CHICAGO – Facing a nearly $1 billion budget deficit, Chicago Mayor Brandon Johnson on Thursday issued a $1.1 billion levy against Favorite Healthcare Staffing, a Kansas-based company that staffs the city's immigrant shelters. He sidestepped questions about the billion-dollar wage hike.
The change order and contract extension come as the city has reduced the number of shelters from 27 to 16 and expelled immigrants through its temporary residency program.
At the height of the city's migrant crisis, nearly 14,000 people were living in city-run shelters. Currently, that number is approximately 5,300.
When asked directly about the pay raise, Johnson dodged the question and told NBC 5 Investigates, “Based on the work we've done to date, we've saved taxpayers more than $200 million. We've invested in Western countries and the region. “We saved $200 million while continuing to do so.” The south side of the city of Chicago, that's what I promised and that's what we're working on. ”
When asked further about why this $100 million contract extension was needed, Johnson said: “There's a reason for that. We're actually spending less in shelters right now. We're spending less. We're spending $70 million less, and we're investing hundreds of dollars at the same time.”On Chicago's west and south sides. It saved taxpayers millions of dollars. As we operated the care system, the number of people in evacuation centers decreased. ”
Kansas-based Favorite Healthcare Staffing, which staffs the city's immigrant shelters, receives additional public funding from Chicago taxpayers and federal grants, according to the city's online immigrant spending portal. A combined total of $291 million has been paid for both. The latest contract indicates the city sought and received approval to recover at least $9 million through FEMA grants.
However, Prime Minister Johnson did not mention this in his response. He continued, “When will the federal government do its job? I just returned from a meeting with mayors from around the world and the federal and national governments are failing to respond to international crises.” said.
Favorite Healthcare Staffing has been criticized by city councilors for its “exorbitant” hourly wages, which range from $50 to $156 an hour. And our own investigation last year found that Favorite routinely billed the city for 84 hours per week per employee.
Johnson has repeatedly said his office saved money by lowering those rates.
As of Thursday, 5,302 people were evacuated to 16 evacuation centers in the city. Since April, when the city began implementing a 60-day shelter stay policy, 2,463 people have left the shelter system and more than 1,700 people have returned to the city's “landing zones” and been reassigned to the shelter system.
In response to our follow-up questions, the city's Department of Family Support Services provided the following statement via email:
“The City of Chicago Department of Procurement Services recently approved an increase in the amount of funding that Favorite Health Staffing can request from the city for asylum seeker services. This is not an approval of additional funding, but it does allow the city to cover costs. Shelter services previously provided by Favorite Health from April 2024 until next month, October 2024. ”
A Favorite spokesperson referred questions back to DFSS.
The raise brings Favorite's total contract value to more than $334 million.
