Chicago budget hearings begin with questions over corporate head tax, police misconduct costs

Chicago has a nearly half-billion-dollar bill for police misconduct cases, and City Hall wants to put it on the taxpayers’ credit cards.Budget hearings beginAldermen pressed the mayor’s financial team Monday on how much the borrowing could ultimately cost taxpayers during the first in a series of city budget hearings.Johnson’s proposed $17.6 billion "Fair Share" budget calls for borrowing roughly $481 million through the sale of bonds, which would then be repaid over five to seven years.The final cost remains unclear because the interest rate will not be set until the bonds are sold. However, Chicago’s Department of Finance estimates an interest rate of 6.923% on the first $350 million in bonds, which are expected to be issued in 2027.At that rate, interest would add more than $139 million to the cost, with the city making annual payments of about $98 million for five years.The Johnson administration estimates settling the police misconduct cases could save the city $300 million to $40