City council approves Mayor Johnson's latest budget proposal, without property tax hike
CHICAGO (WLS) -- The Chicago City Council has approved Mayor Brandon Johnson's budget after more than six weeks of contentious debate and wrangling over a property tax hike.
But the mayor came under fiery criticism before the vote, not just over the budget, but over the process that dragged on for weeks.
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After hours of debate Monday on both sides of the budget, which underwent four revisions and took a property tax from $300 million down to nothing, the mayor won enough support to pass, with a final vote of 27-23.
The decision to eliminate the $68.5 million property tax hike was really made last Friday, before the city council meeting was recessed. This weekend, it was a matter of figuring out where the additional $68.5 million in revenue would be made.
"The budget we're 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 the Friday meeting that was put on hold because Johnson did not have the 26 votes needed to pass his budget.
"There were some people who made it clear that there was no path to get them to a 'yes.' So, then you got to focus, 'OK, who's giving you a path to a 'yes?' And what are they saying?' And you have to listen to them. And what they said consistently was they did not want a property tax increase," said 35th Ward Ald. Carlos Ramirez-Rosa.
The approved version of the budget includes no property tax increase and extends the deadline to pay $40 million in debt.
"And I do think, in spite of my frustrations and challenges, that democracy is represented in the budget that is in front of us today," said 1st Ward Ald. Daniel Laspata. "Do I think it is a complete and perfect reflection of my values, my community values? No, but is it a budget that moves us forward in ways that I think are responsible? Yes."
Opponents did not go down without a fight. But before the council could vote, protesters in the gallery caused multiple disruptions, requiring police intervention. The mayor recessed the meeting, and the gallery was cleared, delaying the budget debate.
The budget was balanced by taking out a $40 million loan from a line of credit tied to the planned development of the old Michael Reese Hospital property.
Years ago, the city bought the property in hopes of winning an Olympic bid.
"Well, essentially they're taking one credit card and putting it another credit card with higher interest rates," said 32nd Ward Ald. Scott Waguespack.
Former Finance Committee Chairman Waguespack is concerned forgoing the payment this year will result in a ratings downgrade, which he says will cost taxpayers tens of millions in the long term. Revenue will also come from new fees and taxes. Waguespack is one of 15 alderpersons who have said the mayor has not done enough to cut spending from his budget.
"Simple things that every taxpayer would look at and say, why are the committees increasing the salaries? Why are the staff getting massive increases? Why aren't you cutting X programs?" Waguespack said.
Late Sunday night, 15th Ward Ald. Ray Lopez and 14 other council members released a letter with their proposed changes to the budget.
Their requests called for $823 million in cuts by way of getting rid of things like the Office of Vice Mayor, detached services-spending on city treasurer, city clerk, Chicago Teachers Union non-teacher pension payment, among other things.
"To say that you're gonna take out a $68 million property tax increase and replace it with a $40 million borrowing, taking on more debt for this is unacceptable," Lopez said.
"If we want to talk about wins, starting from zero would have been the win. Starting from a truthful point would have been the win," Lopez about the initial property tax increase proposal.
Ald. William Hall, who represents the 6th Ward, was part of the administration's budget meetings all weekend. He believes the mayor's latest proposal is exactly what Chicagoans want.
"What we wanted was zero property taxes," Hall said. "We got that. What we wanted was a more leaner Chicago. We got that. Participatory budgeting, though it is different, this is the way to the future we have to let voices be at the table."
Besides no property tax hike, the mayor was able to turn no's into yes's by some old fashioned horse trading. Ald. David Moore, who represents the 17th Ward, says the administration has made a commitment to replace the old Ogden Park field house in West Englewood.
"I wanted to make sure the administration made a commitment to redeveloping our communities," Moore said.
But even with the elimination of the property tax that went from $300 million down to $0, the council was still clearly divided over the budget, which passed after its fourth revision.
"There are various reasons I cannot support this proposal. First and foremost is because we'll be right back here again next year. We need to be honest with ourselves, we did not right size this budget. We haven't made enough cuts," said 13th Ward Ald. Marty Quinn.
"How that happened. And a lot of it is relationships, no collaboration, not enough information being given. We should never be here. We just shouldn't," said 37th Ward Ald. Emma Mitts.
Opponents continued to raise concerns about the process and the potential impact the budget will have next year.
"Those gimmicks, that blend of gimmicks, guarantees us the need for a massive property tax increase next year. And it's not going to be $68.5 million. Folks, just watch; it's going to be big," said 42nd Ward Ald. Brendan Reilly.
"In order to get to zero, we are fining and feeing the people of the City of Chicago to death," said 9th Ward Ald. Anthony Beale.
"Simply dropping the property tax increase without other meaningful structural measures to raise revenue and address the temperature is irresponsible," said 11th Ward Ald. Nicole Lee.
And some in the business community are critical of the fee hikes, including on plastic bags and streaming services.
The Illinois Retail Merchants Association said the budget "will hurt retailers of all types and sizes as well as the communities they serve."
"I think we have raised a lot of, a lot of fees on the backs of hard working families. I mean, the mayor talked about how he wanted a progressive budget. Well, there's a lot of stuff in here that's pretty regressive," said 34th Ward Ald. Bill Conway.
In the end, the budget passed, avoiding layoffs and still funding programs important to the mayor and his allies.
"Today I'm very proud we passed this budget," Johnson said. "I know this was a long and arduous process and seemed insurmountable. The City of Chicago, however, is better because of your collaboration and your leadership."
There were also several dozen unfilled jobs across several city departments, including the mayor's office, that are being cut.
This vote Monday ensures that city services and paychecks will continue uninterrupted come Jan. 1.
"It wasn't pretty. Democracy is never pretty. We don't get graded on style points. We get graded on making sure that people did not lose their jobs. People were not put out their homes," Hall said.
After the budget's approval, the mayor renewed his call for more progressive revenue solutions in Springfield, including increasing taxes on the wealthy.
But this entire budget process made clear that this council will not be a rubber stamp for Johnson. It also laid the groundwork for a better budget process next year.
And while residents were spared a property tax hike this year, that is likely not to be the case next year.
Some alderpersons say it will takes years of financial discipline for Chicago to be on a sound financial path for the future.
