Lightfoot to propose budget Wednesday, still hoping for COVID relief cash

CHICAGO - Chicago Mayor Lori Lightfoot plans to propose a very "bad news" budget, with multiple tax increases and hundreds of job cuts. But sources say she's still hoping Washington will come through with new coronavirus relief cash.

Although President Donald Trump has repeatedly announced the "collapse" of coronavirus relief negotiations, he's once again bargaining with House Speaker Nancy Pelosi. She's proposing at least $2.2 trillion dollars.

“She’s at $2.2 trillion. Ok, I would like to go -- I would be willing to go more,” Trump said.

But some top Republicans in the U.S. Senate are saying "no" to such huge new spending, their latest public disagreement with the White House.

Negotiations remain stalled over Republican demands to exempt businesses from COVID-19-related lawsuits and over a Democratic demand that federal aid be given to struggling state and local governments.

“We must act now to provide relief to the whole country,” said Sen. Chuck Schumer of New York.

One consequence of the legislative logjam: Mayor Lightfoot plans to propose a 2021 City of Chicago budget that closes a $1.2 billion shortfall without counting on new federal assistance. Sources say it includes a nearly $100 million increase in property taxes and a 60% increase in the city's tax on motor fuel.

While the president said he still hopes to sign a deal before Election Day, November 3, Speaker Pelosi said time is running out.

Mayor Lightfoot's telling her allies that if more money does come from Washington, she may rescind some of the budget cuts she plans to announce Wednesday.