Chicago's Mayor Johnson underscores the necessity of overcoming a $1.15 billion budget shortfall
Chicago, IL - Mayor Brandon Johnson is facing a significant challenge as the city grapples with a budget deficit of over $1.15 billion. The deficit, larger than originally expected, is a daunting task for Johnson and his team, who have the next couple of months to find a solution.
Johnson has stated that fiscal discipline is required at this moment, and he aims to close the deficit by prioritising progressive revenue measures. He plans to ask the ultra-rich to contribute more, explore reinstating a property tax escalator tied to inflation, and seek payments in lieu of taxes (PILOT) from nonprofits.
In August 2025, Johnson is expected to propose a suite of cuts and revenue-raising ideas to address the FY26 budget gap. The mayor's critics, however, argue that fiscal discipline should have been implemented when Johnson took office.
Ald. Scott Waguespack accuses the Johnson administration of piling on more and more expenditures without considering long-term financial implications. Waguespack also claims that the mayor spent hundreds of millions on contracts without City Council approval during the migrant crisis. The former City Council Finance Committee Chairman further alleges that the mayor refused to right-size government after COVID and expanded staffing at City Hall.
Revenue generated from amusement and recreation taxes is up this year, but not nearly enough to bail the city out of the budget deficit. The city might also have to absorb a controversial pension payment that the Chicago Board of Education voted not to include in the school district's budget.
When asked, Johnson would not commit to layoffs or a property tax hike. He did not offer specifics on how he plans to close the budget deficit, besides a potential grocery tax. Johnson has consistently called for the ultra-rich and large corporations to pay more, but many of his progressive revenue ideas require action from Springfield.
The economy of Chicago remains resilient, according to the mayor. The city department budget hearings are expected to follow the presentation of the balanced budget, which Johnson is expected to present in mid-October. The aim is for a full City Council vote in November.
Despite the challenges, Johnson remains optimistic about Chicago's future. He believes that with the right strategies and the support of the people, the city can overcome this financial hurdle and continue to thrive.
