‘Classic impasse’ for Chicago aldermen debating proposed taxes, spending cuts

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – Chicago Mayor Brandon Johnson is pushing for state help in funding the city’s budget, but a city council member says the mayor’s administration has failed to communicate with Springfield.

Johnson said Thursday that the city needs funding from the state of Illinois for public safety after a CTA train passenger was set on fire Monday evening.

“Just know that it’s a top priority. That funding that we need from Springfield, I know people are looking at a year from now, but we’re calling on Springfield to send that with some expediency,” Johnson said.

Alderman Samantha Nugent told the City Club of Chicago she previously worked in intergovernmental affairs, but she would have been fired if she were as bad at her job as the mayor’s team is.

“We are not communicating with the governor of our state. We do not have a legislative agenda. We don’t know what we’re asking for when we’re down there, and we’re sure not getting it,” Nugent said.

Alderman Matt O’Shea criticized city officials who “keep popping off in the media” about Gov. J.B. Pritzker.

“He’s a presidential candidate in three years, and we keep taking swings at him,” O’Shea said.

Nugent and O’Shea are among a group of at least 25 aldermen who oppose tax hike proposals in the mayor’s budget.

At the core of the aldermanic opposition is Johnson’s corporate head tax that would impose a $21-per-employee monthly tax on businesses with 100 workers or more.

O’Shea said it would be a “job killer” and suggested that labor unions could put “skin in the game.”

When asked about unions Thursday, Chicago Budget Director Annette Guzman Annette Guzman said the city is engaged with its organized labor partners over healthcare costs.

While O’Shea, Nugent and others continue pleading for the mayor to include more efficiencies in his budget, one of Johnson’s key allies, Alderman Jason Ervin, said the aldermen have not identified anything specific.

“I have yet, as the chairman of the committee on budget and government operations, to receive a single reduction from any member of the city council,” Ervin said at the City Club Wednesday.

City taxpayers funded a $3.2 million budget analysis by Ernst & Young, but Nugent said the mayor’s team has neglected many of the report’s recommendations.

“We have only implemented $75 million worth of efficiencies in the budget from the EY report, and the EY report gives like a billion dollars worth of efficiencies. We’ve gone back through the chair, and we’re waiting on a lot of responses. We need to look at vacancies. We need to look at fleet optimization. We need to look at real estate,” Nugent said.

In addition to the head tax, Johnson’s $16.6 billion spending plan also includes an increased cloud tax, a tax on social media and new taxes on sports betting and boat mooring.

The mayor said Thursday he remains open to compromise, adding that he was sending a new budget tool for aldermen to provide revenue or cost-saving recommendations.

The city council is required by law to approve a budget by Dec. 31. If a budget is not passed by that date, some government programs might be interrupted and the city’s bond rating could suffer.

“We are at a classic impasse,” Ervin said.

The council’s next meeting is scheduled for Dec. 10.