Chicago – A coalition of 29 alderpeople released a letter Monday demanding that Mayor Brandon Johnson commit to a budget plan that excludes a corporate head tax, any property‑tax hike, and unapproved state funding in order to close an estimated $882.4 million deficit slated for 2027.
Council’s Conditions
The alderpeople, who formed the bloc last year in opposition to the mayor’s earlier proposal to reinstate a per‑employee corporate head tax, said they will consider “structural efficiencies” such as eliminating long‑vacant positions, cutting management overhead, and selling surplus real estate. Their press release, issued by the office of Ald. Samantha Nugent (39th), stressed that spending cuts alone may not fully erase the deficit, but that meaningful recurring savings must be on the table before any new revenue options are weighed.
Mayor’s Position
Mayor Johnson has hinted he may revisit the corporate head tax in his 2027 budget, framing it as part of a broader effort to increase taxes and fees on wealthy Chicagoans and corporations. He has also signaled that a property‑tax increase is unlikely, noting his campaign promise not to raise property taxes during his first term, despite a $300 million hike proposal in 2024 that was rejected by the council.
In a recent statement, the mayor’s spokesperson said the administration welcomes “concrete solutions” from alderpeople but rejects “speculative” proposals such as a proposed $1 billion sale of city‑owed debt to outside collectors, which has yet to move forward after two banks declined to proceed.
Budget Gap Details
The city faces a projected $882.4 million spending shortfall for 2027, on top of an $85 million gap for the current fiscal year that the administration plans to fill largely through bond refinancing. Johnson has attributed part of the shortfall to “unrealized” revenues, including the stalled debt‑sale plan that alderpeople estimated could generate about $90 million.
While the council’s letter calls for revenue options that begin with collecting money already owed to the city and modernizing existing revenues, it also makes clear that any new taxes must be locally controlled and not burden working families.
Political Context
The debate reflects an ongoing battle between the mayor’s office and a council majority that opposes what they view as tax increases targeting corporations and affluent residents. Critics have labeled the corporate head tax a “job killer” that could harm the local economy, while supporters argue it would fund public‑safety programs, estimating a potential $100 million annual contribution.
Johnson is expected to deliver a detailed budget address in mid‑October, followed by council hearings on departmental spending. Both the mayor and many alderpeople are up for reelection in February, adding a political dimension to the fiscal negotiations.
Looking Ahead
The council’s stance puts pressure on the mayor to present a budget that balances fiscal responsibility with the administration’s commitment to avoid raising taxes on working people. As the deadline for the 2027 budget approaches, Chicago residents can expect continued discussion on how to achieve structural savings while maintaining essential city services.
Original reporting: Block Club Chicago — read the source article.
