Daley plan for budget leaves few taxes alone Entertainment, parking, sin taxes may be increased By Dan Mihalopoulos and Gary Washburn Tribune staff reporters Published November 6, 2004 Mayor Richard Daley promised he would consider every option for plugging the city's $220 million budget deficit. Making good on that promise, Daley on Friday proposed almost every sort of tax hike imaginable--except perhaps a property tax increase-- to cover the yawning gap between what the city is taking in and what it plans to spend in 2005. The mayor gave aldermen a sneak peek at possible increases in taxes on parking spots, liquor, cigarettes, hotel rooms, natural gas, rental cars and tickets to pro sports events, plays and concerts. Daley also is calling for a sales tax increase to 9 percent on all goods but food and drugs starting July 1 and increased fines for violations such as parking in a handicapped zone or blocking an alley. Smokers would pay 32 cents a pack to the city, up from 16 cents now. Drinkers would pay an additional 7 cents in city taxes on each case of beer, with a 6-cent hike for every fifth of hard liquor. Despite the dazzling array of revenue enhancers, holding the line on property taxes would bring "a big sigh of relief from everyone," said Ald. Brian Doherty (41st). Doherty said he "could live with" tax increases on parking, cigarettes and natural gas. But he said he believes increasing the tax on liquor would be onerous, and he opposes the proposed sales tax increase. Buyers of "big-ticket items would just go right across the street" into the nearest suburbs, he said. "I think in the long run we might lose more than we would gain." But other City Council members blanched at cutting the city's payroll, which represents the biggest chunk of Chicago's roughly $5 billion annual budget. "I don't know how much more we could cut without getting down to providing just the essentials," said Ald. Patrick O'Connor (40th). "I for one don't want to do that." O'Connor and other aldermen said Daley already has reduced the city's payroll in recent years. Eight hundred slots were left unfilled after longtime city workers chose to participate in an early-retirement program this spring. The city will have 36,349 full-time positions by the end of the year, down from 38,689 when Daley took office 15 years ago. The mayor also announced the elimination Thursday of 220 janitorial jobs at O'Hare International Airport, and he said he was requiring managers who are paid more than $55,000 a year to take two unpaid furlough days. Unions recently rejected Daley's call for all unionized city workers to take voluntary unpaid furlough days. The mayor will make his annual budget address to the council Tuesday, more than a month later than he traditionally unveils his proposal, because of the fiscal crunch. Aldermen who attended Friday's briefings said administration officials pointedly refused to rule out a property-tax hike, a move that Daley has repeatedly said would be an option of last resort. A property tax increase could generate up to $23 million next year, while the sales tax hike would drum up an estimated $20 million over the last six months of 2005. Among the changes that were considered but completely ruled out were an increase in taxes on water bills and the elimination of the popular condo refuse rebate. The proposed increases, however, include one on the amusement tax for tickets to events at larger venues, which would rise to 8 percent from 7 percent. The hotel tax would rise to 3.5 percent from 3 percent. The tax on each parking space in lots and garages would be $2.25 instead of $2, while the tax for each car rented would rise to $3.75 from $2.75. A ticket for parking in a handicapped space would cost violators $200, up from $150. But it's the sales-tax increase that seems to concern aldermen more than other possible increases. The city's portion of the 9 percent tax would be 2.25 percent. "You might as well go to Indiana to do your shopping for clothes and other things," said Ald. Howard Brookins, whose 21st Ward is on the South Side. "I already have people from my ward going to Calumet City and Evergreen Park. "I realize it's a tough time, and we have to do something, but I'm concerned some of these taxes may be regressive." Aldermen were told in the briefings that some other big cities have lower sales taxes but impose municipal income taxes on their residents. Among them are New York, with a sales tax of 8.625 percent, and Philadelphia, with a tax of 8 percent. "My reaction to this is that most of this is acceptable," said another alderman who spoke on condition of anonymity. "Nobody likes increased taxes, but based on what is occurring over the nation and based on the [city's] financial condition, these are not unacceptable hits. As long as there is no real estate tax increase, I can live with these." True to his vow, the mayor will try to avoid plugging the deficit by tapping the $1.83 billion windfall from privatizing the Chicago Skyway. About $25 million in investment income from proceeds of the lease would be used to help cover the city's day-to-day operating expenses next year, effectively replacing revenues that the highway would have generated if the city still operated it. The consortium that will collect skyway tolls for the next 99 years plans to pay the city the full lease amount Jan. 26, but administration officials said they would sock much of the money away for the future. Officials told aldermen again Friday that they hope to get immediate help from a new casino, which would require state approval. "It would be nice," O'Connor said. "As I understand, it's still a long shot." Meanwhile, the head of the city's revamped Hired Truck Program said reforms and efficiencies begun in June are now expected to yield about $15 million in savings. That is $5 million higher than an earlier estimate. "The [city] departments are just managing their work and scrutinizing their need for trucks better than they ever had," said Rich Kinczyk, the program's manager. The program, rocked by scandal this year, had cost the city $40 million a year before it was overhauled. - - - PROPOSED HIKES Sales tax Current: 8.75% Proposed: 9% Cigarettes (per pack) Current:16 Proposed: 32 Beer (per case) Current: 36 Proposed: 43 Parking Current: $2 Proposed: $2.25 Source: City of Chicago Copyright (c) 2004, Chicago Tribune --

※ 发信站: 批踢踢参(ptt3.cc) ◆ From: 199.74.99.98