If ever there was a need for a financial SWAT team that time is now
Addressing the migrant crisis will be Chicago's biggest budget buster in decades
Cutting all perks, reducing staff sizes and raising taxes are all on the horizon if the tent camp for migrants mimics the ones recently established in New York City. Chicago’s tab will easily hit $75 million by the end of 2023. With a $128-million deficit staring city officials in the face; it is obvious Chicago will be covered in red ink unless the Federal government steps in with hundreds of millions of dollars. Chicago budget hearings are set to begin in about five weeks. The mayor’s office has yet to release cost estimates for building such camps-New York City’s efforts represent a logical blueprint.
Chicago’s migrant crisis is likely to produce the biggest budget buster seen here in several decdes. Meeting the basic needs of migrants on an ongoing basis is extremely likely to up end every vision Mayor Brandon Johnson has four the next several years. And without accessing some of the best financial minds around, Chicago will be reeling from these migrant expenditures for the unforeseeable future.
.Johnson and anyone else he can involve should follow the directive Quincy Jones gave to “We Are the World” singers-”check your ego at the door.” This advice is particularly true for the first-time mayor whose political resume has no budget creation boxes checked.
The mayor and council will need to act swiftly and deftly to militate negative outcomes of supporting the thousands of asylum-seekers already here, with more on the way every day. Both bodies must be in lockstep when it comes to reducing city services and staffing. What may prove to be the toughest challenge in that area is the Chicago Police Department’s spending. CPD is notorious for running up overtime tabs in the hundreds of millions of dollars. In the first six months of this year, the CPD overtime tab was more than $126 million.
CPD will play a critical role
Whatever plan the mayor and council devine, the Chicago Police Department (CPD) should have a prominent seat at the table for every meeting and planning session. CPD is basically the only city department whose budget is hard, if not impossible to cap.
Police departments are set up to react to crime rather than prevent. That reaction time varies by the type of crime, number of perpetrators and victims. Civilian authorities can’t rightfully tell CPD only x number of hours are available per investigation, or all surveillance work can only take so many hours. Such moves would just about guarantee fewer crimes would be investigated much less solved.
CPD might be reluctant to get on board with any cost-cutting efforts, partially as payback for the mayor’s refusal to match a12-week paternity leave that he unilatteraly gave Chicago Public Schools employees.
Before Johnson sat in the mayor’s chair for the first time in mid-May, his relationship with CPD was frazzled at best. Early in his campign, candidate Johnson was adamant about defunding the police. Apparently, he didn’t realize how that small radio station interview would reverberate and he wound up walking back those comments and taking a 180-stand proclaiming he “will not cut one penny” (from CPD’s budget). Some cops will attest they have not forgiven the mayor for that early stance. We should expect some type of “give back” if the mayor can bring CPD on board in reducing the budget.
New York, New York
The City of New York has tent camps in place and others currently being built. Officials there estimate it costs $15 million per month on the low end to operate them. The high end is $20 millon.
The State of New York is covering the costs of the tents. Illinois offiials have not announced whether they will do the same. Without immediate state and Federal financial assistance, Chicago will have no choice but to begin cuts and likely raise taxes.
Even though NYC Eric Adams has taken a much harsher stance toward asylum-seekers, including busing them to the state capital after they arrive in New York; Johnson should send Adams a first-class plane ticket to Chicago. Bring him here so he can witness Chicago’s approaches and where they need shoring up. He also can help Johnson craft a plan to entice the State of Illinois to shoulder some of the financial burden. With that information in hand Johnson can regroup his financial SWAT team to give the plan the necessary nips and tucks.
In the New York tents, occupants have access to phones for international calls, 24-hour snacks, a recreation room with two popcorn machines, TVs, Xbox game consoles, ping-pong and foosball tables, board games. No-cost bus service also is avilable, as is wi-fi.
One of the most interesting aspects of the tent camps will be whether Chicago chooses to emulate New York and provide the same level of amenities. We have to expect that would raise the ire of those who have pushed to have asylum-seekers housed in other states and cities.
As Johnson moves forward with the tent camps plan, in order to gain as much acceptance for the idea as possible; he will have to drastically ramp up his communications game-deliver well-researched, vetted, and practiced scripted speeches. We have witnessed too many times in the short time he has been in office that when he goes off script his key messages get grossly derailed. He simply can’t afford that now.