Following state lawmakers’ failure to pass a mass transit funding bill, Mayor Brandon Johnson urged the Illinois General Assembly Tuesday to steer clear of taxes that hammer working people, and instead turn to the “ultra rich” to pony up $770 million to avert layoffs and service cuts at CTA, Metra and Pace.
A bailout bankrolled by a $1.50 tax on food and package deliveries passed the Illinois Senate shortly before the Legislature’s midnight Saturday deadline, but it was never called for a vote in the Illinois House.
The $1.50 delivery tax was billed by supporters as an “environmental impact fee” but slammed by opponents in the business community as a regressive “pizza tax.” Johnson agreed.
“I think the conversation around revenue and how we pay for it is something that has to be a broader conversation outside of the one that’s being discussed,” the mayor said during his weekly news conference at City Hall.
“You all know my position. The ultra rich continue to get away with not having to put more skin in the game. So we do have to have substantive conversations around revenue streams that challenges the rich in this state to step up in a way that does not continue to place the burden on working people,” he said.
Johnson said he’s disappointed, but not surprised, that the spring legislative session ended with a $55.2 billion state budget and no solution to revenue shortfalls that threaten to decimate mass transit in the Chicago area.
“There are budgetary challenges all over the country, and we’re faced with that because we do have a great deal of uncertainty, and quite frankly, animosity that’s coming from the federal government. Those are all complicated matters that have made this effort a bit more challenging,” he said.
“We have to get this right and do it with some expedience. … It got through the Senate. There’s been some hang-ups in some particular areas. But I’m gonna always remain hopeful and confident that we can get a deal done that works for the people of Chicago,” he said.
The $1.50 delivery tax was just one of several revenue ideas floated during the spring session in conjunction with a real estate transfer tax that Johnson once eyed on property sales over $1 million to provide a dedicated funding source to combat homelessness.
The so-called “pizza tax” ended up being as unpopular as earlier proposals to raise tolls on Illinois drivers or divert suburban sales taxes.
No matter what taxes lawmakers ultimately land on, Johnson is likely to lose control over Chicago’s mass transit system.
There was general agreement about a reformed governance structure empowering a new Northern Illinois Transit Authority to set unified fares, allow for easier transfers and assume capital planning responsibilities.
The governor, Chicago mayor and Cook County Board president would each appoint five members of the 20-person board, with one each named by the board chairs of DuPage, Kane, Lake, McHenry and Will counties.
For months, the CTA has warned that it may have to cut half its bus lines and suspend service on all or a portion of four of its rail lines.
The CTA said this week it expects to plan its 2026 budget this summer with a “number of different scenarios that could occur.” The statement did not say when those service cuts or layoffs would take effect.
Against that backdrop, Johnson was asked what message he wants to send to CTA riders fearful of a doomsday scenario.
“There are a number of legislators that we’ve been in conversations with for several months. I do know that they take this seriously,” he said. “You just have had a long-standing system that took too long, quite frankly, to put a more sustainable funding source in place to secure all of our public accommodations. This is not something that’s exclusive to the CTA. This is a conversation we can have about our Chicago Public Schools, about our public health.”
During Tuesday’s news conference, Johnson refused to pinpoint what level of city subsidy he was prepared to seek to bankroll the tens of milions of infrastructure improvements needed to unlock the development potential of the South Loop parcel known as “The 78,” where the billionaire owner the Chicago Fire FC plans to spend $650 million of his own money to bankroll a 22,000-seat soccer-only stadium.
The mayor would only say that he hopes the Bears and Sox follow billionaire Joe Mansueto’s lead by putting more “skin in the game” so they can stay in Chicago.
“There’s no reason to leave Chicago if you’re a sports team,” Johnson said. “There is too much soul in this city to leave it now.”