Chicago City Council floats ideas on how to raise revenue, tackle $982M budget deficit

CHICAGO (WLS) -- Chicago City Council members say the city will have to be creative in raising revenue and realistic in making cuts in order to overcome a budget deficit that is approaching $1 billion.

Members returned to work Wednesday after their August break. Despite the budget deficit, there were calls for additional spending.

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During a committee hearing, council members heard, but did not vote on, a proposal to provide free child care for all.

"Child care for all is really needed," a woman said during public comment. "Parents shouldn't have to worry about, 'should I pay my rent, should I pay my light bill, or should I pay child care?'"

The proposal is the kind of investment in people Mayor Brandon Johnson and his allies have touted dating back to before he took office.

"We have not quite determined how childcare will be funded just yet," 26th Ward Ald. Jessie Fuentes said. "We are tasked with being creative, right, about how we ensure that we hold up the things that we have committed to walking into office."

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Some of the mayor's progressive allies suggested they may have to consider imposing a sales tax on services like fitness centers, spas and salons, along with consulting firms or businesses like Google. However, that has some significant implications for the city's business climate.

"One concern about a tax on services that those are businesses that are very portable, and we have lost a lot of jobs in the City of Chicago, and a lot of population here in recent years, and that would be a concern I would have if we were to consider going down that road," 34th Ward Ald. Bill Conway said.

There are also some property tax options beyond just homeowners that are being tossed about.

"University of Chicago, Loyola, the Archdiocese, who arguably own massive swathes of land that they don't pay property taxes to, maybe it is time to pay your tithe," 1st Ward Ald. Daniel La Spata said.

Mayor Johnson has repeatedly said he wants wants to work with stakeholders on options, but one alderman said the nearly $1 billion budget gap and the mayor's spending ideas would require property taxes to go up across the city.

"And they're going to have to go up pretty significantly for him to close the gap that he wants to spend," 32nd Ward Ald. Scott Waguespack said. "But you know, you can't spend, spend, spend and expect taxpayers to basically continue to support your policies or plans that are more exorbitant than what we can afford."

For right now, all of the ideas are just that: options to discuss. However, in little more than a month, the mayor will have to present a balanced budget proposal for the Chicago City Council to consider.