Chicago Mayor Brandon Johnson announced on Tuesday his commitment to proceed with the alternative finance plan recently approved by the Chicago City Council. This decision follows the council’s rejection of a proposed corporate head tax during a vote held over the weekend.
Key Details of the Alternative Finance Plan
Although Johnson has stated that he will not personally sign the budget, his spokesperson confirmed that it will still go into effect in five business days. The mayor assured residents that this course of action will not lead to a city shutdown.
Executive Orders Signed by Mayor Johnson
On the same day, Johnson signed two significant executive orders. The first order addresses the management of city debt, specifically prohibiting the sale of city-administered medical debt to private entities. This initiative aims to establish clear standards for ethical debt collection practices.
- The order emphasizes the protection of residents’ dignity.
- It seeks to advance equity within the city.
- It aims to preserve public trust in the government.
“How we choose to manage our fiscal obligations reflects who we are as a city,” Johnson stated. He reinforced his commitment to preventing predatory tactics from being used against Chicagoans.
The second executive order focuses on police overtime spending, aiming to create a structured framework for authorizing spending that exceeds established caps. Johnson highlighted the importance of fiscal discipline and accountability in this area.
Concerns Over Video Gaming Legalization
Another contentious issue within the budget is the potential legalization of video gaming terminals in Chicago. Currently, around 50,000 gaming terminals operate in Illinois, but they remain illegal in the city. Johnson opposed the legalization as it stands, suggesting limitations to only allow terminals at Chicago Midway International Airport.
38th Ward Alderman Nicholas Sposato expressed frustration at the disparity between businesses on either side of the city border, where gaming terminals are allowed. He emphasized the demand from local businesses for video gaming to be legalized.
Bally’s, currently seeing underperformance at its temporary location, also opposes the expansion of video gaming terminals. The casino industry argues that the addition of these machines could erode their profits and, consequently, job opportunities within the city.
Financial Implications of Expanded Gaming
According to state law, Chicago only receives about 5% of revenues generated from video gaming terminals, while it earns around 22% from casino revenues. Bally’s Vice President of Government Relations, Elizabeth Suever, warned that the proliferation of gaming terminals could negatively impact employment and revenue for existing casinos.
This emerging financial landscape around the alternative finance plan and gaming legalization will be monitored closely in the upcoming weeks.
