City of Chicago budget vote: Council approves Mayor Brandon Johnson’s latest budget proposal with no property tax increase

CHICAGO (WLS) – The Chicago City Council has approved Mayor Brandon Johnson’s budget after more than six weeks of contentious debate and argument over a property tax increase.

But the mayor came under heavy criticism before the vote, not only because of the budget, but also because of the process, which dragged on for weeks.

ABC7 Chicago is now streaming 24/7. Click here to watch

After hours of debate Monday on both sides of the budget, which went through four revisions and cut a $300 million property tax to zero, the mayor won enough support to pass it in a final vote of 27-23.

The decision to eliminate the $68.5 million property tax increase was actually made last Friday before the City Council meeting adjourned. This weekend was all about figuring out where the $68.5 million in additional revenue would come from.

“The budget we are voting on today is the culmination of that process, the good, the bad and the ugly,” said Finance Committee Chairwoman 3rd Ward Ald. Pat Dowell.

The City Council on Monday reconvened Friday’s meeting, which was adjourned because Johnson did not have the 26 votes needed to pass his budget.

“There have been some people who have made it clear that there is no way to get them to say ‘yes.'” So then you have to focus: “Okay, who will show you the way to a ‘yes’?” And what do you say?’ And you have to listen to them. And they kept saying they didn’t want a property tax increase,” said 35th District Ald. Carlos Ramirez Rosa.

The approved version of the budget does not include an increase in property taxes and extends the deadline for repaying $40 million in debt.

“And I believe, despite my frustrations and challenges, that democracy is represented in the budget before us today,” said 1st Ward Ald. Daniel Laspata. “Do I believe it is a complete and perfect reflection of my values, my community values? No, but is it a budget that moves us forward in a way that I think is responsible? Yes.”

The opponents did not go down without a fight. But before the council could vote, protesters in the gallery caused several disruptions that required police intervention. The mayor adjourned the meeting and the gallery was cleared, delaying the budget debate.

The budget was balanced by borrowing $40 million from a line of credit tied to the proposed development of the old Michael Reese Hospital site.

Years ago, the city bought the property in hopes of winning an Olympic bid.

“Well, essentially they take a credit card and put another credit card with a higher interest rate on it,” said Ald., 32nd District. Scott Waguespack.

Former Finance Committee Chairman Waguespack fears that forgoing the payment this year will lead to a rating downgrade, which he says will cost taxpayers tens of millions in the long run. Revenue is also generated through new fees and taxes. Waguespack is one of 15 city councilors who said the mayor hasn’t done enough to cut spending in his budget.

“Simple things that any taxpayer would look at and say: Why are the committees increasing salaries? Why are employees getting massive raises? “Why don’t you cut the X programs?” Waguespack said.

Late Sunday evening, 15th Ward Ald. Ray Lopez and 14 other council members released a letter with their proposed changes to the budget.

Their demands called for $823 million in cuts by eliminating things like the office of vice mayor, separate services – spending on city treasurers, city clerks, Chicago Teachers Union non-teacher pensions and other things.

“To say you replace a $68 million property tax increase with $40 million in borrowing and take on more debt is unacceptable,” Lopez said.

“If we want to talk about successes, starting from scratch would have been a victory. Starting from an honest point would have been a victory,” Lopez said of the original property tax increase proposal.

Ald. William Hall, who represents the 6th District, attended the administration’s budget meetings throughout the weekend. He believes the mayor’s latest proposal is exactly what Chicagoans want.

“What we wanted was no property tax,” Hall said. “This is what we got. What we wanted was a leaner Chicago. This is what we got. Participatory budgeting is different, but it is the way forward. We need to have voices at the table.”

Aside from there being no property tax increase, the mayor was able to turn nos into yeses through old-fashioned horse-trading. Ald. David Moore, who represents the 17th District, says the administration is committed to replacing the old Ogden Park fieldhouse in West Englewood.

“I wanted to make sure the administration was committed to cleaning up our communities,” Moore said.

But even after eliminating the property tax, which was reduced from $300 million to $0, the council was still clearly divided over the budget passed after its fourth revision.

“There are various reasons why I cannot support this proposal. The first and most important is that we will be here again next year. We have to be honest with ourselves, we didn’t size this budget right. “We haven’t made enough cuts,” said 13th District Ald. Marty Quinn.

“How this happened. And a lot of it is relationships, not collaboration, not enough information. We were never supposed to be here. We just shouldn’t do it,” said 37th District Ald. Emma Mitts.

Opponents continued to raise concerns about the process and the potential impact next year’s budget will have.

“These shenanigans, this mix of shenanigans, guarantee us the need for a massive property tax increase next year. And it won’t be $68.5 million. Guys, just watch, it’s going to be big,” said 42nd District Ald. Brendan Reilly.

“To get to zero, we are fining and punishing the people of the city of Chicago to death,” said 9th Ward Ald. Anthony Beale.

“It is irresponsible to simply drop the property tax increase without other meaningful structural measures to raise revenue and combat temperatures,” said 11th Ward Ald. Nicole Lee.

And some in the business community are critical of the fee increases, including for plastic bags and streaming services.

The Illinois Retail Merchants Association said the budget “will hurt retailers of all types and sizes and the communities they serve.”

“I think we have raised many, many fees at the expense of hard-working families. I mean, the mayor talked about wanting a progressive budget. Well, there are a lot of things here that are pretty regressive,” said 34th District Ald. Bill Conway.

In the end, the budget passed, avoiding layoffs while still funding important programs for the mayor and his allies.

“Today I am very proud that we passed this budget,” Johnson said. “I know this has been a long and arduous process and seemed insurmountable. However, the city of Chicago is better off because of your collaboration and leadership.”

In addition, there were several dozen unfilled positions in several city departments, including the mayor’s office, that will be eliminated.

This vote on Monday ensures that city services and paychecks will continue uninterrupted starting January 1st.

“It wasn’t nice. Democracy is never nice. We are not judged on style points. We are evaluated on ensuring that people don’t lose their jobs. People weren’t forced from their homes,” Hall said.

After approving the budget, the mayor renewed his call for more progressive revenue solutions in Springfield, including increasing taxes on the wealthy.

But this entire budget process has made it clear that this council will not be a rubber stamp for Johnson. It also laid the foundation for a better budget process next year.

And while residents were spared a property tax increase this year, that likely won’t be the case next year.

Some city council members say Chicago will need years of financial discipline to be on a solid financial path for the future.