Public Watchdog.org

Local Governments Gone Wild, 2010 Edition

01.04.10

As we enter both a new year and a new decade, it’s a good time to look both backwards and forwards at not only our City government but also those other branches of government that primarily service our community, and take stock of where we came from and where we are going financially. 

The years 2000 through 2009 were characterized by spending, spending and more spending, enabled by taxing and borrowing – even though all that spending does not appear to have provided us with better quality infrastructure or services. 

For example, the City of Park Ridge pretty much neglected its sewer system for the past decade, failing to perform needed systemic inspection, maintenance and repairs – not only under Mayor Ron “Damn O’Hare!” Wietecha and the sclerotic Homeowners Party, but also under Acting-Mayor Mike Marous and the “Independents” (non-Homeowner aldermen) and even more so under Mayor Howard Frimark and his Alderpuppets.  Flood control and remediation also were ignored while new development and redevelopment actually increased flooding risks and demands on our sewer systems.

Although its academic standing generally remained stable over the decade, High School District 207 currently is trying to cope with a $17 million “structural budget deficit.”  Meanwhile, during the first part of the decade Elementary School District 64 spent itself to the brink of Illinois State Board of Education intervention [pdf] before bailing itself out with a “back-door” $5 million working-cash bond issue to make payroll in 2005 [pdf], followed by a major referendum-based tax increase in 2007 – neither of which has produced consistent, notable gains in student performance, even as the District has gone about restoring many of the $12.2 million in cuts it made while claiming they would not impair educational quality.  (So why restore them?) 

Even the Park Ridge Recreation and Park District, the smallest-budget branch of local government, continues to bungle the management of its outdoor swimming pools (which look to have booked another operating loss approaching $100,000 once the December figures are in [pdf]) and an almost $200,000 loss on the Senior Center [pdf], while still being bedeviled by the management of problematic facilities like the do-not-resuscitate Oakton Pool and the poorly-designed Community Center.

Fortunately for Park Ridge taxpayers, the schools and the Park District are non-home rule bodies whose ability to raise taxes is limited by what are known (fondly to many taxpayers) as “tax caps.”  Not so the home-rule City government, where spending is limited only by whatever sense of shame City officials can muster about their fiscal mismanagement.  And for most of the past 10 years those officials have been pretty darned shameless.

So what can we expect from these governmental bodies in 2010?

Well, District 207 is proposing to cut expenditures by $15 million and raise revenues $2 million [pdf] to fill that $17 million budget hole.  Part of those cuts will come from a freeze of administrators’ salaries and from the District 207 teachers’ voluntary salary increase give-back program, which they are exploring as an enlightened alternative to the District’s cutting of approximately 75 teacher jobs.

District 64, on the other hand, recently approved an approximately 4.9% property tax levy increase for the 2009 tax year – with only board member Russ Gentile voting “no” [pdf].  And, according to its November 10, 2009, press release [pdf], the District is already starting to waffle on its pre-2007 referendum 10-year financial projections, despite amassing very healthy budget surpluses these last two years.  But what should we expect when the District’s School Board and Administration just gave the teachers’ union members annual raises of approximately 4.5% (including step increases) over the next three years, even though (as the press release acknowledges) the Consumer Price Index increase in 2008 “was just 0.1%”? 

And if what was included in the Park Board’s December meeting package is any indication, the Park District looks to be predicting its own budget deficit of between $800,000 and $1.1 million [pdf], depending on which of two revenue projections is ultimately adopted by the Park Board later this month.  It also appears that $300,000+ of that deficit can once again be attributed to Oakton Pool and the Senior Center, thereby providing further proof of the correctness of Einstein’s definition of insanity.

And the City?  At this point in time, it looks like Mayor Schmidt’s plan for some form of zero-based budgeting is a pipe dream – what with City Mgr. Jim Hock loudly objecting, City Finance Director Diane Lembesis on her way to Gurnee, and the Council majority of deficit-wallowing Alderpuppets installed by former mayor Frimark seemingly incapable of performing subtraction when it comes to City expenditures.

Last May we provided our own simple way to almost balance the City budget (“How To Balance The City Budget,” May 27, 2009) – we came up $49,700 short on the $2 million, which we left for self-proclaimed budget “hawk” Ald. Don Bach (3rd Ward) to take care of.  Fortunately, we didn’t hold our breath for that to occur.    

Which sets the table for Fourth Ward Ald. Jim Allegretti and his Council cronies to push through the highly-questionable Generation Group, Inc. (“GGI”) billboard deal as $400,000 of “found money” that the City would be foolish to turn down – notwithstanding the City Attorney’s preliminary opinion that such an “impact fee” might not be legally enforceable or even constitutional, and despite the whole Allegretti-engineered, City-as-applicant arrangement stinking up the entire Council chambers.

One thing does look pretty certain, however: the taxpayers likely will take a trimming from every branch of local government, to go with the ones they will take from the State of Illinois and Crook County; and that trimming will likely be accompanied by reduced services from most, if not all, branches of local government.

So Happy New Year…and welcome to the 2010 edition of fiscally mismanaged local governments gone wild.