Chicago alders pass budget without head tax
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The Chicago City Council voted 30-18 to pass a historic alder-driven budget during a rare Saturday meeting. But Mayor Brandon Johnson could still veto it.
Why it matters: If supporters of the passed budget are correct, the plan could protect the city's precarious credit rating while keeping and attracting big local employers who were facing a monthly $33 head tax as part of Johnson's proposal.
- The move also illustrates a significant power shift in City Hall where decades of Chicago mayors have traditionally watched their preferred budgets sail through the council.
Yes, but: Many of Johnson's priorities — including funding youth jobs, holding garbage fees steady and taking a record $1 billion TIF sweep — remain in the passed measure.
- The mayor, in fact, characterized the alternative budget as embracing 98% of his own plan.
The latest: The council voted Saturday to slip in a $9.1 million property tax hike for library funding.
- A remaining point of contention involves the alders' plan to raise almost $90 million by selling some of the city's unpaid debts to collectors who, opponents fear, may be predatory.
What they're saying: "Our goal … was to pass a budget that did not kill jobs at a time when the city faces its worst forecast since COVID," Ald. Samantha Nugent (39th) said after the vote.
- "We extended a hand of collaboration to this mayor that was rejected over and over again."
The other side: "I do think that this proposal is ill conceived and sends the wrong message to struggling Chicagoans," Johnson said, predicting that some of the alders' revenue projections would require a mid-year fix.
The intrigue: A third group of alders, including Ald. Andre Vasquez (40th), decried aspects of both budgets and called for an independent budget process next year to avoid a divisive rehash of 2024 and 2025.
What's next: The mayor could negotiate changes to avert a veto.
- Johnson ally Ald. Jason Ervin (28th) said his side would likely seek tweaks soon "because the longer you wait on this stuff, the more limited your options become."
- Ald. Brendan Reilly (42nd), of the alternative bloc, noted that "the budget is a living document that can be adjusted throughout the fiscal year, so it's not necessary to veto this if [Johnson] is really, truly interested in collaborating with the City Council."
What we're watching: If and when Johnson announces his veto intentions.
- Some officials say the mayor will announce before Christmas, while others expect a decision closer to the new year.
- Either way, a veto could trigger a government shutdown unless 34 alders vote to override it before Dec. 31.