Mayor Daley Releases 2007 Balanced Budget

Mayor Richard M. Daley today proposed a $5.7 billion budget for 2007 that holds the line on taxes and fees and calls for new investments in programs to benefit Chicagoans and their neighborhoods.

"This budget offers the new steps we’ll take to help secure Chicago’s future for everyone, especially those who most need our support," Daley said in an address to the City Council. "It lays out how we’ll make Chicago even better and give people a greater chance to achieve their aspirations in life."

"Chicago is strong today because we’ve always anticipated the future," the Mayor said, describing how the city had embraced the challenges of education, public safety, job creation, public housing and neighborhood quality of life.

"We’ve made progress on many fronts, and I’m proud of where we stand today," he said. "Chicago is recognized – at home and far and wide -- as a thriving and successful city… But we have much more to do and much left to accomplish, especially for those who most need our support."

The Mayor said improved management of City government has made it possible to go a third consecutive year without a City property tax increase.

"That’s why next year the City of Chicago will make new investments in our people and neighborhoods without raising property taxes or any other tax or fee," he said.

"The City’s finances remain in very good shape because we continue to manage responsibly," Daley said.

The management improvements include putting business license renewals on a two-year cycle, to reduce paperwork for business owners and increase revenues by $18 million next year; and a citywide performance management initiative that has cut over $22 million in spending.

The City also implemented $5 million of procurement improvements and saved $10 million through a series of interest rate swap transactions. Last July, the Mayor ordered a $5 million across-the-board cut in non-safety spending, without affecting services.

In his address, the Mayor reiterated his support for bringing the summer Olympic and Paralympic Games to the United States and Chicago in 2016.

"The Olympic Games would enhance our image as a world-class city, attract new visitors and create new businesses and jobs across Chicago," he said. "Without using local taxpayer funding, the Games would be a catalyst for new opportunity in our neighborhoods, with lasting benefits for generations to come."

He also called on the Illinois General Assembly to increase the state minimum wage from $6.50 to $7.50 an hour; ban assault weapons and .50-caliber rifles; and reform education funding to reduce reliance on local property taxes.

The budget contains a number of new funding commitments.

Children
The City will begin working with the Chicago public Schools and the City Council on Modern Schools Across Chicago, the $1 billion plan to build 24 new schools, using tax increment financing.

After School Matters will receive an additional $5.5 million to serve 5,000 more teenagers, plus an additional $1 million to create 800 new summer jobs. The money comes from a combination of private support, new City spending and funds from the lease of the Chicago Skyway.

After School Matters will offer new science programs, in addition to its arts, technology and sports programs.

TheYouthNet program, for the first time, will offer job training and internship placement services at six youth employment centers to those aged 14 to 21.

The Department of Public Health will work with the Department of Children and Youth Services and the Chicago Public Schools to reduce childhood obesity.

The City will fully fund the Juvenile Support Intervention Center, which works with young people who have committed a crime.

Public Safety
The City will invest another $1 million to buy 100 additional surveillance cameras.

In cooperation with the Cook County State’s Attorney, the City will begin to seize the assets of drug kingpins, including their homes and other property and prosecute them for tax evasion.

The City will retain a national firm to search for a new director of the Office of Professional Standards.

More than 30 police cars will be equipped with cameras to provide instant replays of traffic stops – for the protection of drivers and the police.

In 2006 and 2007, the Chicago Police Department will acquire two bomb robots, an additional helicopter and a new patrol boat for port security.

The Police Department will use more speed detection systems to target speeders and red-light runners and will assign teams of officers to target traffic enforcement.

The police will continue strict enforcement of the curfew.

The Chicago Fire Department will create four new ambulance companies and acquire two new command vans.

Affordable Housing
The Mayor asked the City Council to expand the Affordable Requirements Ordinance, which currently requires 20 percent of units to be affordable in residential developments that receive City financial assistance. The Mayor’s ordinance would broaden the definition of City assistance to include all types of City land transactions, planned developments and zoning changes that increase project density.

The City will commit $40 million in new money to develop additional rental units and expand rental assistance.

The Chicago Low Income Housing Trust Fund will provide rental subsidies to 4,000 very low income renters – double the number helped today.

A condo conversion task force, led by Ald. Ray Suarez, chairman of the City Council Housing Committee, will develop a fair and reasonable way to mitigate the loss of affordable rental units and will recommend a comprehensive condo conversion policy to be implemented in 2007.

The City will expand its home buying programs to assist nearly 200 police officers, fire fighters, paramedics and school teachers.

Another $2.4 million in Skyway funding will be invested in the Plan to End Homelessness.

An additional $600,000 will be invested in services to help individuals and families remain in permanent housing.

Neighborhood Quality of Life
The menu program will invest another $190 million through the annual neighborhood bond program to improve thousands of additional blocks of residential streets, alleys, sidewalks and arterial streets along with miles of water grid mains, sewers and sewer lining.

The Mayor will soon announce a plan to provide millions in new funding to build additional community anchors, including affordable housing, throughout Chicago.

The pilot recycling program will be expanded to seven wards.

Job Training
The budget invests over $2.6 million to provide employment and training services to ex-offenders. These funds will extend initiatives like the Social Enterprise Program, and continue partnerships with the Safer Foundation and Community Assistance Programs.

The City will invest over $280,000 in the Chicago Workforce Centers for manufacturing and service industries, which have placed 1,000 residents in employment and helped nearly 300 businesses find workers.

A new Chicago Hospitality Institute will help create jobs in the convention and tourism industry.

The budget invests $200,000 to establish partnerships and enhance workforce development services in the Englewood community.

The budget proposes a Chicago Works Tax Credit to provide incentives to Chicago businesses that hire low-and-moderate-income residents.

Help for low-and-moderate-income families
A new Foreclosure Prevention Call Center at 311 will help people who are having difficulty paying their rent or mortgage.

The budget calls for expanding the weatherization program for low and moderate-income families to help control energy costs and conserve natural resources.

Another $640,000 of Skyway funds will be used to expand the winter heating assistance program.

Seniors
Skyway funds will be used to expand the Meals on Wheels program to serve an additional 470,000 meals to deserving seniors.

The City will continue to implement the five-year senior housing plan and create another 1,700 homes and an additional 400 units for supportive living.

Three more senior satellite centers will be completed, bringing the total number to nine.

The budget calls for expanding the Caregiver program, which provides needed transportation, medical, retirement and homemaker services.

Any senior who qualifies for a Senior Citizen Property Tax Exemption will automatically receive a sewer fee exemption, beginning next year.

Official Misconduct
The Inspector General’s office will create an independent audit function to help identify misconduct by any employee or vendor.

Mayor Daley's 2007 Budget Speech