Chicago Council Diverts $75 Million From Budget to Pension Fund
Aldermen voted 44-6 to use parking meter proceeds for a second pension payment, overriding Mayor Brandon Johnson's plan to spend the cash in 2027.
By Marco Whitaker ·
The Chicago City Council holds the power to shape the city's finances, but Mayor Brandon Johnson's proposed spending plan just hit a major hurdle. Aldermen voted to redirect a large sum of money away from his 2027 budget and toward the city's pension system.
The Council passed a measure 44-6 to use the $75 million gained from the sale of the city's parking meters in October. This money will go toward a second supplemental payment on Chicago's pension debt this year. Johnson had planned to include the funds in his proposed $17.6 billion budget for next year.
Aldermen argued that paying down debt now lowers borrowing costs. They said this move frees up cash for services in later years. Gilbert Villegas, the alderman for the 36th Ward, criticized the mayor's approach to spending. "We would like to have collaboration as the mayor likes to say, but what we're seeing is Mayor Mastercard likes to charge everything. And right now we cannot afford that," Villegas said.
Opponents of the extra pension payment pointed to immediate needs in local neighborhoods. Jason Ervin, the alderman for the 28th Ward, questioned the timing of the payment. "I don't know who pays two years rent ahead of time when they don't have the basics in their communities today," Ervin said. Brendan Reilly, representing the 42nd Ward, compared the spending to decorating a home that is already in mortgage trouble.
The vote creates a funding gap in Johnson's budget. The plan already relies on a corporate head tax that the Council rejected last year. Alex Goldenberg of United Working Families listed specific services that need support, including youth jobs, tree trimming, and libraries. The mayor's office warned that using the parking money for debt could force cuts to other programs.
The office stated that the shift puts youth jobs, homelessness services, and community violence intervention at risk. Aldermen opposing the budget plan said the mayor must find another source for the $75 million. Scott Waguespack, the alderman for the 32nd Ward, put the responsibility squarely on the executive branch. "It's his budget. He needs to go find that," Waguespack said.
The City Council must approve a balanced budget by Dec. 31. The outcome of the parking meter sale now adds pressure to that deadline.
