Politics
Chicago budget hearings put corporate tax and police settlements under scrutiny
Aldermen were scheduled to question city financial officials Monday as Mayor Brandon Johnson’s $17.6 billion budget proposal faces debate over new taxes and funding for police misconduct settlements. Survivors of police abuse and wrongful convictions planned to urge support for $480 million in settlement funding.
Chicago alderpeople were set to begin another round of hearings on Mayor Brandon Johnson’s proposed 2027 budget Monday, with city financial officials facing questions about a plan to close an $882 million gap through a mix of new taxes and other measures.
Before the 10 a.m. hearing at City Hall, survivors of police abuse and wrongful convictions, their families and community organizations planned a 9 a.m. news conference urging alderpeople to approve the proposal’s $480 million for police misconduct settlements.
The advocates support borrowing to cover those costs. They say paying claims sooner would compensate people who have waited years and could reduce legal expenses without taking money from community services. The proposed settlement funding includes $260 million for cases linked to former Chicago police Detective Reynaldo Guevara, who has been connected to dozens of wrongful convictions.
Johnson’s budget would revive a corporate head tax he unsuccessfully sought last year. The proposal would charge companies with at least 125 full-time employees $25 per worker each month. Johnson has argued large corporations should contribute more, while 29 alderpeople have said the tax could hinder job growth and discourage businesses from locating in Chicago.
The mayor also proposed a 15-cent tax on packaging used for carry-out and delivery, expanding the city’s existing retail bag tax. The measure is projected to raise $9 million. Another proposal would increase the tax on sports betting companies from 10.25% to 20%, generating an estimated $37 million. That tax is being challenged in court by opponents who argue the state, not the city, has authority to impose it.
Monday’s hearing was scheduled to include representatives from the city Budget Office, Department of Finance and Chief Financial Officer’s office. Public comment was to take place before the hearing. Budget hearings were scheduled to continue through Thursday, with the Chicago Police Department slated to appear Wednesday.