Chicago Mayor Brandon Johnson vetoes bid to raise threshold for issuing new city debt

Mayor Brandon Johnson on Friday vetoed an ordinance that would have made it more difficult for the city to borrow money, by requiring a 30-vote supermajority from the City Council before issuing new debt.

Aldermen approved the higher threshold for city debt by a 32-15 vote last week. Two alders who were present for that meeting did not vote, leaving it unclear if the City Council has the 34 votes needed to override the mayor's veto.

With debt payments and employee pension obligations making up approximately 40% of the city's annual operating budget, supporters the higher threshold for issuing new debt argued the ordinance would make the City Council more independent from the mayor.

However, after last week's vote, Johnson argued raising the threshold for borrowing is not "a useful way to grow our economy."

"The last thing that people want is government to get in the way of itself," he said. "There are definitely major concerns there, you know, and I will address it accordingly."

Johnson argued that issuing bonds is a necessary tool to boost economic development and affordable housing in long neglected neighborhoods on the South and West sides. He echoed that argument in a letter accompanying his veto.

"Neighborhoods with the greatest infrastructure needs should not face additional barriers to securing essential public investment," Johnson wrote in a letter accompanying his veto. "Delaying infrastructure projects can increase construction costs, worsen deterioration, and ultimately cost taxpayers more. While this ordinance increases a voting threshold, it does not put into place any additional measures around debt affordability, reporting requirements, or financial oversight."

The mayor also noted that the 30-vote threshold for debt would be higher than the 26 votes needed to pass the city's annual budget "or any other critical matter that comes before this body."

The veto, the fourth of Johnson's tenure, is certain to increase tensions with alders ahead of what was already expected to be fraught negotiations over the city's budget. The mayor is expected to introduce his 2027 budget plan later this month.

Ald. Marty Quinn (13th), who led the effort to raise the City Council voting threshold for new debt, has called the measure sound fiscal policy. He noted the Illinois General Assembly already requires a three-fifths majority vote by both the House and Senate to pass all debt-related legislation.

"Utilizing a three-fifths vote as opposed to a simple majority allows more voices to be heard and counted in addressing critical issues like Chicago's health in the future," Quinn said last week.

Quinn noted the Illinois General Assembly already requires a three-fifths majority vote by both the House and Senate to pass all debt-related legislation.

Johnson previously vetoed an ordinance that would have phased out his plan to eliminate the city's subminimum wage for tipped workers, an ordinance to ban the sale of intoxicating hemp products in Chicago, and a measure to empower the Chicago Police Department to enforce so-called "snap curfews" on as little as 30 minutes' notice.

For each of his previous vetoes, the City Council failed to override Johnson.