Chicago Finance Committee Endorses 2026 Budget Plan, Omits Head Tax

In a significant development, the Chicago Finance Committee has endorsed an alternative budget plan for 2026. This plan was presented by a coalition of alderpersons during a recent meeting. Over half of the city council members have expressed their support.

Key Details of the 2026 Budget Plan

The alternative budget proposal underwent several hours of scrutiny from supporters of Mayor Brandon Johnson’s original plan. Despite the criticisms, the alternate group seeks to garner additional support. They have organized council meetings scheduled throughout the week, including gatherings on Christmas Eve.

Revenue Adjustments

The Finance Committee evaluated various revenue options for the 2026 budget, making some adjustments along the way. Key changes include:

• Increasing the plastic shopping bag tax from $0.10 to $0.15.
• Introducing a pilot program to display advertisements on bridge houses and light poles.

Notably, the plan eliminates the controversial corporate head tax, which has been a focal point of last-minute discussions. Many believe that corporations should contribute more to the city’s budget.

Discontent Among Council Members

Despite the support for the alternative budget, tensions arose during the committee hearing. Alderman Byron Sigcho-Lopez challenged the rationale behind funding through fines and fees while removing the corporate head tax. Meanwhile, Budget Committee Vice Chair Ald. Nicole Lee noted that their new revenue strategies primarily target businesses.

Although the alternative budget group argues that their plan aligns closely with Johnson’s proposal, some of the mayor’s allies expressed frustration over the late disclosures of the financial data.

Concerns Over Debt Sales

Another point of contention is the proposal to sell outstanding city debts, estimated to generate nearly $90 million. Chicago Comptroller Michael Belsky warned against this approach, emphasizing that such a strategy has not been reliably executed by any state in the past.

Proponents of the plan argue that their financial projections are conservative and balanced. Ald. Matt O’Shea stated that extensive consultations with budget experts have taken place.

Next Steps for the Budget Plan

The Finance Committee passed the alternate budget proposal by a vote of 22-13. The next evaluation will take place in the Budget Committee, where more discussions will occur. Multiple council meetings are set for Thursday, Friday, Saturday, and again next week.

Mayor Johnson released a statement addressing the ongoing budget negotiations. He stressed the importance of ensuring that corporations pay their fair share while emphasizing the need for careful scrutiny of the proposals to avoid jeopardizing city services.

As discussions continue, all eyes are on how this alternative budget plan will shape the financial landscape of Chicago moving forward.