TAILIEUCHUNG - City of Chicago 2013 Budget Overview

Section of the 2012-13 Budget Act institutes a new accrual method for the tax revenues generated by Propositions 30 and 39. A portion of final income tax payments paid in, say, April of one year will be accrued all the way back to the prior fiscal year (which ended ten months in the past). One effect of the change is that we will no longer have a good idea of a fiscal year’s revenues until one or two years after that fiscal year’s conclusion. Because the volatile capital gains-related revenues from Proposition 30 are the subject of the accrual changes, the. | City of Chicago 2013 Budget Overview Mayor Rahm Emanuel The Government Finance Officers Association of the United States and Canada GFOA presented a Distinguished Budget Presentation Award to City of Chicago Illinois for their Annual Budget beginning January 1 2012. In order to receive this award a governmental unit must publish a budget document that meets program criteria as a policy document as an operations guide as a financial plan and as a communications device. 2013 Budget Overview Letter from the Mayor Dear Fellow Chicagoans Last year by working together and making tough choices we were able to put Chicago on the path to long-term financial stability by closing a 635 million budget gap reducing the cost of City services and making government work more efficiently and effectively. Next year s budget will continue to build on this progress. Over the past month I met with people from all areas of Chicago to discuss the City s priorities and how we build a budget to support them. Many people joined these discussions online and posted ideas on our budget website. I heard from people who were worried about keeping their children safe and engaged after school from small business owners who wanted the City to be a partner instead of a barrier to business growth and from many people facing financial difficulties who wanted to make sure that the City was being as careful with its money as they are with theirs. The 2013 budget proposal reflects this honest transparent and collaborative process. During these challenging economic times this budget does not raise taxes or introduce new fees. It eliminates the employee head tax which penalized job creation. It includes important investments in the programs that matter most to the people of Chicago and it reforms City government to reduce operating costs and provide better services to residents. By continuing and expanding the reforms and spending controls that were put in place in the first year of my administration this

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