption case brought by Cook County State’s Attorney Kim Foxx’s office in her first term,” by the Sun-Times’ Robert Herguth.

TAKING NAMES

— NANCY PELOSI, the House speaker emerita, headlines the Personal PAC Annual Luncheon on Sept. 23. Reservations here

Reader Digest

We asked how you’ll watch tonight’s debate.

Steve Brown: “Probably in the man cave with a cigar and beverages.”

Rob Christie: “From the comfort of my favorite chair in front of the TV at home.”

Barbara Guttmann: “Streaming at O’Hare. Flight leaves shortly after debate. Hello London!”

Mike Kohr: “At the ‘Debate Watch Party’ at the Bureau County Democratic Headquarters in Princeton, Ill.”

Michael R. Lieber: “Along with three other Playbookers and their spouses.”

Maggie O’Keefe: “At a watch party with 150+ of my closest friends at My Buddy’s on Clark!”

Kathy Posner: “I’m preparing like it's the Super Bowl — snacks, diet Coke and a stress ball ready.”

Dave Lundy: “With a few local friends with spouses for an adult beverage watch party. Every time Trump lies we'll take a drink and hope we survive.”

Dennis Rendleman: “In the backroom/den watching the debate, while my wife will be in the front room avoiding it. The dog is presently undecided.”

Judge James A. Shapiro: “With Lundy Lunchers Dave Lundy and Michael Rothstein!”

Erika Weaver: “On re-broadcast because I have my school board meeting at the same time. That's probably best for my blood pressure.”

La’Mont Williams: “With family answering questions about different policies and talking points.”

Next question: What’s the yoga move that gets you going each day? Email skapos@politico.com

THE NATIONAL TAKE

Trump is about to face his woman problem at the debate, via POLITICO

Why the ‘one-two punch’ of Liz and Dick Cheney backing Harris matters, by POLITICO’s Adam Wren and Megan Messerly

GOP opposition stacks up against Johnson’s spending plan, by POLITICO’s Jordain Carney and Olivia Beavers

Transitions

— Peter Velz and Emily Soong are now working with Democratic vice presidential candidate Tim Walz. Velz is director of special projects after heading up media logistics for the Democratic National Convention, and Soong is traveling press secretary after working as DNC press secretary.

Former NBC Chicago reporter Lisa Parker to lead journalism center at DePaul University: Carol Marin and Don Moseley will transition from directors to senior faculty fellows, via DePaul Newsroom.

EVENTS

— Today at 11: 30 a.m.:  Loyola University of Chicago President Mark Reed headlines a City Club luncheon discussion with Omar Brown, senior VP of Community and Impact at the Big Ten Conference. Details here

TRIVIA

MONDAY’s ANSWER: Congrats to Ed Mazur for correctly answering that in 1840, the city of Nauvoo was granted broad powers including the authority to create a militia.

TODAY’s QUESTION: Who’s the department store owner and City of Chicago treasurer who also sponsored a radio amateur hour? Email skapos@politico.com

HAPPY BIRTHDAY

Former state Rep. Brandon Phelps, senior adviser to Rep. Robin Kelly Rick Bryant, Democratic fundraising consultant Nick Daggers, attorney Gerald Fishman, Brightpoint Chief Advancement Officer Sara Irmen, defense attorney Joe “The Shark” Lopez, MBA candidate and former Durbin staffer Charlie Rotering and political insider Tim Mapes.

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