CHICAGO - Chicago budget director Bennett Johnson 3d will leave his post later this month after steering the city through two of its toughest budget cycles and amid warnings that the city's fiscal struggles are expected to continue through the next few years.
Johnson announced his surprise resignation last week and said it was his own decision to move on.
"I love the public sector, hope I added value to the city, and I learned a whole bunch, but it's time for a new experience and for me to rebuild my nest egg," Johnson said Friday. He added that he did not yet have a new position and was looking forward to spending time with his family over the holidays after his resignation takes effect Dec. 22.
Johnson, 38, left his position as a managing director at the Chicago-based financial advisory firm A.C. Advisory Inc. in June 2007 to become budget director, crafting both the 2008 and 2009 budgets amid faltering revenue collections and increasing personnel and other costs.
The city implemented a series of tax and fee increases totaling $293 million, including a controversial $86 million property tax increase, in 2008. The $6 billion 2009 budget closed a record $469 million shortfall through a mix of layoffs, tax and fee increases, debt restructuring, and tapping proceeds from two asset leases.
"It's been two difficult and challenging budgets, for different reasons," said Johnson, who earned a $163,000 salary in the post. "There's a lot of balancing of priorities. It's difficult to balance the needs and wants of the community in a recessionary time."
City budget directors have rarely lasted more than two budgets during Mayor Richard Daley's administration. Chicago's chief financial officer, Paul Volpe, previously served as budget director. No replacement has been announced.
In addition to facing tough questions from the City Council and public on the property tax increase in the current budget and layoffs in the 2009 budget, Bennett drew negative news attention earlier this year after it was disclosed he sought installation of a $5,400 shower in his office at city hall. He financed the installation, saying it was needed because he spent long days there and cycled to work from his far north side home.
Johnson started with A.C. Advisory in 1996 but took a break in 2000 to work for three years as an assistant city comptroller.
Fitch Ratings rates Chicago's $6 billion of general obligation bonds AA, Moody's Investors Service rates it Aa3, and Standard & Poor's rates it AA-minus.
The city has warned that it faces an annual structural deficit of $200 million through 2012, although it has set aside $324 million in a rainy-day fund and has another $175 million remaining from a pending lease of its parking meters to tap for future budgets.
