Chicago's Oversight Agencies Face Budget Shortfalls, Fringe Costs Unclear
Chicago's oversight agencies, including COPA, OIG, and CCPSA, are facing budget shortfalls that fall below legal minimums. However, fringe costs like pensions and benefits are not included in their departmental budgets but rather lumped into a citywide category called 'Finance General'. The Office of Budget and Management (OBM) maintains that they are in full compliance with budget floor requirements for these agencies, but the Better Government Association (BGA) has a differing perspective on how budget floors should be structured.
The budget floors for these oversight agencies are set by law, but the practice of excluding fringe costs allows them to appear to meet these requirements. This is because fringe costs are not clearly listed in their departmental budgets. Instead, they are included in the citywide 'Finance General' category. The OBM defends this practice, claiming full compliance with budget floor requirements. However, the BGA has a different view on how budget floors should be structured and has raised concerns about this practice.
The budget shortfalls for Chicago's oversight agencies, coupled with the exclusion of fringe costs from their departmental budgets, raise questions about the transparency and accountability of the city's budgeting process. While the OBM maintains compliance, the differing perspective of the BGA suggests that there may be room for improvement in how budget floors are structured and reported.
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