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Industry News

Chicago cuts back on municipal credit card use

By Joseph Trigliari

16/09/2011 - Chicago is not known for its honest politics, but one thing the city has been able to crack down on in recent months is abuse of credit cards by government employees.

This week, Chicago Mayor Rahm Emanuel said credit card use by city workers has been scaled back from 500 cards in circulation to a mere eight. Three municipal agencies have been able to cut use of credit cards altogether, the mayor told reporters.

Meanwhile, expanded departments, such as the Chicago Parks District and Chicago Housing Authority, have begun regulating and curbing undefined expenditures, reimbursement policies and other elusive finances.

"Upon taking office, we learned that lax credit card and reimbursement policies with little to no accountability allowed some city employees to treat a city credit card as their personal expense accounts," Emanuel said Thursday, according to UPI.com.

The measure is a step toward improving the city's budget. Over the past few years, state, local and federal governments have been struggling to rein in massive debt levels. While credit card use reflects a minor aspect of local budgets, its uninhibited expense can be detrimental to long-term credit.

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