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Chicago Aldermen Unveil Head‑Tax‑Free Budget Plan as Johnson Threatens Veto

A year-end deadline and a negative credit outlook leave little room for error.

Overview

  • A bloc of 26 City Council members released an alternative budget that rejects the mayor’s corporate head tax and relies on higher garbage fees, a 3% tax on off‑premise liquor sales, restored rideshare congestion surcharges, improved debt collection and targeted efficiencies.
  • The proposal would raise the monthly garbage collection fee to $18 with exemptions for seniors and pursue augmented‑reality licensing at city attractions to generate additional revenue.
  • The aldermen’s plan restores the full $260 million advance pension payment and pays $166 million in firefighter back pay from the corporate fund instead of issuing general‑obligation bonds, citing credit concerns.
  • Mayor Brandon Johnson doubled down on the $21‑per‑employee head tax for a Community Safety Fund, accused business‑backed PACs of spreading misinformation and vowed to veto any budget that raises property taxes or garbage fees.
  • With a $1.1–$1.2 billion gap and S&P having shifted Chicago’s outlook to negative, the council must pass a balanced 2026 budget by Dec. 31, and any garbage‑fee plan would need 34 votes to override a likely mayoral veto.