Chicago city budget news: Mayor Brandon Johnson to move forward with alternative finance plan after weekend vote

CHICAGO (WLS) — Chicago Mayor Brandon Johnson on Tuesday morning said he would move forward with the alternate budget pblocked by Chicago City Council on Saturday.

That group rejected a corporate head tax.

Johnson said he would not sign the budget, but it will still take effect five business days after the vote, his spokesperson said.

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Johnson said he would not cause a city shutdown.

He also signed two executive orders Tuesday, including one on the sale of city debt.

The first order prohibits the sale of city-administered medical debt owed by individuals to private entities and sets clear standards for transparent and stable debt collection practices by both the city and private third parties, the mayor’s office said.

“How we choose to manage our fiscal obligations reflects who we are as a city,” Johnson said. “I’ve been clear from the beginning of this debate that I will not allow the sale of debt to lead to the use of predatory and immoral tactics against the people of Chicago. This Order affirms that the City will manage this debt in a manner that protects dignity of our residents, advances equity, and preserves public trust in our city government.”

The other concerns police overtime.

The order seeks to reign in police overtime spending, establishing a framework which sets clear guidelines and procedures for authorizing overtime spending which exceeds the cap set in annual appropriations ordinances, the mayor’s office said.

“This executive order brings added discipline and accountability to the overtime process which has been long overdue,” Johnson said in a statement. “By creating a structure that emphasizes fiscal discipline and modernized workforce practices, we’re protecting the mental health and well-being of our officers and ensuring the people of Chicago can trust that taxpayer dollars are being spent responsibly and transparently.”

Before Tuesday, Johnson had remained mum on the matter, other than calling the proposal morally bankrupt. One of the items in the budget that he is against is the legalization of video gaming.

Nearly 50,000 video gaming terminals are in use in bars, restaurants and other businesses across Illinois.

But those terminals are not in Chicago, where they have remained illegal. That could soon change if the budget approved by 30 alderpersons on Saturday becomes law.

“I border the suburbs. You could go to a pizza place in my ward. And right across the street, you could go to the same pizza place. And you could play video games. So, my businesses have been crying for it,” 38th Ward Ald. Nicholas Sposato said.

Johnson opposes video gaming as it was approved. His budget proposal would limit terminals to Chicago Midway International Airport.

Bally’s, whose temporary location at the Medinah Temple has been underperforming, also opposes legalization, saying video gaming terminals have already cut into casino profits elsewhere across the state.

Those losses, they say, could soon become the city’s, partly because Chicago’s share of the pie would also be lower, especially once Bally’s permanent location in River West is opened.

According to state law, the city gets around 22% of all revenue generated from casinos, but only around 5% of the money earned by VGTs.

“Bally’s staffs to demand. If we’re seeing fewer people come into the casino, we hire fewer people,” Bally’s Governmental Relations Vice President Elizabeth Suever said. “You’re spreading these machines all over the city in ways that doesn’t create jobs, but is also returning a far smaller percentage of the revenues back to the city.”

This is a developing story; check back with ABC7 Chicago for updates.