Committee on Budget and Government Operations meeting, December 17, 2025
- When: Wed, Dec 17, 2025, 2:00 PM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: Committee on Budget and Government Operations
- Video: https://vimeo.com/showcase/8925576?video=1147777779
- Transcript: full text (50,425 words, official captions)
Meeting notes
AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.
The Committee on Budget and Government Operations met on December 17, 2025 to consider the 2026 appropriation ordinance and related budget items, following Finance Committee passage of an alternative revenue package the previous day. After public comment from 15 speakers, Budget Director Annette Guzman, CFO Jill Jaworski and Comptroller Michael Belsky presented the administration's analysis of the alternative revenue items, projecting a shortfall of roughly $162-163 million and assigning zero revenue to items such as the sale of debt and augmented reality advertising, and members questioned them at length on debt collection, video gaming terminals, the liquor and bag taxes, advertising, vacancies and pension payments. The committee accepted an amendment introduced by Vice Chair Nicole T. Lee adjusting $211 million in spending to match the revenue package (21 to 12), adopted a further amendment from Alderperson Raymond A. Lopez on the library levy, and passed the amended appropriation package by a vote of 21 to 13. The committee also passed a substitute 2026 Management Ordinance by 22 to 11, along with the code corrections ordinance, the motor fuel tax expenditure ordinance and IGA, the salary resolution, and transfer-of-funds items 8 through 26.
Topics: 2026 budget, alternative revenue package, debt collection, video gaming terminals, liquor tax, shopping bag tax, city advertising programs, management ordinance, CPD overtime, pension advance payment
Agenda items discussed
- 15:56 Public comment: discussed
- 56:39 Rule 45 report: passed
- 57:08 Transfer of funds ordinances (items 8 through 26): passed
- 59:53 Substitute code corrections ordinance (item 1): passed
- 1:01:52 2026 budget recommendations and corrections/revisions to the annual appropriation ordinance (items 2 and 3), including administration analysis of the alternative revenue package: passed
- 5:19:18 Amendment to the amendment adjusting $211 million in spending to match the Finance Committee revenue package: passed
- 5:36:12 Alderperson Raymond A. Lopez amendment reflecting the increased library levy: passed
- 5:42:32 2026 Management Ordinance (item 4), substitute: passed
- 5:47:22 Motor fuel tax expenditure ordinance for 2025 (item 5): passed
- 5:52:30 Intergovernmental agreement with CTA and Cook County on motor fuel tax allocation (item 6): passed
- 5:53:16 Salary resolution (item 7): passed
Alderpersons who spoke
- Jason C. Ervin (chair): Explained that the appropriation ordinance falls under the committee's jurisdiction and incorporates revenue changes passed by the Finance Committee. (1:04:14); Asked how the advance pension payment is split between funds and whether it could later be credited against the statutory levy payment. (4:40:19); Called a recess so staff could review additional items presented by Alderperson Raymond A. Lopez to make sure they work correctly. (4:47:06)
- Gilbert Villegas (alderperson): Asked whether the Budget Director's presentation was on the administration's budget or an analysis of the revenue package passed the previous day. (1:02:43); Questioned the budgeting of the proposed tax on technology companies, anticipated litigation, and outside legal counsel costs. (2:35:46); Raised a state Senate bill that could reduce local distributive fund revenue and noted the council supported 98.4% of the mayor's proposal, arguing budgets are estimates that run over and under. (2:39:30)
- Brendan Reilly (alderperson): Asked who is checking the administration's math and requested that the underlying work behind the slides be shared with council's financial advisors. (1:16:50); Questioned the zero projection for debt collection and asked how many city and sister agency employees have wages garnished for city debts. (2:06:16); Said companies, fleets and delivery services owe the city significant debt and the city underinvests in revenue-producing positions. (2:10:13)
- Anthony Beale (alderperson): Said he disagreed with nearly all of the administration's assessment and asked whether staff would sit down with the council's financial team. (1:46:06); Suggested asking the governor to add Gaming Board resources to speed video gaming terminal licensing. (1:46:43); Questioned spending on signage displaying the mayor's name on city projects given the budget deficit. (1:48:38)
- Emma Mitts (alderperson): Asked how youth summer jobs were funded, when ARPA funds ran out, and requested the list of organizations used for the program. (1:54:31)
- Pat Dowell (alderperson): Called the administration's analysis overly critical and asked for its underlying data. (1:58:12); Questioned the zero projection for advertising revenue and the legal basis cited for the augmented reality projection. (1:59:01); Asked why the bag tax projection rose in the mayor's budget while staff cited changes in consumer behavior. (2:02:47)
- Nicole T. Lee (alderperson): Said zero projections were disappointing and asked about the projected 2025 year-end deficit and revenue performance. (2:16:18); Asked why the liquor tax analysis used aggregate pricing rather than product-specific data and whether it used retail or wholesale prices. (2:19:51); Asked whether the technical amendment eliminated any positions beyond the mayor's original budget. (4:45:01)
- Raymond A. Lopez (alderperson): Asked whether the administration would propose amendments to address its projected $162 million shortfall and was told it would not. (2:24:43); Questioned why more of roughly 2,100 positions expected to remain vacant into 2026 were not cut to save money. (2:30:28); Offered an amendment so the appropriation reflects the increased levy and all expenditures are properly accounted for. (5:36:12)
- Debra L. Silverstein (alderperson): Said it was frustrating to keep debating a revenue package that passed the day before and yielded her questions. (2:34:38)
- David H. Moore (alderperson): Said he wants to avoid burdening residents, questioned the bag tax increase and mentioned the former grocery tax as a revenue option. (2:42:31); Asked whether video gaming revenue depends on state action and whether sweepstakes operators are denied gaming licenses. (2:43:34); Urged administration staff to meet with the experts behind the alternative budget so members can vet it. (2:47:35)
- Anthony V. Napolitano (alderperson): Questioned the drop from $89.6 million to zero for debt collection and asked for projections of collected and uncollected debt. (2:50:31); Argued the city needs a much larger collections team given over $1 billion in outstanding debt. (2:56:02); Called for the council to address debt collection immediately after the budget is finished. (3:02:41)
- Anthony J. Quezada (alderperson): Requested a breakdown and heat map of city debt by type and location. (3:03:20); Asked who the financial experts behind the alternative budget are and voiced concerns about debt and fines, lack of structural revenue and unstable projections. (4:11:57); Asked whether bridge house advertising would affect a federal preservation agreement. (4:12:46)
- Nicholas Sposato (alderperson): Said decades-old debt location data would be of limited use because people move. (3:03:55); Suggested an amnesty program and court process for indigent debtors, and said video gaming terminals would help struggling neighborhood businesses. (3:27:06); Said sweepstakes machines are not illegal and operators have asked to be licensed. (4:28:29)
- Daniel La Spata (alderperson): Noted that residential water debt is concentrated in the poorest zip codes while about $95 million is owed by commercial and industrial properties. (3:05:11); Asked about ground transportation tax figures, a bag tax discrepancy in the deck, and the liquor gallonage rate unchanged since 2007. (3:06:19); Asked when the appropriation amendment would be provided, three hours into the meeting. (3:08:32)
- Michael D. Rodriguez (alderperson): Asked whether there is an acceptable standard for deviation between budgeted and actual revenue. (3:10:16); Said a 100% deviation on a major revenue source is unacceptable and called for returning to the table, while recognizing colleagues' work. (3:11:32); Raised a union estimate that video gaming terminals could cost about 300 jobs at Bally's and voiced concern for workers in his ward. (3:12:24)
- Byron Sigcho-López (alderperson): Echoed concerns about job losses and asked how video gaming terminals would affect Bally's host community agreement. (3:14:45); Asked how compliance behavior is factored into fine revenue estimates and said the alternative figures appear overinflated. (3:15:54); Asked what supports assuming recovery of nearly 9% of $1 billion in delinquent debt and what private collection would mean for residents. (3:18:28)
- Felix Cardona Jr. (alderperson): Asked why the 2.38% effective liquor tax benchmark was not shared, what a 3% rate would raise, and whether the start date could be delayed. (3:24:42)
- Andre Vasquez Jr. (alderperson): Asked the administration to share its projection assumptions and a term-long comparison of projections versus actual results. (3:28:46); Noted the city already uses third-party collectors and asked how current practices protect vulnerable residents, suggesting in-house collection. (3:30:42); Questioned removing the requirement for CPD to seek council approval when exceeding its overtime cap. (5:57:20)
- Matthew J. O'Shea (alderperson): Listed 2025 revenues that came in above and below projections to argue that budgets are assumptions. (3:36:54); Said the alternative budget was prepared by highly capable finance experts and that the majority supporting it believe in the numbers. (3:38:28); Asked the Comptroller what more can be done to hold repeat and business debtors accountable, and thanked the Law Department for help with a problem operator. (3:39:13)
- Matthew J. Martin (alderperson): Asked whether extending the benchmarking reporting deadline would raise more fine revenue. (3:46:22); Sought clarity on why the firefighter back pay is being financed by borrowing, citing differing explanations heard by colleagues. (3:49:19)
- Monique L. Scott (alderperson): Asked how the $89.6 million in the alternative package relates to the $113 million debt collection increase in the mayor's budget and what debts are included. (3:55:57); Suggested the item could be treated as debt recovery through existing collectors rather than a sale of debt. (3:58:52)
- Lamont J. Robinson (alderperson): Asked what passing an unbalanced budget would do to the city's credit rating. (4:00:47)
- William Conway (alderperson): Asked the Comptroller to clarify how much debt has accumulated over the past seven years. (4:06:07); Questioned the claim that false alarms cannot be tracked and billed, saying the city is conflating what it cannot do with what it chooses not to do. (4:07:31); Agreed with Alderperson Andre Vasquez Jr. that additional overtime oversight would be welcome while saying he would vote yes on the ordinance. (5:59:08)
- Scott Waguespack (alderperson): Said he had answered the bridge house question the previous day and that the proposal does not affect federal law and differs from the 2011 approach. (4:14:24)
- Walter R. Burnett (alderperson): Asked what options the city would have if a revenue shortfall emerged mid-year beyond position cuts. (4:21:03); Asked about the 160-establishment VGT estimate, whether sweepstakes operators would be excluded, and the difference between a licensing fee and a tax. (4:23:11); Asked about the term and exclusivity of the city's advertising contract and whether it limits other advertising programs. (4:26:44)
- Jessica L. Fuentes (alderperson): Asked how state Gaming Board licensing timelines affect VGT revenue and the impact on the Bally's contract. (4:30:22)
- Desmon C. Yancy (alderperson): Asked about consequences of failing to pass a budget by the deadline and whether a shutdown or an apparently unbalanced budget is worse. (4:34:06)
- Leni Manaa-Hoppenworth (alderperson): Said a budget relying on debt collection, fines and fees would be hard to support and asked about plans with Springfield for structural revenue. (4:36:41)
- Maria E. Hadden (alderperson): Asked that newly distributed amendments be sent electronically so remote members could review them. (5:20:10); Asked whether the item 2 substitute had been accepted before amendments were taken up. (5:28:49); Asked to hold the management ordinance motion until members could see the substitute. (5:46:29)
- Samantha Nugent (alderperson): Presented the substitute management ordinance, including removing the CPD overtime approval requirement, pension and debt collection reporting, an advertising program, EY report implementation, and capital project review. (5:55:38)
Exchanges between members
- 1:46:24 Alderperson Anthony Beale returned to Alderperson Brendan Reilly question about sitting down with the council's financial team to review the numbers.
- 1:58:41 Alderperson Pat Dowell underscored Alderperson Anthony Beale request for the administration's underlying data.
- 2:16:18 Vice Chair Nicole T. Lee echoed Alderperson Pat Dowell disappointment with the zero projections.
- 2:50:31 Alderperson Anthony V. Napolitano returned to the debt collection concern raised by Alderperson Brendan Reilly.
- 3:14:45 Alderperson Byron Sigcho-López echoed Alderperson Michael D. Rodriguez concern about job losses at Bally's.
- 4:14:24 Alderperson Scott Waguespack responded to Alderperson Anthony J. Quezada that he had answered the bridge house question and the proposal does not affect federal law.
- 4:15:38 Alderperson Brendan Reilly said the approach Alderperson Scott Waguespack described for bridge house advertising differs from the 2011 program.
- 5:58:04 Alderperson Anthony Beale answered Alderperson Andre Vasquez Jr. question about the overtime provision in the management ordinance.
- 5:59:08 Alderperson William Conway said he agreed with Alderperson Andre Vasquez Jr. that more overtime oversight would be welcome.
- 5:59:46 Alderperson Raymond A. Lopez responded to Alderperson Andre Vasquez Jr. comments on the overtime provision, objecting to questioning colleagues' fiscal credentials.
- 6:02:20 Alderperson Samantha Nugent answered Alderperson David H. Moore question about the advertising program section of the management ordinance.
- 6:03:48 Alderperson Gilbert Villegas answered Alderperson Daniel La Spata question about capital project review.
- 6:04:32 Alderperson Daniel La Spata pressed Alderperson Gilbert Villegas on the scale of capital projects requiring committee approval.
- 6:06:29 Alderperson Andre Vasquez Jr. responded to Alderperson Raymond A. Lopez remarks and continued questioning CPD's share of the budget.