Chicago Mayor Pushes Massive Tax Hike Over Crippling Cuts
Source: Reuters
By Karen Pierog and Karl Plume
(Reuters) - Chicago Mayor Rahm Emanuel on Tuesday laid out a stark choice for the cash-strapped city as he proposed a 2016 budget aimed at resolving a financial crisis linked to unfunded pensions -- either slash vital public safety and other services, or enact the biggest-ever property tax increase.
In a half-hour speech to Chicago's 50 aldermen, Emanuel said spending cuts would mean reducing 20 percent of the police force, closing 48 fire stations and laying off 40 percent of the city's firefighters.
"In short, if we were to fund our pensions with cuts alone, our city services would become unreliable. Our city would become unlivable. And that would be totally unacceptable," he said, promising his plan would wipe out Chicago's structural budget deficit within the next four years.
Emanuel, who was elected to a second term in February, proposed a $543 million increase in property taxes - between now and 2018 - to cover police and fire pensions.
Read more: http://www.reuters.com/article/2015/09/22/usa-chicago-budget-idUSL1N11S1BI20150922