Chicago passes rule requiring more votes for new debt
(The Center Square) – A new measure requiring larger support from the Chicago City Council to pass measures related to the city taking on debt or issuing bonds passed the city council in what supporters say is an effort to bring financial responsibility to the city.
Mayor Brandon Johnson responded said the measure would cause extra bureaucracy within the city government.
The measure, having passed 32-15, would require at least 60% of aldermen, or a three-fifths vote by the 50-member council, in order to approve any new borrowing for the city.
Alderman Bill Conway from the 34th Ward said that the goal of the measure is to require broader support for city borrowing and spending before measures pass, as debt has racked up over many decades.
“Our debt load is a really a silent killer on our budget. This year we’re going to spend about $2 billion on debt service and that number will increase next year,” Conway said. “The risk we are facing going forward is becoming too tied up in paying the interest on the taxpayers’ credit card that will crowd out our ability to fund parks and schools and roads and police officers and mental health clinics.”
Sponsor Alderman Marty Quinn said he supports a more independent city council, but the measure was solely about requiring more responsibility by public officials for the city’s taxpayers.
“This ordinance is about sound policy and doing the best for our residents. This proposal does not apply to one mayor. This is a long-term plan that would apply to all Chicago mayors moving forward,” Quinn said. “A three-fifths vote is required in the Illinois General Assembly on all debt related matters. It’s a smart and solid practice that I believe the city should also adopt. I see this as a win for the people of Chicago.”
The mayor was critical of the measure and pointed to hypocrisy of some aldermen previously approving debt in the past for issues they supported, and referred to the measure as the “three-fifths compromise,” the wording historically used referring to the agreement made about a state’s enslaved population counting toward congressional representation.
“What I do find ironic though is that there are members who led this three-fifths compromise who voted to borrow debt to close the budget deficit,” Johnson said. “I don’t find this to be a useful way to grow our economy. The last thing that people want of government is to get in the way of itself.”
Questioned on his word choice, Johnson pointed to the use of economic development bonds by his administration being used mainly in underprivileged and historically non-white neighborhoods.
“That economic development bond has allowed us to grow small businesses. The economic corridors, whether it’s in Little Village or whether it’s in Austin, Chicago Avenue or 22nd Street, Cottage Grove, right? The top employer outside of government in the neighborhoods are black and brown business owners,” Johnson said.
Johnson wouldn’t say if he’d veto the measure or let it take effect after the council’s meeting Tuesday, but the council would only need to pick up two additional votes to override a potential veto.
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