Chicago's Money Managers Need a Boost
Chicago is facing a significant financial challenge. By 2027, the city may be short on cash by $1.17 billion. Aldermen are already working on next year's budget, but they face a major obstacle.
The Struggle with COFA
A few years ago, Chicago created a team called COFA to help aldermen understand the city's financial situation. However, COFA is not performing well. Currently, the team consists of only five people, which is insufficient to handle the city's complex financial issues.
Key Problems with COFA
Lack of Resources
- COFA doesn't have access to all the important financial information that the mayor's team possesses.
- It's like trying to solve a puzzle without all the pieces.
Ineffective Advice
- Last year, COFA provided financial advice that wasn't very helpful.
- They failed to question important financial estimates made by a company called EY, despite the mayor's doubts.
Aldermen Taking the Lead
Some aldermen are stepping up to address the city's financial problems. They have pushed back against the mayor's proposals and even blocked a new tax on large companies. Now, they should focus on strengthening COFA.
How to Improve COFA
Increase Staffing and Access
- COFA needs more people and better access to financial information.
- They should start requesting this information early in the year, not at the last minute.
Educate Aldermen
- Aldermen should learn more about finance and policy.
- Currently, they spend too much time on small issues and not enough on big financial decisions.
The Importance of a Strong COFA
A strong COFA can help aldermen make better financial decisions. It can also ensure that the mayor's ideas are fair and logical. This is crucial for the city and all its residents.
