Mayor’s $68M tax hike budget rejected, city council hits pause until Monday

Chicago Mayor Brandon Johnson didn’t have the votes to pass his budget, which includes a $68 million property tax hike along with other taxes and fees. Now, it’s back to the drawing board.

"This meeting is recessed to Monday, December 16," the mayor proclaimed after the Chicago City Council passed a resolution to end the proceedings and reconvene after the weekend to vote on the budget.

The mayor and city council clocked out not long after clocking in for work on Friday without a budget agreement. Opponents said taxpayers have spoken loud and clear.

"While this may have been a massive defeat for Mayor Johnson today, this was a major victory for Chicago taxpayers who are demanding cuts in the city budget," said 42nd Ward Alderman Brendan Reilly, flanked by a dozen or so of his colleagues who have demanded the mayor shrink the size and cost of city government.

The mayor now has the weekend to try to find 26 votes to pass any balanced budget.

The proposed budget included a range of tax increases to generate revenue, including:

  • $128 million from cloud computing services
  • $68 million from property taxes (a reduction from the original $300 million proposal)
  • $11 million from increased parking garage taxes
  • Higher taxes on rideshare services, grocery bags, and streaming platforms like Netflix

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"If you’re asking me if it’s gonna be close, yes, it’s gonna be close," Johnson said. "I’m confident in the alders who have demonstrated a remarkable interest and tenacity that the people of Chicago should be proud of. Yes, I still remain optimistic."

Reilly said there won’t be a deal if the mayor tries to trade favors for votes.

"We had horse-trading, people being offered field houses, committees... That’s waste, and every dollar for that comes out of taxpayers’ pockets, and that’s untenable," Reilly said.

The opposition bloc did say they’d be open to cutting $170 million worth of civilian positions in the Chicago Police Department that are currently vacant. That would negate the need for a property tax hike and is something the mayor said he’s receptive to.

"If we’re paying for services that individuals are not getting, I understand why Alderman Beale and Alderman Reilly brought that forward. It’s a solution we’re willing to consider."

They must agree on a budget by the end of the year, or else snow plowing, garbage pickup — it all shuts down. There is no mechanism for short-term continuing resolutions like Congress does. Stay tuned.

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