CHICAGO (October 5, 2017)–The Chicago City Council Progressive Reform Caucus on Thursday urged the City Council to slow down an ordinance to create a new vehicle to securitize City sales tax revenue, citing high potential financial risks for taxpayers and a lack of thorough outside expert analysis ahead of the scheduled Finance Committee vote.
Caucus Chair Ald. Scott Waguespack (32) said the aldermen planned to move to table the ordinance.
“Chicago taxpayers can’t afford for the Emanuel administration to ram through another questionable financial scheme without proper time for comprehensive analysis,” he said. “We can’t play roulette with hundreds of millions of tax dollars a year at stake. We owe it to our constituents to take the extra time to have a truly independent outside examination of the potential costs and ramifications of this proposal.”
“Under this proposal, the City would hand over all sales tax revenues, roughly $700 million per year at present, for the next several decades, to a third party entity,” said Ald. Ricardo Muñoz (22). “We have an obligation to do our due diligence and pursue an independent, comprehensive legal and financial cost-benefit projection analysis that includes an evaluation of those similar entities in Pennsylvania and Ohio.”
“Rather than continue to pursue novel financial schemes to borrow even more money from Wall Street, we should consider progressive revenue options,” said Ald. Carlos Ramirez-Rosa (35).
“We are open to all options for the betterment of the financial health of the City of Chicago–however, our commitment to transparency and accountability requires that any proposed action be supported by comprehensive and objective information and data,” said Ald. Toni Foulkes (15).