Johnson is correct in asking for the 3 percent cut
He should have done it sooner
It was bound to be controversial, however it had to be done. The “it” is seeking concessions from the City’s multitude of companies with municipal contracts. The concession that the Johnson Administration is asking isa 3 percent price reduction in those contracts.
The City’s estimate is about $286 million in new revenue will be realized if all of those targeted would agree to the concession. The give-back on a $1 million contract would be $30,000. The end of this week is the deadline for the businesses saying yea or nay.
City Hall made it clear that compliance is voluntary and did not mention any sanctions for those who don’t go along with the ask. Only the naive believe there won’t be repercussions for ignoring the ask or submitting a plausible explanation as to why they can’t participate.
Maybe not surprisingly, there has been some pushback about the 3 percent. The Chicago Tribune quoted 15th Ward Alderman Ray Lopez as asking, “Who is next getting the 3 percent whack next week?”
His question might be more insightful than he realizes. While the 3 per cent cut has already hit city council committees and ward budgets; Johnson would be right if he asked council members to give up 3 percent of their annual salary. That would amount to approximately $200,000-not a significant sum, but enough to show Chicagoans that their representatives are willing to share the pain. Johnson could show true leadership by trimming his $221,000 salary by 3 percent. Most of the city council and the mayor accepted pay raises of 2.24 percent in January 2023. Those raises were tied to inflation
Daniel La Spata, the alderman from the First Ward, termed the 3 per cent ask “indelicate.” He urged minority and women-owned businesses to keep their contracts.
At some point city council members need to share with the public what they are doing to right size the city’s financial boat other than lobbing grenades after the Administration shows its hand.