Johnson walks back $300M property tax hike
CHICAGO - Chicago Mayor Brandon Johnson is calling an audible, as he walks back his proposal for a $300 million property tax hike to balance the budget.
The mayor read the room and says he is now negotiating that $300 million number down.
"Should the people of Chicago know that I'm serious about working through this dynamic? Absolutely, I'm serious about it. Absolutely. That's why we put the proposal out in the first place. And that's why we're not dictating the outcome and the success of this budget. And again, it's a collaborative approach. I will continue to lead that way," Johnson said.
This comes as a majority of alderpeople were threatening to vote down the tax hike in a special council meeting this week. Johnson says the contention is a sign that he is willing to negotiate.
The mayor's administration has been in negotiations with alders on alternative ways to make up that $300 million — the mayor says all options are on the table, including a smaller tax hike or none at all. One thing not on the table is any job cuts or furloughs for city workers, which leaves alderpeople scrambling for different tax ideas.
"There were discussions around the property, personal property lease tax. It is a tax on technology companies that lease cloud space. There's also conversations around taxes on cigars or cigarettes as well as plastic, among others. There's also discussions around the ARPA funding," said Ald. Byron Sigcho-Lopez (25th Ward).
"People talked about, like Delta-8, for example, and maybe taxing that either in beverage form or other things, parking tax, garbage fees that come up. So there's a number of things. I think what I'm concerned about is there are some of our colleagues that think that forgoing the pension payment or lessening it is a good idea. It is fundamentally irresponsible to think that that's the way to go," added Ald. Andre Vasquez (40th Ward).
Vasquez was referring to the extra pension payment the city has been making for a couple of years now to try and stave off bankruptcy in those funds, something the mayor also says cannot be cut in this budget.