by Mish Shedlock, Mish Talk:
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.
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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.
