Rahm Emanuel, Chicago Mayor-Elect, Faces Tough Budget Challenges in Cash-Strapped City

VIDEO: Rahm Emmanual Win Chicagos Mayoral Election
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The morning after his convincing victory, Chicago mayor-elect Rahm Emanuel was shaking hands and thanking voters at an "El" (elevated train) stop in a predominately African-American neighborhood on the city's south side this morning.

Emanuel's winning coalition was impressive in its diversity; he carried 40 of the city's 50 wards and won 48% of the black vote. In Chicago's often divisive racial politics, an overt attempt by Rev. Jesse Jackson to unify African American voters behind former U.S.Sen. Carol Moseley Braun failed miserably.

Braun's campaign, beset with a series of embarrassing gaffes, stumbled to a weak fourth place. She won only 20% of Chicago's African-American voters, who make up about a third of the city's residents.

Asked about the racial tensions in Chicago politics, Emanuel, 51, told ABC News today, "Do we have differences? Yes."

"But we cannot and will not let them to become points of division. People know these challenges are common challenges," Emanuel continued.

Emanuel, who replaces the dynastic powerhouse Richard M. Daley, who served for 22 years, faces daunting challenges including a $655 million budget gap in the current fiscal year and unfunded pension liabilities estimated at more than $20 billion. Today, Emanuel promised to freeze $75 million in new city spending on his first day in office, and told reporters that he would refuse a pension.

Emanuel, known for his toughness and profanity during his time in Washington — as a leading Democratic congressman and Obama chief of staff — has remained remarkably calm in public throughout the campaign. Now, he faces the political equivalent of herding cats in Chicago's city council — made up of 50 aldermen.

In the Daley era, the city council was little more than a rubber stamp. But key leaders, including Alderman Ed Burke — who backed Emanuel opponent Gery Chico for mayor — have made it clear those days are over and that they intend to exert far more independence when Emanuel begins his term in May.

Emanuel Led Race From the Start

For now, Emanuel is focused less on in-fighting among city officials and more on his vision for Chicago's future.

"We have not won anything until a child can go to school and not think of their safety we have not won anything. Until a parent can think of their work, and not where they're going to find work, we have not won anything," Emanuel said. "The plural pronoun of 'we' is how we're going to meet the challenges. ... I do not want to see another child's name in memorial killed by violence," said Emanuel at his Tuesday night victory speech at Plumbers Hall.

With a national fundraising advantage and support from President Obama and former President Bill Clinton, Emamuel led the race from the moment he left the White House.

Obama, Emanuel's longtime friend and former employer, issued a statement Tuesday congratulating him after all five other candidates in the race had conceded.

"I want to extend my congratulations to Rahm Emanuel on a well-deserved victory tonight," the president said. "As a Chicagoan and a friend, I couldn't be prouder. Rahm will be a terrific mayor for all the people of Chicago."

Emanuel's closest challenger, longtime city official Gery Chico, received 24 percent of the vote.

For more on the history of the job of mayor in Chicago, why so many politicians want it, and an interview by George Stephanopoulos with current Mayor Richard Daley click here.

Braun, the so-called "consensus" African-American candidate, polled a distant fourth with only about 9 percent.

Voter turnout was far lower than expected, according to city election officials, who said fewer than half of the city's registered voters showed up at the polls.

But the results were not a surprise, as the most recent polls showed Emanuel far out in front, trailed by Chico.

Ever since Daley announced he would not seek a record seventh term, Emanuel has led the pack in polling and fundraising, amassing more than $12 million in campaign contributions.

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