Chicago City Council votes to use $75 million parking meter payment for pension debt
Chicago City Council votes to use $75M parking meter payment for pension debt
A City Council vote Monday has directed parking meter money toward Chicago’s pension debt.
CHICAGO - A Chicago City Council vote has redirected money from the city’s parking meter deal toward pension debt.
Chicago parking meter pension payment
What we know:
The council voted 44-6 to use the $75 million Chicago received upfront from the parking meter deal to pay down pension debt, instead of using the money to help cover next year’s budget deficit.
Mayor Brandon Johnson had proposed using the money toward his planned 2027 pension payment. Since the City Council blocked that plan, the mayor will have to come up with another way to close next year's budget deficit.
Alders who supported putting the money toward pension debt said the payment was always intended for pensions. They accused the mayor of using a one-time payment to free up money for other spending.
What they're saying:
The city’s Budget Accountability Coalition said the $75 million will be an extra payment on top of Chicago’s required pension contributions for the year.
The coalition said the payment is projected to save taxpayers about $213 million over time, or nearly $3 for every dollar spent.
"Paying down pension debt is one of the most responsible choices Chicago can make," the coalition said in a statement. "Putting the city on solid financial footing means doing the hard work now, and the council is committed to it."
The Source: The information in this story came from the Chicago City Council and Chicago’s Budget Accountability Coalition.