Doing More With Less
Unless it's our tax money - then it's paying more for less:
- In a warning sign that Chicago's budget may be off the mark just three months in, Mayor Richard Daley announced $20 million in spending cuts Thursday, citing a "soft" economy.
The reductions put the city "at the point" where citizens may begin to feel an impact on services, Daley said, but added he did not yet know which services might be affected.
The mayor said he expects the national economic downturn will mean diminishing tax and fee revenues in Chicago. And city officials acknowledged they're watching to see if sales tax collections will take a hit because of a new 10.25 percent rate that threatens to push some buyers to stores outside Cook County when in full effect July 1.
So $289 million is raised taxes has led to....
- $20 million in additional spending cuts;
- fear of shoppers leaving the City and County to shop for lower priced goods, which of course will result in even LOWER tax revenues;
- a hiring freeze and overtime cuts, meaning even LESS spendable income for City workers forced to live in the highest taxed municipality in the nation
That closed loop system is really paying dividends for the Daley administration, isn't it?