>> It's a busy budget season Chicago and the city is staring down a whopping billion dollar shortfall next year.

City officials have until the end of December to come up with a plan on how to address it.

Mayor Brandon Johnson is set to present his budget plan to City Council on October.

16th.

Joining us now are 2 members of that council Alderman Jason Ervin of the 28th Ward on the city's west side.

He's also chair of the city's budget Committee and Alderman Matt Marton of the 47th Ward on the city's north side.

Gentlemen, thanks to both for being here.

Alderman are going to start with you.

The mayor released his budget forecast at the end of August.

And as we mentioned, it shows a 1.1 5 billion dollar budget gap.

Now, that is 2.7% higher than expected and 14% higher than last year's shortfall.

And here's actually a little bit of the mayor and he's talking about his task forces, his budget task forces, preliminary report.

>> One of the things that I that it's clear that the working group fully established that we do not have a spending problem in Chicago.

We have a revenue challenge in Chicago and that's an important conclusion that I believe was necessary for.

The people Chicago to year.

>> Alderman Irvine, you agree with that characterization that it is not the spending problem.

That's the revenue problem.

I think it's both know that we have some revenue challenges, but we also need to become more efficient in how we deliver services for the more we need to do a better job of managing our risk.

So we don't continue to get into all of these lawsuits and things that we continue to see all the time is not like these.

A onetime situations.

These things continue to happen.

So I think there's some work that we can do on the expense side of the ledger.

But also there is a definite need for additional revenue in order to balance this out.

I don't think we can cut our way out of this situation.

Nor do I think we can tax our way out of this situation.

When you say risks and lawsuits were kind of?

Well, so, for example, I mean, you know, certain things.

Light poles falling on people.

That's something I think we should be able to get a handle on and be able to do with tripping hazards from sidewalks.

Those are things that we know about that.

If we address them in a more frequent manner, the Indy's don't lead to lie.

We spend 1000 books, a 500,000 books, types of things.

point, of course, 72 Tw has done extensive reporting on the amount that the city has paid out in police, misconduct, settlements and lawsuits.

>> that something that?

Yes part of part of the reforms in the police department, those are things that we need to be looking at.

And those are things that from a risk perspective, we can bring down the cost of doing business stand that that eats into that 1.1, 5 billion dollar deficit Alderman Matt Martin.

Same question to you with regards to whether or not the city has a spending problem or revenue problem.

>> It's a I think we have to start off by that this is the decades in the making.

This U.S.

or physical.

management that it involves tentative name arrived at the station of party leaders to silently anywhere significant to come on the wrist when it comes to >> By medieval literally to get really where they they don't think this is just a remnant We know were sent to We have hundreds vacant positions spread across apartments that have been debated over a Think it's incredibly important that we on council loafers tighten our belts.

Before we go to taxpayers asking them just in the morning.

>> So last month, the mayor's budget task force, as we mentioned, releasing its preliminary report recommending 89 fix is to add one to 2 billion dollars to in revenue to the city's coffers.

Most notably in annual property tax hike or a tax hike tied to inflation last year.

Are you all voted unanimously against the mayor's first proposal of a property tax alderman Martin, could you get behind one this year or in the future based on the recommendations of this task force?

>> I don't think appropriate for us to take anything off the table at this early stage.

Is that billion dollar project?

That's huge.

Just to put that into perspective, that's all what we said.

The van are tired.

Robots for CBD or we cut the entire Department of Streets and sanitation.

We would still have 800 million dollar gap.

So I we need to take a look at those proposal.

Seriously, when I got into office as way 19, I campaigned on a viewing property taxes as a last resort, not saying under no circumstances.

But look at the other things and what I would like to see do, especially being led by the mayor's office is to foster more constructive relationship in Springfield.

To be clear, have their but they But at the end of the day, if we're talking about asking individuals organizations who are best position to chip that's going to something that we do working in collaboration Springfield and today we seen and I results coming from those >> Alderman Urban property taxes based on the recommendation of a task force.

I think that property taxes can be part of the conversation.

Again, once we look at the expense side of this conversation, think we can look at that.

One thing that we have to you know, under the daily use, you know, as they say, property taxes has been the 3rd rail of politics.

But if we had of kind of had the incremental CPR type increases over time, if you go back from the 80's and into the 90's, we'd be at the same point that we are today.

But we still own our park and it is we still on the Skyway.

So these situations where we have flat taxes for period and then have to shoot them up, go back flat again to shoot them up is not best way to manage a man.

Is revenue noise a fiscally responsible because it puts us in these positions where we selling things that we really should have in order to continue continue moving forward.

>> city Council cannot apply a sales tax on services the way it does on goods without the support of the state without state approval.

How do you convince state officials to allow you to do that?

Well, I think it's a modernization.

We have a sales tax program this based in the 1930's economy.

And here we are almost 100 years later with a different type of economy.

>> Many states around us have made the move to a more more progressive, a more reasonable sales taxes on services.

I think it's awful.

I'm going to do the same thing again.

It would actually lower the tax rate that's being paid and again generate additional revenue that both the state needs and the unity government need as well.

>> closing the budget gap.

You know, like you both have said it is a mix right to it will also mean raising revenue but also cutting some services, such a CA going be prepared to see some services scale back.

>> a possibility for sure be the balances.

But he delivers way, I look at public safety services, infrastructure services as things that are going to be provided by other levels of government.

That's got to be responsibility.

So we need to ensure that they were looking under everything the department, which is we should avoiding progresses, fines fees.

We also IPO bowl with city services that people need because the end of the we want garbage service to happen less frequently.

Absolutely.

No number, we really been to him or her know.

Do we 3 lights and traffic lights few days or weeks longer than is already the case Celine?

Not it's finding that right balance of saying what are those over to service how are we going pay for them?

And how can we show that?

We are being more efficient work recently responsible >> Chicago missed the deadline, which was today to keep that one percent grocery tax in place.

That's worth 40 million dollars for the city.

Alton Martin.

First, you any appetite to reinstate that.

And if you did, you wouldn't be able to start collecting on until July of next year.

>> I haven't talked with many residents who are interested in a slim lead.

And that is one of the many tools to fill yet.

And to be clear, we do know a lot great options before us.

A guy like goes to look at other properties that have been in have to take intentionally decided to them being flanked by properties that are being family members we can look into And also continuing talk about are looking share of the state income tax to 10% about COVID.

Even 20 years ago.

36%.

I wonder we could go and conversation available support with the work they need to do.

And simultaneously reduce some of the benefit that they're thinking.

Looking at an so that polls, it is going to be much better than that people are asleep >> of and I agree with all of them are new and that is so I think that we have to look at this holistically.

We have to come up stable, predictable revenue sources that will allow us to do the business of government.

You know, a dollar here, a dollar there, fine and fee.

And are we to this particular point?

is not how we're going to make this last in the long term.

Now, granted, there are some things that need to be adjusted as some of these fees are based on the work of the working group have not been adjusted in a number of years.

And I think we need to right-size those things and set them on inflationary track so that we don't have to revisit.

Those are going forward.

But again, we have to really dig in and work with our partners at the state level.

Look at a bunch of bunch of options so that we can have a revenue mix that is stable and predictable that we can operate government last year.

You all didn't get a budget proposal until the end of October or almost the process went well into December, which was a bit frightening think for a lot of officials.

>> About 20 seconds, are you anticipating a smoother process this year?

Has the mayor's office been?

>> Proving you that proving to won't be quite a scare, I did I think that the scary news will come Monday decisions that have to be made right?

>> So we'll get the budget on the 16th as propose and we'll have to figure out a path parts of the last Tuesday in a in December.

So pretty I'm hopeful that we will get it done.

I think the options we have to discuss and we just have to make some decisions that when boils down Congo and hopeful that you will get it much sooner as well.

I hope that we do as well.

But however, you know, generally time, you know, county can work for you and sometimes you can work against you.

But the fact that we actually have to