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Chicago Council Advances $16.6 Billion Budget Without Head Tax as Mayor’s Team Cites $163 Million Gap

A looming Dec. 30 deadline leaves the outcome uncertain due to disputed revenues.

Overview

  • The Budget Committee voted 21–13 to send the revised alternative budget to the full City Council for consideration.
  • The plan drops Mayor Brandon Johnson’s corporate head tax, preserves funding for youth jobs, and removes a proposed garbage collection fee increase.
  • The revenue package leans on a higher plastic bag fee, a revamped off‑premise liquor tax, authorization of video gambling, expanded advertising and naming rights, and enhanced collections.
  • Johnson’s budget officials say the proposal would leave a $163 million shortfall in 2026, argue there is no viable market for selling city receivables, and warn video gambling could reduce revenue by roughly $3 million tied to Bally’s.
  • Council leaders have scheduled multiple meetings through Christmas with a vote possible as soon as Friday, veto‑override support remains short of 34 votes, and sources say the mayor has largely set aside the head tax.