C
hicago's revised budget plan has gained momentum with a scaled-back tax increase. The City Council Finance Committee approved a $68.5 million property tax hike on Tuesday, bringing the 2025 budget closer to finalization. This compromise comes after months of tense negotiations between aldermen and Mayor Brandon Johnson, who initially proposed a $300 million property tax hike to address the city's $982 million budget shortfall.

    The revised plan includes an inflation-adjusted levy tied to the consumer price index, which accounts for 3% of the city's total tax income. This is in addition to $36 million from new real estate developments and expiring tax increment financing zones. The 14-12 vote revealed deep divisions among city leaders, with Alderman Brendan Reilly opposing the measure.

    Supporters like Alderman Andre Vasquez cited gains in transparency and accountability as reasons for their approval. "We're restoring confidence in how the mayor operates and how city government functions," Vasquez said. The budget also relies on $165.5 million from increased cloud computing, streaming service taxes, fines, and fees to stabilize the $17.3 billion budget without layoffs or furloughs.

    However, the financial adjustments required canceling $74 million in social programs, including a cut of $31 million from the basic income initiative that would've provided annual checks to 5,000 struggling families. The city also scrapped $29 million in small-business grants, sparking debate about fiscal priorities.