Chicago Mayor Brandon Johnson said Tuesday morning that he will move forward with the alternative budget that the Chicago City Council passed Saturday.
Johnson’s spokesman said he would not sign the budget, but it would still come into effect five working days after the vote.
ABC7 Chicago is now live 24/7. Click here to watch
Johnson said he would not shut down the city.
By allowing the alternative budget to become law without his signature, he is trying to have it both ways, calling the budget a victory while also continuing to denounce parts of it as immoral.
Johnson summoned a large crowd of supporters to City Hall to celebrate a budget he had until Saturday condemned.
“We increased the largest TIF surplus in the history of this city for our schools, parks and libraries. We protected jobs for young people. We increased smart taxes to support mental health,” he said.
Better Government Association President and CEO David Greising joins ABC7 to talk about the city’s budget.
Johnson went on to attack a provision that would allow the city to collect millions of dollars in debt owed by Chicagoans for things like city ambulance bills, utility bills and red-light cameras.
“It is unethical to send debt collectors after working people at a time when Donald Trump is attacking poor people,” he said.
He also signed two executive orders Tuesday, including one on the sale of city debt.
The first order prohibits the sale of city-managed medical debt owed by individuals to private entities and sets clear standards for transparent, stable debt collection practices by the city and private third parties, the mayor’s office said.
“How we choose to manage our financial obligations reflects who we are as a city,” Johnson said. “I have been clear from the beginning of this debate that I will not allow the sale of debt to result in the use of predatory and unethical tactics against the people of Chicago. This order affirms that the City will manage this debt in a manner that protects the dignity of our residents, promotes equity and preserves the public’s trust in our city government.”
Another issue is police overtime.
The mayor’s office said the order is intended to rein in police overtime spending by establishing a framework that establishes clear guidelines and procedures for authorizing overtime spending that exceeds caps established in annual appropriations regulations.
“This executive order brings more discipline and accountability to the overtime process that is long overdue,” Johnson said in a statement. “By establishing a structure that emphasizes fiscal discipline and modernized workforce practices, we are protecting the mental health and well-being of our officers and ensuring the people of Chicago can trust that taxpayer dollars are being spent responsibly and transparently.”
The budget was approved Saturday over the mayor’s objections. A coalition of 30 city councilors voted to approve a 2026 spending plan that includes legalizing video game terminals as a way to raise money to cover existing budget deficits. But even Tuesday, both sides agreed changes were needed.
“What was passed was a balanced budget. It was an imperfect budget. We will continue to work with him to try to make it a better budget,” 34th Ward Ald. Bill Conway said.
Speaking after the mayor’s press conference, three city councilors who voted for the budget said they fully supported guardrails to prevent predatory debt collection but insisted the corporate head tax would continue to be eliminated.
“Chicago is open for business. We support business. We want business to come here,” No. 32 Ward Ald. Scott Waguespack said.
But even as the debate continues, even the mayor’s allies acknowledged Tuesday that vetoing a balanced budget so close to the Dec. 31 deadline simply isn’t feasible.
“The next council won’t be closed until January 21st or there could be a government shutdown that would leave us without services for three weeks,” said Byron Sigcho-Lopez, 25th Ward Ald.
Some aldermen said Tuesday that the mayor had read the tea leaves and that even members of his own progressive wing had made clear they would not vote against a veto if it meant shutting down Chicago city government.
The $16.6 billion budget takes effect Monday.