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The city has collected none of the $131.7 million total
projected for sale of debt, advertising, augmented reality and
video game licensing.
The four measures were not part of Johnson’s budget proposal
last fall, but aldermen included them in the $16.7 billion
spending plan they passed in December.
Earlier this month, Johnson blasted aldermen who backed the
alternate budget and said enacting his proposal for a corporate
head tax on employers would have prevented the shortfall.
Debt sale, projected to generate $89.6 million, accounted for
the largest piece of missing revenue. Several aldermen called
out the mayor’s administration for failing to act on the issue.
When questioned about video gaming by Alderman Debra
Silverstein, Chicago Budget Director Annette Guzman said the
state has approved five video gaming licenses for the city.
“The $6.8 million that you see budgeted here was included in
city council’s budget and is based on an assumption of 3,300
licenses being approved in one year by the state. That’s never
happened in the history of the state,” Guzman said.
Alderman Debra Silverstein expressed frustration with members of
the administration saying they are trying to implement the
revenue measures.
“All of these numbers that have zeroes by them are things that
the mayor is opposed to,” Silverstein said.
Alderman Anthony Beale asked Guzman who in Johnson’s
administration was responsible for notifying the state that the
city legalized video gaming terminals.
“Alderman, the state is processing licenses, so they’re aware,”
Guzman said.
“They’re processing licenses, but you guys stonewalled the
process, didn’t notify the state. We had to notify the state. It
could have been streamlined, and it just goes to the point that
everybody in this body is saying that you guys are stonewalling
the parts of this budget that you all don’t like,” Beale said.
Guzman said it takes time to implement new revenue measures, but
the Bureau of Business Affairs and Consumer Protection is
processing VGT applications.
Beale said the administration is also trying to repeal the city
ordinance that allows video gambling.
“What makes us think that you guys are going to implement a
process when you are actively trying to repeal it?” Beale asked.
Alderman Samantha Nugent questioned why the city has failed to
collect any of the $6 million projected for augmented reality,
especially after a major event was held in the city last month.
“Over 717,000 people participated in this Pokemon Go event,
which is augmented reality,” Nugent said.
Guzman said liquor tax and checkout bag tax revenues were below
projections but could improve during the summer months.
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