A summary of information surrounding the new CFD contract

A blog post from *Politics Early & Often*, part of *Suntimes.com*, discusses how Chicago is managing to pay back wages for firefighters without increasing the city's debt. The article highlights a five-year contract that allows the city to avoid borrowing by giving up some union concessions in exchange for potential pension reforms. Earlier this year, Mayor Rahm Emanuel secured a budget increase for the city’s short-term borrowing program, doubling it from $500 million to $1 billion. This “commercial paper” initiative was meant to cover unexpected expenses like retroactive pay and legal judgments. However, City Hall claims the $20 million needed for firefighter and paramedic back pay is already included in the 2014 budget, meaning no new debt will be incurred. The deal includes an 11% pay raise over five years, maintains current staffing levels, and upgrades all 15 basic-life-support ambulances to advanced-life-support units. This change is expected to improve emergency care and free up around 30 firefighters, who were previously assigned to BLS ambulances. The city plans to hire between 50 and 200 additional paramedics as part of the agreement. A source familiar with the contract noted that this move effectively reduces the number of required personnel on each ambulance, allowing more firefighters to be available at firehouses. It's seen as a win-win for both the city and the department. The agreement also establishes a six-member committee—three appointed by the mayor and three by the Firefighters Union—to evaluate the need for more ambulances. One goal is to add five more by 2016. A local alderman, who once worked as a firefighter, emphasized the importance of using advanced-life-support ambulances, noting that last year, 4,000 times they had to upgrade from BLS to ALS due to the limitations of the older system. While the mayor managed to secure some concessions, like requiring retirees aged 55–59 to contribute 2% toward health care, he failed to get agreements on other key issues such as holiday pay, clothing allowances, and premium pay. The union also rejected his plan to reduce staffing for certain firehouse configurations. Instead, the deal is considered relatively modest, aiming to foster a collaborative environment that could help address the city’s broader pension crisis. Next year, Chicago must make a $600 million payment to stabilize its police and fire pension funds, which are only partially funded. Emanuel is pushing for a delay in this payment until 2023 to give him more time to negotiate with unions. Sources say that if the mayor had pushed harder on other issues, it might have led to arbitration, resulting in further trade-offs. For now, the focus is on building trust and working toward long-term solutions. Thanks, Dan.

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