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Johnson Defends 2026 Budget as Council Grills EY on Savings Plan

The mayor stands by new revenue following a special hearing on EY's cost-cutting suggestions.

Overview

  • EY’s lead author told aldermen the $3 million review was not a forensic audit, outlining options like consolidating purchasing and fleet management rather than verified savings.
  • Budget Director Annette Guzman said roughly 70 EY recommendations are in motion as part of a multi-year effort, citing near-term savings from real estate consolidation, procurement changes and fleet modernization.
  • Civic Federation President Joe Ferguson urged the City Council to reject the plan, and several aldermen pushed to delay a vote to pursue deeper efficiencies.
  • The proposal leans on new revenue, including a $21-per-employee monthly head tax projected at about $100 million and a hemp products tax that critics warn could be undercut by federal action, while labor allies publicly backed the approach.
  • A record TIF surplus exceeding $1 billion is central to the plan, with an estimated $552 million flowing to CPS, as hearings continue and a Dec. 31 deadline looms for approving the 2026 budget.