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Finance Committee Approves Head‑Tax‑Free Budget Plan as Year‑End Shutdown Threat Looms

The council’s alternative leans on a short‑term cloud tax boost plus contested debt‑collection revenue, prompting warnings from the mayor.

Overview

  • The committee advanced the package 22–13, sending it to the Budget Committee for review ahead of a possible full City Council vote.
  • The plan drops a garbage fee hike and restores youth jobs and library funding while rejecting Mayor Brandon Johnson’s $33‑per‑employee levy on large firms.
  • Revenue measures include raising the bag tax to 15 cents, expanding a downtown congestion fee, increasing liquor charges, legalizing video gaming in restaurants and bars, and selling ads on light poles, bridge houses and city vehicles.
  • A temporary increase of the cloud computing tax to 15% is projected to generate about $416 million for one year before a proposed sunset.
  • Johnson’s team disputes the math—especially roughly $90 million from “enhanced” debt collections—and the mayor has not ruled out a veto as the Dec. 30 deadline and potential service disruptions draw closer.