If the state doesn’t act, Daley told aldermen, the City Council will have to find other ways to balance a 2008 city budget amid rising personnel costs and declining revenues tied to the housing slump.
To appease aldermen, Daley dropped plans to double the city’s gasoline tax, from a nickel a gallon to a dime, and also nixed plans to double the city’s tax on restaurant meals, from .25 percent to .50 percent.
But other taxes would see increases, raising the overall burden on city taxpayers.
“We have a choice: Do we maintain city services and make the investments needed to keep Chicago moving forward, or do we cut services, make substantial layoffs and and risk falling behind?” Daley said. “I believe we have only one choice