Overview
- Mayor Brandon Johnson said he will neither veto nor sign the City Council’s $16.6 billion 2026 budget, allowing it to take effect by default five business days after passage or by Jan. 1.
- He signed executive orders that prohibit selling individual medical debt to private collectors and require joint approval for police overtime that exceeds budgeted caps.
- The council’s plan, approved in two votes last week (29–19 for revenues and 30–18 for appropriations), omits the mayor’s corporate head tax and instead relies on higher bag and liquor taxes, citywide video gaming, new advertising, and selling some unpaid city debt.
- Johnson’s budget team disputes key revenue assumptions and savings in the plan, warning of a potential $163 million shortfall next year if projected proceeds do not materialize.
- The alternative budget restores the full advance pension payment and keeps much of Johnson’s original spending, with supporters arguing it avoids job-killing taxes and prevents a year-end shutdown.