Finance Committee Rejects Brandon Johnson’s $600M Tax Budget

Chicago’s budget talks collapsed again after the City Council’s Finance Committee voted 25 to 10 to reject Mayor Brandon Johnson’s nearly $600 million revenue plan. The defeat marked the second straight year that Mayor Johnson failed to secure support for a central fiscal proposal. The setback pushed negotiations back to square one and deepened a political divide that continues to widen across City Hall.

A Failed Push To Advance a Head Tax

Before the vote, committee members clashed over a corporate head tax that Brandon Johnson argued was needed to “challenge the ultra-rich and corporations to pay their fair share.” A motion to postpone failed after an eighteen-to-eighteen tie. That outcome prompted Ald. Matt O’Shea to say, “Can we just get this over with? This is a joke. They are calling people out there right now to delay this.”

There were several points where the council opposed. Ald. Marty Quinn said, “The City Council will now drive the budget conversation similar to last year.” Ald. Ray Lopez added that recent developments were “extremely embarrassing” to Mayor Johnson and said, “Once again, he has lost control over the budget process.”

Mayor Johnson reacted defiantly. “The corporate head tax is in this budget. It'll stay in this budget. Is that clear enough?” he said. He argued that without the tax, Chicago would've to deal with increased prices for property taxes, garbage fees, grocery taxes, or cuts to police and fire services.

Brandon Johnson declared he would veto any budget that entails such elements. He further reminded alderpeople that it would take 34 votes to override a veto.

Rejection and Stalled Negotiations by Dowell

Finance Chair Pat Dowell rejected Brandon Johnson’s offer to set the head tax at $21 per employee for companies with 200 or more workers. She said she opposed the tax “at any level.” Her position forced Brandon Johnson back to the negotiation table. Those talks collapsed, and the mayor reverted to the previous level of 100 workers, along with $18 million fund for small businesses to employ people in underserved communities.

Dowell began the meeting by trying to recess until December 2. Aldermen voted 24 to 7 to table the motion. After a break, Budget Director Annette Guzman and Chief Financial Officer Jill Jaworski explained the revenue ordinance and the $1.8 billion borrowing plan. The borrowing includes $1.3 billion for capital projects, $283 million for police misconduct settlements, and $166 million for retroactive pay raises for firefighters and paramedics. The borrowing for day-to-day operations carries $50 million in interest.

Reactions From Opponents and Supporters

Minutes after the vote, Ald. Gilbert Villegas said, “This budget is a disaster. Let’s go back to the drawing board.” Fifteen alderpeople who voted no argued that the head tax would drive companies to other regions or lead to layoffs. Chicago once had a $4 head tax that was eliminated more than a decade ago.

Ald. Nicole Lee said, “We can't afford to rush into a decision and not look at every possible angle.” She stressed the need to search for efficiencies. Scott Waguespack declared that numerous other ideas have been proposed by alderpeople and that the council members “have to stand up and push back against this budget.”

Ald. Andre Vasquez voted no because he apprehended the borrowing plan. He said, “Those are very real concerns, and we want to make sure that whatever we do going forward doesn't settle that kind of debt and deficit on future generations.”

Only a small group supported Brandon Johnson. Ald. Anthony Quezada said of major corporations, “They can pay a corporate head tax.” Budget Chair Jason Ervin used a familiar line: “Everybody wants to get to heaven, but nobody wants to die.” He presented the choice as one of assisting big businesses or helping local residents.

A Deepening Divide With Approaching Deadline

During the meeting, Ald. Timmy Knudsen accused the mayor’s office of misrepresenting his position on the head tax. He said the mayor’s staff was “trying to politick their way to a budget.” Later, Brandon Johnson said Knudsen “wasn't being truthful.”

As tensions rose, Ald. Raymond Lopez challenged the role of a senior aide. Dowell quickly cut him off and said, “You don’t know what he was saying.”

The City Council must pass a budget by year’s end. Brandon Johnson said he remains open to negotiations. “I get the storyline. People want the drama,” he said. “The drama is the fact that we've people who are starving in our city.”

Brandon Johnson now faces a difficult path ahead. He didn't have the votes for this proposal, and it's unclear how he will reach the finish line.