Annette Guzman
Chicago’s $17.1 billion spending plan is now in place for 2025 — but it didn’t come easily. Forceful pushback from alderpeople blocked property tax hikes — but the budget still includes $165.5 million in additional taxes and fees to generate revenue.
Two key Chicago City Council committees voted Tuesday to send Johnson’s $17.3 billion spending plan for 2025 to the full City Council for a final vote. The two-step process is set to start Wednesday, with a final vote scheduled for Friday.
“A budget that would lay off workers and cut services is just, you know, one that should not be tolerated by any Chicagoan,” Mayor Brandon Johnson said.
The new plan comes after the Chicago City Council rejected Johnson’s first two proposals to raise property taxes in order to avoid draconian cuts to city services and thousands of layoffs.
Chief Financial Officer Jill Jaworski told members of the City Council’s Budget and Government Operations Committee on Wednesday that the $17.3 billion spending plan “prioritizes the city’s long-term fiscal stability.”
Mayor Brandon Johnson said proposing the tax hike, the second largest in modern Chicago history after the $588 million property tax hike pushed through by former Mayor Rahm Emanuel in 2016, was a “difficult decision” that was the result of an "excruciating process.”
Between March 2021 and June 2024, Chicago spent more than $238.8 million on a host of programs including affordable housing, mental health, violence prevention, youth job programs and help for unhoused Chicagoans, according to the most recent reports filed with the U.S. Department of the Treasury as required by federal law.
Chicago is facing a $223 million budget gap this year, and the city is projecting a nearly $1 billion shortfall in the 2025 fiscal year.
The move was announced Monday by Annette Guzman, the city’s budget director, and comes as city leaders stare down a $222.9 million deficit this year and a projected $982 million shortfall in the 2025 fiscal year.
“There are sacrifices that will be made,” Mayor Brandon Johnson said.
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In all, Chicago spent $202 million on a host of programs including affordable housing, mental health, violence prevention, youth job programs and help for unhoused Chicagoans through March 31, records show.
The City Council’s Budget Committee voted 20-8 to advance the proposal to the full City Council, which could vote on it as early as Wednesday. The panel also agreed to accept $48 million in federal and state grants to care for the migrants.
The budget, which takes effect Jan. 1, 2024, includes no new taxes, fees or service cuts, making it much easier for alderpeople to back the plan touted by Mayor Brandon Johnson as a down payment on promises to invest in working-class Chicagoans.
The newly created Department of Reentry would have a budget of $5 million and four employees charged with helping formerly incarcerated individuals in Chicago get what “they need to thrive in this city,” Mayor Brandon Johnson said.
Several alderpeople, from across the political spectrum, asked Budget Director Annette Guzman why the mayor set aside just $150 million in his spending plan to care for the migrants, even though that is less than half of what the city will have spent to care for Chicago’s newest arrivals through the end of 2023.