On Tuesday, a coalition of 28 Chicago alderpeople delivered an open letter to Mayor Brandon Johnson urging him to substantially revise his 2027 budget proposal. The council bloc warned that any vote on the current plan, which includes reinstating a corporate head tax, would be “dead on arrival” because it lacks the 26 votes needed for approval.
The letter, signed by alderpersons from all 50 wards, argues that the mayor’s budget “ignores” the roadmap the council provided earlier this fall. It specifically objects to the head tax that would charge businesses with at least 125 full‑time‑equivalent employees $25 per employee each month, a measure the council previously opposed. The aldermen also objected to proposed increases in the Personal Property Lease Tax (PPLT) and other fee hikes.
Mayor Johnson has defended the head tax as a way to make “rich corporations put skin in the game” to fund essential city services such as rodent control, waste disposal, and expanded forestry crews. He also noted that the budget seeks to borrow $480 million to cover expected costs from police‑misconduct settlements and other expenses.
The council bloc called for the mayor to return to the drawing board, find more efficiencies, and increase debt collection from businesses and individuals who owe the city money. They reminded the mayor of a prior pledge to freeze the overall PPLT rate at 15 percent through 2028, questioning why that commitment should be broken.
In response, Mayor Johnson said he would work “collaboratively” with the council and hinted at possible adjustments to the PPLT, which he has proposed raising from 15 percent to 20 percent for most leases—a change that could generate about $234 million if approved. The lease tax would remain at 15 percent for vehicle leases and be reduced to 11 percent for film and television productions.
The budget stalemate adds pressure to the City Council, which must pass a balanced budget by the end of the year. Last year’s budget process nearly missed that deadline, with the alternative budget approved the Saturday before Christmas.
What’s next: Council members will continue hearings on department spending through the remainder of the week, and the mayor is expected to submit any revisions before the year‑end deadline for a balanced budget.
Sources: blockclubchicago.org
