Chicago Mayor Brandon Johnson has projected that the city will face a budget shortfall of nearly $1 billion in 2025 due to a spending gap that emerged during his time in office.
The city is currently facing a $982 million budget gap. Previously, Chicago faced a budget gap of over $1.2 billion in 2021, during the COVID-19 pandemic when then-Mayor Lori Lightfoot was in office. Lightfoot, however, was able to address the shortfall using federal relief funds provided as part of the COVID relief packages.
“The size of the budget gap is significant. It’s going to require decisions that will speak to our overall collective desire to build an economy that works for working people. There will be sacrifices that will be made,” Johnson said to reporters on Wednesday.
For 2024, Mayor Johnson dealt with a $538 million budget gap without resorting to layoffs or tax increases. However, with the gap now nearly doubling, significant action may be required. Johnson has not yet indicated whether he will consider measures such as raising property taxes, legalizing various gambling practices in the city, laying off city employees, or implementing a hiring freeze.
“There are a number of options that we’ll explore. What we’re working to safeguard against is harm to constituents, to everyday people,” Johnson said. “We’re working to provide as soft of a landing as possible.”
Experts have warned that the city will likely need to implement both spending cuts and revenue increases to address the looming budget shortfall, according to CBS News.
Joe Ferguson, president of the nonpartisan financial watchdog group Civic Freedom, emphasized that “The chickens have come home to roost. It is time to get busy,”
“There’s not a silver bullet here. There is not a one size takes care of everything in all situation. We have to open up the budget itself in ways that we haven’t done for many years,” Ferguson said.
Among the projected expenses for the coming year is a $150 million project aimed at providing services to illegal immigrants housed in city-run shelters. However, Johnson’s budget team has stated that the cost of Chicago’s migrant assistance programs is not a factor in the budget gap.
