Aldermen say mayor fails to collect revenue he opposes

By Jim Talamonti | The Center Square
The Center Square

)The Center Square) – Chicago aldermen are suggesting that the city has a projected budget gap of $130 million because Mayor Brandon Johnson’s administration is failing to collect revenue for budget items it opposes.

The City Council Committee on Budget and Government Operations met on Thursday and discussed the administration’s projected deficit for this year.

The city has collected none of the $131.7 million total projected for sale of debt, advertising, augmented reality and video game licensing.

The four measures were not part of Johnson’s budget proposal last fall, but aldermen included them in the $16.7 billion spending plan they passed in December.

Earlier this month, Johnson blasted aldermen who backed the alternate budget and said enacting his proposal for a corporate head tax on employers would have prevented the shortfall.

Debt sale, projected to generate $89.6 million, accounted for the largest piece of missing revenue. Several aldermen called out the mayor’s administration for failing to act on the issue.

When questioned about video gaming by Alderman Debra Silverstein, Chicago Budget Director Annette Guzman said the state has approved five video gaming licenses for the city.

“The $6.8 million that you see budgeted here was included in city council’s budget and is based on an assumption of 3,300 licenses being approved in one year by the state. That’s never happened in the history of the state,” Guzman said.

Alderman Debra Silverstein expressed frustration with members of the administration saying they are trying to implement the revenue measures.

“All of these numbers that have zeroes by them are things that the mayor is opposed to,” Silverstein said.

Alderman Anthony Beale asked Guzman who in Johnson’s administration was responsible for notifying the state that the city legalized video gaming terminals.

“Alderman, the state is processing licenses, so they’re aware,” Guzman said.

“They’re processing licenses, but you guys stonewalled the process, didn’t notify the state. We had to notify the state. It could have been streamlined, and it just goes to the point that everybody in this body is saying that you guys are stonewalling the parts of this budget that you all don’t like,” Beale said.

Guzman said it takes time to implement new revenue measures, but the Bureau of Business Affairs and Consumer Protection is processing VGT applications.

Beale said the administration is also trying to repeal the city ordinance that allows video gambling.

“What makes us think that you guys are going to implement a process when you are actively trying to repeal it?” Beale asked.

Alderman Samantha Nugent questioned why the city has failed to collect any of the $6 million projected for augmented reality, especially after a major event was held in the city last month.

“Over 717,000 people participated in this Pokemon Go event, which is augmented reality,” Nugent said.

Guzman said liquor tax and checkout bag tax revenues were below projections but could improve during the summer months.

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