This story was originally published by City Bureau on October 16, 2020.
With Mayor Lori Lightfoot set to unveil her 2021 budget on October 21 along with her plan to fill a $1.2 billion deficit, City Bureau presents a guide to what’s going on with the budget process this year and how residents can participate in the conversation.
In the past, Chicago has raised property taxes to generate revenue, upsetting homeowners and property managers. Last year, the mayor imposed a tax hike on food and drink, which aimed to bring about $40 million in revenues, and taxed single trips from rideshare services like Uber and Lyft. But it’s unclear if the mayor will fill the budget gap with increased taxes or a wave of city employee layoffs which she has said are her “last resort.” According to the Chicago Sun-Times, residents could see a rise in the personal property lease tax on computer leases and cloud services, especially as people continue to work from home.
Chicago has a long history of the latter. Former Mayor Richard M. Daley signed on to three privatization deals to steer clear from raising property taxes during budget season: the Chicago Skyway, four underground city-owned parking garages and the deal Chicagoans “love to hate,” the 2008 parking meter lease. While the city initially collected billions of dollars in revenues from these deals, private investors now profit while the city loses its chance at collecting recurring revenue.
The public’s power over budgetary decisions is funneled through their elected representatives who ultimately vote to approve the budget. Residents can virtually attend the budget hearings, submit public comments and write to their aldermen, urging them to vote for or against the budget. However, residents have no direct power in how the budget is decided.
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