Chicago Mayor Revises Proposed Property-Tax Hike

Chicago Mayor Brandon Johnson has revised his $300 million property tax proposal to $150 million in a bid to secure City Council support for his $17.3 billion budget proposal.

Johnson’s shift follows lengthy discussions with city budget director Annette Guzman and senior advisor Jason Lee, who spent Friday night and Saturday negotiating with council members, Crain’s reported. However, the proposal remains under fire, with some council members unconvinced that this concession goes far enough to alleviate financial strain on residents.

The Progressive Caucus, a 19-member voting bloc, objected to the mayor’s proposal of a 4 percent property tax hike to help cover a $982 million budget shortfall. Johnson has met with leaders of the caucus to discuss possible adjustments without committing to further cuts.

Opposition leaders like Alderman Maria Hadden show no sign of backing down, however.

“There’s nothing wrong with voting down this property tax levy, so I’ll be voting it down,” Hadden said.

Others are exploring alternative revenue, including a potential tax on Delta 8 and other hemp products. An “alley tax” on private garbage haulers is also under consideration. Those measures could spread the tax burden more equitably while bringing in additional revenue, Alderman Andre Vasquez said.

Beyond new taxes, some council members support increasing the city’s garbage collection fee, which covers only 41 percent of costs.

Increases on other fees, such as those on plastic bags and water bottles, could provide close to $200 million, Hadden said.

An additional point of contention is the city’s $272 million supplemental pension payment. Though some council members have suggested reallocating a portion of the amount, city CFO Jill Jaworski has warned against such cuts because they could lead to a credit rating downgrade, increasing future borrowing costs.

“This is the amount we need just to tread water so we don’t get worse,” she said.

— Andrew Terrell