Chicago slashed 2,103 public safety job but added 184 administrators. The budget deficit is nearly $1 billion.
$982 Million Budget Hole
The Illinois Policy Institute comments on Chicago’s 2025 Budget, Growing Crime, and Taxes.
Chicago has cut 2,103 police positions but added 184 administrators, a manpower blunder that won’t help city leaders fix their nearly $1 billion budget deficit.
Major obstacles facing Mayor Brandon Johnson’s $17.3 billion budget for fiscal year 2025 are a $982 million shortfall and $4.2 billion in personnel costs. Personnel spending in Chicago will consume $168.7 million more of the city’s corporate fund in 2025, further oppressing taxpayers in America’s reigning “highest-taxed city.”
In a major flip-flop on his campaign promises, Johnson proposed a $300 million property tax hike to address these issues. All 50 aldermen voted to reject it. Now, Johnson is considering a smaller $150 million property tax hike and a 35% tax on alcohol. His new taxes are likely to meet the same City Council opposition, so he needs a new plan.
Chicago Cuts 2,103 Police Department Jobs
The bulk of the city’s personnel growth has come from the Department of Public Health, the Department of Technology and Innovation, and the Department of Family and Support Services. These departments have collectively added 196 full-time equivalent employees, supported by various city funds. Some of the growth in these departments is likely a result of the city’s migrant crisis.
Given the fiscal reality facing Chicago, just cutting vacant positions will not be enough to close the city’s nearly $1 billion shortfall. Foisting tax increases on an already severely tax-burdened city won’t work, either.
Absent from Johnson’s 2025 budget proposal is any demand for pension reform, something both his predecessors backed.
Chicago’s Efficiency Strategy
The city introduced the Office of Public Safety Administration as part of the 2020 budget’s cost-saving efficiency strategy. This bureaucratic entity is responsible for overseeing all administrative functions for the Chicago Police Department, the Chicago Fire Department, and the Office of Emergency Management and Communications.
The Office of Public Safety Administration brought in 390 full-time civilian administrators through a combination of shifting existing civilian positions and hiring new civilian employees. By adding these civilian administrators, the city expected the new office to enhance efficiency and help uniformed officers focus on frontline, public safety efforts.
During its first year in operation, the city expected the office to save Chicago $2 million. Despite experiencing little change in the number of its full-time equivalent employees, its costs exceeded its savings. It more than tripled its administration and finance costs, spending nearly $35 million since 2020.
Pension Disaster
It’s Hopeless
Despite the massive stock market boom, the Chicago Firefighters pension is only 21.6 percent funded.
Police is 31.1 percent funded. The Teachers’ pension is only 43.4 percent funded.
Brandon Johnson is a former teachers’ union organizer and is beholden to the union at the expense of safety, Chicago businesses, and citizens.
It’s quite something when aldermen vote 50-0 against a mayoral proposal. Has that ever happened before?
Also, the entire school board resigned en masse this month, and was replaced by a new group of mayoral appointees.
The New York Times notes “Mr. Johnson had proposed a $300 million high-interest loan to cover a $175 million pension for staff members in the district who aren’t teachers, and to cover pay increases for members of the union, among other things.”
“The entire Chicago Board of Education getting forced out for refusing to oust a fiscally responsible C.E.O. during contract negotiations is stunning,” said Bill Conway, a City Council member, adding that the students “deserve stability, not chaos.”
This short-term borrowing allegedly balances the books while digging the city and pension plans further in the hole.
Your Fair Share
Illinois’ pension crisis has put taxpayers on the hook for $211 billion in unfunded state and local pension liabilities according to the Illinois Policy Institute.
The Census Reporter shows the population of Illinois is 12.55 million and shrinking. There are 5.07 million households.
If you live in Illinois, your household share is $41,617. By the way, 11.6 percent of the population is below the poverty line.
Radical Change Needed
The Illinois Policy Institute outlines a number of suggestions to get Chicago on track.
But it will take radical change and pension haircuts starting with a constitutional amendment to allow municipal bankruptcy.
Under threat of pension plan insolvency, then and only then will there be any leverage by cities to rein in pension plans, public unions, and benefits.
The Illinois Policy Institute missed this key reform idea specifically, although note the need for a constitutional change.
Openly Rooting for Implosion
I am openly rooting for Chicago and the entire pension system of Illinois to implode.
That sounds harsh bit it isn’t.
There will be no reform until crisis hits, and the sooner the better because those currently collecting unwarranted massive pensions are bleeding the pension funds dry.
The sooner the collapse, the more pension money will be saved for the average Joe.
Good pension reform would target excesses on the top end with a threat of municipal bankruptcy hanging over everyone’s head if the unions refuse to cooperate.
That is the only proposal that works.
Congratulations to Chicago
It was a tough act to find someone worse than Lori Lightfoot for mayor, but you succeeded.
Chicagoans, you voted for this. Congrats. I now challenge you to find someone even worse.
The Pending Implosion of Chicago Public Unions, No City is More Deserving
August 30, 2024: The Pending Implosion of Chicago Public Unions, No City is More Deserving
Chicago has a budget deficit of nearly $1 billion. Tack on another $2.9 billion for a proposed teachers’ contract plus an unknown amount for firefighters.
March 13, 2024: Chicago Teachers’ Union Seeks $50 Billion Despite $700 Million City Deficit
If you live in Illinois, get the hell out before unions take every penny you have.
In Chicago There’s Under a 50 Percent Chance Police Show Up If You are Shot
Meanwhile, please note that In Chicago There’s Under a 50 Percent Chance Police Show Up If You are Shot
Good luck in Chicago getting the police to show up if you are shot, stabbed, a victim of domestic violence, or any number of other serious crimes.
But hey, Chicago hired 179 new community services administrators. How’s that working for you?
And where will Chicago find $1 billion in cuts out of a budget of $17.3 billion? More police cuts?
Hello President Trump
This morning, I noted Trump’s Nauseating Pick for Labor Secretary Is the Teacher’s Union Favorite
Dear President Trump, how the hell do you think you are going to dismantle the Department of Education with a teacher’s union advocate as Labor Secretary?
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