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Chicago Council Advances Head-Tax-Free Budget as Johnson Warns of Shortfall and Pledges to Avoid Shutdown

A Saturday vote is expected after the mayor’s budget team said the plan leaves roughly a $163 million gap.

Overview

  • The Budget Committee voted 21–13 to send the alternative 2026 spending plan to the full City Council after the Finance Committee approved its revenue package earlier in the week.
  • Mayor Brandon Johnson’s aides say the council-backed plan is about $162–$165 million out of balance, disputing projected revenues from selling city receivables, legalizing video gambling, raising the bag fee and restructuring the liquor tax.
  • Opposition aldermen maintain their projections are sound and push a package that drops the corporate head tax, raises the plastic bag fee, overhauls the off-premise liquor tax, authorizes video gambling, expands rideshare congestion zones and opens new advertising opportunities.
  • Johnson labeled the proposed sale of roughly $90 million in non-property debt a red line and called it speculative and harmful to poor residents, yet he has not said whether he will veto the plan.
  • A simple majority backs the alternative but the bloc lacks the 34 votes needed to override a veto, and with a Dec. 30 deadline looming, the mayor says he will do whatever it takes to prevent a city government shutdown.