Chicago city budget discussions reach stalemate, raising possibility of first-ever local government shutdown
CHICAGO (WLS) — The Chicago budget clock keeps ticking, but it appears the mayor and a group of 26 alders who have offered an alternative budget are no closer to a compromise than they were last week.
That is raising the prospects of a potential city government shutdown.
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Both sides are laying the groundwork to blame the other if for some reason a budget deal does not get done before the end of the year. But a lengthy weekend meeting did nothing to break the stalemate, which raises the specter of Chicago’s first government shutdown.
Mayor Brandon Johnson issued a challenge Monday to the group of 26 alders who are fighting his budget with an alternative plan.
“We don’t know that they have 26 votes because nothing’s been voted up. So, I’m saying, put it on the board,” Johnson said.
On Saturday, many of those alders met with the mayor’s budget and finance teams to present their plan, only to have the ideas dismissed. The mayor was not there, frustrating alders who believe he needs to personally be at the table to get a budget deal done.
“We will continue to work right up until Dec. 30, every single one of us. I think the question is, is the mayor going to get in the room? Is the mayor going to govern? Is the mayor going to lead?” 19th Ward Alderman Matt O’Shea said.
“My team is there. That’s their job. That’s a responsibility. They were there for nine hours. I’m updated all day, every day, on everything,” Johnson said.
The mayor said he remains open to compromise, but not on the corporate head tax, unless there’s other progressive revenue ideas from the alders.
“We will also do everything in our power to prevent a government shutdown. The shutdown benefits nobody,” Johnson said.
A shutdown would likely be a multi-stage process, according to one expert.
“The first would be, I would imagine that you would see enough money scraped together to keep the city government running for a strong short period of time, maybe two weeks,” said professor Justin Marlowe, director of the University of Chicago Center for Municipal Finance.
Then, there could be state intervention to compel a solution.
While alders continue to work on an alternative budget that could be brought to a vote, they offered a promise.
“We are not going to let the end of the year come without a budget. I want to, I want all of us to reassure the people in city of Chicago. We’re not going to let that happen,” 34th Ward Alderman Bill Conway said.
But for investors and stakeholders, the damage may have already been done.
“There’s just so much uncertainty and so much volatility, and that volatility and uncertainty creates an environment that makes it difficult to invest. And it gives people a reason to not invest, which is exactly the opposite of what Chicago needs to be doing right now,” Marlowe said.
The mayor asserts that his budget reflects the will of the people. The opposition alders counter that they represent more than half the city and are responding to their constituents’ desires. The mayor sidestepped the question of whether he would veto an alternative budget.
No vote is expected before next week.
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