With four months left before its budget is due, Evanston is already in financial straits.
By March 1, Evanston will have to balance a budget deficit of at least $3 million — a figure that doesn’t include any cost of living raises for city employees. With the pay increases, the deficit could widen to as much as $5 million.
The sad thing is that this is nothing new. Last year the city faced a nearly $4 million shortfall, and the year before it came up short $2 million. It is not healthy for the city to have to reassess its priorities every year. Something sustainable must be found.
The method of eliminating last year’s deficit did not last, but that’s no big surprise. City staff told aldermen last fall that a property tax increase could not solve the budget problems. But they didn’t listen. Residents now pay about 1.3 percent more on their taxes — $108 per year for the owner of a $300,000 home — and still the city has problems.
And the city should rethink any proposals for limiting raises. It cut non-union raises in half last year; to do so again would be an embarrassment. Not to mention that the city likely will face opposition from unions, whose contracts are up for renogiation this year.
Unfortunately, the city needs to make some difficult decisions this year. Programs will have to be cut. There is a combination of factors that are not going away that lead to this problem. Evanston has a diverse population, which creates a more culturally energetic city. But Evanston’s socioeconomic diversity puts burdens on social programs that other suburbs don’t face.
There must be a balance. The city cannot continue raising taxes and fees or it will force out the people many city programs are trying to help. Aldermen should take a serious look at reducing or eliminating programs before they make the city unlivably expensive for all residents.
Obviously, providing these programs would be easier if the city did not have so many nonprofits. With 40 percent of Evanston property off the tax rolls, the city has a smaller landbase to tax. But this is nothing new. Northwestern’s tax exemption may contribute to the lack of funds in the city but it does not contribute to the budget deficit: Evanston has never had NU’s money, so the city should not expect it.
The city is acting wisely in beginning its budget balancing process earlier this year. I applaud the City Council’s decision to take its meetings on the road. Residents should make every effort in the next month to attend one of the community gatherings. This is the time for the people of Evanston to voice their concern and make their views known. The first is at the Lincoln School auditorium, 910 Forest Ave., at 7 p.m. Thursday.
Aldermen should heed these concerns and take them into their consideration. But as Ald. Gene Feldman (9th) said at Monday’s council meeting, the council needs to do some work too. They should make sure they are all informed on the budget situation and are presenting an accurate representation of the problem to residents. As difficult as it may be, they should be working as a team. Now is the time to listen.
But the aldermen should know there is also a time to act — and act they must. They should not just listen to residents who come to complain. Programs must be cut or at least reduced. Evanston cannot take care of everyone.
The city also should try to reducing its costs. Facing the same deficit, any company would downsize. Its time for Evanston to do the same.
This year the aldermen need to be strong and make the difficult choices. If they don’t make these choices, we will just be back here again next year.
City Editor Matt Lopas is a Medill junior. He can be reached at [email protected].
