Chicago mayor unveils 'gimmick-free' budget for FY 2018CHICAGO (Reuters) - Chicago Mayor Rahm Emanuel proposed a fiscal 2018 budget on Wednesday that he said eschews “fiscal smoke and mirrors,” but critics said vestiges of those practices remain. In his annual budget speech to the city council, Emanuel said the spending plan is free of what he called any “budget gimmick” like so-called scoop and toss, which extends maturities on existing bonds to provide budget relief, for the first time since he took office. “Every single bad financial practice we inherited in 2011 has now been eliminated from the budget,” he said. The $10 billion budget, which includes $3.77 billion for operations, relies on $94 million in savings from a future bond refinancing under a new debt structure.  A chronic structural budget deficit and an unfunded pension liability that totaled $35.76 billion at the end of 2016 have led to low credit ratings and increased borrowing costs for the nation’s third-largest city. The mayor’s budget accelerates savings from a plan approved by the city council this month to refinance up to $3 billion of sales tax revenue and general obligation bonds through a new entity at lower interest rates. The new Sales Tax Securitization Corp will be assigned Chicago’s state-collected sales tax revenue and will pledge that money to pay off the refinanced bonds. Bond investors will have a statutory lien shielding the debt from municipal bankruptcy, which is not allowed under Illinois law. Carole Brown, Chicago’s chief financial officer, said the city will realize more savings from the debt refinancing in fiscal 2018, which begins on Jan. 1, than in 2019. “But we’ll expect to show savings annually until we’ve amortized all the debt,” she added. One critic, Alderman John Arena, said the new debt structure - which he opposed - could end up extending the life of some bonds by as much as 40 years.  “Our fear is that (Emanuel is) making the claim of moving scoop and toss out of the way we do business but really moving it over to that special entity,” he said.   Brown acknowledged that to achieve level debt service on the corporation’s bonds, maturities on existing bonds may change.  “It is possible we won’t 100 percent match maturity for maturity,” she said. The budget counts on $50.3 million in revenue growth, $19.35 million in spending cuts, as well as other measures to address a $114.2 million structural gap and more than $87 million in new spending for additional police hires and reforms. politicsNews
chicago mayor unveils budget fy reuters chicago mayor ram manuel proposed fiscal budget wednesday said screws fiscal smoke mirrors critics said vestiges practices remain in annual budget speech city council manuel said spending plan free called budget gimmick like scoop toss extends majorities existing bonds provide budget relief first time since took office every single bad financial practice inherited eliminated budget said the billion budget includes billion operations relies million savings future bond financing new debt structure a chronic structural budget deficit unfounded pension liability totaled billion end led low credit ratings increased borrowing costs nation city the mayor budget accelerates savings plan approved city council month finance billion sales tax revenue general obligation bonds new entity lower interest rates the new sales tax securitization corp assigned chicago sales tax revenue pledge money pay financed bonds bond investors statutory lien shielding debt municipal bankruptcy allowed illinois law parole brown chicago chief financial officer said city realize savings debt financing fiscal begins but expect show savings annually amortized debt added one critic alderman john arena said new debt structure opposed could end extending life bonds much years our fear manuel making claim moving scoop toss way business really moving special entity said brown acknowledged achieve level debt service corporation bonds majorities existing bonds may change it possible percent match maturity maturity said the budget counts million revenue growth million spending cuts well measures address million structural gap million new spending additional police hires reforms politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Chicago mayor unveils 'gimmick-free' budget for FY 2018CHICAGO (Reuters) - Chicago Mayor Rahm Emanuel proposed a fiscal 2018 budget on Wednesday that he said eschews “fiscal smoke and mirrors,” but critics said vestiges of those practices remain. In his annual budget speech to the city council, Emanuel said the spending plan is free of what he called any “budget gimmick” like so-called scoop and toss, which extends maturities on existing bonds to provide budget relief, for the first time since he took office. “Every single bad financial practice we inherited in 2011 has now been eliminated from the budget,” he said. The $10 billion budget, which includes $3.77 billion for operations, relies on $94 million in savings from a future bond refinancing under a new debt structure.  A chronic structural budget deficit and an unfunded pension liability that totaled $35.76 billion at the end of 2016 have led to low credit ratings and increased borrowing costs for the nation’s third-largest city. The mayor’s budget accelerates savings from a plan approved by the city council this month to refinance up to $3 billion of sales tax revenue and general obligation bonds through a new entity at lower interest rates. The new Sales Tax Securitization Corp will be assigned Chicago’s state-collected sales tax revenue and will pledge that money to pay off the refinanced bonds. Bond investors will have a statutory lien shielding the debt from municipal bankruptcy, which is not allowed under Illinois law. Carole Brown, Chicago’s chief financial officer, said the city will realize more savings from the debt refinancing in fiscal 2018, which begins on Jan. 1, than in 2019. “But we’ll expect to show savings annually until we’ve amortized all the debt,” she added. One critic, Alderman John Arena, said the new debt structure - which he opposed - could end up extending the life of some bonds by as much as 40 years.  “Our fear is that (Emanuel is) making the claim of moving scoop and toss out of the way we do business but really moving it over to that special entity,” he said.   Brown acknowledged that to achieve level debt service on the corporation’s bonds, maturities on existing bonds may change.  “It is possible we won’t 100 percent match maturity for maturity,” she said. The budget counts on $50.3 million in revenue growth, $19.35 million in spending cuts, as well as other measures to address a $114.2 million structural gap and more than $87 million in new spending for additional police hires and reforms. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: chicago mayor unveils budget fy reuters chicago mayor ram manuel proposed fiscal budget wednesday said screws fiscal smoke mirrors critics said vestiges practices remain in annual budget speech city council manuel said spending plan free called budget gimmick like scoop toss extends majorities existing bonds provide budget relief first time since took office every single bad financial practice inherited eliminated budget said the billion budget includes billion operations relies million savings future bond financing new debt structure a chronic structural budget deficit unfounded pension liability totaled billion end led low credit ratings increased borrowing costs nation city the mayor budget accelerates savings plan approved city council month finance billion sales tax revenue general obligation bonds new entity lower interest rates the new sales tax securitization corp assigned chicago sales tax revenue pledge money pay financed bonds bond investors statutory lien shielding debt municipal bankruptcy allowed illinois law parole brown chicago chief financial officer said city realize savings debt financing fiscal begins but expect show savings annually amortized debt added one critic alderman john arena said new debt structure opposed could end extending life bonds much years our fear manuel making claim moving scoop toss way business really moving special entity said brown acknowledged achieve level debt service corporation bonds majorities existing bonds may change it possible percent match maturity maturity said the budget counts million revenue growth million spending cuts well measures address million structural gap million new spending additional police hires reforms politicsnews