A Novel Approach to Budget Planning

by Wesley Fox In the last few years, the federal government and many state governments have used a similar approach to dealing with the economic downturn: higher taxes and more government spending.  Governor Quinn’s proposed tax hikes and his $31 billion Illinois Jobs Now capital spending program are a perfect example. Meanwhile, Chicago Park District...

by Wesley Fox

In the last few years, the federal government and many state governments have used a similar approach to dealing with the economic downturn: higher taxes and more government spending.  Governor Quinn’s proposed tax hikes and his $31 billion Illinois Jobs Now capital spending program are a perfect example.

Meanwhile, Chicago Park District Superintendent Tim Mitchell has decided on a different approach.  He explains in the Sun-Times:

In these tough economic times, tough decisions are going to have to be made and we want [residents] to be part of telling us what their priorities are…I think in these economic times it’s not right to raise property taxes.

The Chicago Park District is an independent taxing authority, separate from the City of Chicago.  It has an estimated budget of $400 million but also has an estimated $22 million budget gap for next year.  Mitchell plans to close the gap without raising property taxes.

Mitchell’s approach is to ask residents what park projects are most important to them and then prioritizing spending accordingly.  This approach makes the budget process more transparent and encourages public involvement in local government.

The City of Chicago as well as the state government could benefit from such a novel approach to budget planning.