Today, City Council voted in favor of the alternate revenue ordinance proposal, which largely relies on debt collections to balance next year’s budget.
The proposal passed council with a 29-19 vote in favor of the alternate revenue plan. The proposal removes the head tax and replaces it mostly with debt collection, which the bloc of alders says would result in roughly $90 million in revenue for the city.
“Our proposals are 98.4% similar, but in that 1.6% I have serious concerns about the revenue projections and about the plan to sell Chicagoans’ debts to debt collectors, both because I do not believe there is any way to actually sell that debt,” Mayor Brandon Johnson said during a press conference after the vote. “I don’t agree that this is a principal way of raising revenue by aggressively going after those with the least ability to pay.”
The alternate proposal was approved, even with an updated proposal by Johnson, which keeps the head tax, makes the advanced pension payment and removes the debt collection option, which was sent out to alders this morning. The plan was immediately sent to the Rules Committee and not considered.
Ald. Desmon Yancy (5th Ward), a progressive alderman who voted in favor of the alternate revenue package, said he did so because he didn’t believe the debt collection would harm the city’s most vulnerable.
“The ordinance directs the administration to sell the debt. The administration decides what debt to sell,” Yancy said in a text message. “It’s my belief that the administration will not sell ticket or water debt to balance the budget.”
Ald. Ronnie Mosley (21st), another progressive caucus member who voted in favor of the alternate budget, said he did so because at the time it was the only proposal to include a full pension payment and that both proposals included debt collection.
“Proposal one has 113 million, this one has maybe more,” Mosley told The TRiiBE. “Overall, I think we’re going to be back at the table after this process.”
Ald.Chris Taliaferro (29th Ward) said he voted against the alternate proposal because of the negative impact that the debt collection would have on the West and South sides. Analyses have shown that majority Black communities on the South and West Sides hold the most debt in the city and would be the most impacted by aggressive debt collection tactics that include wage garnishment.
“Why would city council members representing some of the poorest wards in Chicago oppose this corporate tax?” said Crislin Christian-Frazier, a resident of the 24th ward, said during a press conference ahead of today’s vote. “They’re considering selling $90 million of debt, which would be the equivalent to the complete failure of selling the city’s parking meters and the Skyway. This decision would further exploit people who are already struggling to make ends meet in neighborhoods that offer very few amenities.”
Many of the alderpeople who are part of the alternative budget coalition have received donations from longtime democratic donor and billionaire Michael Sacks and his wife, Cari. Sacks has funded ads against the corporate head tax.
“I’m certainly aware of the contributions that this individual has made to multiple people,” Johnson said. “There’s no secret that I believe that the wealthiest individuals in this country have a heavy hand in how our politics are carried out, and how those dollars influence decision makers in government; it’s no secret.”
Johnson said he hasn’t made a decision on whether he would veto the vote. The alternate revenue only has 29 supporters; 34 votes are needed to override a mayoral veto.
