On Tuesday, a majority bloc of Chicago City Council members delivered an open letter to Mayor Brandon Johnson, demanding that he return to the drawing board on his 2027 budget proposal. The 28 alderpeople, representing nearly half of the council, said the plan’s corporate head tax and additional fee hikes would not secure the 26 votes needed for approval.
Council’s Core Concerns
The council’s letter warned that the budget’s reliance on a new head tax – which would charge businesses employing at least 125 full‑time‑equivalent workers $25 per employee each month – runs counter to the roadmap the council presented earlier this fall. Aldermen argued that a tax on jobs would hinder Chicago’s ability to grow and that the proposal ignores the council’s request to avoid new property taxes, new corporate taxes, and reliance on unapproved state funds.
In addition to the head tax, the mayor’s plan includes a 15‑cent tax on delivered packages, higher fees on leased software and computer equipment, and a proposed increase to the Personal Property Lease Tax (PPLT) from 15 % to 20 %. The council urged Johnson to find efficiencies, improve debt collection, and honor a prior pledge to keep the overall lease‑tax rate at 15 % through 2028.
Mayor’s Defense of the Tax Measures
Mayor Johnson defended the corporate head tax as a way to make “rich corporations put skin in the game” to fund essential city services. He argued that the tax would help close an almost $900 million spending gap and support programs such as rodent control, waste disposal, forestry crews, and expanded mental‑health services. Johnson also noted that the budget would borrow $480 million to cover anticipated costs from police‑misconduct settlements.
“This budget cannot be balanced off the backs of working people,” Johnson said at a press conference. “What we cannot afford is to go back to a time in which harm was administered by government,” he added, referencing the closure of city‑run mental‑health clinics under former Mayor Rahm Emanuel.
Negotiation Outlook
While the council’s letter is firm, Johnson signaled openness to adjustments. In a separate letter to council members, he mentioned possible changes to the PPLT rate and indicated a willingness to work “collaboratively” with the council on the budget. The mayor’s office has not yet detailed which provisions might be altered.
The City Council must pass a balanced budget by the end of the year. Last year’s budget process nearly missed the deadline, with the alternative budget approved the Saturday before Christmas. This year’s standoff underscores the growing tension between the mayor’s administration and a sizable council bloc seeking fiscal restraint and adherence to previously agreed‑upon tax limits.
Key Aldermen in the Letter
The signatories include Alds. Brian Hopkins (2nd), Pat Dowell (3rd), Desmon Yancy (5th), Greg Mitchell (7th), Michelle Harris (8th), Anthony Beale (9th), Peter Chico (10th), Nicole Lee (11th), Marty Quinn (13th), Raymond Lopez (15th), Stephanie Coleman (16th), Derrick Curtis (18th), Matt O’Shea (19th), Silvana Tabares (23rd), Monique Scott (24th), Felix Cardona, Jr. (31st), Scott Waguespack (32nd), Bill Conway (34th), Gilbert Villegas (36th), Emma Mitts (37th), Nicholas Sposato (38th), Samantha Nugent (39th), Anthony Napolitano (41st), Brendan Reilly (42nd), Timmy Knudsen (43rd), Bennett Lawson (44th), James Gardiner (45th) and Debra Silverstein (50th).
The outcome of these negotiations will shape Chicago’s fiscal direction for the coming year, determining whether the city proceeds with the proposed head tax or adopts an alternative revenue strategy that aligns with council priorities.
Original reporting: Block Club Chicago — read the source article.
