Johnson presented his $17.6 billion 2027 spending plan Wednesday. The corporate head tax, rejected by alderpeople last year, is back in the proposal, alongside a plan to raise the cloud tax rate to 20%. The mayor has proposed pairing the head tax with a full rebate for jobs based in impoverished communities, but business leaders say that would not change their opposition.

Chicagoland Chamber of Commerce President Jack Lavin said business organizations would join the Civic Committee of the Commercial Club in a campaign against both measures. He argued the cloud tax would affect small businesses and residents who pay for software or lease equipment, not just large technology companies.

“This is on every small business in Chicago and every resident who has software or leases equipment to do work,” Lavin said.

Derek Douglas, president of the Civic Committee, said the head tax could undermine Chicago’s growth and urged alderpeople to reject it again. Last year, a coalition of 31 conservative and moderate alderpeople blocked Johnson’s proposal and approved a different budget over his objections.

Mike Ruemmler, president of One Future Illinois, said the organization is prepared to spend “hundreds of thousands of dollars” educating voters and alderpeople. He criticized the mayor’s approach as an effort to energize supporters ahead of next year’s runoff rather than build agreement on the budget.

The proposed cloud-tax increase has also drawn opposition from Ald. Gilbert Villegas, who said it could affect everyday users of services such as Microsoft 365. But Ald. Andre Vasquez, a co-chair of the Progressive Caucus, supports raising the tax to 20%, arguing the city has few other revenue options. He also backs the head tax.

Vasquez disagrees with Johnson’s proposal to borrow $480 million over two years to help cover a $260.8 million settlement for people framed for murders by former Chicago police Detective Reynaldo Guevara, along with other police-related settlements. He questioned whether the city could responsibly rely on additional borrowing, citing recent difficulty issuing debt and declining credit ratings.

The budget debate also includes a proposed increase in the city’s tax on sports betting. The Sports Betting Alliance, which represents DraftKings, FanDuel and other sportsbooks, opposes the plan to nearly double the tax. Johnson says the increase would raise $37 million from companies rather than bettors; the alliance argues it would increase costs for Chicago sports fans.

The mayor’s proposal would also continue reductions in police vacancies. The budget office has said the city would cut personnel costs by $34.4 million by eliminating 368 sworn vacancies and converting another 132 positions to civilian roles. The Police Department’s annual budget would nevertheless rise from $2.12 billion to $2.24 billion, largely to cover pay raises.

With opposition already forming around several revenue and spending choices, the Council’s response will determine whether Chicago can avoid another last-minute budget standoff.