>>> A PROJECTED $538 MILLION BUDGET SHORTFALL IS THE NEWEST CHALLENGE FOR THE JOHNSON MINISTRATION.

THE COUNCIL MEETS OVER WRONGFUL SETTLEMENTS, AND CHICAGO DOUBLES DOWN ON ITS FIRST CASINO.

HERE IS ALL OF THAT AND MORE, ON THE SPOTLIGHT FOR THE POLITICS SECTION.

WHAT HAPPENED?

>> THIS IS A FINE POLITICAL TRADITION IN CHICAGO.

THE NEW MAYOR CAN TAKE OFFICE, LOOK AROUND, AND SAY WOW, THINGS ARE SO MUCH MORE WORSE THAN I THOUGHT THEY WERE.

THIS IS EXACTLY WHAT HAPPENED TODAY.

JOHNSON, DID SAY THAT THE CITY AND THE ECONOMY IS SLOWING.

THE RECOVERY FROM THE COVID-19 PANDEMIC, HAS BEEN UNEVEN.

THAT HAS ALSO BALLOONED THE DEATH OF THIS DEFICIT.

MAYOR LIGHTFOOT DID NOT LOOK AT THIS.

>> WHAT IS JOHNSON'S PLAN ON ATTENDING TO CLOSE THE GAP?

>> WE HAVE OTHER WORDS LIKE EFFICIENCIES.

WE ARE DECLARING SURPLUSES, AND PUTTING THEM IN THERE.

I WANT TO PIGGYBACK OFF OF WHAT HEATHER SAID.

THE LAST YEAR OF THESE TERMS, IT IS MAGICALLY VERY SMALL.

THE MAYOR DID SUCH A GREAT JOB OVER THOSE FOUR YEARS, CORRECTING IT.

THE NEAR MAYOR COMES IN, AND IT IS ALMOST LIKE A SHELL GAME.

MOVE THESE NUMBERS AROUND A LITTLE BIT.

CREATE THE PICTURE THAT YOU WANT TO CREATE.

IT IS STRATEGIC.

HERE IS THE BUDGET GAP.

THIS IS WHAT WE ARE FACING.

MAYBE WHEN PEOPLE SEE THAT THIS IS A BIG BUDGET, THEY KNOW YOU CAN'T GO FORWARD ON A LOT OF YOUR OTHER PRIORITIES.

THIS IS WHAT YOU ALREADY OWE.

WITH THAT MIGRANT SITUATION, IT IS HUNDREDS OF MILLIONS OF DOLLARS TO HOUSE THEM.

THERE IS NO DOUBT, THAT IT IS EXACERBATING THE PRESSURE ON CHICAGO.

>> WHAT DOES THIS MEAN FOR THE MASSIVE AMOUNT OF FIRST AID THAT IS STILL NEEDED FOR THEM?

>> THE MAYOR'S OFFICE TELLS ME THAT $200 MILLION IS PART OF THE DEFICIT.

THIS IS CAUSED BY THE PARALLEL SYSTEM TO TAKE CARE OF THESE THOUSANDS OF MIGRANTS THAT ARE CURRENTLY HERE IN CHICAGO, AND THE THOUSANDS MORE THAT THE CITY HAS EXPECTED IN THE NEXT COMING MONTHS.

THAT IS NO DOUBT A MAJOR STRAIN ON THE BUDGET.

THEY ARE GOING TO BE WORKING, AND HAVING VERY HARD DISCUSSIONS IN CITY COUNCIL, WITH PEOPLE WHO ARE NOT THRILLED AT THE ASPECT OF SPENDING TENS OF MILLIONS OF DOLLARS ON PEOPLE THEY SEE AS NOT CHICAGO CIVILIANS, AND NOT AMERICANS.

THEIR COMMUNITIES HAVE FACED DECADES OF ADJUSTMENT.

WE MUST BE FRANK WITH ELECTING THEM, AND CORRECTING THOSE ADJUSTMENTS.

THAT IS NOW A LOT HARDER.

>> TOMORROW, THE CITY COUNCIL MEETINGS, ARE BEING CHICAGO HOME.

WE ARE GOING TO BE INTRODUCING IT.

HEATHER, WHAT IS THE OUT LIKE OR THE OUTLOOK?

>> NOW, THE CITY COUNCIL WILL DECIDE WHETHER TO PUT IT TO VOTERS IN THE MARCH PRIMARY.

THAT WILL COME BACK TO THE CITY COUNCIL.

IF IT PASSES, THAT WILL ALLOW THEM TO CHANGE THE WAY REAL ESTATE SALES ARE TAXED IN CHICAGO.

THIS IS THE FIRST STEP IN A MULTI STEP PROCESS.

IT WILL NOT IMPACT THE 2024 BUDGET.

THIS IS MONEY THAT IS SORT OF IN THE OTHER YEARS.

THEY ARE GOING TO ADDRESS SOME OF THOSE LARGER PROGRESSIVE PRIORITIES.

THIS IS WHAT THEY MENTIONED.

THIS IS THE FIRST STEP IN WHAT PROMISES TO BE A HARD-FOUGHT FIGHT.

IT WILL MAKE THE BALLOT GOOD, AS MOST PEOPLE EXPECTED TO.

>> HOW DO PENSIONS FACTOR INTO THIS BUDGET?

>> THE MAYOR SAID IT IS GOING TO DEPOSIT AN EXTRA $300 MILLION PAYMENT TO WHAT IS ALREADY OWED INTO THIS BUDGET.

IT THAT IS WHAT MAYOR LIGHTFOOT DID IN THE PAST.

THAT IS SIGNIFICANT.

IN 10 OR 20 YEARS, THAT IS GOING TO BALLOON TO $1 BILLION IN SAVINGS.

THE THING IS, THESE PENSION DEFICITS ARE SO BAD, THAT A DEPOSIT LIKE THAT, IT CAN ONLY BARELY KEEP THEM TREADING ABOVE WATER.

IT WILL BARELY KEEP THEM GOING IN THE RIGHT DIRECTION.

THAT IS WHY THEY HAVE THE CASINO.

THEY WANT THOSE TAX REVENUES FROM THE CASINO TO GO STRAIGHT INTO THE PENSION FUND.

IT IS ONLY A SMALL PIECE OF THE PIE.

>> THEY ARE TRYING TO PAY OVER $300 MILLION OVER A REQUIRED AMOUNT.

WHY IS THAT?

>> IT IS A WAY TO SORT OF HAVE MORE PAIN FOR PAIN NOW.

INSTEAD OF LATER.

YOU ARE GOING TO SAVE $2 BILLION OVER THE COURSE OF THE NEXT 20 YEARS.

YOU ARE JUST TRYING TO GET AHEAD OF THE CURVE.

>> I THINK CHICAGO'S THAT IS PART OF A HIGH-INTEREST CREDIT CARD.

MAKE THE MINIMUM PAYMENTS.

THIS IS WHAT THE CITY HAS BEEN DOING FOR DECADES.

THE CREDIT CARDS ARE NOT GOING TO COME AFTER YOU.

THEY ARE HAPPY TO CHARGE YOU MASSIVE AMOUNTS OF INTEREST.

ESSENTIALLY, THIS IS THE CITY TRYING TO GET A LITTLE BIT AHEAD, PAYING DOWN A LITTLE BIT OF THAT PRINCIPLE.

THIS IS SO THEY DON'T PAY AS MUCH INTEREST IN THE FUTURE.

DOES IT SOLVE THE FUNDAMENTAL PROBLEMS?

IT IS NOT.

>> I'M CURIOUS HOW THIS AGGRESSIVENESS IS BEING TAKEN.

WITH LIGHTFOOT, THEY THOUGHT THE PAYMENTS SHOULD GO MORE TOWARDS PRESSING ISSUES.

HE >> THE MAYOR IS GOING TO SAY WE HAVE TO DO THIS.

WE WILL NOT SEE A CREDIT RATING GROUND GRADE, AND THIS COULD COST TENS OF MILLIONS MORE DOLLARS TO BORROW THE MONEY THAT IT NEEDS TO KEEP THE CITY RUNNING.

>> HOW IS CITY COUNCIL GOING TO CONSIDER PAYING $25 MILLION TO A WRONGFUL CONVICTION AND CONVICTION LAWSUITS?

>> TWO MEN HAVE BEEN CONFINED TO 34 YEARS IN PRISON.

CONVICTED OF A 1993 MURDER THAT THEY DID NOT COMMIT.

THEY BLAME TWO CHICAGO POLICE DETECTIVES WHO HAVE BEEN AT THE ROOT OF SEVERAL, MULTI-MILLION-DOLLAR MISCONDUCT SETTLEMENTS.

THEY ARE PUTTING THEM IN JAIL.

THE SETTLEMENT WILL RESOLVE THESE LAWSUITS THAT WERE RIGHT BACK IN 2016.

THEY HAVE ALREADY COST THE CITY MILLIONS OF DOLLARS IN OUTSIDE LAWYER FEES.

>> IT IS A WHIPLASH WITH THIS CASE.

THEY BELIEVE FINANCIAL COMMITTEES DECIDED AGAINST IT.

>> THAT IS A DIFFERENT MULTIMILLION DOLLAR DEAL.

THAT IS A $2 MILLION SETTLEMENT FOR A MAN WHO WAS KILLED BY POLICE IN 2014.

THE CITY COUNCIL REJECTED THAT SETTLEMENT.

THEY ARE BACK IN THAT SECTION, BECAUSE PERHAPS THE CITY COUNCIL KNOWS THAT THEY GO TO TRIAL.

THEY ARE LIKELY TO LOSE.

>>> VALLEY TEMPORARY CASINO, HAS YOU THINKING, WHAT OTHER THINGS ARE PERMANENT FOR THIS CASINO?

>> I'M GOING TO AVOID USING ANY GAMBLING PONDS.

THEY HOPE PEOPLE HAVE A GOOD TIME.

THEY ARE ARCHITECTURALLY BEAUTIFUL.

THERE WAS THE SHOOTING ON MONDAY, NOT CONNECTED TO THE CASINO IN THE NEIGHBORHOOD.

BRIAN HOPKINS, FROM THE SECOND WORD ON MONDAY, HE IS NOT SURE THAT THE PERMANENT CASINO IS GOING TO BE BUILT.

HE BROUGHT UP THE POINT THAT THEY ARE IN A TOUGH FINANCIAL POSITION RIGHT NOW.

THEY HAVE TO RAISE IN ENORMOUS AMOUNT OF CAPITAL TO BUILD THIS GIANT FREEDOM CENTER IN DOWNTOWN CHICAGO.

HE DOES NOT THINK IT IS GOING TO BE DONE.

IT IS SUPPOSED TO BE OPEN BY 2026.

THEY ARE GOING TO KEEP RENEWING THEIR TEMPORARY LICENSE.

I THINK THERE ARE A LOT OF OPEN-ENDED QUESTIONS ON THIS.

>> WE ARE PROUD OF YOU.

FORMER MAYOR LIGHTFOOT, SPOTTED AT CITY HALL, BUT NOT TOGETHER.

>> THEY ARE INSPIRED BY MARY BRANDON JOHNSON.

HARVARD, IS WHERE MAYOR LIGHTFOOT IS TEACHING A FELLOWSHIP ON HER RESPONSE TO COVID-19, AND HOW SHE COPED WITH THESE STRESSORS.

SHE TWEETED A PICTURE TODAY OF HER ADDRESSING THE STUDENTS.

THIS IS A NOT VERY SUBTLE POINTED STICK TO THE CURRENT MAYOR.

THEY FIRED HER WITHOUT GIVING HER A CHANCE TO REALLY COMPETE FOR HER JOB.

IT IS A CLEAR SIGN THAT WHILE IN THE PAST, MOST MAYORS HAVE LEFT OFF THAT THEY HAVE RECEDED FROM THE POLITICAL SCENE.

SHE CLEARLY HAS NO DESIRE TO DO THAT.

>> GIVE US A SENSE, IF YOU HAD, ON WHAT SHE PLANS ON TEACHING.

>> SHE SAID THAT SHE REALLY WANTS TO TALK ABOUT HOW SHE USED COVID-19 TO COMBAT THE STRUCTURAL INEQUITIES THAT SHE CONFRONTED WHEN SHE BECAME MAYOR.

IT IS A FASCINATING ARGUMENT.

ONE THAT I WOULD SURE LOVE TO LISTEN IN ON.

THIS IS THE CRITICISM THAT SHE HAS FACE.

SHE DID NOT ADDRESS THOSE