Chicago City Council redirects $75 million parking meter windfall to pensions

The Chicago City Council voted 44 to 6 to compel Mayor Brandon Johnson to apply a $75 million upfront payment from Stonepeak Partners to the city’s 2026 budget for pension funding. The funds, stemming from the acquisition of Chicago’s parking meters, were originally intended by the Johnson administration to help defray the cost of a $363 million pension advance for 2027.

The ordinance directs the funds toward the city’s $36 billion pension crisis. Specifically, the police and fire pension funds, which face significant insolvency risks, will each receive $25.12 million by December 31. The Municipal Employees and Laborers pension funds will each receive $12.375 million.

While supporters, including Finance Chair Pat Dowell, argue the move secures long-term fiscal health and fulfills a moral obligation to workers, some council members expressed concern. Critics warned that diverting these funds could impact essential services, including youth programs, violence prevention, and homeless services, especially as the city faces a nearly $900 million deficit for 2027.