Mayor Richard M. Daley acknowledged Wednesday that the budget crunch may force his administration to cut the services that the people of Chicago have become accustomed to receiving from City Hall.
Until now, city officials have insisted that they have only slowed the delivery of city services, despite the fact that city workers are each taking as many as 24 unpaid days off from work this year.
“I can’t rule out that to balance next year’s budget we will be forced to put many things on hold or reduce or cut some services, permanently or for a year or two,” Daley said today in his annual state-of-the-city address. “But I can assure the taxpayers that should it come to this, it will be our last resort.”
Daley said he would provide further details “in the next few weeks” on how he proposes dealing with a 2011 budget deficit that is projected to exceed $650 million.
A year ago, Daley plugged the shortfall in the 2010 budget by spending hundreds of millions of dollars generated by the privatization of city assets such as the street parking system. At the time, he argued that it was better to spend that money than eliminate city services or raise taxes and fees.
But the city’s fiscal crisis has only become more severe, and the reserves from the privatization deals have dwindled.
“We have not stopped doing things — it has just taken longer to provide some services,” said Ald. Patrick O’Connor (40th Ward), a reliable Daley ally who attended the mayor’s speech at the Hilton Chicago, on South Michigan Avenue. “But if he actually says we are going to stop doing certain services, that would pretty much change the way the city is run.”
Other City Council members said they expect service cuts will prove necessary.
“One of two things have to happen this year: You face massive cuts or you have some sort of increase on the revenue side,” said Ald. George Cardenas (12th). “It’s inevitable. So what cuts are we going to make is what we are going to debate. Obviously, we need to maintain the core services, that is the police and fire and security, 911, Streets and San. I think the rest of it is on the table.”
“You have to cut services,” said Ald. Brendan Reilly (42nd). “We should have done it three budgets ago.”
Daley’s 44-minute speech focused largely on how he is attempting to address crime and joblessness. One of the few times that the audience applauded was when he mentioned the recent council approval of new Wal-Mart stores in the city.
He only veered from his prepared text significantly to chide other elected leaders for not taking pay cuts. Daley noted that he is effectively taking a $20,000 pay cut this year. The mayor’s budgeted annual salary remains $216,210, but he is taking furlough days, just like the rest of the city’s payroll.
“All government should do the same,” Daley said. “I think all government should lead by example. Stop giving speeches. People are suffering. All the way down from the governor and the president, Congress and the legislative branches, should do the same thing.”
Daley promised to take an additional five furlough days this year, for a total of 29, after the Chicago News Cooperative reported in February that the mayor and the aldermen had received favorable treatment in the calculation of paycheck deductions for furloughs.
Daley was scheduled to greet President Barack Obama at 4 p.m., when the president arrives at O’Hare International Airport.