Carrot and Stick: Chicago Ramps Up Debt Collection While Offering Relief as Budget Deadline Looms

CHICAGO URBAN DAILY

CHICAGO (CHICAGO URBAN DAILY)— The city is coming to collect — and this time, it says it’s bringing a helping hand too.

As a December budget deadline looms, the Johnson administration is going in depth on its two-track plan: ramping up collection of money owed to the city while offering debt relief to residents who can’t pay their bills.

City Comptroller Michael Belsky says a large chunk of unpaid vehicle debt dates back to 2021, when the city took what he called a more compassionate approach to fines and fees during COVID. Now the tab is being called in: the city says it has collected 75 percent of outstanding debt over the last three years, and collection efforts are up 15 percent year over year since Mayor Brandon Johnson took office. Thirteen new tax auditors have been brought on to find delinquent entities — including large corporations — and bring missing revenue back into the city.

But Belsky says the administration is also giving struggling residents a way back. The Utility Billing Relief program offers penalty relief, rate reduction and debt forgiveness on water and sewer bills — 35,200 households have enrolled, 90 percent completed their payment plans, and $52 million has come back in. The Clear Path Relief program lets low-income drivers pay off only the original fine amount for tickets issued in the last three years, with all older debt waived — 106,500 residents have participated since 2022, bringing back $51 million.

“If it is making a choice between food and medicine or paying vehicle debt, the Johnson administration will always side with the health and safety of our citizens,” Belsky told FOX32 Chicago.

Collect from the corporations, give the people a path. That’s the pitch. Chicago’s budget gap will be the test.

Stay tuned to Chicago Urban Daily as the budget fight unfolds.

Reported by Chicago Urban Daily News. Visit chicagourbandailynews.com for updates.

Leave a comment