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Chicago City Council Passes Budget Without Property Tax Hike, Focuses on Debt Reduction and Job Cuts

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*This is a Commentary / Opinion piece*

The Chicago City Council recently approved a $17.3 billion municipal budget with a narrow 27-23 vote. Among those who voted in favor were several Black aldermen, including Ald. Lamont Robinson (4th Ward), who cast the decisive vote.

The budget discussions centered on controversial proposals, including a now-removed $68.5 million property tax hike. The revised budget eliminated the tax increase but retained other contentious measures, such as a $40 million deferred debt payment on a loan for the former Michael Reese Hospital site.

The approved budget also includes cuts to progressive programs that Mayor Brandon Johnson had been adamant about maintaining. These programs, previously funded by one-time federal pandemic relief money, were viewed by budget officials as unsustainable fixes. Among the most notable cuts is $31 million allocated for a popular guaranteed basic income pilot program. Initially expected to be relaunched to issue a second round of $500 payments to low-income residents, the program has now been significantly reduced.

In addition, the number of youth jobs Johnson initially proposed for 2025 has been cut in half. The original plan included funding for 2,000 additional youth jobs, but the final budget supports only 1,000. "These reductions were necessary to balance the budget, but they're tough to swallow," said Ald. Carlos Ramirez Rosa (35th Ward).

The budget vote occurred just over two weeks before the December 31 deadline to avoid a government shutdown, and securing sufficient support required significant negotiations from Mayor Johnson's administration.

"My goal has been to defeat a property tax increase. While we didn't defeat it outright, we did delay it," said Ald. Brian Hopkins (2nd Ward).

Behind the scenes, days of intense negotiations ensued, with the mayor's team working to sway hesitant aldermen.

"I've been complaining about the floods for two years, so I secured funds for my community. Otherwise, I would've been a no vote," said Ald. Emma Mitts (37th Ward).  Mitts ultimately cast her vote in favor of the budget, which was not well received by community members present in the chambers who made their displeasure known.  Along with Mitts, many members of the Council Black Caucus voted with the Mayor in favor of the budget, despite vigorous objections by their constituents citywide.  

Hopkins added that if the vote had ended in a 25-25 tie, the mayor would have cast the deciding vote. "They're close, and it's possible they'll get there," he said before the final tally.

The vote, initially set for Friday, was postponed due to a lack of support for Johnson's original proposal, which drew criticism even from his allies along with a very vocal contingent of community residents.

On Sunday night, CNW obtained a letter signed by 15 aldermen calling for specific budget cuts to help balance the city's finances. The recommendations included eliminating the Office of the Vice Mayor (saving $432,000), dissolving the Office of Public Safety Administration (saving $61.3 million), and removing the $175 million Chicago Teachers Union non-teacher pension payment.

The letter also urged reinstating ShotSpotter technology, deeper investment in the Chicago Police Department, and finalizing a contract for Chicago firefighters.

Despite the concessions, some aldermen remain critical of the compromises made to pass the budget. Ald. Hopkins expressed a mix of relief and apprehension. "This isn't the victory we wanted. We've simply pushed the property tax debate down the road," he said.  While speaking on the floor, Hopkins made the case that instead of voting today for the budget as it is, for the full council to take the time over the next two weeks, to identify further efficiencies which would decrease the total of the budget and help to bring Chicago back to fiscal accountability.

For his part, Mayor Johnson framed the budget as a reflection of the city's financial challenges. "This budget reflects tough decisions, collaborative efforts, and a commitment to addressing the challenges facing our city," he said.

With the budget passed, Chicago avoids a government shutdown, but debates over spending, taxes, and program funding are likely to continue in the months ahead.

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