Overview
- The mayor’s midyear budget report released Tuesday says roughly $131.7 million tied to City Council‑approved revenue measures has not materialized and that the city is $32 million under revenue expectations for the first half of the year.
- Planned receipts that produced little or no cash include an $89.6 million long-term debt sale, about $29.3 million from bridge and light‑pole advertising, roughly $6 million from an augmented‑reality licensing program, and $6.8 million expected from video gambling terminals that are not yet online.
- Mayor Brandon Johnson argued the rejected corporate head tax, estimated near $100 million, would have prevented the gap and said he is working to avoid layoffs or service cuts while seeking alternatives.
- A 31-member bloc of alderpeople called the Budget Accountability Coalition countered that the Johnson administration slow‑walked implementation of the council’s budget and pointed to an unresolved dispute with Bally’s over exclusive video‑gambling rights.
- City officials warned that the midyear shortfall compounds a mayoral task force estimate of about a $680 million projected deficit for 2027, setting up a likely contentious budget fight this fall with possible impacts on city services and jobs.