Major Fees and Changes Revealed

On Saturday, the Chicago City Council approved an alternative budget proposal, marking a significant departure from Mayor Brandon Johnson’s original plan. The budget, which received a 30-18 vote, implements notable changes, including tax increases and new revenue streams without instituting a corporate head tax.

Major Fees and Changes Revealed in Chicago’s Fiscal Plan

This budget will affect various areas, emphasizing the importance of addressing the city’s fiscal health. Here are the key changes within the approved budget:

• Checkout Bag Tax: The tax on single-use bags will rise from 10 cents to 15 cents, with one cent returned to retailers. This marks the second consecutive year of increases.
• Retail Liquor Tax: A new 1.5% tax on off-premise liquor sales will be instituted, replacing the initially proposed 3% tax.
• Property Tax Increase for Libraries: A $9 million increase in the property tax levy for the Chicago Public Library will result in an average household cost of about $11 next year.
• Video Gambling Legalization: Video gambling terminals will be authorized at bars and restaurants, projected to generate $6.8 million in revenue for 2026.
• City Debt Sale: The budget includes a controversial measure allowing the sale of city debt, potentially raising around $90 million for city services.

Relations Between City Council and Mayor

The passage of this budget has been perceived as a strong rebuke to Mayor Johnson. Although he expressed concerns about the budget’s balance, he has not confirmed any intent to veto it yet. The mayor previously stated that any budget containing a garbage fee increase or property tax hike would face his opposition.

Mayor Johnson’s budget team argues that the alternative proposal could lead to a projected $163 million deficit next year. They have raised alarms over the potential revenue streams, particularly the implications of the new liquor tax and the debt sale.

Opposition Voices in the Council

Critics within the City Council have voiced strong opposition to the budget, warning of possible midyear cuts and a potential credit downgrade. Alderman Jessie Fuentes emphasized the unsustainable nature of the revenue assumptions, labeling them as wishful thinking.

Despite the discord, supporters of the alternative budget believe this plan lays a foundation for Chicago’s financial future. Alderman Pat Dowell stated that the proposal, while not perfect, represents a viable plan that can be built upon moving forward.

As the year draws to a close, the deadline for passing a balanced budget looms. Without one, Chicago faces the unprecedented threat of a government shutdown, which could disrupt numerous city services.