Mayor Lori Lightfoot delivers Chicago budget address without property tax hike
CHICAGO (WLS) -- Chicago Mayor Lori Lightfoot delivered her budget address Monday in a special session of the City Council.
The mayor laid out her $16 billion budget plan Monday, calling for a host of new spending but, as promised, no property tax hike.
In a statement released last week, she said the city's revenues are exceeding estimates, so a tax hike is not needed right now.
Lightfoot said city revenues are up $260 million more than expected due to what she called an incredible rebound in the economy.
"In this budget we recommend forgoing the Consumer Price Index increase for one year because we are able to meet our pension obligations through these increased revenues," Mayor Lightfoot said.
Lightfoot said the city budget will not only get the fiscal house in order, but also continue to make investments in people and businesses across the city post-pandemic.
Lightfoot's plan drew mixed reviews from two of the city council members who are running to unseat her.
"This is $16 billion in fiction we heard today and it's meant and it's meant to be inspiring on the cusp of her hopeful reelection," said Ald. Ray Lopez, 15th Ward, candidate for mayor.
"You know what, people might say that might be political, but I think you know honestly, the people in Chicago deserve a little break," said Ald. Sophia King, 4th Ward, candidate for mayor.
The budget also calls for new spending including an additional $100 million for public safety, $200 million more to combat homelessness, $3 million to support abortion services, and $5 million to support migrants being bussed to Chicago.
The mayor also announced a surprise proposal to set aside $242 million to pre-pay the city's pension obligations.
"We've never considered a strategy like that, and I think it's a worthwhile strategy given our pension obligations,' said Ald. Pat Dowell, 3rd Ward, the mayor's budget committee chairwoman.
The mayor said it's time to stay the course, asking aldermen to be bold with her.
"By supporting this budget, which combines fiscal prudence with continued and new investments, we will help our residents continue to recover and by doing so our city to prosper for years and years to come," she Lightfoot said.
The budget made a good first impression with a budget watchdog group.
"Very exciting, great news, no property tax increase, no real general tax increased and you know 100 million to invest in police and do so many other things. This is a pretty good news budget on the surface right," said Laurence Msall, president of the Civic Federation.
Lightfoot's floor leader Michelle Harris believes this should be an easy budget for the city council to support without the property tax hike. The first public hearing is this Thursday.
The mayor is running for re-election, and those running against her said this is just a calculated election-year stunt.
"They've raised property taxes $877, despite the fact that the schools and the city combined got $6 billion in COVID money, so ponder that...and yet the next mayor is going to be facing a budget deficit anywhere from $500 to a billion," mayoral candidate Paul Vallas said. "This announcement is a phony budget, a political budget. It's a one off."
