URGENT UPDATE: Chicago Mayor Brandon Johnson has issued a stark warning that public employee layoffs could occur as early as mid-year due to a controversial budget passed without his endorsement. This alarming announcement comes just days after the alternative budget, which Johnson opposed, was approved by the Chicago City Council.
During a press conference on Wednesday, Johnson expressed deep concerns regarding the viability of revenue projections, particularly from video gaming, which he fears may not meet expectations. “I am bracing for what could be mid-year layoffs,” he stated, highlighting the potential impact on community safety and essential public services.
The mayor’s criticism centers on the absence of the corporate head tax he advocated for, which was omitted in the budget that ultimately secured 98.4 percent of his proposals. Johnson underscored the gravity of the situation: “It could be real serious consequences to workers who are attached to community safety.”
However, the leaders behind the alternative budget are pushing back against Johnson’s dire predictions. 39th Ward Ald. Samantha Nugent defended their fiscal plan, arguing that it is balanced and designed to address city efficiency and revenue needs. “The administration now is having to deal with a lawsuit that might put a $26 million hole in the budget,” Nugent warned, referencing a legal challenge from sports betting companies against a newly imposed tax exceeding 10 percent on their revenue.
Some council members downplayed the likelihood of layoffs. 11th Ward Ald. Nicole Lee remarked, “Is there a risk? Sure, but I think it’s very premature. I wish we would focus on the things that we need to focus on, which is getting the year started off right.” Her comments reflect a belief that the budget will stabilize as the year progresses.
As tensions rise, Johnson remains committed to collaborating with the City Council to mitigate potential layoffs. “Again, I’m continuously working with City Council and rolling up my sleeves to ensure that you can mitigate that type of harm,” he reassured the public.
The situation continues to evolve, with monthly assessments of revenue projections expected to play a critical role in determining the city’s financial health. Watch for updates as this developing story unfolds, impacting thousands of public employees and the communities they serve.
