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Emanuel Faces Budget Woes As Mayor

From an excuse making in advance Associated Press:

Emanuel faces big money woes as next Chicago mayor

By Don Babwin And Tammy Webber, Associated Press
February 23, 2011

CHICAGO – Former White House chief of staff Rahm Emanuel won’t have much time to celebrate his victory as Chicago’s new mayor.

Emanuel, who overwhelmed the race with truckloads of money and friends in high places from Washington to Hollywood, will take control of a city in deep financial trouble with problems ranging from an understaffed police department to underperforming schools

Naturally it’s not the teachers who are underperforming. It is the "schools."

The city’s next budget deficit could again exceed $500 million, mostly the result of reduced tax revenue from the recession, and could reach $1 billion if the city properly funds its pension system

In other words, just like every other city that is facing huge budget deficits, Chicago’s biggest problem is its public sector union pensions and benefits.

But Mr. Emanuel couldn’t even wait to be elected to criticize Governor Walker’s efforts to rein in Wisconsin’s deficit. So it should be highly instructive to watch how he handles Chicago’s money problems.

In 25 years of public life, Emanuel has earned a reputation as a skilled politician and as a political operative, serving in both the Clinton and Obama administrations and as a congressman from Chicago. But the mayor’s office will test his mettle as an executive.

Since leaving the ballet, Mr. Emanuel has never had a real job in his life.

Throughout the campaign, Emanuel has acknowledged he’ll have to make budget cuts, and has promised to spread the pain as fairly as possible, starting with his own office.

But, like the other candidates, he has been vague about how he’ll accomplish the reductions. And nothing he has suggested comes close to the projected deficit.

Emanuel said he can save $110 million by streamlining "outdated and duplicative work processes to focus on front-line service delivery," according to his campaign.

Oh, our sides.

His campaign did not use the word "layoffs," but it did allude to "reducing layers of management bureaucracy and consolidating redundant tasks."

We can’t wait to see how that turns out. The Democrat ‘Chicago Machine,’ is founded on featherbedding. (Cf Michelle Obama’s father.) It cannot exist without "layers of management bureaucracy" and "redundant tasks."

As for the underfunded pensions, Emanuel said he wants to "preserve" the pensions but may seek to negotiate changes. He insists the city can solve the problems without a confrontation like the one in Wisconsin, where tens of thousands of people have been demonstrating outside the Capitol to protest anti-union budget cut legislation. "We have to find, I think, common ground and a sense of hope," he said during a campaign stop this week…

If Mr. Emanuel thinks he can solve his problems with Obama-like platitudes, he is in for a rude awakening.

Emanuel has also talked about expanding the city sales tax to include more services, while lowering its overall rate, but he’ll need approval from the state General Assembly.

Something tells us he will expand the city sales tax, and raise the rate higher. Just for starters.

Many voters hope Emanuel’s clout in national politics will help him find outside avenues for help. President Obama expressed support for Emanuel when he left the White House, and heavy hitters in the political and entertainment communities contributed to his campaign.

It’s hilarious that anyone would think that Mr. Emanuel could get the ‘entertainment community’ to pay down Chicago’s deficit.

But the sad thing is, he probably will be able to get money from ‘Obama’s stash’ – also known as, the US taxpayer.

This article was posted by Steve on Wednesday, February 23rd, 2011. Comments are currently closed.

12 Responses to “Emanuel Faces Budget Woes As Mayor”

  1. Chuckk says:

    In other words, it’s business as usual.

    • River0 says:

      We should remind the people of Chicago that Rahm made something like a hundred million dollars looting Fannie Mae – or was it Freddie Mac? Anyway, he can afford to make up the deficits with his and his friends’ dough.

      Why aren’r rich ‘progressives’ ever seen as the “greedy oppressor”?

  2. Rusty Shackleford says:

    Mass exodus from Chicago in 3……2……1

    • heykev says:

      Rusty – while undoubtedly there will be many who will leave Chicago during Rahambo’s mayoral years. There already has been a mass exodus of people leaving Chicago. Chicago now had the same population as it did in the 20’s!

      The interesting thing is that there is now a reverse migration into (albeit a small one) with those moving in being affluent older people. This is causing there to be 2 classes of people in Chicago. Those with money and those without – and a much smaller middle class. Much of the “poor” has now moved to the suburbs. I live in one of the most affluent counties in the country. I lived here growing up in the early 70’s and my parents moved us when I was beginning HS. Upon returning several years ago, I was shocked at how much the demographics had changed.

      I live in a town that has always been known for it’s Hispanic population. It has exploded since the 70’s and there are now several major Hispanic supermarkets and a myriad of other stores catering to this population. I live in an apartment complex of 20 buildings. Of that I am probably one of a 5 people here that does not speak Spanish as their first language. Most of the sales items I receive in the mail from Comcast and others are sent in Spanish.

      All that to say, Rahm has a lot of work to do because there really is no longer a large middle class left in Chicago.

      While listening to the radio last night, someone who owned a business was explaining the “Chicago Way” regarding small business ownership. He owned a small shop in Chicago and one of the Northern Suburbs. He had about less than $500 in taxes to pay the suburban town but over $10k in taxes (mostly in those insidious fee’s) in Chicago. Fees for building inspector, HAVC inspector, fees for sidewalks, etc…it was a death by a thousand fees.

      My feeling is that since Mr. Emanuel is such good friends with BHO, he will simply ask BHO to print more money for the city. Then presto, their problem’s solved.

  3. TerryAnne says:

    Can’t wait until he’s “elected” and the ghettos start protesting about how they’re not getting enough in these hard times…and Rahmbo raises taxes again. I’ve always wanted to go to Chicago and it’s nice to think I’ll soon be able to go there without the threat of getting mugged, raped, or going broke. It’s going to be fun watching a city implode, although I would have been more likely to guess anywhere in CA or Detroit were to be the first ones to go.

    • Rusty Shackleford says:

      I think in technical parlance, we’re looking at a “cascade failure” where all cities with upside-down budgeting practices and over-the-top welfare programs fail, one-by-one. And fail to the highest magnitude. Chicago will most likely be helped along by obama-bucks, to be sure. Can’t have his fellow socialist look bad (bad ‘optics’) but in the end, you can only stop so much of a mud slide, if at all. And that’s my “phrase of the day”. “Rahm Emanuel wins in a mud slide”.

    • TerryAnne says:

      It’s just mind boggling the full scale mud slide cum avalanche we’re seeing now. Since Day 1 of Zero’s ascendency, I’ve been saying, “BOHICA!” (without the A so much, since we’ve never really had a situation quite like this and, thus, there’s no Again here). But, I’ll admit, a portion of that was me simply being a brat – getting all passionate and “right-wing” to drive my liberal friends up the wall; I really didn’t think thing were going to blast off the cliff, throw away the parachute and keep right on freefalling. I really am becoming amazed at how quickly it’s all going to shit. (And with how quickly my defensive cynicism kicks in and lets me know we’ve probably got at least another 6 years of this in our future)

  4. tranquil.night says:

    “Many voters hope Emanuel’s clout in national politics will help him find outside avenues for help.”

    ‘Outside avenues.’

    Chicagoan for steal it without getting caught.

  5. Right of the People says:

    Rahm the Impaler will loot as much as he can in his term then be off to greener pastures while Chicago either burns or becomes a ghost town.

    I used to like to go to Rush Street and all its great blues clubs but I wouldn’t set foot there now even in a Bradley fighting vehicle. The bloods probably have anti-tank rockets by now.

    Thank the good Lord I live in the sticks.

  6. proreason says:

    I think there is no question what he will do.

    Business taxes are gonna skyrocket.

    Which means that Chicago will be another Detroit in a decade or two.


    • Rusty Shackleford says:

      Yup, not looking forward to their moving to SC. All northern city people have a particular brand of arrogance and first they will arrive and build a nice home in the country. Then they will want street lights. Then they will want pick-up trash service. Then they will want sidewalks and so on and on and on. It’s inevitable. Taxes here will rise, slowly at first then skyrocket as liberalism takes hold. Then after 30-40 years, unions will wreck it all. Boeing is building a plant in Charleston to build the 787 because the government of Washington state made them leave with ridiculous taxes and ridiculous “workers rights”. I’m simply wondering if they’ll unionize or not. If they do, then I’ll mark my calendar to the end of Boeing’s days in SC. That is unless they operate responsibly and reasonably. We’ll see. I’m not optimistic.

  7. Liberals Demise says:

    Once again the voters get what they deserve.
    Did anyone bother to check this rogues’ resume?
    OOOfda…….criminals have no resume.
    Only records, AKA’s, MO’s and in this case…….sealed.
    See youse guys in the sewer…….SUCKERS!!!!

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