City Council majority turns up the heat on Mayor Brandon Johnson to implement alternative budget
Ronald Reagan used the phrase “trust but verify” when discussing arms control negotiations with Soviet leader Mikhail Gorbachev.
The operative phrase for the City Council majority that led the budget rebellion against Mayor Brandon Johnson is more like, “Verify because you distrust.”
That much was clear on Wednesday when the coalition of conservative and moderate Democrats who rejected the mayor’s proposed corporate head tax created nearly a dozen working groups to make certain that Johnson implements the alternative budget he opposed instead of sabotaging it.
Former Finance Chair Scott Waguespack (32nd), who was deposed by Johnson, leads two groups—one charged with selling advertising on city vehicles and assets, the other with implementing the $46 million in efficiencies outlined in the road map prepared for the city by EY, formerly known as Ernst & Young.
Economic and Capital Development Chair Gilbert Villegas (36th) will take the lead in making certain that the Johnson administration raises nearly $90 million by selling long-outstanding city debt.
Ald. Samantha Nugent (39th) will oversee efforts to generate $312 million by raising the tax on cloud computing and equipment leases and $8.7 million by increasing the tax on plastic shopping bags by a nickel—to 15-cents-a-bag.
“When the mayor was having these budget road shows and he was speaking ill about the budget passed and saying that the numbers didn’t add up, we realized that we were gonna have to put some work in to make sure this gets completed,” Nugent said Wednesday.
“It’s the responsibility of the administration to [execute] the budget we passed. But, we recognize these are unique times and we’re committed to ensuring the work gets done.”
In the run-up to a budget rebellion not seen since the 1980s power struggle known as Council Wars, Johnson and his finance team warned repeatedly that the newly revised revenue plan included shaky and unrealistic estimates that would set Chicago up for a midyear budget shortfall.
Johnson’s administration took particular aim at the plan to sell off long-term city debt to collection agencies and saturate the city with video gambling terminals — with the assumption that 80% of the 3,300 eligible establishments with off-premises liquor licenses would apply, and would also get gaming licenses this year.
In the two months since the budget battle ended, Johnson has given the rebel group more reason for concern.
The mayor has made only the first half of a $260 million advance pension payment while vowing to pay the second half when a cash flow crunch eases. And he said he is “bracing for what could be mid-year layoffs” that may include “workers attached to community safety” when revenues fall short.
And Johnson has yet to provide the official notification to the state needed to allow the Illinois Gaming Board to start licensing video gambling terminals in Chicago.
Concerned that Johnson is buying time to try to repeal the portion of the budget that lifted the Chicago ban on video gambling, 9th Ward Ald. Anthony Beale and his colleagues went around the mayor and sent that notification to the Gaming Board this week.
On Wednesday, Johnson spoke to City Club of Chicago and gave every indication that he is prepared to continue the budget battle he lost.
The mayor once again denounced the proposed sale of city debt as “wicked and immoral” and continued to beat the drum for progressive revenue that includes taxing millionaires, digital advertising and a graduated income tax.
"This is not to say that middle-class and working-class folks will not pay our fair share. We're simply saying that others have to step up, man up, woman up, person up to do the very same thing because it's a matter of saving lives," the mayor said.
"The fact that it's working is proof positive that if we invest in people, we can save lives and transform communities. The fight for the revenue that we need to invest in our community is at the core of this struggle," he said.
At one point, Johnson offered to declare for reelection on the spot if only every member of his audience of movers and shakers would agree to join him in lobbying the Illinois General Assembly for progressive revenue.
The combative and defiant tone that Johnson struck sounded like a continuation of the budget battle.
If the Johnson administration does all it can to implement the budget, Nugent said there should be no need for layoffs. But she said she fears the mayor could be playing a game of, "I told you so."
"I'm not willing to wait around for that excuse," she said.