Council punts on migrant funding, $1.25 billion bond issue
Two of Mayor Brandon Johnson’s most powerful allies on Wednesday used a parliamentary maneuver to defer consideration of two controversial and costly items with heavy potential to impact city finances: a $1.25 billion borrowing to bankroll economic development and housing projects and $70 million in surplus spending to fund the migrant crisis.
The parliamentary maneuver by Finance Chair Pat Dowell (3rd) and Budget Chair Jason Ervin (28th) sets the stage for both items to be considered at yet another City Council meeting on Friday.
The massive borrowing marks a fundamental shift away from Chicago’s longstanding dependence on tax-increment-financing (TIF). It cleared the Finance Committee by a 20-to-9 vote earlier Wednesday after the mayor’s forces squelched the second attempt this week to reduce the threshold for City Council approval of individuals projects from $5 million to $1 million.
Downtown Ald. Brendan Reilly (42nd) tried again — and failed — to lower the bar just as Ald. Bill Conway (34th) had Monday. Conway also tried and failed to shrink the borrowing from $1.25 billion to $350 million.
“There are a number of projects that will fall within the $1 million-to-$5 million range and … it’s our duty to provide legislative oversight on the expenditure of these monies,” Reilly said Wednesday.
“I understand that the administration is bound and determined to issue $1.25 billion in bonds. I’m willing to let that go. But I do think this body has a responsibility to provide adequate oversight of these funds.”
Dowell argued a $1 million threshold for Council approval would slow down development that Johnson needs to speed up.
Johnson’s plan for another $70 million to deal with the migrant crisis had cleared the Budget Committee on Monday after behind-the-scenes lobbying by County Board President Toni Preckwinkle.
The mayor had promised the $70 million months ago — to match a $70 million contribution from Cook County and a $182 million pledge from the state — only to back out of the three-way agreement.
The $70 million will be drawn from the city’s assigned fund balance from 2022.
In a text message to the Sun-Times, former Chief Financial Officer Dana Levenson branded the mayor’s latest migrant funding plan “outrageous” and warned tapping the city’s reserve funds would “put the city’s bond ratings in jeopardy.”
Also put off until Friday was consideration of a $750,000 settlement with a man who said he was injured by Chicago police during protests in the wake of the murder of George Floyd by a Minneapolis police officer.
The Council, was, however, expected to vote on several other measures:
• An expansion of electric scooter rentals.
• Two new rooftop signs on buildings near Wrigley Field.
• Authorizing the Chicago Police Department and Secret Service to establish and enforce the security footprint around this summer's Democratic National Convention activities at McCormick Place and the United Center.