Executive Summary: Chicago Mayor Brandon Johnson's 2026 Budget Proposal
Research Date: November 22-23, 2025
Executive Summary
Budget Overview and Deficit
Mayor Brandon Johnson's 2026 budget proposal, branded as the 'Protecting Chicago Budget,' addresses Chicago's significant financial deficit of $1.15 billion. The budget forecast projects a baseline corporate fund deficit of $1.15 billion for fiscal year 2026, continuing over two decades of projected budget shortfalls. The Protecting Chicago Budget contains more structural reforms than one-time fixes, achieving more than $200 million in cost reductions for taxpayers without pursuing layoffs or cuts to constituent-facing services. The city faces unprecedented threats from the federal government, including cuts to Medicaid, SNAP, violence prevention, and public health funding.
Revenue Proposals
The budget includes new revenue proposals totaling approximately $586.6 million in progressive tax and fee revenues. The centerpiece is a corporate head tax, known as the Community Safety Surcharge, which would be levied at a rate of $21 per employee per month ($252 per employee per year) on employers with 100 or more full-time employees. This tax is projected to raise $100 million to fund violence prevention and youth employment programs. The budget also proposes a Social Media Amusement and Responsibility Tax (SMART), charging social media companies $0.50 per active user over 100,000 in Chicago, projected to generate $31 million to fund expanded mental health services. Additional revenue proposals include a tax on sports wagering at 10.25% on revenue from city-based wagers, tripling the yacht tax on boat mooring fees from approximately 7% to 21% or more, and increasing the vacant building fee renewal. The budget avoids a property tax increase and supports the elimination of the grocery tax.
TIF Surplus
The budget proposes a record-setting $1 billion Tax Increment Financing (TIF) surplus, the largest in Chicago's history. This unprecedented surplus would provide over half a billion dollars for Chicago Public Schools, with $552.4 million going to CPS and $232.6 million to the city's corporate fund. However, this proposal has generated significant opposition from both mayoral allies and critics, who fear it could derail or delay improvements to local schools, parks, libraries, and job-creating economic development projects. Critics argue that this approach continues a damaging trend of diverting funds from one of Chicago's most effective economic development tools to cover operating deficits. The mayor was accused of proposing the TIF surplus to bail out Chicago Public Schools at the expense of neighborhood improvement projects.
Finance Committee Rejection
The City Council Finance Committee rejected Mayor Johnson's budget proposal in a 25-10 vote on November 17, 2025, signaling an uphill battle to pass the budget before the end of the year. The committee voted down the mayor's plan for roughly $600 million in new taxes, dealing a major blow to the $16.6 billion spending plan. This rejection represents a historic display of rebellion against the freshman mayor, who has been struggling to shore up support for his controversial head tax. Following the rejection, Mayor Johnson instructed Chicago residents to call their aldermen to express support for the budget. The Finance Committee's refusal to advance Johnson's proposed spending plan to the full City Council is another sign that the bulk of Johnson's proposal to impose $623 million in new taxes faces intense opposition.
Education and CPS Funding
The budget includes significant funding for Chicago Public Schools, with the proposed TIF surplus providing $552 million for CPS. However, the Chicago Board of Education dealt Johnson a harsh political blow by passing a budget that did not include reimbursement to the city for a $175 million pension payment. The board later voted to approve the $175 million pension payment to the city amid the budget crisis. The mayor's budget proposal includes a gift for Chicago Public Schools by recommending that the city take an unprecedented amount out of special taxing districts so CPS can cover its costs. The mayor also committed $7 million to raises for early childhood education workers.
Police and Public Safety
The budget includes measures to address police and public safety spending. Mayor Johnson's proposed budget for 2026 would impose new limits on overtime spending by the Chicago Police Department while acknowledging it was unrealistic to expect CPD to spend less than $200 million next year to compensate officers for working extra hours. The city must borrow $283.3 million to cover the soaring cost of lawsuits alleging Chicago police officers committed a wide range of misconduct, including wrongful convictions and improper pursuits. Chicago will slow police hiring to roughly 50 recruits per month and put no classes through the training academy again next summer to generate $91 million in turnover savings. The budget proposal includes a controversial head tax projected to generate $100 million to fund violence prevention and youth employment programs. The Chicago Police Department is by far the largest city department, in terms of both headcount and budgeted appropriations.
Credit Rating and Financial Concerns
Credit rating agencies expressed concerns about the budget. S&P Global Ratings lowered Chicago's credit outlook to negative after Mayor Johnson proposed making just a partial supplemental pension contribution next year as the city grapples with back-to-back deficits and weaker reserves. The proposed $16.6 billion 2026 budget would reduce the supplemental pension contributions that had lifted the city's credit stature. Mayor Johnson defended his budget proposal despite warnings that it could lead to the city's credit being downgraded because of an over-reliance on one-time solutions. The budget gap has grown to $1.15 billion, the second-largest in a decade.
Social Media Tax (SMART)
The budget proposes a Social Media Amusement and Responsibility Tax (SMART), which would charge social media companies $0.50 per active user over 100,000 in Chicago. This tax is projected to generate $31 million to fund expanded mental health services in the city, including free mental health clinics throughout Chicago and the expansion of mental health crisis response teams. The tax would be an extension of the city's amusement tax and would include large tech companies that profit from data collection and user engagement. However, an internet freedom advocate says Chicago's proposed tax on social media might actually cost the city more than it brings in.
Housing and Development
The budget includes housing and development initiatives. Mayor Johnson's Green Social Housing Ordinance makes Chicago the first major city in the United States to implement this innovative model for developing permanent affordable housing. The Chicago Department of Housing, in partnership with the Chicago Community Loan Fund and The Resurrection Project, has opened applications for the newly established Shared Equity Investment Program, which aims to expand homeownership and create wealth building opportunities. Mayor Johnson's plan to create a city-owned nonprofit developer to help confront Chicago's affordable housing crisis was approved by the City Council.
Youth Programs
The budget includes funding for youth programs and initiatives. The My CHI. My Future. Safe Spaces program engaged 6,400 youth in safe, fun, affordable events during summer 2025, with 70 kickback events spearheaded and executed by over 200 youth employees. However, Mayor Johnson has been criticized for pledging to use head tax revenue for youth programs while simultaneously proposing to cut funding for proven efforts. The budget proposal once again includes a hefty sum set aside for a ShotSpotter replacement.
Transit and CTA
The budget addresses transit and CTA funding. Mayor Johnson joined the Federal Transit Administration and CTA President Dorval R. Carter to sign and finalize a $1.9 billion funding agreement that will allow the CTA to move forward with the Red Line Extension Project. The Chicago Transit Authority is receiving $74 million from its sister agencies to stave off service cuts by two to three months next year to buy time for state legislators to pass a funding bill. State lawmakers passed a $1.5 billion funding package to avoid massive service cuts and layoffs at the CTA, Metra and Pace. The Chicago Transit Board unanimously approved a balanced $2.23 billion operating budget for the CTA, which holds the line on fares, avoids layoffs, and enhances existing services.
Business Opposition
The business community has expressed strong opposition to the tax proposals. Twenty-eight aldermen said they were gravely concerned about what Mayor Johnson's pitch for a monthly $21-per-employee tax on larger companies would do for job growth and businesses leaving Chicago. The Chicagoland Chamber of Commerce issued a statement in response to Mayor Johnson's proposed 2026 budget, expressing concerns about the economic impact. Critics argue that the old adage 'whatever you tax, you get less of' rings true, and that taxing businesses based on the number of people they employ in Chicago would lead to negative employment outcomes, including more layoffs, lower wages, fewer job opportunities, and the further shifting of business investment outside city limits. The best way to get rid of fiscal deficits is to have new jobs, and the head tax and the cloud tax are job-killing taxes that will hurt businesses of every size and sector in Chicago. Microsoft, Salesforce, ChatGPT, Amazon Web Services and Zoom would all come with higher prices under Chicago Mayor Brandon Johnson's cloud tax.
Appendix: Full Scraped Content from Sources
Content organized by reference number (ordered by credibility). The executive summary synthesizes information from all sources without direct quotes.
Source Name [1]: Mayor Brandon Johnson Presents The Protecting Chicago Budget Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html Scraped Date/Time: 2025-11-22 22:09:42
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# Office of the Mayor
October 16, 2025
# Mayor Brandon Johnson Presents The Protecting Chicago Budget
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">## The balanced budget closes the deficit with new taxes on large corporations, Big Tech, and the ultra-rich; protects Chicago's programs and services from Trump cuts; and establishes a new Community Safety Fund.</span> [1]</span> [1]</span> [1]
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/MAYOR%20BRANDON%20JOHNSON%20PRESENTS%20THE%20PROTECTING%20CHICAGO%20BUDGET.pdf "Download this Press Release")
* * *
**CHICAGO –** Today, Mayor Brandon Johnson presented his 2026 budget proposal to City Council, closing the budget deficit without new property taxes or regressive fees. In his third budget, Mayor Johnson is proposing new taxes on large corporations, Big Tech companies, and the ultra-rich to protect Chicagoans from cuts by the Trump administration and ensure continued investments in youth jobs, mental health care, affordable housing, and violence prevention programs. The _Protecting Chicago Budget_ prioritizes protecting Chicago's services through savings and cost reductions, <span style="color: #0066cc; font-weight: bold;">protecting Chicago's programs by taxing large corporations and Big Tech</span> [1], and protecting Chicago's people through increased investments and resources for vulnerable Chicagoans.
Read Mayor Johnson's prepared remarks [here](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/Mayor%20Brandon%20Johnson%E2%80%99s%20Prepared%20Remarks%20(3).pdf).
**Protecting Chicago's Services Through Savings and Cost Reductions**
<span style="color: #0066cc; font-weight: bold;">The Protecting Chicago Budget contains more structural reforms than one-time fixes to set the City of Chicago on firmer financial footing over the coming years. Through strategic reforms targeting redundancies and inefficiency, this budget achieves more than $200 million in cost reductions for taxpayers without pursuing layoffs or cuts to constituent-facing services. These savings are realized through multiple strategies, including:</span> [1]
<span style="color: #0066cc; font-weight: bold;">- A targeted hiring freeze across departments;
- Consolidation of the City's real estate assets, including the merging of office space and the selling of vacant land;
- More than $10M saved in contract reductions with City vendors;
- Measures to rightsize and reduce overtime expenses for police officers;
- The elimination of duplicative technology contracts across departments.</span> [1]
Many of the cost-savings included in this budget proposal are part of a multi-year effort that comes from recommendations made by the Chicago Financial Futures Task Force [report](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) and the [analysis](https://chi.gov/47seD8e) conducted by the Office of Budget and Management (OBM) and EY over the past year.
**Protecting Chicago's Public Schools, Parks, and Libraries against Trump Cuts**
The Mayor's budget proposal includes the largest Tax Increment Financing (TIF) surplus in the City of Chicago's history, totaling more than $1 billion. This unprecedented surplus will not only support the City's continued commitments, including operations at Chicago Public Libraries, but will also provide critical financial relief to taxing districts across Cook County. These include key partner agencies such as the Chicago Public Schools, Chicago Park District, and City Colleges of Chicago, ensuring they receive additional resources at a time when federal funding for vital community programs is being withheld or reduced.
**<span style="color: #0066cc; font-weight: bold;">Protecting Chicagoans from Regressive Taxes and Fees</span> [1]**
<span style="color: #0066cc; font-weight: bold;">Mayor Johnson's proposal balances the budget without imposing any new fees or regressive taxes on ordinary Chicagoans. The budget protects Chicagoans from fees that increase the cost-of-living while avoiding taxes which place additional financial strain on working people, including:</span> [1]
<span style="color: #0066cc; font-weight: bold;">- No proposed increase in property tax obligations;
- The abolition of the Grocery Tax;
- Reducing the motor vehicle lessor tax from $2.75 to $0.50 per rental period.</span> [1]
**<span style="color: #0066cc; font-weight: bold;">Protecting Chicago's Programs by Taxing Large Corporations and Big Tech</span> [1]**
<span style="color: #0066cc; font-weight: bold;">In response to the Trump administration's massive tax cuts for large corporations and the ultra-rich, Mayor Johnson's budget implements new taxes and fees on the wealthiest Chicagoans and the largest corporations, including:</span> [1]
- A 'Yacht Tax' that brings the rate for boat-mooring at City harbors into alignment with historical rates and the rate of parking;
- An increase in the 'Vacant Building Fee" <span style="color: #0066cc; font-weight: bold;">renewal fee to recover costs, incentivize development, and reduce blight;
- Taxes on Big Tech companies through an increase in the PPLT rate.</span> [1]
The Protecting Chicago budget also establishes two new, innovative special revenue funds to fund mental health services and community safety programs. The budget proposes an amusement tax fee on social media companies to fund free mental health clinics throughout Chicago and the expansion of mental health crisis response teams. There is a growing body of research on the negative mental health impacts of social media usage, particularly on young people. In February of this year, the Surgeon General issued an [Advisory](https://www.hhs.gov/surgeongeneral/reports-and-publications/youth-mental-health/social-media/index.html) concluding that social media presents a "meaningful risk of harm" <span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">for youth.</span> [1]</span> [1]</span> [1]</span> [1]
This new tax, dubbed the Social Media Amusement & Responsibility Tax (SMART), asks large social media companies to pay their fair share to support expanded mental health care for all Chicagoans. The tax charges social media companies $0.50 per active user over 100,000 in Chicago and would generate a projected $31M to fund expanded mental health services.
The budget proposal also moves mental health care funding lines off of the federal ARPA lines and into the City's main Corporate fund, incorporating mental health care funding as a permanent part of the City's annual budget process and protecting those programs from further Trump cuts to public health or grant recissions.
The Protecting Chicago Budget creates a new $100M Community Safety Fund to increase funding for youth diversion and employment programs, services for survivors of domestic violence and gender-based violence, mental health support for first responders, and one of the largest permanent Community Violence Intervention (CVI) programs of any city in the country.
The budget secures guaranteed funding for proven community safety initiatives through a Community Safety Surcharge, to be paid by the top 3% of large corporations operating in Chicago with more than 100 employees. 97% of small and medium-sized businesses would not be impacted. This funding will help the City continue to drive down crime and violence after experiencing historic reductions in homicides, shootings, and robberies throughout this year.
**Protecting Chicago's Environment and Our Most Vulnerable Communities from Federal Overreach**
The Protecting Chicago Budget strategically invests in resources and programs that protect Chicagoans' Constitutional rights and mitigate the disruption posed by Trump administration cuts to essential programs. The budget includes measures designed to protect Chicago's immigrant communities, the LGBTQ+ community, unhoused residents, returning residents, young people, and seniors including:
- Increased investment into the Department of Law's Affirmative Litigation division, ensuring the City can continue to challenge the Trump administration's illegal withholding of funds, protect our immigrant communities from federal overreach, and hold corporations accountable;
- $5M increase in Corporate funding for the City's Rapid Rehousing program, which helps thousands of unhoused Chicagoans quickly transition from street encampments and shelters into stable, long-term housing;
- Funding for the Office of Reentry, community Re-Entry Centers, and re-entry job training programs tied to the Cannabis Excise Tax;
- Funding to maintain the City's first LGBTQ+ Affairs Director to protect the rights of Chicago's queer community;
- $7M investment into "Childcare for All" initiative, raising wages for more than 3,000 early childhood professionals to support children and families;
- Increased support for Satellite Senior Centers to support elderly Chicagoans with programming and community.
- Continued investment fulfilling the promise to rebuild and fully staff the City's Department of Environment
- Maintains funding to continue building out Chicago's affordable housing stock and implement Green Social Housing.
- Millions to support West Side residents impacted by the historic 2023-2024 floods through investments in critical infrastructure improvements and direct cash assistance for affected families.
Mayor Johnson's Protecting Chicago Budget responds to the attacks by the federal government with new investments and protections for all Chicagoans.
The full 2026 Budget Overview is available [here](https://chi.gov/2026BudgetOverview).
###
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Source Name [2]: Mayor Brandon Johnson Releases FY2026 Budget Forecast Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/august/FY2026-budget-forecast.html Scraped Date/Time: 2025-11-22 22:38:02
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# Office of the Mayor
August 29, 2025
# Mayor Brandon Johnson Releases FY2026 Budget Forecast
## Forecast projects $1.15 billion gap; City ends 2025 with $146 million deficit amid pension reimbursement uncertainty and continued threats from the federal government.
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/August/MAYOR%20BRANDON%20JOHNSON%20RELEASES%20FY2026%20BUDGET%20FORECAST.pdf "Download this Press Release")
* * *
**CHICAGO** — Mayor Brandon Johnson today released the City of Chicago's 2026 Budget Forecast, providing residents and civic leaders with a candid assessment of the City's financial outlook as the administration prepares to introduce a balanced budget later this fall.
The forecast projects the City will close 2025 with a $146 million deficit, driven by weaker-than-expected business-related tax revenues, the exhaustion of one-time reserves, and the continued uncertainty surrounding a $175 million pension reimbursement from Chicago Public Schools (CPS). Looking ahead, the City faces a projected Corporate Fund gap of $1.15 billion in 2026, slightly higher than the $1.12 billion gap forecast at this time last year. The shortfall reflects rising personnel-related costs—including $629 million in wage, healthcare, and pension growth—as well as the ongoing structural imbalance between recurring revenues and expenditures.
At the same time, the City faces unprecedented threats from the federal government. Cuts to Medicaid, SNAP, violence prevention, and public health funding as well as the expiration of American Rescue Plan funds will all have direct and indirect impacts on our city's budget and financial future.
Additionally, pension reforms at the state level, without any new tools to raise progressive revenue at the city level, have added significant costs to our pension obligations in coming years.
"This forecast shows both the scale of the challenge before us and the strengths that make Chicago capable of meeting it," said **Mayor Brandon Johnson**. "We have one of the most diverse and dynamic economies in the world. Together with City Council, labor, business, and community leaders, we will bring forward a balanced budget that protects essential services, invests in our neighborhoods, and builds a safer and more affordable Chicago."
The forecast reflects three potential economic scenarios through 2028: a baseline projection of modest growth and persistent inflation; a negative case in which recessionary conditions widen the shortfall to over $2.0 billion by 2028; and a positive case where stronger growth narrows the gap to about $716.4 million by 2028.
Key findings from the forecast include:
- Revenues: Corporate Fund revenues are projected at $5.26 billion in 2026, a 9.1% decline relative to 2025, reflecting the loss of $424.6 million in one-time resources and continued uncertain around CPS pension reimbursements.
- Expenditures: Corporate Fund expenditures are projected at $6.41 billion in 2026, an increase of 10.7% relative to 2025, driven by personnel services ($4.16 billion), pensions ($907.8 million), and contractual services ($617.6 million).
- Pensions: Since 2023, the City has made more than $820 million in supplemental contributions to slow the growth of unfunded liabilities. For 2026, the Corporate Fund's share of pension obligations totals $907.8 million, including $219.4 million in supplemental payments.
Budget Director Annette Guzman stressed that transparency and discipline will guide the City's approach to closing the gap.
"This forecast makes clear that we cannot rely on one-time resources or uncertain reimbursements to sustain core services," said **Budget Director Annette Guzman**. "Our structural challenges are real, and they require durable, recurring solutions. At the same time, Chicago's economy remains strong, and with transparency and discipline we can chart a path that protects residents, supports our workforce, and strengthens the City's long-term financial health."
The 2026 Budget Forecast is a planning tool, not a spending plan. It provides City Council and residents with clear sightlines into the fiscal challenges and trade-offs that must be addressed. The Mayor will present a balanced budget recommendation to City Council this fall.
The full FY2026 Budget Forecast is available on [the Office of Budget and Management website](https://chi.gov/FY2026BudgetForecast).
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Source Name [3]: Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html Scraped Date/Time: 2025-11-22 22:38:02
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Get the new, updated COVID-19 and flu vaccines. They're safe, effective, and can be taken together. Learn more at [Chicago.gov/COVIDVax](https://chicago.gov/COVIDVax).
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[Select Language▼](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html#)
# Office of the Mayor
October 30, 2025
# Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs
## The new report highlights the impact of the Youth Services Division, which reached over 108k Chicagoans and more than 150 community-based organizations.
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/MAYOR%20BRANDON%20JOHNSON,%20DFSS%20RELEASE%202025%20SUMMER%20YOUTH%20IMPACT%20REPORT%20HIGHLIGHTING%20VITAL%20ROLE%20OF%20YOUTH%20PROGRAMS.pdf "Download this Press Release")
* * *
**CHICAGO**— The Chicago Department of Family and Support Services (DFSS) today released its 2025 Summer Youth Impact Report, presenting the measurable impact of the City's youth programming in strengthening communities through expanded youth employment opportunities, engaging youth enrichment programs, and programs centered on prevention and intervention for youth most at risk. The report highlights the importance of investing in youth programs. The Mayor's [Protecting Chicago Budget](https://www.chicago.gov/content/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) includes sustainable funding for these programs through a Community Safety Surcharge.
**_[The full report is available here.](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/DFSS%202025%20Youth%20Impact%20Report.pdf)_**
"Today's report is a testament to what we can accomplish when we provide our city's young people the resources they need to succeed," said **Mayor Brandon Johnson**. "By coming together to fund programs that ensure young Chicagoans are gaining new skills through first-hand job experience, we're building brighter futures for our youth and the communities they call home."
In total, young Chicagoans gained more than 2.84M hours of work experience and project-based learning and earned over $30.9M, or approximately $1,815 per 16-24-year-old in DFSS-funded programs.
"DFSS is proud to share a snapshot of the successes of its youth programming through the release of the 2025 Summer Youth Impact Report," said **DFSS Commissioner Angela Green**. "We are touching the lives of youth all across the city, offering them opportunities for personal advancement and enrichment and helping our young people chart new futures full of possibility, thanks to the learning experiences and connections to mentors and professional contacts they are able to establish though our programs."
Annual funding provided by DFSS's Youth Services Division supports more than 150 community-based organizations citywide that implement and administer DFSS's youth programs which serve over 108,000 residents across Chicago. These programs include One Summer Chicago, the City's youth employment program, which this summer employed 31,122 youth, providing them resume-boosting career experience and new professional connections, in addition to a paycheck.
Among One Summer Chicago program participants, 94% reported viewing themselves as "someone who can be successful for work," and 91% agreed with the statement, "I feel more confident in my work abilities."
"One Summer Chicago would not be possible without the collaboration of DFSS's delegate agencies; its numerous City sister agencies, including the Chicago Park District, Chicago Public Schools, City Colleges of Chicago, and many others; and its corporate partners within the private sector," said **Kathy Cullick, DFSS Deputy Commissioner for Youth Services**. "Each of our partners provide fantastic opportunities for youth, and we are deeply grateful for their partnership year after year."
DFSS's violence reduction programs for youth align with Mayor Johnson's People's Plan for Community Safety. These include the Service Coordination and Navigation (SCaN) program and the Community Safety and Engagement Peacekeeping program. SCaN, which provides case management and wraparound supports for youth at highest risk of violence involvement, connected 253 youth to services in 2025, with 880 youth goals achieved by participants in the program.
The program is projected to reach up to 540 youth under Mayor Johnson's proposed 2026 budget. The Community Safety and Engagement Peacekeeping program facilitates community stabilization efforts while also engaging youth in leadership development. DFSS provided 210 youth with Peacekeeping opportunities in 2025, which included 60 hours of classroom learning and 10 hours of field training geared toward restorative justice, collective healing and expanding awareness around non-carceral public safety strategies.
The Youth Intervention Pathways program, a partnership with the Chicago Police Department and Illinois State Police, is a citywide deflection and diversion model that reduces youth encounters with law enforcement that helps support Chicago's compliance with the federal consent decree. The program provides trauma-informed interventions for youth ages 10 to 17 who have been determined not to require further system involvement following arrests for low-level offenses. In 2025, 74 youth were successfully referred through the program.
<span style="color: #0066cc; font-weight: bold;">Finally, The My CHI. My Future. Safe Spaces program engaged 6,400 youth in safe, fun, affordable events during summer 2025. The 70 kickback events held this summer were spearheaded and executed by over 200 youth employees who come up with creative and entertaining social options for themselves and their peers year-round. These include basketball tournaments, dance classes, tech classes, fashion shows, video game competitions and much more.</span> [3]
"We are excited for the future of our youth programs and the tangible impacts they are having on our City's young people in helping to create new pathways toward brighter futures, which in turn helps prevent violence," **Commissioner Green** said. "The sustainable revenue stream for youth programming that would be created through the Community Safety Fund would ensure no progress is lost in our efforts to reduce violence and crime through trauma-informed youth engagement. We know these initiatives work—DFSS and its delegate agencies are witnessing transformation firsthand."
The Community Safety Fund in Mayor Johnson's proposed Protecting Chicago Budget would allocate $58,823,347 in sustainable funding for DFSS's youth programs for FY2026. Within that, the Youth Employment program would receive $48,915,715 and the Violence Reduction program would receive $5,201,147. Additional funding would support impactful violence reduction initiatives including the Youth Intervention Pathways program and the My Chi. My Future. Safe Spaces program to help reduce crime and violence throughout Chicago.
###
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Source Name [4]: Chicago City Council Passes Mayor Johnson's Landmark Green Social Housing Ordinance Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/may/Green-Social-Housing-Ordinance-Passes.html Scraped Date/Time: 2025-11-22 22:38:02
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/may/Green-Social-Housing-Ordinance-Passes.html#cds-main)
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# Office of the Mayor
May 7, 2025
<span style="color: #0066cc; font-weight: bold;"># Chicago City Council Passes Mayor Johnson's Landmark Green Social Housing Ordinance</span> [4]
<span style="color: #0066cc; font-weight: bold;">## Green Social Housing makes Chicago the first major city in the United States to implement this innovative model for developing permanent affordable housing.</span> [4]
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/May/Green-Social-Housing-Ordinance-Passes.pdf "Download this Press Release")
* * *
**CHICAGO**– Today, the Chicago City Council passed Mayor Johnson's Green Social Housing (GSH) Ordinance, a bold and innovative initiative to expand affordable housing in Chicago while upholding the City's green building standards. The ordinance lays the groundwork for the creation of an independent nonprofit with the authority to serve as a GSH developer. With the passage of the GSH ordinance, Chicago becomes the first major city in the country to implement this innovative model for developing permanent affordable housing.
"At a time when federal funds for housing are uncertain, we continue to develop tools to make Chicago the safest and most affordable big city in America," said **Mayor Brandon Johnson.** "I'm confident that Green Social Housing in Chicago will become a model for the nation. This work is part of our Housing and Economic Development Bond, the largest investment in affordable housing and economic development in the history of Chicago. Today we took the first step towards a greener, cleaner, and more affordable future for the working people of Chicago."
The urgency behind the ordinance is clear. Over half of all Chicago renters are 'cost-burdened,' meaning they spend more than 30% of their income on housing costs. As federal support for housing programs like the Low-Income Housing Tax Credit (LIHTC) becomes increasingly precarious, Chicago is taking the lead in developing progressive, community-centered solutions.
"With the passage of this ordinance, we are showing the nation what it looks like to take local, innovative action in the face of a growing housing crisis," said **Department of Housing Commissioner Lissette Castañeda.** "This model allows us to build permanently affordable, mixed-income housing that is sustainable, community-led, and responsive to the real needs of Chicagoans. We are not just building homes; we are creating healthier communities and ensuring long-term affordability for generations to come."
GSH will be funded with $135 million from Mayor Johnson's [Housing and Economic Development (HED) Bond](https://www.chicago.gov/city/en/sites/business-and-neighborhood-development-strategy/home.html). A newly created nonprofit, known as The Residential Investment Corporation (RIC), will operate the GSH model independently of the Department of Housing. RIC will primarily own and operate these developments, with profits reinvested into future projects or used to increase affordability. Once established, this revolving loan fund will provide low-cost financing and equity investments for developing permanently affordable, mixed-income housing. This model provides flexibility to move at the speed of the market while being held to strong accountability and governance standards.
RIC, the non-profit developer, will collaborate with private developers and retain majority ownership during construction and after stabilization. This model combines the efficiency of the private sector with lasting community benefits. Through this initiative, Chicago reinforces its Climate Action Plan and Environmental Justice Action Plan designed to protect the city's natural resources, reduce emissions, and help residents thrive.
The City plans to break ground on the first Green Social Housing development in 2026.
"This ordinance is a powerful reminder that housing justice and climate action go hand in hand," said **Angela Tovar, Chicago's Chief Sustainability Officer and Department of Environment Commissioner**. "Through Green Social Housing, Chicago is advancing a new model for sustainable development where affordable housing meets green building standards and also provides safe, healthy, and affordable living for families."
The Green Social Housing ordinance also includes protections for workers and reinforces Chicago's values around equity and inclusion. Projects will follow the Illinois Prevailing Wage Act and the City's M/WBE program. Additional preferences have been added for veterans and people with disabilities, and the governance structure was shaped with input from the City Council to ensure effective oversight and transparency.
Although other cities including Atlanta, Chattanooga, and Montgomery County, have experimented with the Social Housing model, Chicago will be the largest city in the nation to implement this cutting-edge approach and has authorized the largest revolving fund.
###
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Source Name [5]: Government Alliance for Safe Communities Announces $100 Million In Grant Opportunities for Violence Prevention and Community Violence Intervention Initiatives Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/november/Government-Alliance-for-Safe-Communities-100-Million-Grant.html Scraped Date/Time: 2025-11-22 22:38:02
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/november/Government-Alliance-for-Safe-Communities-100-Million-Grant.html#cds-main)
<span style="color: #0066cc; font-weight: bold;"></span> [5]
An official website of the City of ChicagoHere's how you know
The .gov means it's official
Municipal government websites often end in .gov or .org. Before sharing sensitive information, make sure you're on a City of Chicago government site.
The site is secure.
The **https://** ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Get the new, updated COVID-19 and flu vaccines. They're safe, effective, and can be taken together. Learn more at [Chicago.gov/COVIDVax](https://chicago.gov/COVIDVax).
Language
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# Office of the Mayor
November 4, 2024
# Government Alliance for Safe Communities Announces $100 Million In Grant Opportunities for Violence Prevention and Community Violence Intervention Initiatives
## Illinois, Cook County, and City of Chicago will partner to bring unprecedented resources to communities most impacted by violence, poverty, and other consequences of systemic racism
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2024/November/Government-Alliance-for-Safe-Communities-100-Million-Grant-2.pdf "Download this Press Release")
* * *
CHICAGO— The Government Alliance for Safe Communities (GASC) today announced a commitment to invest $100 million across City, County, and State government partners to sustain and scale critical community violence intervention (CVI) programming across the region.
Comprised of leadership and key representatives from funding agencies at the State, County and City, GASC was formed in 2021 to strengthen the community safety ecosystem in the greater Chicago region.
"This unprecedented intergovernmental collaboration is bringing targeted resources and deep support to our communities," said **Lanetta Haynes Turner, Chief of Staff for Cook County President Toni Preckwinkle.** "We're proud to work together to bring these grant opportunities to organizations making an impact in community violence intervention."
The 2025 GASC funding initiative includes two grant opportunities for programmatic CVI funding totaling approximately $57 million, with additional funding opportunities to follow. These grant opportunities are available through the _Reimagine Violence Prevention Services Program_, sponsored by the Illinois Department of Human Services, and the _Lead Organization for Expanding Capacity for Community Violence Interventions - Street Outreach Services_ sponsored by the City of Chicago.
The funding initiative also includes a $2.5 million funding opportunity for establishing a first-of-its-kind centralized Capacity Building Network for Community Safety sponsored by the Illinois Criminal Justice Information Authority to support community-based organizations serving the most vulnerable communities and those at highest risk for gun violence.
All funding opportunities are listed on the GASC website at [ILGovAlliance.org](https://www.ilgovalliance.org/) and on each agencies' websites.
As part of this joint funding initiative, GASC created a streamlined process through which organizations may apply for funding to support CVI programs in their community. Eligible organizations are invited to apply for a grant under one or more funding opportunities, sponsored by individual GASC agencies to support CVI programming (this excludes the Capacity Building Network for Community Safety). Eligible applications that are not selected for funding under one opportunity may be considered for the other GASC grants, with the exception of the GASC Capacity Building Network for Community Safety Notice of Funding Opportunity (NOFO).
**Illinois Department of Human Services: Reimagine Violence Prevention Services NOFO**
The Reimagine Violence Prevention Services NOFO seeks to provide $46 million to fund community-based organizations throughout Chicago and Greater Illinois that are dedicated to addressing firearm violence in targeted areas. These organizations will engage individuals at the highest risk of becoming victims or perpetrators of gun violence. Funded programs will use evidence-informed strategies designed to improve personal outcomes, promote resilience, and reduce the social and environmental factors that contribute to firearm violence. Through this GASC initiative, the Illinois Department of Human Services and its Office of Firearm Violence Prevention are reinforcing their commitment to creating safer neighborhoods and advancing long-term public safety outcomes across the state.
"Every life lost to gun violence leaves a lasting impact on our communities. Through this initiative, we are investing in solutions that center on the people most impacted, empowering them with services and support rooted in evidence-based practices," said **Quiwana Bell, Illinois Department of Human Services Assistant Secretary Designate, Office of Firearm Violence Prevention.**"Our mission is not only to reduce the immediate threat of firearm violence but to build pathways to brighter futures where safety, opportunity, and hope are within reach for every resident across Illinois."
**City of Chicago: Lead Organization for Expanding Capacity for Community Violence Interventions - Street Outreach Services****Request for Proposals (RFP)**
Through this RFP, the City of Chicago will administer up to $11.6 million in funding to select a lead organization and associated network of community organizations that will provide CVI and related services to individuals at the highest risk of violence involvement in designated communities and hotspots. Through this funding opportunity, organizations in the network will strengthen their capacity to deliver CVI services, allowing them to provide violence interruption services more effectively in their respective communities. This community-led initiative is driven by a shared commitment to address longstanding issues of disinvestment, foster healing within our neighborhoods, and ensure the safety of all Chicagoans.
"Violence is one of the top three drivers of the racial life expectancy gap for Black Chicagoans," said **CDPH Commissioner Olusimbo 'Simbo' Ige**. "It is critical that together, through ongoing partnerships across all levels of government and community organizations, we work to engage residents most at-risk through proven violence intervention programming to close this gap and help all Chicagoans live safer and healthier lives."
**Illinois Criminal Justice Information Authority: Capacity Building Network for Community Safety NOFO**
GASC Capacity Building Network for Community Safety NOFO will provide up to $2.5 million to support a centralized, coordinated, and accessible capacity-building network that empowers community-based organizations in their efforts to strengthen community safety and respond effectively to the challenges posed by gun violence. With this funding, one organization will serve as an anchor to establish a network of subject-matter experts that will deliver targeted capacity-building services and technical assistance to more than 400 community-based organizations funded by one or more of the GASC partners. These efforts will strengthen those organizations' abilities to deliver impactful community violence intervention and violence prevention services in their communities. This transformative model builds on GASC's existing efforts through its [Capacity Building Resource Library](https://www.ilgovalliance.org/resource-library) which is a resource hub for free regional capacity building resources.
"Community organizations are vitally important in identifying and addressing local violence prevention and intervention needs and issues," said **Illinois Criminal Justice Information Authority** y **Executive Director Delrice Adams**. "To ensure equity, it is imperative to support organizations as they build effective and sustainable programs. This opportunity will centralize and greatly expand capacity-building service provision across Illinois, including comprehensive grant management training, budgeting skills, and other resources local organizations can apply to successfully seek and manage grant funding."
In partnership with the City of Chicago, the Cook County Justice Advisory Council, Illinois Department of Human Services, and the Illinois Criminal Justice Information Authority, GASC has facilitated public investments of nearly $350 million to enhance community safety since its inception.
For funding opportunities and other information on GASC, visit [ILGovAlliance.org](https://www.ilgovalliance.org/)
###
**About the Illinois Criminal Justice Information Authority (ICJIA)**
The Illinois Criminal Justice Information Authority (ICJIA) is a state agency dedicated to improving the administration of criminal justice. ICJIA brings together key justice system leaders and the public to identify critical criminal justice system issues and to propose and evaluate policies, programs, and legislation that address those issues in a fair and equitable manner. The statutory responsibilities of ICJIA fall under the categories of grants administration, research and analysis, policy and planning, and technology. Contact: Cristin Evans, Public Information Officer – [cja.media@illinois.gov](mailto:cja.media@illinois.gov)
**About the Cook County Office of the President**
Cook County is the second largest county in the United States representing 5.2 million residents in Illinois. The President of the Cook County Board of Commissioners is the chief executive officer (CEO) of Cook County and oversees the Offices Under the President and presides as president of the Forest Preserves of Cook County.
Contact: Nick Mathiowdis, Press Secretary - [nicholas.mathiowdis@cookcountyil.gov](mailto:nicholas.mathiowdis@cookcountyil.gov)
**About the Cook County Justice Advisory Council**
The Cook County Justice Advisory Council (JAC) coordinates and implements Cook County Board President Toni Preckwinkle's criminal and juvenile justice reform efforts and community safety policy development. The mission of the JAC is to promote equitable, human-centered, community-driven justice system innovation and practice through rigorous stakeholder engagement, policy work, service coordination, and grantmaking that increases community safety and reduces reliance on incarceration. Contact: Cara Yi, Deputy Director of Communications – [cara.yi@cookcountyil.gov](mailto:cara.yi@cookcountyil.gov)
**About the Office of Firearm Violence Prevention (OFVP)**
The Office of Firearm Violence Prevention (OFVP) within the Illinois Department of Human Services (IDHS) was created in 2021 as a result of the Reimagine Public Safety Act (RPSA) which structured a comprehensive responding to the public health emergency of firearm violence in Illinois. Under the RPSA, OFVP increases community capacity to address the root causes of violence through funding, street outreach, case management and victim services, and youth development programs. Contact: IDHS Press – [DHS.Press@illinois.gov](mailto:DHS.Press@illinois.gov)
**About the Mayor's Office of Community Safety (MOCS)**
The Mayor's Office of Community Safety (MOCS) is committed to investing intentionally in people and communities through the full force of government and a community-driven approach. It was established by Mayor Brandon Johnson to systemically promote community safety by addressing root causes and rapidly response to specific community safety challenges through trauma-informed and community-based interventions. In December 2023, MOCS launched the People's Plan for Community Safety, which addresses both the immediate and root causes of violence, focusing on high-opportunity neighborhoods and those most acutely impacted. - [press@cityofchicago.org](mailto:press@cityofchicago.org)
**About the Chicago Department of Public Health (CDPH)**
The Chicago Department of Public Health (CDPH), through its Office of Violence Prevention and Community Safety Coordination Center, supports the implementation of the People's Plan for Community Safety. This includes investments in street outreach, victim support, and intervention services. CDPH also works to improve City coordination strategies and response methods that address root causes such as trauma, community blight, and lack of opportunities.
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Source Name [6]: Mayor Brandon Johnson and the Mayor's Office of Community Safety Announce the Launch of the Office of Re-entry Led by Director Joseph Mapp Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/december/Office-of-Re-entry-Launch.html Scraped Date/Time: 2025-11-22 22:42:42
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/december/Office-of-Re-entry-Launch.html#cds-main)
<span style="color: #0066cc; font-weight: bold;"></span> [6]
An official website of the City of ChicagoHere's how you know
The .gov means it's official
Municipal government websites often end in .gov or .org. Before sharing sensitive information, make sure you're on a City of Chicago government site.
The site is secure.
The **https://** ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Get the new, updated COVID-19 and flu vaccines. They're safe, effective, and can be taken together. Learn more at [Chicago.gov/COVIDVax](https://chicago.gov/COVIDVax).
Language
EnglishEspañolالعربية简化字FrançaisKreyòl ayisyen한국어PolskiePусскийاردوWollofAfrikaansAlbanianAmharicArabicArmenianAzerbaijaniBasqueBelarusianBengaliBosnianBulgarianCatalanCebuanoChinese (Simplified)Chinese (Traditional)CorsicanCroatianCzechDanishDutchEnglishEsperantoEstonianFinnishFrenchFrisianGalicianGeorgianGermanGreekGujaratiHaitian CreoleHausaHawaiianHebrewHindiHmongHungarianIcelandicIgboIndonesianIrishItalianJapaneseJavaneseKannadaKazakhKhmerKinyarwandaKoreanKurdishKyrgyzLaoLatinLatvianLithuanianLuxembourgishMacedonianMalagasyMalayMalayalamMalteseMaoriMarathiMongolianMyanmar (Burmese)NepaliNorwegianOdia (Oriya)PashtoPersianPolishPortuguesePunjabiRomanianRussianSamoanScots GaelicSerbianSesothoShonaSindhiSinhalaSlovakSlovenianSomaliSpanishSundaneseSwahiliSwedishTagalog (Filipino)TajikTamilTatarTeluguThaiTigrinyaTurkishTurkmenUkrainianUrduUyghurUzbekVietnameseWelshXhosaYiddishYorubaZuluAbkhazAcehneseAcholiAfarAlurAvarAwadhiBalineseBaluchiBaouléBashkirBatak KaroBatak SimalungunBatak TobaBembaBetawiBikolBretonBuryatCantoneseChamorroChechenChuukeseChuvashCrimean TatarDariDinkaDombeDyulaDzongkhaFaroeseFijianFonFriulianFulaniGaHakha ChinHiligaynonHunsrikIbanJamaican PatoisJingpoKalaallisutKanuriKapampanganKhasiKigaKikongoKitubaKokborokKomiLatgalianLigurianLimburgishLombardLuoMadureseMakassarMalay (Jawi)MamManxMarshalleseMauritian CreoleMeadow MariMinangNahuatl (Eastern Huasteca)NdauNdebele (South)Nepalbhasa (Newari)NKoNuerOccitanOssetianPangasinanPapiamentoPortuguese (Portugal)Punjabi (Shahmukhi)Q'eqchi'RomaniRundiSami (North)SangoSantaliSeychellois CreoleShanSicilianSilesianSusuSwatiTahitianTamazightTamazight (Tifinagh)TetumTibetanTivTok PisinTonganTswanaTuluTumbukaTuvanUdmurtVendaVenetianWarayWolofYakutYucatec MayaZapotec
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[Select Language▼](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/december/Office-of-Re-entry-Launch.html#)
# Office of the Mayor
December 5, 2024
# Mayor Brandon Johnson and the Mayor's Office of Community Safety Announce the Launch of the Office of Re-entry Led by Director Joseph Mapp
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2024/December/Office-of-Re-entry-Launch.pdf "Download this Press Release")
* * *
**CHICAGO** – Today, Mayor Brandon Johnson alongside aldermen and community partners celebrated the launch of the City's Office of Re-entry and announced the selection of Joseph Mapp to serve as Director of Re-entry. As part of the Mayor's Office of Community Safety, the Office of Re-entry will coordinate policies, programs, and initiatives to support Chicago residents returning to their communities after detention or incarceration. Mapp brings an extensive background to the role as a restorative justice practitioner managing community violence intervention programs to his new role, having demonstrated exceptional leadership and dedication throughout his career.
"Joseph brings a wealth of experience and knowledge to lead the City of Chicago efforts to remove barriers to re-entry, empower residents to break the cycle of recidivism, and implement policies that are reflective of the needs of the population," said **Mayor Brandon Johnson**. "As part of our comprehensive community safety plan, reducing recidivism rates is essential to creating an alternative vision of community safety while disrupting the cycle of incarceration."
"As an expert in re-entry, Joseph knows first-hand the many barriers that make it difficult to successfully return home after incarceration," said **Deputy Mayor of Community Safety Garien Gatewood**. "I am confident that Joseph will develop and implement policies, programs, and practices that eliminate barriers and create opportunities for returning residents in a plethora of ways including through community safety, mental health, housing, education, employment, economic vitality, and various other support systems."
Established as part of Mayor Johnson's commitment to investing in people, the Office of Re-entry is staffed by a growing team with sustainable and dedicated funding through the City's Cannabis Regulation Tax fund. Each year, more than 10,000 individuals return to Chicago after serving time in jail or prison, the majority to four historically disinvested communities on the South and West sides. The Office of Re-entry will lead initiatives aimed at providing holistic support to returning residents and their families, ensuring impacted individuals can access the resources they need to thrive.
"As a long-time advocate for second chances, I am proud to support the appointment of Joseph Mapp as Director of Re-entry," said **Alderman Walter Burnett**. "Joseph's deep understanding of the challenges faced by returning citizens, combined with his commitment to restorative justice, will play a critical role in helping our community members successfully transition back into society. This is about more than just re-entry; it's about giving people the dignity and opportunities they deserve to rebuild their lives and contribute positively to our neighborhoods."
"I am deeply honored to serve as Director of Re-entry for an administration that is committed to investing in opportunities to improve the lives of returning residents," said **Joseph Mapp**. "I am also committed to creating restorative re-entry opportunities that enhance supportive services for returning residents holistically."
Mapp firmly believes in the power of the collective strength of communities and through active participation in initiatives including the Illinois Re-entry Council and the Continuum of Care Re-entry Line of Action, he tirelessly fights for human dignity and the restoration of rights for individuals who have suffered from being locked up or locked out. Mapp holds a Bachelor of Arts in Interdisciplinary Studies from Northeastern Illinois University and is pursuing a Master of Arts in Social Work at the University of Chicago.
\# # #
Source Name [7]: Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html Scraped Date/Time: 2025-11-22 22:58:48
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html#cds-main)
<span style="color: #0066cc; font-weight: bold;"></span> [7]
An official website of the City of ChicagoHere's how you know
The .gov means it's official
Municipal government websites often end in .gov or .org. Before sharing sensitive information, make sure you're on a City of Chicago government site.
The site is secure.
The **https://** ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Get the new, updated COVID-19 and flu vaccines. They're safe, effective, and can be taken together. Learn more at [Chicago.gov/COVIDVax](https://chicago.gov/COVIDVax).
Language
EnglishEspañolالعربية简化字FrançaisKreyòl ayisyen한국어PolskiePусскийاردوWollofAfrikaansAlbanianAmharicArabicArmenianAzerbaijaniBasqueBelarusianBengaliBosnianBulgarianCatalanCebuanoChinese (Simplified)Chinese (Traditional)CorsicanCroatianCzechDanishDutchEnglishEsperantoEstonianFinnishFrenchFrisianGalicianGeorgianGermanGreekGujaratiHaitian CreoleHausaHawaiianHebrewHindiHmongHungarianIcelandicIgboIndonesianIrishItalianJapaneseJavaneseKannadaKazakhKhmerKinyarwandaKoreanKurdishKyrgyzLaoLatinLatvianLithuanianLuxembourgishMacedonianMalagasyMalayMalayalamMalteseMaoriMarathiMongolianMyanmar (Burmese)NepaliNorwegianOdia (Oriya)PashtoPersianPolishPortuguesePunjabiRomanianRussianSamoanScots GaelicSerbianSesothoShonaSindhiSinhalaSlovakSlovenianSomaliSpanishSundaneseSwahiliSwedishTagalog (Filipino)TajikTamilTatarTeluguThaiTigrinyaTurkishTurkmenUkrainianUrduUyghurUzbekVietnameseWelshXhosaYiddishYorubaZuluAbkhazAcehneseAcholiAfarAlurAvarAwadhiBalineseBaluchiBaouléBashkirBatak KaroBatak SimalungunBatak TobaBembaBetawiBikolBretonBuryatCantoneseChamorroChechenChuukeseChuvashCrimean TatarDariDinkaDombeDyulaDzongkhaFaroeseFijianFonFriulianFulaniGaHakha ChinHiligaynonHunsrikIbanJamaican PatoisJingpoKalaallisutKanuriKapampanganKhasiKigaKikongoKitubaKokborokKomiLatgalianLigurianLimburgishLombardLuoMadureseMakassarMalay (Jawi)MamManxMarshalleseMarwadiMauritian CreoleMeadow MariMinangNahuatl (Eastern Huasteca)NdauNdebele (South)Nepalbhasa (Newari)NKoNuerOccitanOssetianPangasinanPapiamentoPortuguese (Portugal)Punjabi (Shahmukhi)Q'eqchi'RomaniRundiSami (North)SangoSantaliSeychellois CreoleShanSicilianSilesianSusuSwatiTahitianTamazightTamazight (Tifinagh)TetumTibetanTivTok PisinTonganTswanaTuluTumbukaTuvanUdmurtVendaVenetianWarayWolofYakutYucatec MayaZapotec
Apply Translation
[Select Language▼](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html#)
# Office of the Mayor
October 30, 2025
# Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs
## The new report highlights the impact of the Youth Services Division, which reached over 108k Chicagoans and more than 150 community-based organizations.
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/MAYOR%20BRANDON%20JOHNSON,%20DFSS%20RELEASE%202025%20SUMMER%20YOUTH%20IMPACT%20REPORT%20HIGHLIGHTING%20VITAL%20ROLE%20OF%20YOUTH%20PROGRAMS.pdf "Download this Press Release")
* * *
**CHICAGO**— The Chicago Department of Family and Support Services (DFSS) today released its 2025 Summer Youth Impact Report, presenting the measurable impact of the City's youth programming in strengthening communities through expanded youth employment opportunities, engaging youth enrichment programs, and programs centered on prevention and intervention for youth most at risk. The report highlights the importance of investing in youth programs. The Mayor's [Protecting Chicago Budget](https://www.chicago.gov/content/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) includes sustainable funding for these programs through a Community Safety Surcharge.
**_[The full report is available here.](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/DFSS%202025%20Youth%20Impact%20Report.pdf)_**
"Today's report is a testament to what we can accomplish when we provide our city's young people the resources they need to succeed," said **Mayor Brandon Johnson**. "By coming together to fund programs that ensure young Chicagoans are gaining new skills through first-hand job experience, we're building brighter futures for our youth and the communities they call home."
In total, young Chicagoans gained more than 2.84M hours of work experience and project-based learning and earned over $30.9M, or approximately $1,815 per 16-24-year-old in DFSS-funded programs.
"DFSS is proud to share a snapshot of the successes of its youth programming through the release of the 2025 Summer Youth Impact Report," said **DFSS Commissioner Angela Green**. "We are touching the lives of youth all across the city, offering them opportunities for personal advancement and enrichment and helping our young people chart new futures full of possibility, thanks to the learning experiences and connections to mentors and professional contacts they are able to establish though our programs."
Annual funding provided by DFSS's Youth Services Division supports more than 150 community-based organizations citywide that implement and administer DFSS's youth programs which serve over 108,000 residents across Chicago. These programs include One Summer Chicago, the City's youth employment program, which this summer employed 31,122 youth, providing them resume-boosting career experience and new professional connections, in addition to a paycheck.
Among One Summer Chicago program participants, 94% reported viewing themselves as "someone who can be successful for work," and 91% agreed with the statement, "I feel more confident in my work abilities."
"One Summer Chicago would not be possible without the collaboration of DFSS's delegate agencies; its numerous City sister agencies, including the Chicago Park District, Chicago Public Schools, City Colleges of Chicago, and many others; and its corporate partners within the private sector," said **Kathy Cullick, DFSS Deputy Commissioner for Youth Services**. "Each of our partners provide fantastic opportunities for youth, and we are deeply grateful for their partnership year after year."
DFSS's violence reduction programs for youth align with Mayor Johnson's People's Plan for Community Safety. These include the Service Coordination and Navigation (SCaN) program and the Community Safety and Engagement Peacekeeping program. SCaN, which provides case management and wraparound supports for youth at highest risk of violence involvement, connected 253 youth to services in 2025, with 880 youth goals achieved by participants in the program.
The program is projected to reach up to 540 youth under Mayor Johnson's proposed 2026 budget. The Community Safety and Engagement Peacekeeping program facilitates community stabilization efforts while also engaging youth in leadership development. DFSS provided 210 youth with Peacekeeping opportunities in 2025, which included 60 hours of classroom learning and 10 hours of field training geared toward restorative justice, collective healing and expanding awareness around non-carceral public safety strategies.
The Youth Intervention Pathways program, a partnership with the Chicago Police Department and Illinois State Police, is a citywide deflection and diversion model that reduces youth encounters with law enforcement that helps support Chicago's compliance with the federal consent decree. The program provides trauma-informed interventions for youth ages 10 to 17 who have been determined not to require further system involvement following arrests for low-level offenses. In 2025, 74 youth were successfully referred through the program.
Finally, The My CHI. My Future. Safe Spaces program engaged 6,400 youth in safe, fun, affordable events during summer 2025. The 70 kickback events held this summer were spearheaded and executed by over 200 youth employees who come up with creative and entertaining social options for themselves and their peers year-round. These include basketball tournaments, dance classes, tech classes, fashion shows, video game competitions and much more.
"We are excited for the future of our youth programs and the tangible impacts they are having on our City's young people in helping to create new pathways toward brighter futures, which in turn helps prevent violence," **Commissioner Green** said. "The sustainable revenue stream for youth programming that would be created through the Community Safety Fund would ensure no progress is lost in our efforts to reduce violence and crime through trauma-informed youth engagement. We know these initiatives work—DFSS and its delegate agencies are witnessing transformation firsthand."
The Community Safety Fund in Mayor Johnson's proposed Protecting Chicago Budget would allocate $58,823,347 in sustainable funding for DFSS's youth programs for FY2026. Within that, the Youth Employment program would receive $48,915,715 and the Violence Reduction program would receive $5,201,147. Additional funding would support impactful violence reduction initiatives including the Youth Intervention Pathways program and the My Chi. My Future. Safe Spaces program to help reduce crime and violence throughout Chicago.
###
Source Name [8]: Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html Scraped Date/Time: 2025-11-22 23:58:00
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html#cds-main)
<span style="color: #0066cc; font-weight: bold;"></span> [8]
An official website of the City of ChicagoHere's how you know
The .gov means it's official
Municipal government websites often end in .gov or .org. Before sharing sensitive information, make sure you're on a City of Chicago government site.
The site is secure.
The **https://** ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Get the new, updated COVID-19 and flu vaccines. They're safe, effective, and can be taken together. Learn more at [Chicago.gov/COVIDVax](https://chicago.gov/COVIDVax).
Language
EnglishEspañolالعربية简化字FrançaisKreyòl ayisyen한국어PolskiePусскийاردوWollofAfrikaansAlbanianAmharicArabicArmenianAzerbaijaniBasqueBelarusianBengaliBosnianBulgarianCatalanCebuanoChinese (Simplified)Chinese (Traditional)CorsicanCroatianCzechDanishDutchEnglishEsperantoEstonianFinnishFrenchFrisianGalicianGeorgianGermanGreekGujaratiHaitian CreoleHausaHawaiianHebrewHindiHmongHungarianIcelandicIgboIndonesianIrishItalianJapaneseJavaneseKannadaKazakhKhmerKinyarwandaKoreanKurdishKyrgyzLaoLatinLatvianLithuanianLuxembourgishMacedonianMalagasyMalayMalayalamMalteseMaoriMarathiMongolianMyanmar (Burmese)NepaliNorwegianOdia (Oriya)PashtoPersianPolishPortuguesePunjabiRomanianRussianSamoanScots GaelicSerbianSesothoShonaSindhiSinhalaSlovakSlovenianSomaliSpanishSundaneseSwahiliSwedishTagalog (Filipino)TajikTamilTatarTeluguThaiTigrinyaTurkishTurkmenUkrainianUrduUyghurUzbekVietnameseWelshXhosaYiddishYorubaZuluAbkhazAcehneseAcholiAfarAlurAvarAwadhiBalineseBaluchiBaouléBashkirBatak KaroBatak SimalungunBatak TobaBembaBetawiBikolBretonBuryatCantoneseChamorroChechenChuukeseChuvashCrimean TatarDariDinkaDombeDyulaDzongkhaFaroeseFijianFonFriulianFulaniGaHakha ChinHiligaynonHunsrikIbanJamaican PatoisJingpoKalaallisutKanuriKapampanganKhasiKigaKikongoKitubaKokborokKomiLatgalianLigurianLimburgishLombardLuoMadureseMakassarMalay (Jawi)MamManxMarshalleseMauritian CreoleMeadow MariMinangNahuatl (Eastern Huasteca)NdauNdebele (South)Nepalbhasa (Newari)NKoNuerOccitanOssetianPangasinanPapiamentoPortuguese (Portugal)Punjabi (Shahmukhi)Q'eqchi'RomaniRundiSami (North)SangoSantaliSeychellois CreoleShanSicilianSilesianSusuSwatiTahitianTamazightTamazight (Tifinagh)TetumTibetanTivTok PisinTonganTswanaTuluTumbukaTuvanUdmurtVendaVenetianWarayWolofYakutYucatec MayaZapotec
Apply Translation
[Select Language▼](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html#)
# Office of the Mayor
October 30, 2025
# Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs
## The new report highlights the impact of the Youth Services Division, which reached over 108k Chicagoans and more than 150 community-based organizations.
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/MAYOR%20BRANDON%20JOHNSON,%20DFSS%20RELEASE%202025%20SUMMER%20YOUTH%20IMPACT%20REPORT%20HIGHLIGHTING%20VITAL%20ROLE%20OF%20YOUTH%20PROGRAMS.pdf "Download this Press Release")
* * *
**CHICAGO**— The Chicago Department of Family and Support Services (DFSS) today released its 2025 Summer Youth Impact Report, presenting the measurable impact of the City's youth programming in strengthening communities through expanded youth employment opportunities, engaging youth enrichment programs, and programs centered on prevention and intervention for youth most at risk. The report highlights the importance of investing in youth programs. The Mayor's [Protecting Chicago Budget](https://www.chicago.gov/content/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) includes sustainable funding for these programs through a Community Safety Surcharge.
**_[The full report is available here.](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/DFSS%202025%20Youth%20Impact%20Report.pdf)_**
"Today's report is a testament to what we can accomplish when we provide our city's young people the resources they need to succeed," said **Mayor Brandon Johnson**. "By coming together to fund programs that ensure young Chicagoans are gaining new skills through first-hand job experience, we're building brighter futures for our youth and the communities they call home."
In total, young Chicagoans gained more than 2.84M hours of work experience and project-based learning and earned over $30.9M, or approximately $1,815 per 16-24-year-old in DFSS-funded programs.
"DFSS is proud to share a snapshot of the successes of its youth programming through the release of the 2025 Summer Youth Impact Report," said **DFSS Commissioner Angela Green**. "We are touching the lives of youth all across the city, offering them opportunities for personal advancement and enrichment and helping our young people chart new futures full of possibility, thanks to the learning experiences and connections to mentors and professional contacts they are able to establish though our programs."
Annual funding provided by DFSS's Youth Services Division supports more than 150 community-based organizations citywide that implement and administer DFSS's youth programs which serve over 108,000 residents across Chicago. These programs include One Summer Chicago, the City's youth employment program, which this summer employed 31,122 youth, providing them resume-boosting career experience and new professional connections, in addition to a paycheck.
Among One Summer Chicago program participants, 94% reported viewing themselves as "someone who can be successful for work," and 91% agreed with the statement, "I feel more confident in my work abilities."
"One Summer Chicago would not be possible without the collaboration of DFSS's delegate agencies; its numerous City sister agencies, including the Chicago Park District, Chicago Public Schools, City Colleges of Chicago, and many others; and its corporate partners within the private sector," said **Kathy Cullick, DFSS Deputy Commissioner for Youth Services**. "Each of our partners provide fantastic opportunities for youth, and we are deeply grateful for their partnership year after year."
DFSS's violence reduction programs for youth align with Mayor Johnson's People's Plan for Community Safety. These include the Service Coordination and Navigation (SCaN) program and the Community Safety and Engagement Peacekeeping program. SCaN, which provides case management and wraparound supports for youth at highest risk of violence involvement, connected 253 youth to services in 2025, with 880 youth goals achieved by participants in the program.
The program is projected to reach up to 540 youth under Mayor Johnson's proposed 2026 budget. The Community Safety and Engagement Peacekeeping program facilitates community stabilization efforts while also engaging youth in leadership development. DFSS provided 210 youth with Peacekeeping opportunities in 2025, which included 60 hours of classroom learning and 10 hours of field training geared toward restorative justice, collective healing and expanding awareness around non-carceral public safety strategies.
The Youth Intervention Pathways program, a partnership with the Chicago Police Department and Illinois State Police, is a citywide deflection and diversion model that reduces youth encounters with law enforcement that helps support Chicago's compliance with the federal consent decree. The program provides trauma-informed interventions for youth ages 10 to 17 who have been determined not to require further system involvement following arrests for low-level offenses. In 2025, 74 youth were successfully referred through the program.
Finally, The My CHI. My Future. Safe Spaces program engaged 6,400 youth in safe, fun, affordable events during summer 2025. The 70 kickback events held this summer were spearheaded and executed by over 200 youth employees who come up with creative and entertaining social options for themselves and their peers year-round. These include basketball tournaments, dance classes, tech classes, fashion shows, video game competitions and much more.
"We are excited for the future of our youth programs and the tangible impacts they are having on our City's young people in helping to create new pathways toward brighter futures, which in turn helps prevent violence," **Commissioner Green** said. "The sustainable revenue stream for youth programming that would be created through the Community Safety Fund would ensure no progress is lost in our efforts to reduce violence and crime through trauma-informed youth engagement. We know these initiatives work—DFSS and its delegate agencies are witnessing transformation firsthand."
The Community Safety Fund in Mayor Johnson's proposed Protecting Chicago Budget would allocate $58,823,347 in sustainable funding for DFSS's youth programs for FY2026. Within that, the Youth Employment program would receive $48,915,715 and the Violence Reduction program would receive $5,201,147. Additional funding would support impactful violence reduction initiatives including the Youth Intervention Pathways program and the My Chi. My Future. Safe Spaces program to help reduce crime and violence throughout Chicago.
###
Source Name [9]: Mayor Brandon Johnson Announces 2026 Budget Engagement Roundtables Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/june/2026-Budget-Engagement-Roundtables.html Scraped Date/Time: 2025-11-23 05:39:37
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/june/2026-Budget-Engagement-Roundtables.html#cds-main)
<span style="color: #0066cc; font-weight: bold;"></span> [9]
An official website of the City of ChicagoHere's how you know
The .gov means it's official
Municipal government websites often end in .gov or .org. Before sharing sensitive information, make sure you're on a City of Chicago government site.
The site is secure.
The **https://** ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Get the new, updated COVID-19 and flu vaccines. They're safe, effective, and can be taken together. Learn more at [Chicago.gov/COVIDVax](https://chicago.gov/COVIDVax).
Language
EnglishEspañolالعربية简化字FrançaisKreyòl ayisyen한국어PolskiePусскийاردوWollofAfrikaansAlbanianAmharicArabicArmenianAzerbaijaniBasqueBelarusianBengaliBosnianBulgarianCatalanCebuanoChinese (Simplified)Chinese (Traditional)CorsicanCroatianCzechDanishDutchEnglishEsperantoEstonianFinnishFrenchFrisianGalicianGeorgianGermanGreekGujaratiHaitian CreoleHausaHawaiianHebrewHindiHmongHungarianIcelandicIgboIndonesianIrishItalianJapaneseJavaneseKannadaKazakhKhmerKinyarwandaKoreanKurdishKyrgyzLaoLatinLatvianLithuanianLuxembourgishMacedonianMalagasyMalayMalayalamMalteseMaoriMarathiMongolianMyanmar (Burmese)NepaliNorwegianOdia (Oriya)PashtoPersianPolishPortuguesePunjabiRomanianRussianSamoanScots GaelicSerbianSesothoShonaSindhiSinhalaSlovakSlovenianSomaliSpanishSundaneseSwahiliSwedishTagalog (Filipino)TajikTamilTatarTeluguThaiTigrinyaTurkishTurkmenUkrainianUrduUyghurUzbekVietnameseWelshXhosaYiddishYorubaZuluAbkhazAcehneseAcholiAfarAlurAvarAwadhiBalineseBaluchiBaouléBashkirBatak KaroBatak SimalungunBatak TobaBembaBetawiBikolBretonBuryatCantoneseChamorroChechenChuukeseChuvashCrimean TatarDariDinkaDombeDyulaDzongkhaFaroeseFijianFonFriulianFulaniGaHakha ChinHiligaynonHunsrikIbanJamaican PatoisJingpoKalaallisutKanuriKapampanganKhasiKigaKikongoKitubaKokborokKomiLatgalianLigurianLimburgishLombardLuoMadureseMakassarMalay (Jawi)MamManxMarshalleseMarwadiMauritian CreoleMeadow MariMinangNahuatl (Eastern Huasteca)NdauNdebele (South)Nepalbhasa (Newari)NKoNuerOccitanOssetianPangasinanPapiamentoPortuguese (Portugal)Punjabi (Shahmukhi)Q'eqchi'RomaniRundiSami (North)SangoSantaliSeychellois CreoleShanSicilianSilesianSusuSwatiTahitianTamazightTamazight (Tifinagh)TetumTibetanTivTok PisinTonganTswanaTuluTumbukaTuvanUdmurtVendaVenetianWarayWolofYakutYucatec MayaZapotec
Apply Translation
[Select Language▼](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/june/2026-Budget-Engagement-Roundtables.html#)
# Office of the Mayor
June 27, 2025
# Mayor Brandon Johnson Announces 2026 Budget Engagement Roundtables
## The citywide initiative fosters equity-driven dialogue and expand community voice and insights in shaping next year's budget priorities.
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/June/2026-Budget-Engagement-Roundtables.pdf "Download this Press Release")
* * *
**CHICAGO** – Mayor Brandon Johnson, together with the Mayor's Office of Community Engagement (MOCE) and the Office of Budget and Management (OBM), today announced the launch of the City of Chicago's 2026 Budget Engagement Roundtable events. This citywide exercise is an expression of co-governance and centers Chicagoans' voices to help shape the future of City services through a series of dynamic, co-designed public meetings focused on collaboration, transparency, and shared priorities.
Chicago is entering a tough budget season, confronting a $1 billion shortfall even before any potential federal cuts. These roundtables allow the City to hear directly from Chicagoans about which services matter most, what programs should be prioritized, and where spending can be realigned. More than ever, the 2026 Budget must be driven by purpose and impact, each public engagement roundtable will guide how valued programs are evaluated and where decisions will need to be made.
This year, similar to last year's budget engagement process, Mayor Johnson is hosting four interactive roundtable events across the city—three for the general public and one tailored specifically for youth, ages 13-24—each designed with input from community stakeholders.
"Our City works best when the people of Chicago and their input is placed front and center in our decision-making," said **Mayor Brandon Johnson**. "Through these roundtables, we are deepening our commitment to equity and transparency—ensuring the voices of everyday Chicagoans help shape the budget that governs their lives. Even during a tough budget season, we are committed to building a government that listens to, responds to, and evolves alongside its residents."
The 2026 budget engagement effort marks the third year of the Johnson administration's comprehensive public engagement strategy, led in partnership with the Great Cities Institute at the University of Illinois Chicago. This process centers equity, education, and collaboration while staying grounded in community input gathered during previous engagement cycles.
For the past two years, Mayor Johnson hosted deep-dive budget session, with key stakeholders, to provide a baseline understanding of City finances and strategy meetings to identify community priorities across the following five focus areas:
- Affordable Housing & Homelessness Services
- Mental Health & Public Health
- Community Safety
- Environmental Justice & Infrastructure
- Neighborhood/Community Development and Arts/Culture
The process was co-designed with a diverse coalition of community leaders and advocates to assist in shaping the format, structure and themes of the 2026 Budget Roundtable events.
"We're entering a budget season unlike any the City has experienced," said **Budget Director Annette Guzman**. "The City faces difficult decisions ahead and we want to know residents' priorities so we can be strategic and laser focused with our budget —it's Chicagoans' voices that will help us get there."
The four roundtable events will occur before departments submit their budget requests to OBM, giving City departments a direct opportunity to incorporate community feedback into their budget proposals. Department leadership will be present to listen and engage directly with residents. During last year's roundtables, residents prioritized youth job creation, environmental justice investments and expanded access to mental health services—priorities that were reflected in the FY2025 budget through expanded youth employment programs, sustainable infrastructure projects and the continued reopening of neighborhood mental health clinics.
After this year's roundtables conclude, the City and Great Cities Institute will publish a public report summarizing the engagement findings, which will coincide with the release of the FY2026 Executive Budget Recommendation. Drawing on the success of the FY2025 Inaugural "Lakeside Chat"—which offered a candid conversation, between Mayor Johnson and Budget Director Guzman about Chicago's budget outcomes—MOCE and OBM will reprise the format, later this fall, to walk residents through the goals of the new budget and its impact while discussing how public input influenced the final 2026 budget proposal.
Residents are encouraged to get involved by visiting the [FY2026 Budget Engagement website](https://chi.gov/3TGSco3) and watching the City's Budget 101 Video. Feedback can be submitted through the Public Comment Portal and by completing the Budget Engagement Survey, accessible through the 2026 Budget Engagement [Website](https://chi.gov/3TGSco3).
Each public roundtable event, with the exception of the final youth event, includes a City Resource Fair that will open one hour prior to the event's start time, where residents can engage with City departments and learn more about available services.
All events will be live streamed on the City's social media platforms for those unable to attend in person. ASL will be available at all events. Closed captioning (CC) will be offered at Harry S. Truman College and Spanish interpretation will be provided at Malcolm X College.
**BUDGET ENGAGEMENT ROUND TABLES**
**ROUNDTABLE I**
Saturday, June 28, 2025
10:00 AM – 12:30 PM
Harry S. Truman College – 1145 W. Wilson Ave.
**ROUNDTABLE II**
Monday, June 30, 2025
6:00 PM – 8:30 PM
Malcolm X College – 1900 W. Jackson Blvd.
**ROUNDTABLE III**
Tuesday, July 1, 2025
6:00 PM – 8:30 PM
Kennedy-King College – 6301 S. Halsted St.
**ROUNDTABLE IV – YOUTH EVENT**(Ages 13–24)
Wednesday, July 9, 2025
5:30 PM – 7:00 PM
Harold Washington Library, Crystal Garden – 400 S. State St.
Register through the City's Budget Engagement Website: [https://chi.gov/3TGSco3](https://chi.gov/3TGSco3)
Pre-registration is encouraged but not required.
**###**
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Source Name [10]: Chicago City Council Passes Mayor Johnson's Landmark Green Social Housing Ordinance Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/may/Green-Social-Housing-Ordinance-Passes.html Scraped Date/Time: 2025-11-23 04:40:52
<span style="color: #0066cc; font-weight: bold;">Today, the Chicago City Council passed Mayor Johnson's Green Social Housing (GSH) Ordinance, a bold and innovative initiative to expand affordable housing in Chicago while upholding the City's green building standards. The ordinance lays the groundwork for the creation of an independent nonprofit with the authority to serve as a GSH developer. With the passage of the GSH ordinance, Chicago becomes the first major city in the country to implement this innovative model for developing permanent affordable housing.</span> [10]
"At a time when federal funds for housing are uncertain, we continue to develop tools to make Chicago the safest and most affordable big city in America," said Mayor Brandon Johnson. "I'm confident that Green Social Housing in Chicago will become a model for the nation. This work is part of our Housing and Economic Development Bond, the largest investment in affordable housing and economic development in the history of Chicago. Today we took the first step towards a greener, cleaner, and more affordable future for the working people of Chicago."
The urgency behind the ordinance is clear. Over half of all Chicago renters are 'cost-burdened,' meaning they spend more than 30% of their income on housing costs. As federal support for housing programs like the Low-Income Housing Tax Credit (LIHTC) becomes increasingly precarious, Chicago is taking the lead in developing progressive, community-centered solutions.
GSH will be funded with $135 million from Mayor Johnson's Housing and Economic Development (HED) Bond. A newly created nonprofit, known as The Residential Investment Corporation (RIC), will operate the GSH model independently of the Department of Housing. RIC will primarily own and operate these developments, with profits reinvested into future projects or used to increase affordability. Once established, this revolving loan fund will provide low-cost financing and equity investments for developing permanently affordable, mixed-income housing. This model provides flexibility to move at the speed of the market while being held to strong accountability and governance standards.
RIC, the non-profit developer, will collaborate with private developers and retain majority ownership during construction and after stabilization. This model combines the efficiency of the private sector with lasting community benefits. Through this initiative, Chicago reinforces its Climate Action Plan and Environmental Justice Action Plan designed to protect the city's natural resources, reduce emissions, and help residents thrive.
The City plans to break ground on the first Green Social Housing development in 2026.
The Green Social Housing ordinance also includes protections for workers and reinforces Chicago's values around equity and inclusion. Projects will follow the Illinois Prevailing Wage Act and the City's M/WBE program. Additional preferences have been added for veterans and people with disabilities, and the governance structure was shaped with input from the City Council to ensure effective oversight and transparency.
Although other cities including Atlanta, Chattanooga, and Montgomery County, have experimented with the Social Housing model, Chicago will be the largest city in the nation to implement this cutting-edge approach and has authorized the largest revolving fund.
Source Name [11]: Mayor Brandon Johnson and the Chicago Department of Housing Launch Program to Expand and Preserve Affordable Home Ownership Opportunities Full URL: https://www.chicago.gov/city/en/depts/doh/provdrs/housing_resources/news/2024/october/mayor-brandon-johnson-and-the-chicago-department-of-housing-laun.html Scraped Date/Time: 2025-11-23 06:37:43
<span style="color: #0066cc; font-weight: bold;">The Chicago Department of Housing (DOH), in partnership with the Chicago Community Loan Fund (CCLF), and The Resurrection Project (TRP), has opened applications for the newly established Shared Equity Investment Program. The initiative aims to expand homeownership, create wealth building opportunities, and support shared equity models of homeownership.</span> [11]
The program is part of Mayor Brandon Johnson's larger Community Wealth Building efforts. The Mayor's Office of Equity and Racial Justice (OERJ) leads the City's work to promote the local, democratic, and shared ownership and control of community assets.
"Through this program, we're providing Chicagoans with real pathways to affordable homeownership that build wealth and strengthen our communities," said Mayor Brandon Johnson. "This partnership is a key step in creating lasting, community-owned opportunities that will empower families and foster stability across our neighborhoods."
The Shared Equity Investment Program has two tracks: Purchase Price Assistance led by TRP and Acquisition Support led by the CCLF. Both organizations were selected to manage their respective tracks through a Request for Proposals issued by DOH in 2023.
Purchase Price Assistance helps homebuyers reduce the cost of purchasing a housing cooperative (co-op) unit, community land trust (CLT) property, or a deed-restricted unit. Participants in this track can receive up to $60,000, with eligible grant uses including principal write-down, closing costs, private mortgage insurance premium, and down payment assistance. Homebuyers earning up to 120% of the Area Median Income (AMI) are eligible.
The Acquisition Support track will provide co-ops and CLTs funding to increase the number of permanently affordable units in Chicago. The program will provide up to $100,000 per unit for property acquisition costs, holding costs, and legal costs. To be eligible, 51% of units must be priced and sold at rates affordable to households at 80% AMI or below.
Source Name [12]: Mayor Brandon Johnson, Federal Transit Administration and the Chicago Transit Authority Announce Finalization of the $1.9 Billion Funding for Transformational Red Line Extension Project Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/january/1_9B_Funding_for_Red_Line_Extension_Project.html Scraped Date/Time: 2025-11-23 06:38:10
<span style="color: #0066cc; font-weight: bold;">In a historic day for Chicago, Mayor Brandon Johnson joined the Federal Transit Administration (FTA) Chicago Transit Authority (CTA) President Dorval R. Carter, U.S. Senator Dick Durbin, the Illinois Congressional Delegation, and other elected officials today signed and finalized a $1.9 billion funding agreement that will allow the CTA to move forward with the transformational Red Line Extension Project.</span> [12]
"The Red Line Extension Project is transformational for our city, especially for the South Side," said Mayor Brandon Johnson. "This project demonstrates the power of investing in people, and I am thrilled that we are taking a significant step forward in actualizing equitable transportation options for our city. I am grateful to the many partners from all levels of government who championed this effort and made this historic moment possible – together, we are working to achieve economic vibrancy and stability for all communities, regardless of socioeconomic status."
The CTA and the FTA signed a Full Funding Grant Agreement (FFGA), which guarantees the project will receive the funding pledged by the federal government. With this agreement, the Red Line Extension will advance toward groundbreaking, expected by early 2026. The project will extend by 5.5 miles the CTA's Red Line, the busiest of its eight rail lines, from 95th Street to 130th Street, including building four new Red Line stations.
"After decades of promises, a profound change for the lives of Chicagoans is finally here," said FTA Deputy Administrator Veronica Vanterpool. "Beyond providing the Far South Side access to new destinations, this expansion will drive significant economic growth and development, creating opportunities as well as fostering a vibrant local economy for Chicagoans well into the future."
The federal grant is the largest transit infrastructure grant awarded to CTA in the agency's history and is the final step in securing the funding needed for the $5.7 billion Red Line Extension Project.
The RLE is a transformational South Side project that will improve access to rapid rail transit and provide faster, more convenient service to residents. Extending service will also improve access to jobs, educational and health care institutions and promote economic development.
The Red Line Extension Project will:
- Build a 5.5-mile extension of the Red Line starting at 95th Street Terminal to the vicinity of 130th Street.
- Include four new accessible stations near 103rd Street, 111th Street, Michigan Avenue (near 116th), and 130th Street, each of which would include bus, bike, pedestrian and parking facilities.
- Build a new rail yard and related rail facilities to improve operational efficiency for the entire Red Line and CTA system.
The Red Line Extension Project will provide a new, more direct connection to the Red Line– this means an easier trip and less time commuting. Once the extension opens, it is expected to provide up to 20 minutes time savings to riders traveling from the future 130th Station.
Project benefits for surrounding communities:
- An award-winning RLE Transit-Supportive Development (TSD) Plan in partnership with Chicago's Department of Planning and Development (DPD). The Plan is a proactive effort to guide the future development of the long-disinvested communities located near the RLE project area, and it reflects the vision of those who currently reside and conduct business in these communities.
- Estimated construction jobs to be created: 12,512
- Estimated indirect jobs to be created: 59,800
- Estimated 25,000 additional jobs to become available with the access to transit for community served
- Opportunities for workforce training, apprenticeships and careers with partners Chicago Women in Trades, HIRE 360 and Metropolitan Family Services.
- Participation in the project by small Disadvantaged Business Enterprise (DBE)-certified small businesses.
CTA awarded a contract in August 2024 to Walsh-VINCI Transit Community Partners to design and build the RLE project. The new extension and stations are expected to be completed and in service in 2030.
Source Name [13]: Mayor Brandon Johnson Releases City's First-Ever Mid-Year Budget Report To Advance Transparency and Accountability Full URL: https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/july/mid-year-budget-report.html Scraped Date/Time: 2025-11-23 05:40:50
[Skip to main content](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/july/mid-year-budget-report.html#cds-main)
<span style="color: #0066cc; font-weight: bold;"></span> [13]
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[Select Language▼](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/july/mid-year-budget-report.html#)
# Office of the Mayor
July 30, 2025
# Mayor Brandon Johnson Releases City's First-Ever Mid-Year Budget Report To Advance Transparency and Accountability
## The report includes a comprehensive analysis of revenue collections, department expenditures, grant funding, and workforce trends.
Mayor's Press Office 312.744.3334
[Download this Press Release](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/July/MAYOR%20BRANDON%20JOHNSON%20RELEASES%20CITY%E2%80%99S%20FIRST-EVER%20MID-YEAR%20BUDGET%20REPORT%20TO%20ADVANCE%20TRANSPARENCY%20AND%20ACCOUNTABILITY.pdf "Download this Press Release")
* * *
**CHICAGO**— Mayor Brandon Johnson today announced the release of the City of Chicago's inaugural Mid-Year Budget Report; a new effort aimed at enhancing fiscal transparency and providing year-to-date insight into the City's financial performance and budgetary outlook. The report, which is submitted to the City Council Committee on Budget and Government Operations, includes a comprehensive analysis of revenue collections, departmental expenditures, grant funding, and workforce trends through the mid-point of the fiscal year.
The 2025 Mid-Year Budget Report is submitted in accordance with Section 2-4-055 of the Municipal Code of Chicago and reflects the administration's continued commitment to proactive financial stewardship and data-driven decision-making.
"This new budget report shows a clear turning point: revenues are stabilizing, and core operating costs are coming down. That reflects both Chicago's economic resilience and the disciplined reforms we've implemented to contain spending," said **Mayor Brandon Johnson**. "This is the kind of fiscal stewardship people deserve—where every dollar is used effectively and transparently to invest in residents and build a stronger, more equitable city."
**Report Highlights**
**Revenue**
- Year-to-date revenues have increased by 4.9%, driven by stronger than expected performance in utility taxes, transactions taxes, income taxes and internal service reimbursements.
**Workforce**
- City attrition—defined as employees retiring or leaving City service—has decreased by 28% since its peak in 2022, reflecting improved retention and greater workforce stability.
- Overtime expenditures across all departments have decreased by $38 million compared to the same period last year, reflecting improved cost management and scheduling practices, even as overall compensation rates have continued to rise.
**Expenditures and Cost Controls**
- The City has achieved notable reductions in key spending categories, including a $39 million year-over-year decrease in Contractual Services and a $6.4 million decrease in Commodities and Materials on the Corporate fund alone, despite ongoing economic and inflationary pressures.
This report also provides preliminary analysis of the economic factors that will drive the City's three-year budget forecast, which is scheduled to be released next month.
"This is the first time the City is publishing a mid-year report like this, and it reflects a real shift in how we're approaching the budget," said **Budget Director Annette Guzman**. "We're being clear about where we stand financially and what it will take to move forward. Transparency isn't just a principle—it's a tool to make better decisions and hold ourselves accountable. We invited the public and City Council into the conversation earlier and more meaningfully."
The 2025 Mid-Year Budget Report is now available to the public and can be accessed through the Office of Budget and Management website at [https://chi.gov/Mid-Year2025](https://chi.gov/Mid-Year2025).
###
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Source Name [14]: Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance, Signaling Steep Climb Full URL: https://news.wttw.com/2025/11/17/mayor-brandon-johnson-s-2026-spending-plan-fails-advance-signaling-steep-climb Scraped Date/Time: 2025-11-22 22:09:42
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<span style="color: #0066cc; font-weight: bold;">## Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance, Signaling Steep Climb</span> [14]
[Heather Cherone](https://news.wttw.com/stories-by-author/heather%20cherone) \| November 17, 2025, 2:14 pm
<span style="color: #0066cc; font-weight: bold;">Video:
Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance
\| Watch
Chicago Tonight
Online \| PBS</span> [14]
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<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson's $16.6 billion proposed spending plan for 2026, which eliminates a $1.19 billion projected shortfall, failed to advance Monday, signaling it faces a steep climb to win the support of a majority of the Chicago City Council before the end of the year.</span> [14]</span> [14]
<span style="color: #0066cc; font-weight: bold;">The refusal of the City Council's Finance Committee to advance Johnson's proposed spending plan to the full City Council is another sign the bulk of Johnson's proposal to impose $623 million in new taxes on the wealthiest Chicagoans and largest firms faces intense opposition that has shown no sign of waning.</span> [14]
Ald. Pat Dowell (3rd Ward), the chair of the Finance Committee, tried to prevent a vote on the budget until Dec. 3, a move that was rejected by an overwhelming vote by the committee. More than an hour after the meeting was scheduled to start, Budget Director Annette Guzman [introduced the revised version of the mayor's spending plan](https://news.wttw.com/2025/11/13/mayor-brandon-johnson-reduces-corporate-tax-hike-proposal-crucial-votes-loom).
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<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Much of the debate over Johnson's spending plan has centered on his proposal to impose a $21 per month per employee tax on large companies to fund violence prevention and youth employment programs.</span> [14]</span> [14]</span> [14]
<span style="color: #0066cc; font-weight: bold;">Originally, the tax would have applied to all firms with more than 100 employees, but Johnson revised it to apply to firms with more than 200 employees. That would have generated $82 million in 2026, according to budget projections.</span> [14]
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">But Guzman said Monday morning the proposal had been revised, again, to apply to all firms with 100 employees to once again generate $100 million. The violence prevention and youth employment programs would get $82 million, with the remaining $18 million funding small business grants.</span> [14]</span> [14]
After two hours of debate, Ald. Jason Ervin (28th Ward) tried again to recess the meeting, and the effort resulted in a tie vote, with 18 alderpeople against and 18 in favor.
<span style="color: #0066cc; font-weight: bold;">A vote to advance the part of the mayor's budget that generates all of the city's revenue for 2026 failed on a vote of 10-25, leaving the budget proposal in limbo and all but assuring that the debate over the spending plan will continue into December.</span> [14]
Led by Ald. Brendan Reilly (42nd Ward), opponents of the mayor insisted on the vote in an effort to publicly demonstrate the mayor's inability to push through his proposal after more than a month of debate.
<span style="color: #0066cc; font-weight: bold;">Ald. Raymond Lopez (15th Ward), flanked by 13 members of the City Council, after the vote that served as a public rebuke of Johnson and his administration, said he hoped the head tax proposal was dead.</span> [14]
Shortly after the defeat, Johnson attempted to reframe the debate over the budget as a contest between "working people" or the "ultra rich" <span style="color: #0066cc; font-weight: bold;">and said he would not withdraw his proposal for the head tax.</span> [14]
There is no "magic third option between cuts to core services and layoffs," Johnson said. "Anyone who wants to pretend otherwise is being disingenuous."
<span style="color: #0066cc; font-weight: bold;">Johnson promised to veto a budget that includes a reimposed grocery tax or increases to garbage fees or property taxes.</span> [14]
<span style="color: #0066cc; font-weight: bold;">Ald. Jason Ervin (28th Ward) canceled a meeting of the Budget Committee, which had been scheduled for 2 p.m. Monday to consider the ordinances that would allow that revenue to be spent.</span> [14]
The revised budget proposal would boost the tax levied on software licenses, cloud services and other digital goods from 11% to 15% to generate $416 million, according to the proposal. The mayor has touted that as a tax hike on "big tech."
Johnson has steadfastly campaigned for the so-called head tax, noting that business leaders have told him his highest priority should be public safety. Johnson has said it only makes sense for Chicago's largest companies to "put more skin in the game" in order to allow the city to "double down" <span style="color: #0066cc; font-weight: bold;">on efforts that are working.</span> [14]
<span style="color: #0066cc; font-weight: bold;">The mayor has also downplayed the size of the head tax, noting that it is the equivalent of big firms buying their employees lunch once or twice a month.</span> [14]
<span style="color: #0066cc; font-weight: bold;">The head tax proposal has triggered outrage in the city's business community, which blasted that proposal as a job killer.</span> [14]
Johnson has repeatedly told reporters it was time for members of the City Council who don't like his spending plan to make the case for their own budget proposal.
"If alders have other ideas, it is time to bring them forward so we can debate them," Johnson said.
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Johnson has not proposed reducing the $2.1 billion proposed budget for the Chicago Police Department in 2026. CPD's budget accounts for one-third of the city's $6 billion corporate fund, which the City Council has wide discretion to spend.</span> [14]</span> [14]
Johnson said he would veto any spending plan that cuts CPD's budget, noting that would result in layoffs of police officers.
Johnson's budget relies on $157.6 million in TIF surplus to help fill the city's budget gap. An additional $550 million would flow to Chicago Public Schools, which is also facing its own financial crunch.
The CPS budget approved by the Chicago Board of Education for the 2025-26 academic year counted on getting $379 million in TIF funds in order to close a $734 million budget gap.
That means the surplus declared by the mayor will give CPS an additional $173 million, enough to cover the $175 million payment that Johnson has asked the school district to make into the pension fund controlled by the city that pays for the retirement of some CPS employees.
The Chicago Board of Education approved a measure to make that payment for 2025, assuming the TIF surplus is approved by the City Council.
That would close the $146 million deficit the city is facing by the end of 2025, officials said.
Alderpeople have also questioned Johnson's plan to generate $31 million by taxing social media companies with a tax of 50 cents per month for every active user after the first 100,000 users, under the city's amusement tax authority.
That money would be used to fund the city's public mental health clinics and crisis response program, according to Johnson's proposed budget.
Several alderpeople said they were skeptical that the first-of-its-kind tax, assessed under the city's amusement tax authority, would withstand a legal challenge, but lawyers for the city told alderpeople they were confident it would be upheld.
Chicago's 2026 budget does not count on that tax immediately flowing into the city's coffers, anticipating a legal challenge, officials said.
The spending plan would also borrow $283.3 million to [cover the massive cost of resolving police misconduct lawsuits](https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits), records show. That debt will be paid off during the next five years, at a cost of approximately $52 million in interest, Chief Financial Officer Jill Jaworski said.
The city will also borrow $166 million to pay Chicago firefighters and paramedics what they are owed after working without a contract for four years. That debt will be paid off over three years and cost the city $30 million in interest, Jaworski said.
In all, the spending plan proposes borrowing a total of $1.8 billion to cover those expenses and fund the city's infrastructure program for 2026 and 2027, which includes $144.6 million to repair bridges and viaducts, $174 million for street resurfacing and [$173 million to replace lead service lines](https://news.wttw.com/2025/10/24/crews-have-replaced-less-4-lead-service-lines-shown-contaminate-tap-water-chicago-homes).
The revised spending plan would also hike the congestion surcharge for all rides to and from an expanded area downtown to generate $17 million. Johnson's original plan would have generated $65.4 million, but faced intense opposition.
The budget still calls for the city to impose a local tax on online wagers to generate $26.2 million, but would no longer seek to tax the sale of intoxicating hemp products.
S&P, one of a handful of major ratings agencies, revised its credit rating outlook for Chicago from stable to negative earlier this month.
The ratings agency was alarmed by Johnson's decision to make an additional payment of just $120.8 million to the city's four underfunded pension funds. That additional payment is more than 55% smaller than the additional payment made in 2025, records show.
In August, the city had planned to make an additional payment to the city's four pension funds of $219.4 million, records show.
The city now plans to make an additional pension payment of $130 million in 2026, Jaworski said.
The city faces a nearly $2.76 billion pension bill in 2026 in order to comply with a state law that requires two of Chicago's pension funds be funded at a 90% level by 2055 and the other two by 2058.
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Source Name [15]: Mayor Brandon Johnson's head tax plan defeated in council committee vote Full URL: https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/ Scraped Date/Time: 2025-11-22 22:09:42
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![<span style="color: #0066cc; font-weight: bold;">Chicago Mayor Brandon Johnson speaks at City Hall after his proposed head tax was voted down in a City Council committee meeting, Nov. 17, 2025. Chicago Ald. Jason Ervin, 28th, is at left. (Terrence Antonio James/Chicago Tribune)</span> [15]](https://www.chicagotribune.com/wp-content/uploads/2025/11/ctc-l-johnson-post-re7971466.jpg?w=525)
<span style="color: #0066cc; font-weight: bold;">Chicago Mayor Brandon Johnson speaks at City Hall after his proposed head tax was voted down in a City Council committee meeting, Nov. 17, 2025. Chicago Ald. Jason Ervin, 28th, is at left. (Terrence Antonio James/Chicago Tribune)</span> [15]
By [Alice Yin](https://www.chicagotribune.com/author/alice-yin/ "Posts by Alice Yin") \| [ayin@chicagotribune.com](mailto:ayin@chicagotribune.com) \| Chicago Tribune, [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune and [A.D. Quig](https://www.chicagotribune.com/author/a-d-quig/ "Posts by A.D. Quig") \| [aquig@chicagotribune.com](mailto:aquig@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 17, 2025 at 11:39 AM CST \| UPDATED: November 17, 2025 at 6:21 PM CST
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Aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee, a remarkably rebellious display against the freshman mayor who has been struggling to shore up support for his [controversial head tax](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/).
<span style="color: #0066cc; font-weight: bold;">But to hear Johnson tell it, the fight over the per-employee tax on Chicago's bigger companies is far from over.</span> [15]
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">After the rancorous Finance Committee meeting adjourned, he challenged aldermen to come up with a better spending plan, but promised to veto any budget that includes a property tax increase, a grocery tax or a garbage fee hike. That means the City Council would need 34 out of 50 votes to override him.</span> [15]</span> [15]
"Working-class Chicagoans can simply just not afford a property tax increase," the mayor told reporters. "Let me be clear: There are not any magic third options in cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
And even after its defeat Monday, Johnson doubled down on his backing of the head tax as a way to make corporations pay their fair share, setting up a difficult stretch run as he and aldermen try to find common ground on a balanced budget before the end of the year. "The corporate tax is in this budget. It will stay in this budget. Is that clear enough?" <span style="color: #0066cc; font-weight: bold;">he said.</span> [15]
Johnson's defiance came after he got outmaneuvered in the Finance Committee meeting.
His handpicked Finance chair, Ald. Pat Dowell, tried to dodge a vote on the head tax by recessing the meeting instead of considering the revenue ordinance for the mayor's $16.6 billion budget, a sign Johnson expected to lose after Dowell publicly warned [a Monday vote](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) would be "premature."
Ald. Pat Dowell, 3rd, who chairs the Finance Committee, takes part in the meeting where Mayor Brandon Johnson's proposed head tax was voted down Nov. 17, 2025. (Terrence Antonio James/Chicago Tribune)
<span style="color: #0066cc; font-weight: bold;">Mayoral foes Aldermen Raymond Lopez and Anthony Beale tabled her recess motion on a 24-7 roll call. Johnson's budget chair, Ald. Jason Ervin, then attempted to delay a vote on the head tax, only to see that move fail by a single vote in an 18-18 tie.</span> [15]
Finally forced to consider the ordinance, the committee struck it down 25-10, a stunning rebuke of the chief executive who has overseen more losses in City Council than his predecessors.
How aldermen navigate the waters after Monday's defiance could chart a new course in City Hall's power dynamics and prove consequential to Chicago's long-standing fiscal woes, but their stance against the mayor sends the process for a second straight year toward a critical end-of-year deadline.
Johnson brushed off talk that his Monday defeat was politically significant. "If you're asking me if I'm afraid of a no, then you don't know me very well," <span style="color: #0066cc; font-weight: bold;">he said.</span> [15] "I'm not afraid of a no."
Still, his budget path won't get any easier. Aldermen who now smell blood in the water will be less likely to follow his lead, though Johnson is trying to put the onus on them to come up with an alternative from among an unpopular set of options.
<span style="color: #0066cc; font-weight: bold;">The mayor clearly would have rather not seen his head tax go down in Finance.</span> [15]
Earlier Monday afternoon, top Johnson adviser Jason Lee clutched a paper with what appeared to be his vote predictions as he approached on-the-fence aldermen during a presentation from the mayor's budget and finance teams. A few moments later, Lopez interjected to accuse Lee of improperly lobbying on the City Council floor. Lee quickly left the room, but turned back to aldermen and blew a two-handed kiss.
The council must finalize the 2026 budget by the end of this year. Last year, the mayor took that timeline to the latest it's been pushed in decades but ultimately clinched 27 votes by mid-December.
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Johnson first pitched the head tax, which his team projected to raise $100 million, when he unveiled his plan to close a $1.19 billion budget gap for next year in an his October address to City Council. He framed the proposal as the city's best chance to stand up to President Donald Trump and tax the rich but has faced hurdles in getting an aldermanic majority on board.</span> [15]</span> [15]
<span style="color: #0066cc; font-weight: bold;">Last week, Johnson's team started floating a modified version that would up the minimum company size from 100 to 200 employees. The $100 million revenue estimate went down to $82 million, with the gap then being filled by bumping up the personal property lease tax to 15%.</span> [15]
<span style="color: #0066cc; font-weight: bold;">Dowell then told reporters she opposed the head tax in any form, and the mayor's team floated another version this weekend where the levy would again apply to companies with 100 or more employees, but the $18 million that would be restored from that tweak would mainly go toward eligible businesses in South and West side wards, among other categories of spending.</span> [15]
<span style="color: #0066cc; font-weight: bold;">Johnson's third budget cycle was expected to be his most difficult yet given the city's long-standing fiscal issues and the limited options he had to pull new levers for revenue.</span> [15]
<span style="color: #0066cc; font-weight: bold;">His road to 26 out of 50 votes — or 25, if he's willing to cast a tie-breaker — has proven difficult for Johnson given that his most ideologically aligned bloc — the Progressive Caucus — is not sizable enough to get over that hump, and not all of those aldermen are won over by his proposal. Thus, the mayor will need the Black Caucus on board, but some of those members are also hesitant on the head tax.</span> [15]
Dowell, who has been caught between her role on the mayor's leadership team and her unequivocal disapproval of that major revenue component, sided with her colleagues against her own motion to recess.
Johnson's stark red line against a property tax hike or grocery tax reinstatement for 2026 comes after he tried and failed to raise property taxes in the 2025 budget, and could not win over a council majority for the grocery tax earlier this year. Asked Monday what has changed to make him now steadfastly against raising those taxes, Johnson pointed to moves by Trump he said have left working-class Chicagoans in dire financial straits and unable to bear those additional burdens on their pocketbooks.
The debate roils at the same time the latest round of Cook County property bills are hitting the city's South and West sides the hardest while Loop values and bills have dropped. The dynamic has cemented some existing aldermanic opposition to Johnson's head tax, fueling fears it will further hurt businesses that would otherwise hire residents.
Meanwhile, his unsuccessful weekend push to quickly pass the budget clearly left an impact among some aldermen: frayed trust.
Ald. Timmy Knudsen said the mayor's team spread "a complete lie" about him by telling other City Council members that the Lincoln Park alderman supported a head tax. "I have been a 'heck no' the whole time," he added.
Knudsen, 43rd, called the move a "grasping at straws" effort to "get a few cheap votes."
"This body does not trust them, and things like this are pretty direct evidence as to why," <span style="color: #0066cc; font-weight: bold;">he said.</span> [15]
Johnson on Monday told reporters it was Knudsen who was lying: "He said that? That's not true."
At times during the tense Finance Committee meeting, mayoral allies argued his opponents were lining up with Trump to support corporations at the expense of the working class.
Progressive Ald. Anthony Quezada posed a volley of rhetorical questions, asking how much some of America's wealthiest corporations made in profits.
"We need to stop playing games and we need to stop just trying to make the mayor look bad, and actually work on passing policies that are sound," <span style="color: #0066cc; font-weight: bold;">he said.</span> [15]
Dowell fired back: "I don't take kindly to the 'stop playing games' thing when none of us are down here playing games. We are here doing the work of our constituents. We are not monolithic."
Moments later, Ervin trotted out a favorite line he uses when aldermen are caught between unsavory financial choices, noting that "Everybody wants to get to heaven, but nobody wants to die."
Ald. Andre Vasquez, a critical swing vote who heads the Progressive Caucus, rose from his seat, spread his arms and looked toward the ceiling as Ervin spoke.
But the prayers weren't enough for the mayor, as aldermen regardless lined up against the revenue ordinance.
Vasquez, who voted against the revenue package, noted City Hall has few options to land the budget — and worried there was no one who could bridge the mayor-aldermen divide.
"I don't believe that any option has been fully taken off the table," <span style="color: #0066cc; font-weight: bold;">he said.</span> [15] "We still have to solve a math problem."
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Source Name [16]: Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance Full URL: https://news.wttw.com/2025/11/18/alderpeople-weigh-path-forward-budget-negotiations-after-johnson-s-plan-fails-advance Scraped Date/Time: 2025-11-22 22:21:55
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## Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance
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City Council Members Weigh in on Chicago's 2026 Budget
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<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson's $16.6 billion budget proposal for 2026 suffered a major blow Monday when the Chicago City Council's Finance Committee rejected it in a 10–25 vote.</span> [16]
<span style="color: #0066cc; font-weight: bold;">A number of alderpeople oppose Johnson's proposed corporate head tax, which would impose a monthly $21 per employee tax on companies with more than 100 employees, arguing it will stifle business growth in Chicago.</span> [16]
<span style="color: #0066cc; font-weight: bold;">Johnson said in a news conference that despite the setback in City Hall, his administration is standing firm on the head tax, setting up a debate likely to run close to the Dec. 30 deadline to pass a budget.</span> [16]
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"We stand by our budget proposal," Johnson said. "We stand behind the progressive revenue that we have put forward because this moment calls for those with means to put more skin in the game."
Alds. Daniel La Spata (1st Ward), William Hall (6th Ward) and Bill Conway (34th Ward) joined "Chicago Tonight" to discuss the ongoing budget negotiations. Here's a snapshot of where they stand:
### Reaction to Johnson's Budget Failing in Committee
<span style="color: #0066cc; font-weight: bold;">On Monday, 18 members of the City Council's Finance Committee voted to adjourn, signaling that a large bloc preferred more debate over taking a final vote.</span> [16]
The attempt to adjourn failed, leading to the 10-25 vote rejecting Johnson's proposed budget.
Johnson pressed for a vote even after it became clear most City Council members opposed the revenue ordinance, [leading some alderpeople](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) to believe he wanted them on the record opposing the head tax.
Hall likened the stalling negotiations in City Hall to the recent record-long 43-day federal government shutdown.
"Trump has found his way into City Hall," Hall said. "These are some of the same tactics we saw in D.C. with the government shutdown and we now see them in the city of Chicago. We see nitpicking, we see arguments but no solutions, no counters to negotiate. … I see the beginning of a stand-down."
Johnson has [called for](https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/) a recess until early December to give time for alderpeople to come up with their own proposals to raise revenue.
La Spata was one of the 18 alderpeople who voted to delay a vote on Johnson's revenue ordinances, arguing that he and his colleagues needed more time to assess every option.
"There's questions about how do we find in a way that is progressive, that, as Ald. Hall called for, asks those who can pay more and pay their fair share to pay their fair share, but also do it in ways that continues to grow our economy rather than deter economic growth," La Spata said. "That's a needle that we can thread, and I know that we can thread, but it deserves more time and deliberation. If we knew that the votes weren't there for the revenue package, we should've taken the time to get to a place that everyone can agree on."
### The Ernst & Young Report and Budget Cuts
<span style="color: #0066cc; font-weight: bold;">The city hired consulting firm Ernst & Young to produce a report analyzing Chicago's finances and outlining ways to cut costs and boost revenue. The report cost $3.1 million, and identified between $530 million and $1.4 billion in potential savings and new revenue.</span> [16]
Johnson's budget proposal only includes $80 million in cuts recommended by the report.
Hall commended Johnson for allowing an accounting firm to perform an audit on the city, but pointed to the identified cuts as those that would "break the backs of Chicagoans."
"When you look at those recommendations, those recommendations phase in over time, especially in the year 2026," Hall said. "So the committee is doing its job in finding efficiencies for the year 2026. … I have yet to find an idea that does not break the backs of Chicagoans. If you ask any Chicagoan right now, 'Do you want to pay more in their property taxes?' they'll say no. If you ask them, 'Do you wanna pay more on garbage fees?' they'll say no. If you ask them if they want to get nickel and dimed on other fees, they'll say no."
<span style="color: #0066cc; font-weight: bold;">Johnson has said he would veto any budget that cuts the Chicago Police Department's budget, and has also opposed reducing services such as street sweeping and snow removal.</span> [16]
Conway said the city should focus on trimming its own departments and eliminating inefficiencies instead of cutting services for Chicagoans or asking them to pay more.
"I agree we don't wanna ask people in the 6th Ward, the 34th Ward or the 1st Ward for more money, and that's why we have to be efficient with taxpayer dollars, and the report had some clear places to do that," Conway said. "For example, fleet optimization. The average car owned by the city is driven 7,000 miles a year, and Ernst & Young said we can get 29.6 million (dollars) in efficiency in Year 1 — there's 3 million of that in the budget. Procurement — only 51% of the stuff we buy goes through the procurement department. They identified $55-111 million in savings we could get through that — only $10 million in this budget."
<span style="color: #0066cc; font-weight: bold;">La Spata, who said the current budget proposal will need significant changes before it can pass, argued for a plan that pairs new revenue with cuts identified in the Ernst & Young report.</span> [16]
"We sometimes conflate cuts with efficiencies," La Spata said. "Efficiency is providing the same high level of service to Chicagoans that they deserve and doing it with the same amount or less revenue. There's so much more in the Ernst & Young report that we can dig into. There is no single way that we are going to get to a balanced budget, we should all be clear on that. It's efficiencies, it has a revenue side to it. It's more transparency in terms of how we use our revenue."
### Is the Head Tax a Nonstarter?
Johnson's proposed tax on corporations has become the most incendiary part of his spending plan and the sticking point for many alderpeople.
Conway said that more cuts outlined in the Ernst & Young report need to be implemented before a head tax is considered.
"What I hear in the 34th Ward is we need to show taxpayers that we are being efficient with their tax dollars before we go asking for more, and Ernst & Young identified several areas in savings," Conway said. "We need to really go back to departments and show taxpayers we're being efficient with those dollars, that we have worked that out before we do anything like a head tax."
Hall said he doesn't see any budget passing unless it asks wealthy Chicagoans to "put more skin in the game."
"I don't see a way forward unless corporations pay their fair share," Hall said. "We've made concessions for corporations, and in those concessions we are saying this tax will be reinvested directly into the communities, number one, that need investment. … It's now the time for corporations to pay for the roads they drive on, for the utilities that they use and stop breaking the backs of the employees and using them as pawns to threaten to leave."
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Source Name [17]: Mayor Brandon Johnson's budget includes money for ShotSpotter replacement Full URL: https://www.chicagotribune.com/2025/11/06/mayor-brandon-johnson-budget-shotspotter-replacement/ Scraped Date/Time: 2025-11-22 22:42:42
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<span style="color: #0066cc; font-weight: bold;"></span> [17]
By [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 6, 2025 at 4:17 PM CST \| UPDATED: November 6, 2025 at 4:47 PM CST
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Mayor Brandon Johnson's budget proposal once again includes a hefty sum set aside for [a ShotSpotter replacement](https://www.chicagotribune.com/2024/05/21/shotspotters-chicago-future-faces-final-vote-with-new-data-on-victims-helped/), administration officials told aldermen Thursday.
Officials identified a $5 million line item in the mayor's 2026 spending plan as money for a "gunshot detection system" when pressed by aldermen during budget hearings. The item's written description only said the money was for "software maintenance and licensing."
But despite the revelation, the plan to spend on a replacement for the controversial acoustic gunshot detection technology that sparked a long, heated clash between Johnson and the City Council is likely no surprise for aldermen. Johnson announced his administration was seeking proposals for "gun violence detection technology" in February.
Still, it's a noteworthy choice for Johnson, whose budget proposal [also includes](https://www.chicagotribune.com/2025/11/06/mayor-brandon-johnson-rating-agency-negative-budget-outlook/) major cuts to library book-buying funds and the city's previously promised advanced pension payments.
Ald. Bill Conway, 34th, pointed to the months that have passed since Johnson defied a 33-aldermen City Council majority to end the city's use of ShotSpotter. Voters widely favored the police response tool, he argued during a council hearing Thursday focused on the Office of Public Safety Administration.
"It seems as though their voice, through the voice of their elected officials, is being ignored under the guise of a complicated (procurement) process," he told OPSA staff. "Please do what you can to get this technology online as fast as you can."
Department leaders touted the work to find the replacement technology, promising a "great product" is on the way.
"At this point, there have been several stages, including very rigorous testing, and we're very confident that it will be a successful (procurement process) with a great product," OPSA Managing Deputy Director Dan Casey said.
Pressed by Ald. Matthew O'Shea on when the technology could again be activated on Chicago streets, Casey said other departments are in charge of picking the company and negotiating a contract.
"That's sometimes a lengthy process, but our goal is to make it as fast as possible," he said.
Casey later clarified that a choice has not yet been made, though he hopes a contract will be reached "by sometime next year."
Johnson blasted the ShotSpotter technology as a "walkie-talkie on a stick," arguing it wasted money and made police responses inefficient before he discontinued its use in September 2024. He had previously campaigned promising he would remove it, arguing it led to overpolicing in the South and West side neighborhoods where it was in use.
Proponents, including many Black aldermen from those same neighborhoods, argued the tool sped up police responses after shootings and ultimately saved lives by getting wounded people medical attention more quickly.
A woman in the audience yells "We're going to be sitting ducks," after Mayor Brandon Johnson ended the City Council meeting after the council voted to extend the city's contract with SoundThinking's ShotSpotter service during a council meeting at City Hall on Sept. 18, 2024. Aldermen voted 33-14 to endorse an effort to overturn Mayor Johnson's decision to end the contract for the gunshot detection system. (Tess Crowley/Chicago Tribune)
Some progressive aldermen Thursday urged OPSA officials to not pick a similar tool to the canceled ShotSpotter
"My ward does not want ShotSpotter," Ald. Leni Manaa-Hoppenworth, 48th, said. "We want to use technology, but we want to use it to solve crime. We want officers to actually be on the streets."
The 2025 budget passed by aldermen and the mayor last year included almost $9 million for similar technology. That money has gone unused, giving city officials leeway to use it to plug overspends.
OPSA Executive Director Era Patterson said the smaller amount is a "prorated" sum that acknowledges "the likelihood that we will have a gunshot detection system up and running Jan. 1 is nonexistent."
Asked about the "acoustic gunshot detection" tools discussed in the hearing, Garien Gatewood, Johnson's deputy mayor for community safety, described the incoming tools as "first responder technologies."
He had little to say about the ongoing procurement process. He said he has not yet seen testing results.
"We'll just let that process play out, because I think ultimately it's important that the process plays out and it's fair, and you know, the decisions are made after that," he said. "I think the process is going the way it's designed to go."
In response to criticism about the speed of the procurement process, Gatewood pointed to the sharp reduction in violent crime Chicago has seen this year. The city has seen a 29% drop in homicides compared with the same point last year, almost 150 fewer, according to the Chicago Police Department.
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Source Name [18]: Johnson Vows to Crack Down on Police Overtime Spending in 2026, As CPD Budget Swells to $2.1B Full URL: https://news.wttw.com/2025/10/20/johnson-vows-crack-down-police-overtime-spending-2026-cpd-budget-swells-21b Scraped Date/Time: 2025-11-22 22:45:45
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## Johnson Vows to Crack Down on Police Overtime Spending in 2026, As CPD Budget Swells to $2.1B
[Heather Cherone](https://news.wttw.com/stories-by-author/heather%20cherone) \| October 20, 2025, 5:00 am
(Michael Izquierdo / WTTW News)
Mayor Brandon Johnson's proposed budget for 2026 would impose new limits on overtime spending by the Chicago Police Department while acknowledging it was unrealistic to expect CPD to spend less than $200 million next year to compensate officers for working extra hours.
In all, CPD's budget is set to swell to $2.1 billion, increasing by $37.9 million to cover the cost of salary increases required by agreements with unions representing members. That includes an estimated savings of $30 million from a partial hiring freeze of long vacant positions, officials said.
Johnson's proposed spending plan would double CPD's overtime budget from $100 million to $200 million, the first increase since 2020, when the budget for police overtime went from $95 million to $100 million, records show.
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Budget Director Annette Guzman told reporters Supt. Larry Snelling said he was confident CPD would spend less than $200 million on overtime next year. However, Chicago taxpayers have already paid $190.1 million to officers for working extra hours through September, [according to a database published by Inspector General Deborah Witzburg](https://igchicago.org/information-portal/data-dashboards/sworn-cpd-member-overtime/).
CPD has spent at least $17 million and as much as $27.5 million every month on overtime, according to the watchdog's database. That means CPD is on track to spend at least $241 million on overtime by the end of the year, according to a WTTW analysis.
The spending plan will require CPD brass to submit monthly reports about its overtime spending to the City Council, and require the City Council to hold hearings every three months "to ensure transparency and accountability."
Although a similar ordinance requires the City Council to hold hearings twice a year to look into efforts to comply with a court order requiring officers to stop routinely violating Black and Latino residents' constitutional rights, it [failed to hold those hearings for 15 months](https://news.wttw.com/2025/07/24/1st-city-council-hearing-consent-decree-15-months-no-sign-urgency-around-reform-push).
If CPD exhausts its budget for overtime, as it did this year by June, it will have to ask the City Council to appropriate more funds, officials said.
CPD has exceeded its annual overtime budget for seven straight years.
In 2024, CPD spent a total of $273.8 million on overtime, 6.5% less than in 2023, according to a WTTW News analysis.
* * *
Chicago Police Department Overtime 2019-24
### Chicago Police Department Overtime 2019-24
2019
$139.5M
2020
$177.5M
2021
$135M
2022
$210M
2023
$292.9M
2024
$273.8M
Chart:Heather Cherone/WTTW NewsSource:City of ChicagoGet the dataCreated with [Datawrapper](https://www.datawrapper.de/_/aHXN8)
* * *
CPD's overtime costs have soared because officers' salaries and benefits have gone up significantly while the number of CPD members has decreased by approximately 1,200 employees since 2019, CPD officials said.
Johnson said his third budget would continue transforming the Chicago Police Department into an agency better prepared to take a new approach to public safety by requiring that sworn officers perform only law enforcement duties, not administrative work.
That will save Chicago taxpayers $100 million over the next decade, officials said.
In addition, leaders of the Office of Public Safety Administration will report quarterly to the City Council on efforts to reduce the number of officers on medical leave and long-term disability. That has become an increasing source of frustration for members of the Chicago City Council.
Era Patterson, the department's executive director, told alderpeople in September she was hopeful an ongoing audit would give officials a roadmap to reduce costs and get more officers back to work quicker.
CPD leaders will also be required to submit monthly reports to the City Council on efforts to create a system designed to alert supervisors about which officers have been the subject of repeated police misconduct allegations.
"The system will support early, individualized interventions that improve performance, accountability and wellness — reducing misconduct, building community trust, and lowering litigation costs," according to the mayor's office.
CPD must implement that system under the terms of the consent decree, the federal court order designed to compel the department to change the way it trains, supervises and disciplines officers.
The University of Chicago Crime Lab began work on the so-called Officer Support System, also known as OSS, in 2016, and began testing it in a South Side police district in September 2020, only to face repeated and lengthy delays, caused in part by decisions by CPD leadership to transfer the staff members assigned to run the system to patrol, [according to a letter obtained by WTTW News through the Freedom of Information Act](https://news.wttw.com/2023/09/15/system-designed-alert-police-brass-about-officers-multiple-complaints-was-ready-2-12).
That system could have been rolled out citywide in May 2021, but it remains in use in only two of Chicago's 22 police districts. CPD officials are developing a new system, officials have told the judge overseeing the reform push.
_Contact Heather Cherone:_ [_@HeatherCherone_](https://bsky.app/profile/heathercherone.bsky.social) _\| (773) 569-1863 \|_ [_hcherone@wttw.com_](mailto:hcherone@wttw.com)
Source Name [19]: Editorial: Brandon Johnson plays fast and loose with Chicago's credit standing Full URL: https://www.chicagotribune.com/2025/11/10/editorial-mayor-downgrade-brandon-johnson-bonds-budget/ Scraped Date/Time: 2025-11-22 22:45:45
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<span style="color: #0066cc; font-weight: bold;"></span> [19]
Mayor Brandon Johnson meets with the Chicago Tribune Editorial Board, Oct. 28, 2025. (Brian Cassella/Chicago Tribune)
By [The Editorial Board](https://www.chicagotribune.com/author/the-editorial-board/ "Posts by The Editorial Board") \| Chicago Tribune
PUBLISHED: November 10, 2025 at 5:00 AM CST
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Does Brandon Johnson really want his legacy as Chicago mayor to be presiding over multiple credit downgrades after his two predecessors worked hard to lift Chicago's status in the eyes of the all-important bond market?
Our city's mayor apparently is quite prepared to wear that jacket.
It took analysts at S&P Global Ratings barely a minute after the Johnson administration issued its proposed 2026 budget to revise their outlook on the city's credit condition to negative from stable. That previous stable outlook, by the way, came only after S&P downgraded Chicago's rating to two notches above junk status early this year.
"We are watching as the fiscal 2026 budget negotiations advance over the coming weeks to assess the credit significance of the final budget package, but, absent a significant change in the approach to achieving structural balance, we believe the probability of a downgrade could remain elevated into the fiscal 2027 budget cycle," S&P wrote in its Nov. 5 report.
We emphasize: _Absent a significant change in approach._
Bond analysts generally communicate in cold-blooded terms and often use hedges in their reports, so this warning is about as stark as it gets in that world. If Johnson's budget is approved essentially as proposed, you can bet on a downgrade.
Why does that matter? The city has been on a borrowing binge under Johnson, largely to fund infrastructure projects, many of which are needed. Continued and affordable access to bond markets is critical to keeping roads, bridges, sidewalks, parks and other public works from crumbling.
And then there's the small matter of the administration's plan to borrow next year _for operational needs_ for the first time since Johnson took office in 2023. The budget calls for putting about $275 million on the city's credit card to cover back pay owed firefighters and $90 million in legal settlements, mainly tied to past police misconduct.
Chief Financial Officer Jill Jaworski told us a few days ago the city intends to tap bond markets for infrastructure and those operational costs early next year. S&P will have had some time to ponder whatever budget emerges from the City Council and may well already have downgraded by then. That could add hundreds of millions to whatever interest taxpayers must absorb on those bonds.
At a news conference last week, Johnson was asked directly about S&P's clear warning, and his response was dismaying. He bragged that 65% of his budget's solution to the pending $1 billion-plus deficit was structural in nature, and when corrected by a reporter who said the figure the administration had given earlier was 60%, Johnson essentially said the equivalent of — 60% or 65%, whatever.
The budget passed last year contained provisions that the administration said structurally plugged 68% of the deficit at that time. And S&P responded with a downgrade, concluding that 68% was insufficient. So 60% will be just fine with the analysts this time around?
Johnson sidestepped the question about the city's shaky standing with ratings agencies and defended his budget in moralistic terms, saying the people he's considering are poor and need help. Most Chicagoans agree with that sentiment as a general matter.
But without access to reasonably priced credit, good intentions count for little. Among any mayor's most important tasks is safeguarding the city's financing standing. On that measure, Johnson is failing — and, worse yet, doesn't seem to care.
_Submit a letter, of no more than 400 words, to the editor [here](https://www.chicagotribune.com/2019/07/03/submit-a-letter-to-the-editor/) or email [letters@chicagotribune.com](mailto:letters@chicagotribune.com)._
Source Name [20]: Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance Full URL: https://news.wttw.com/2025/11/18/alderpeople-weigh-path-forward-budget-negotiations-after-johnson-s-plan-fails-advance Scraped Date/Time: 2025-11-22 22:45:45
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## Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance
[Blake Thor](https://news.wttw.com/stories-by-author/blake%20thor) \| November 18, 2025, 7:30 pm
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City Council Members Weigh in on Chicago's 2026 Budget
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Mayor Brandon Johnson's $16.6 billion budget proposal for 2026 suffered a major blow Monday when the Chicago City Council's Finance Committee rejected it in a 10–25 vote.
A number of alderpeople oppose Johnson's proposed corporate head tax, which would impose a monthly $21 per employee tax on companies with more than 100 employees, arguing it will stifle business growth in Chicago.
Johnson said in a news conference that despite the setback in City Hall, his administration is standing firm on the head tax, setting up a debate likely to run close to the Dec. 30 deadline to pass a budget.
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"We stand by our budget proposal," Johnson said. "We stand behind the progressive revenue that we have put forward because this moment calls for those with means to put more skin in the game."
Alds. Daniel La Spata (1st Ward), William Hall (6th Ward) and Bill Conway (34th Ward) joined "Chicago Tonight" to discuss the ongoing budget negotiations. Here's a snapshot of where they stand:
### Reaction to Johnson's Budget Failing in Committee
On Monday, 18 members of the City Council's Finance Committee voted to adjourn, signaling that a large bloc preferred more debate over taking a final vote.
The attempt to adjourn failed, leading to the 10-25 vote rejecting Johnson's proposed budget.
Johnson pressed for a vote even after it became clear most City Council members opposed the revenue ordinance, [leading some alderpeople](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) to believe he wanted them on the record opposing the head tax.
Hall likened the stalling negotiations in City Hall to the recent record-long 43-day federal government shutdown.
"Trump has found his way into City Hall," Hall said. "These are some of the same tactics we saw in D.C. with the government shutdown and we now see them in the city of Chicago. We see nitpicking, we see arguments but no solutions, no counters to negotiate. … I see the beginning of a stand-down."
Johnson has [called for](https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/) a recess until early December to give time for alderpeople to come up with their own proposals to raise revenue.
La Spata was one of the 18 alderpeople who voted to delay a vote on Johnson's revenue ordinances, arguing that he and his colleagues needed more time to assess every option.
"There's questions about how do we find in a way that is progressive, that, as Ald. Hall called for, asks those who can pay more and pay their fair share to pay their fair share, but also do it in ways that continues to grow our economy rather than deter economic growth," La Spata said. "That's a needle that we can thread, and I know that we can thread, but it deserves more time and deliberation. If we knew that the votes weren't there for the revenue package, we should've taken the time to get to a place that everyone can agree on."
### The Ernst & Young Report and Budget Cuts
The city hired consulting firm Ernst & Young to produce a report analyzing Chicago's finances and outlining ways to cut costs and boost revenue. The report cost $3.1 million, and identified between $530 million and $1.4 billion in potential savings and new revenue.
Johnson's budget proposal only includes $80 million in cuts recommended by the report.
Hall commended Johnson for allowing an accounting firm to perform an audit on the city, but pointed to the identified cuts as those that would "break the backs of Chicagoans."
"When you look at those recommendations, those recommendations phase in over time, especially in the year 2026," Hall said. "So the committee is doing its job in finding efficiencies for the year 2026. … I have yet to find an idea that does not break the backs of Chicagoans. If you ask any Chicagoan right now, 'Do you want to pay more in their property taxes?' they'll say no. If you ask them, 'Do you wanna pay more on garbage fees?' they'll say no. If you ask them if they want to get nickel and dimed on other fees, they'll say no."
Johnson has said he would veto any budget that cuts the Chicago Police Department's budget, and has also opposed reducing services such as street sweeping and snow removal.
Conway said the city should focus on trimming its own departments and eliminating inefficiencies instead of cutting services for Chicagoans or asking them to pay more.
"I agree we don't wanna ask people in the 6th Ward, the 34th Ward or the 1st Ward for more money, and that's why we have to be efficient with taxpayer dollars, and the report had some clear places to do that," Conway said. "For example, fleet optimization. The average car owned by the city is driven 7,000 miles a year, and Ernst & Young said we can get 29.6 million (dollars) in efficiency in Year 1 — there's 3 million of that in the budget. Procurement — only 51% of the stuff we buy goes through the procurement department. They identified $55-111 million in savings we could get through that — only $10 million in this budget."
La Spata, who said the current budget proposal will need significant changes before it can pass, argued for a plan that pairs new revenue with cuts identified in the Ernst & Young report.
"We sometimes conflate cuts with efficiencies," La Spata said. "Efficiency is providing the same high level of service to Chicagoans that they deserve and doing it with the same amount or less revenue. There's so much more in the Ernst & Young report that we can dig into. There is no single way that we are going to get to a balanced budget, we should all be clear on that. It's efficiencies, it has a revenue side to it. It's more transparency in terms of how we use our revenue."
### Is the Head Tax a Nonstarter?
Johnson's proposed tax on corporations has become the most incendiary part of his spending plan and the sticking point for many alderpeople.
Conway said that more cuts outlined in the Ernst & Young report need to be implemented before a head tax is considered.
"What I hear in the 34th Ward is we need to show taxpayers that we are being efficient with their tax dollars before we go asking for more, and Ernst & Young identified several areas in savings," Conway said. "We need to really go back to departments and show taxpayers we're being efficient with those dollars, that we have worked that out before we do anything like a head tax."
Hall said he doesn't see any budget passing unless it asks wealthy Chicagoans to "put more skin in the game."
"I don't see a way forward unless corporations pay their fair share," Hall said. "We've made concessions for corporations, and in those concessions we are saying this tax will be reinvested directly into the communities, number one, that need investment. … It's now the time for corporations to pay for the roads they drive on, for the utilities that they use and stop breaking the backs of the employees and using them as pawns to threaten to leave."
Source Name [21]: Mayor Brandon Johnson's head tax plan defeated in council committee vote Full URL: https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/ Scraped Date/Time: 2025-11-22 22:45:45
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<span style="color: #0066cc; font-weight: bold;"></span> [21]
Chicago Mayor Brandon Johnson speaks at City Hall after his proposed head tax was voted down in a City Council committee meeting, Nov. 17, 2025. Chicago Ald. Jason Ervin, 28th, is at left. (Terrence Antonio James/Chicago Tribune)
By [Alice Yin](https://www.chicagotribune.com/author/alice-yin/ "Posts by Alice Yin") \| [ayin@chicagotribune.com](mailto:ayin@chicagotribune.com) \| Chicago Tribune, [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune and [A.D. Quig](https://www.chicagotribune.com/author/a-d-quig/ "Posts by A.D. Quig") \| [aquig@chicagotribune.com](mailto:aquig@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 17, 2025 at 11:39 AM CST \| UPDATED: November 17, 2025 at 6:21 PM CST
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Aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee, a remarkably rebellious display against the freshman mayor who has been struggling to shore up support for his [controversial head tax](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/).
But to hear Johnson tell it, the fight over the per-employee tax on Chicago's bigger companies is far from over.
After the rancorous Finance Committee meeting adjourned, he challenged aldermen to come up with a better spending plan, but promised to veto any budget that includes a property tax increase, a grocery tax or a garbage fee hike. That means the City Council would need 34 out of 50 votes to override him.
"Working-class Chicagoans can simply just not afford a property tax increase," the mayor told reporters. "Let me be clear: There are not any magic third options in cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
And even after its defeat Monday, Johnson doubled down on his backing of the head tax as a way to make corporations pay their fair share, setting up a difficult stretch run as he and aldermen try to find common ground on a balanced budget before the end of the year. "The corporate tax is in this budget. It will stay in this budget. Is that clear enough?" he said.
Johnson's defiance came after he got outmaneuvered in the Finance Committee meeting.
His handpicked Finance chair, Ald. Pat Dowell, tried to dodge a vote on the head tax by recessing the meeting instead of considering the revenue ordinance for the mayor's $16.6 billion budget, a sign Johnson expected to lose after Dowell publicly warned [a Monday vote](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) would be "premature."
Ald. Pat Dowell, 3rd, who chairs the Finance Committee, takes part in the meeting where Mayor Brandon Johnson's proposed head tax was voted down Nov. 17, 2025. (Terrence Antonio James/Chicago Tribune)
Mayoral foes Aldermen Raymond Lopez and Anthony Beale tabled her recess motion on a 24-7 roll call. Johnson's budget chair, Ald. Jason Ervin, then attempted to delay a vote on the head tax, only to see that move fail by a single vote in an 18-18 tie.
Finally forced to consider the ordinance, the committee struck it down 25-10, a stunning rebuke of the chief executive who has overseen more losses in City Council than his predecessors.
How aldermen navigate the waters after Monday's defiance could chart a new course in City Hall's power dynamics and prove consequential to Chicago's long-standing fiscal woes, but their stance against the mayor sends the process for a second straight year toward a critical end-of-year deadline.
Johnson brushed off talk that his Monday defeat was politically significant. "If you're asking me if I'm afraid of a no, then you don't know me very well," he said. "I'm not afraid of a no."
Still, his budget path won't get any easier. Aldermen who now smell blood in the water will be less likely to follow his lead, though Johnson is trying to put the onus on them to come up with an alternative from among an unpopular set of options.
The mayor clearly would have rather not seen his head tax go down in Finance.
Earlier Monday afternoon, top Johnson adviser Jason Lee clutched a paper with what appeared to be his vote predictions as he approached on-the-fence aldermen during a presentation from the mayor's budget and finance teams. A few moments later, Lopez interjected to accuse Lee of improperly lobbying on the City Council floor. Lee quickly left the room, but turned back to aldermen and blew a two-handed kiss.
The council must finalize the 2026 budget by the end of this year. Last year, the mayor took that timeline to the latest it's been pushed in decades but ultimately clinched 27 votes by mid-December.
Johnson first pitched the head tax, which his team projected to raise $100 million, when he unveiled his plan to close a $1.19 billion budget gap for next year in an his October address to City Council. He framed the proposal as the city's best chance to stand up to President Donald Trump and tax the rich but has faced hurdles in getting an aldermanic majority on board.
Last week, Johnson's team started floating a modified version that would up the minimum company size from 100 to 200 employees. The $100 million revenue estimate went down to $82 million, with the gap then being filled by bumping up the personal property lease tax to 15%.
Dowell then told reporters she opposed the head tax in any form, and the mayor's team floated another version this weekend where the levy would again apply to companies with 100 or more employees, but the $18 million that would be restored from that tweak would mainly go toward eligible businesses in South and West side wards, among other categories of spending.
Johnson's third budget cycle was expected to be his most difficult yet given the city's long-standing fiscal issues and the limited options he had to pull new levers for revenue.
His road to 26 out of 50 votes — or 25, if he's willing to cast a tie-breaker — has proven difficult for Johnson given that his most ideologically aligned bloc — the Progressive Caucus — is not sizable enough to get over that hump, and not all of those aldermen are won over by his proposal. Thus, the mayor will need the Black Caucus on board, but some of those members are also hesitant on the head tax.
Dowell, who has been caught between her role on the mayor's leadership team and her unequivocal disapproval of that major revenue component, sided with her colleagues against her own motion to recess.
Johnson's stark red line against a property tax hike or grocery tax reinstatement for 2026 comes after he tried and failed to raise property taxes in the 2025 budget, and could not win over a council majority for the grocery tax earlier this year. Asked Monday what has changed to make him now steadfastly against raising those taxes, Johnson pointed to moves by Trump he said have left working-class Chicagoans in dire financial straits and unable to bear those additional burdens on their pocketbooks.
The debate roils at the same time the latest round of Cook County property bills are hitting the city's South and West sides the hardest while Loop values and bills have dropped. The dynamic has cemented some existing aldermanic opposition to Johnson's head tax, fueling fears it will further hurt businesses that would otherwise hire residents.
Meanwhile, his unsuccessful weekend push to quickly pass the budget clearly left an impact among some aldermen: frayed trust.
Ald. Timmy Knudsen said the mayor's team spread "a complete lie" about him by telling other City Council members that the Lincoln Park alderman supported a head tax. "I have been a 'heck no' the whole time," he added.
Knudsen, 43rd, called the move a "grasping at straws" effort to "get a few cheap votes."
"This body does not trust them, and things like this are pretty direct evidence as to why," he said.
Johnson on Monday told reporters it was Knudsen who was lying: "He said that? That's not true."
At times during the tense Finance Committee meeting, mayoral allies argued his opponents were lining up with Trump to support corporations at the expense of the working class.
Progressive Ald. Anthony Quezada posed a volley of rhetorical questions, asking how much some of America's wealthiest corporations made in profits.
"We need to stop playing games and we need to stop just trying to make the mayor look bad, and actually work on passing policies that are sound," he said.
Dowell fired back: "I don't take kindly to the 'stop playing games' thing when none of us are down here playing games. We are here doing the work of our constituents. We are not monolithic."
Moments later, Ervin trotted out a favorite line he uses when aldermen are caught between unsavory financial choices, noting that "Everybody wants to get to heaven, but nobody wants to die."
Ald. Andre Vasquez, a critical swing vote who heads the Progressive Caucus, rose from his seat, spread his arms and looked toward the ceiling as Ervin spoke.
But the prayers weren't enough for the mayor, as aldermen regardless lined up against the revenue ordinance.
Vasquez, who voted against the revenue package, noted City Hall has few options to land the budget — and worried there was no one who could bridge the mayor-aldermen divide.
"I don't believe that any option has been fully taken off the table," he said. "We still have to solve a math problem."
Source Name [22]: David Greising: Chicago government can't afford to shut down. We need good-faith budget negotiations. Full URL: https://www.chicagotribune.com/2025/11/21/column-chicago-budget-mayor-johnson-city-council-deadline/ Scraped Date/Time: 2025-11-22 22:45:45
[Skip to content](https://www.chicagotribune.com/2025/11/21/column-chicago-budget-mayor-johnson-city-council-deadline/#content)
<span style="color: #0066cc; font-weight: bold;"></span> [22]
Chicago Mayor Brandon Johnson's fifth floor office at City Hall on Oct. 22, 2024. (Chris Sweda/Chicago Tribune)
By [David Greising](https://www.chicagotribune.com/author/david-greising/ "Posts by David Greising")
PUBLISHED: November 21, 2025 at 5:00 AM CST \| UPDATED: November 21, 2025 at 3:42 PM CST
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Mayor Brandon Johnson's proposed head tax on companies with more than 200 employees appeared dead after the City Council's Finance Committee on Monday rejected the mayor's budget.
But oh, no, no, mayoral ally Ald. Jason Ervin, 28th, chair of the Budget Committee, said at the City Club on Wednesday. The mayor has a veto, and opponents of his head tax don't have the votes to override. They'll need to work with the mayor's budgeteers on a plan the council can approve and the mayor will sign.
While it's true Johnson's City Council opponents lack the votes to override a Johnson veto, the mayor can't yet pass [his $16.6 billion budget](https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/), filling a $1.19 billion budget gap, either. And both sides face a hard deadline — Dec. 31, after which city spending must stop until a new budget is passed.
This is a classic political standoff, and the major players on both sides need to get to work, on behalf of the people of Chicago, to work through their differences and build a path toward a budget that can run an efficient, safe, equitable and fiscally sound city. Already, city workers are worried about their jobs, residents are concerned about city services and Chicago's credit rating is suffering from the uncertainty.
For weeks, there has been talk that opposition leaders in the City Council might offer their own alternative budget. Well, put it on the table if it exists. The city can ill afford a first-ever government shutdown because the mayor and council can't get a budget passed.
It did not need to play out this way. After last year's long budget impasse, all parties promised to do better. The Johnson administration said it would float meaningful ideas to council members early in the year. That did not happen.
Johnson did appoint a task force to scour for new ideas. And he did pay the Ernst & Young consulting firm — which now calls itself EY — $3.2 million to come up with its own ideas, while also providing data to the city task force.
But those cries for outside help came up short. The [budget task force](https://www.chicagotribune.com/2025/09/26/column-chicago-city-budget-mayor-brandon-johnson-greising/) was told to focus on ways to grow revenue, less so on the cost cuts that are sorely needed. EY was allowed to look for savings, but only in carefully constrained channels. Even so, EY still found as much as $1.3 billion in annual cost savings, alongside additional revenue sources.
The biggest category of potential savings was in optimizing the delivery of city services, from which EY found economy measures in public safety — police, fire, emergency management and safety administration — that could save nearly $600 million, by its math.
But consider this reality check: Of the major tactics EY tallied in its 101-page report, "none were identified as being both highly feasible and having high fiscal impact," the firm stated. The practical reality is that few of EY's proposals will be put into practice.
Results of the city's budget task force could be more tangible. The Johnson administration has claimed $200 million in savings from task force proposals integrated into the mayor's budget — but it provided scant detail to support the claim. This has Civic Federation President Joe Ferguson, whose organization served on the task force, scratching his head.
"Use is claimed. Itemization is incomplete," he said in a text exchange.
That said, the itemizations listed by the task force and EY do offer interesting ideas. Many are small, but persistence and practical problem-solving can help fill a $1.19 billion budget hole, or largely reduce it, by stacking such fixes one at a time.
It's well past time for Johnson and his growing legion of City Council opponents to get to work, using the semi-official data from the outside sources, the deep knowledge and capabilities of the mayor's finance team, and whatever the council has to offer to find ways of getting to "yes."
> [Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions](https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/)
Editorial: Time for union negotiations after death of Mayor Brandon Johnson's head tax
[Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions](https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/)
[](https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/)
Mayor Brandon Johnson's corporate head tax is dead whether he admits it or not. It's time to talk concessions with unions representing city workers.
[Chicago Tribune](https://www.chicagotribune.com/)
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Preconditions won't help. The administration and aldermen need to stop drawing red lines and start talking about what they're willing to consider.
It's understandable that the city's largest cost center — the Police Department's proposed $2.1 billion budget — is ring-fenced against cuts. A decline in homicides and other violent crime shows progress; this is no time for public safety cutbacks.
Other departments have explaining to do. According to a department-by-department analysis of Johnson's spending plans published by the Better Government Association, [the Department of Water Management](https://www.bettergov.org/2025/10/22/department-of-water-management-bga-policy-2026-budget-snapshot/) is due for a $357 million increase, [aviation](https://www.bettergov.org/2025/10/22/department-of-aviation-bga-policy-2026-budget-snapshot/) is penciled in to spend $119 million more next year and [the Department of the Environment](https://www.bettergov.org/2025/10/27/department-of-environment-bga-policy-2026-budget-snapshot/) is budgeted for $50 million, up from $2.4 million, the largest percentage increase of any department.
Are there meaningful trims to be found in these department budgets, as well as others?
Johnson, who saw his negotiating leverage weaken last year as the Dec. 31 deadline approached, would be well advised to find compromises now.
The mayor still evidently hopes to lean almost exclusively on the revenue side of the ledger — and on the "ultra-rich" in particular. But unless he can find ways to soften opposition to the head-tax plan, he'll need to find answers elsewhere.
There's no stomach for a property tax hike, either in Johnson or the City Council. And those positions hardened this week after Cook County Treasurer Maria Pappas announced that property taxes last year jumped nearly 17% citywide, and the city's South and West sides are paying a disproportionate part of the increase.
There are only so many categories that can stay off the table as time passes and the pressure mounts.
Johnson and his progressive allies say a grocery tax would affect poorer residents most. But the money it might generate could tempt them as Dec. 31 approaches.
An automatic inflation-connected escalator to property taxes — passed under Mayor Lori Lightfoot, who stopped using it as she faced reelection, and unused by Johnson — could deliver roughly $56 million in new revenue, the budget task force estimated. Might Johnson and the City Council be tempted to implement that tool? After all, it was designed to reduce the political heat surrounding property tax increases.
In its way, what we're seeing in city government is a sign of progress: The City Council for a second year is acting independently and setting its own agenda for the city budget. The next step would be to start building, or helping build, a budget that represents its agenda, not just the mayor's.
The council should also work constructively with the Johnson administration to consider all reasonable options, then pass a budget that is balanced, fair and fiscally responsible — before the clock strikes midnight on Dec. 31.
_David Greising is president of the Better Government Association._
_Submit a letter, of no more than 400 words, to the editor [here](https://www.chicagotribune.com/2019/07/03/submit-a-letter-to-the-editor/) or email [letters@chicagotribune.com](mailto:letters@chicagotribune.com)._
Source Name [23]: With No Easy Fixes in Sight, Debate Over Chicago's 2026 Spending Plan Reaches Tipping Point Full URL: https://news.wttw.com/2025/11/12/no-easy-fixes-sight-debate-over-chicago-s-2026-spending-plan-reaches-tipping-point Scraped Date/Time: 2025-11-22 22:53:50
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## With No Easy Fixes in Sight, Debate Over Chicago's 2026 Spending Plan Reaches Tipping Point
[Heather Cherone](https://news.wttw.com/stories-by-author/heather%20cherone) \| November 12, 2025, 5:00 am
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Debate Over Chicago's 2026 Spending Plan Reaches Tipping Point
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Members of the Chicago City Council vehemently opposed to Mayor Brandon Johnson's plan to bridge a portion of the city's massive budget gap by taxing large firms had hoped a consultant's report could give them a way to reject the tax — while avoiding deeply unpopular cuts.
But a marathon session before the City Council's Budget and Government Operations Committee on Monday made it clear there is no easy way to bridge the city's $1.19 billion projected shortfall, leaving alderpeople across the political spectrum frustrated as the budget debate hits a tipping point.
Even as departmental budget hearings are set to wrap up Thursday, there is no clear consensus on the bulk of Johnson's proposal to impose $617 million in new taxes on the wealthiest Chicagoans and largest firms. That makes it likely negotiations over the city's spending plan will once again stretch past Thanksgiving, forcing alderpeople to scramble to meet a Dec. 31 deadline.
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An effort to put the mayor's finance team on the hot seat fizzled Monday as Adam Chepenik, the principal author of a report from consulting firm Ernst & Young designed to help Chicago officials root out inefficiencies, declined to tell committee members that the Johnson administration had failed to implement the bulk of the cuts and efficiencies recommended by the report.
"I think the options in the report identify options and opportunities to capture what is not currently captured," said Chepenik, who told the committee the report was neither an audit designed to identify waste, fraud and abuse nor an evaluation of the merits of Johnson's budget proposal. "The report was designed to provide as many options as possible, and in terms of how things are implemented and the timeline that they take to implement, it is in the city's discretion."
Budget Director Annette Guzman, sitting beside Chepenik, fielded most of the questions about the mayor's budget proposal and repeatedly assured alderpeople that she and Chief Financial Officer Jill Jaworski were using the report as a "roadmap to structural balance for the city." Guzman reminded alderpeople that the city's financial woes have been decades in the making and cannot be solved in a single year.
"The city didn't get here overnight, and the structural reform won't happen overnight, but you have to begin somewhere," Guzman said.
### **Potential Savings, New Revenue**
[The Ernst & Young report](https://news.wttw.com/sites/default/files/article/file-attachments/ErnstYoungReport.pdf), which cost the city $3.2 million, identified between $530 million and $1.4 billion in potential savings and new revenue.
But Johnson's spending plan includes just $80 million in cuts identified by the report, with the bulk of those savings coming from a year-long hiring freeze to be imposed on every city department except for those focused on public safety or revenue collection.
However, the changes lay the groundwork for more significant changes in future years, Guzman said, including $100 million by consolidating the city's vast real estate holdings and selling vacant land sales. Another $100 million could be saved by consolidating how the city contracts with private firms to buy goods and services, according to the report.
Millions more could be saved by changing the structure of the city's workforce to reduce the number of managers and ensuring that the city's fleet of vehicles are used and maintained efficiently, according to the report.
But none of those technocratic changes can be made quickly enough to have a significant impact on the city's 2026 budget, which remains structurally unbalanced, with expenses outpacing revenues, as officials scramble to pay soaring pension bills and find an additional $100 million to cover the cost of employee health care, Guzman said.
Many of the changes that would have the biggest impact on the city's bottom line would require changes to Chicago's agreements with the labor organizations that represent 90% of the city's more than 32,400 employers, Guzman said. The Ernst & Young report will allow officials to make the case to labor leaders for changes by pointing out what other big cities are doing, Guzman said.
But few members of the City Council's Budget Committee appeared to take Guzman at her word, an indication that Johnson's relations with the City Council, which were [badly damaged by last year's budget debate](https://news.wttw.com/2024/12/02/how-mayor-brandon-johnson-lost-control-debate-over-chicago-s-2025-budget), remain fraught.
"It's kind of frustrating to hear with so much work being done and so much money being spent that an additional analysis would be needed in terms of how to act," Ald. Matt Martin (47th Ward) said. "I think what you're hearing from a lot of people is that we need to move more quickly on a lot of this work."
Martin was one of two members of the Progressive Caucus who voted against last year's budget, giving Johnson only the slimmest of margins of victory.
Guzman appeared to be deeply frustrated at times that alderpeople did not appear to believe her commitment to structurally reforming the city's budget was genuine. Nor did many alderpeople appear to accept her assertion that only so many changes with significant financial impact could be made immediately.
### **'Put More Skin in the Game'**
Much of the debate over Johnson's 2026 spending plan has centered on his proposal to impose a $21 per month per employee tax on large companies to generate $100 million to fund violence prevention and youth employment programs.
Johnson has steadfastly campaigned for the tax, noting that business leaders have told him his highest priority should be public safety. Johnson has said it only makes sense for Chicago's largest companies to "put more skin in the game" in order to allow the city to "double down" on efforts that are working.
The mayor has also downplayed the size of the head tax, noting that it is the equivalent of big firms buying their employees lunch once or twice a month.
That proposal immediately triggered outrage in the city's business community, which blasted that proposal as a job killer.
Gov. JB Pritzker joined that chorus, saying he is "absolutely, four-square opposed" to the imposition of the head tax, and called on city officials to make enough cuts to offset the need for the head tax.
Before the hearing, Johnson said it was time for those who oppose his plan to make their own proposal, and reckon with what it would mean to residents who rely on city services.
"We hear a lot of calls for cuts, and people like to refer to them as efficiencies, but folks get real quiet when we ask them to provide some of the specifics," Johnson said, just hours after the season's first snowfall. "Chicagoans do not want to see our snow plowing reduced. They do not want to see less workers out there working in the night so their mornings can be better."
No one, including the mayor, has proposed reducing the $2.1 billion proposed budget for the Chicago Police Department in 2026. CPD's budget accounts for one-third of the city's $6 billion corporate fund, which the City Council has wide discretion to spend.
Guzman said the Johnson administration was committed to expanding the number of non-sworn positions in CPD to reduce costs.
Non-sworn members of the police department do not have to attend the police academy and are usually paid less than officers, resulting in eventual budget savings.
While approximately 20% of CPD's members do not have police powers, 35% of the New York Police Department and 30% of the Los Angeles Police Department are civilians, Guzman said.
In addition, Guzman vowed to save money by reducing the number of officers on medical leave and long-term disability, which has become an increasing source of frustration for city officials, by implementing the results of an audit.
Officials are also rolling out a new timekeeping system for officers that will allow managers to better control overtime spending, even as [CPD's budget to pay officers for working extra hours is set to double to $200 million](https://news.wttw.com/2025/10/20/johnson-vows-crack-down-police-overtime-spending-2026-cpd-budget-swells-21b).
In all, the budgets for the Office of Public Safety Administration, the Chicago Police Board, the Office of Emergency Management and Communications, the Chicago Fire Department, the Civilian Office of Police Accountability and the Community Commission for Public Safety and Accountability have a combined budget of $3.2 billion, or more than half of all of the discretionary funds the City Council has authority to spend.
Johnson's spending plan proposes to borrow to cover the cost of "extraordinary and one-time" expenses, including the massive cost of resolving police misconduct lawsuits and paying Chicago firefighters and paramedics the $185 million retroactive pay they are owed after working without a contract for four years.
The city needs to borrow $156 million to pay the firefighters what they are owed, after using the money set aside in previous years' budgets to cover other, more pressing bills, Guzman said.
Through Nov. 1, Chicago taxpayers have spent at least $267.8 million to resolve lawsuits alleging a wide-range of misconduct by CPD officers, according to a WTTW News analysis.
The City Council agreed to pay an additional $90 million to 180 people who spent a combined nearly 200 years in prison after being wrongfully convicted based on what they allege was fabricated evidence gathered by former CPD Sgt. Ronald Watts, who was convicted in 2013 of taking bribes, and other officers. Those payments are due in 2026.
Despite that, city's proposed 2026 spending plan sets aside just $82.5 million to cover the cost of resolving police misconduct lawsuits, the same amount as in the 2025 budget.
### **Debate Reaches Inflection Point**
With budget hearings set to end Thursday, the mayor and City Council will soon have no choice but to make a series of hard decisions.
Several community groups and employee unions blasted Johnson's proposal to cut 69 vacant positions at the city's 81 public libraries and slash the Chicago Public Library's budget to purchase books, materials and subscriptions in half to $5 million.
Although the mayor has said those cuts won't result in a reduction in services for Chicagoans, two of Johnson's staunchest allies on the City Council demanded those cuts be reversed, complicating Johnson's path to winning at least 26 votes on the City Council.
The lack of progress toward a budget deal during the three and a half weeks since Johnson unveiled his proposal contributed to the decision by S&P, [one of a handful of major ratings agencies, to revise its credit rating outlook for Chicago from stable to negative](https://news.wttw.com/2025/11/06/wall-street-ratings-agency-sounds-alarm-about-chicago-s-finances).
The ratings agency was alarmed by Johnson's decision to make an additional payment of just $120.8 million to the city's four underfunded pension funds. That additional payment is more than 55% smaller than the additional payment made in 2025, records show.
In August, the city had planned to make an additional payment to the city's four pension funds of $219.4 million, records show.
The city faces a nearly $2.76 billion pension bill in 2026 in order to comply with a state law that requires two of Chicago's pension funds be funded at a 90% level by 2055 and the other two by 2058.
S&P downgraded Chicago's credit rating in January, making it more expensive for the city to borrow money, much like an individual's credit score.
A second consecutive credit rating downgrade would be catastrophic, warned Joe Ferguson, the president of the Civic Federation, a nonpartisan fiscal watchdog group, who has been fiercely critical of Johnson's financial stewardship of the city.
Ferguson and other critics of the mayor have blasted Johnson for crafting a spending plan that fills the city's budget gap with one-time measures, rather than making changes that reduce the city's expenses or increase its revenue.
Even though a task force charged by Johnson with finding solutions to the city's fiscal crisis [urged the City Council to automatically hike property taxes](https://news.wttw.com/2025/09/16/chicago-should-hike-property-taxes-annually-keep-pace-inflation-budget-task-force) annually to keep pace with inflation, Johnson ruled out such a proposal and no one on the City Council has proposed reviving it.
Unless the city's largest revenue source starts to keep pace with inflation over time, officials will have no choice but to cut city services or hike other taxes, according to the interim report from the Chicago Financial Future Task Force.
Increasing the city's property tax to keep pace with inflation would generate $56 million in 2026, according to the task force's report.
Johnson's initial 2025 budget proposal, which included a $300 million property tax hike, was unanimously rejected by the City Council.
Alderpeople have also given Johnson's proposal to declare $1 billion in property taxes earmarked to fight blight to be "surplus" [a cool reception, warning that could thwart badly needed economic development projects on the South and West sides](https://news.wttw.com/2025/10/21/chicago-alderpeople-balk-plan-use-property-taxes-set-aside-fight-blight-fill-budget-gap).
Although Chicago mayors have routinely eased the city's fiscal woes with massive infusions from the city's tax increment financing districts, known as TIFs, it is unclear how long officials can rely on TIFs as a source of ready cash.
Johnson's budget relies on $157.6 million in TIF surplus to help fill the city's budget gap. An additional $550 million would flow to Chicago Public Schools, which is also facing its own financial crunch.
The CPS budget approved by the Chicago Board of Education for the 2025-26 academic year counted on getting $379 million in TIF funds in order to close a $734 million budget gap.
That means the surplus declared by the mayor will give CPS an additional $173 million, enough to cover the $175 million payment that Johnson has asked the school district to make into the pension fund controlled by the city that pays for the retirement of some CPS employees.
The Chicago Board of Education approved a measure to make that payment for 2025, assuming the TIF surplus is approved by the City Council.
That would close the $146 million deficit the city is facing by the end of 2025, officials said.
Interim CPS CEO Macquline King sent an email to CPS families Friday urging school families to ask their alderperson to support Johnson's $1 billion TIF surplus plan "to prevent mid-year cuts."
Alderpeople have also questioned Johnson's plan to generate $31 million by taxing social media companies with a tax of 50 cents per month for every active user after the first 100,000 users, under the city's amusement tax authority.
That money would be used to fund the city's public mental health clinics and crisis response program, according to Johnson's proposed budget.
Several alderpeople said they were skeptical that the first-of-its-kind tax, assessed under the city's amusement tax authority, would withstand a legal challenge, but Guzman said the lawyers for the city were confident it would be upheld.
Chicago's 2026 budget does not count on that tax immediately flowing into the city's coffers, anticipating a legal challenge, officials said.
It is also unclear whether Johnson's attempt to regulate intoxicating hemp products will generate $10 million in tax revenue for the city.
The agreement to reopen the federal government after a shutdown of nearly a month and a half would ban the sale of products that contain less than 0.3% delta-9 tetrahydrocannabinol, the main intoxicating compound in cannabis better known as THC, in one year.
Chicago Department of Public Health Commissioner Dr. Olusimbo "Simbo" Ige said Johnson's proposal to regulate the sale of the products, and add a $2 per item city tax, are needed to protect Chicago's children.
The proposal would ban the sale of delta-8 and other hemp-derived snacks, drinks and products to those younger than 21 years old while prohibiting the sale of all products designed "to resemble a branded candy, cookie, chip or other snack food" in an attempt to stop the items from attracting the attention of children looking for a treat, according to the proposal.
While the U.S. Senate has passed that legislation, the U.S. House must act and President Donald Trump must sign it before it becomes law.
_Note: This article was published Nov. 12, 2025, and updated with video Nov. 13, 2025._
_Contact Heather Cherone:_ [_@HeatherCherone_](https://bsky.app/profile/heathercherone.bsky.social) _\| (773) 569-1863 \|_ [_hcherone@wttw.com_](mailto:hcherone@wttw.com)
Source Name [24]: Firefighters union, Mayor Brandon Johnson reach tentative contract deal Full URL: https://www.chicagotribune.com/2025/08/12/firefighter-union-mayor-brandon-johnson-contract-deal/ Scraped Date/Time: 2025-11-22 22:53:50
[Skip to content](https://www.chicagotribune.com/2025/08/12/firefighter-union-mayor-brandon-johnson-contract-deal/#content)
<span style="color: #0066cc; font-weight: bold;"></span> [24]
Chicago Fire Fighters Local 2 President Pat Cleary and Chicago Teachers Union President Stacy Davis Gates march toward Whitney Young High School as dozens of teacher and firefighter union members join forces for fair contracts on March 24, 2025. (Antonio Perez/Chicago Tribune)
By [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: August 12, 2025 at 12:09 PM CDT \| UPDATED: August 12, 2025 at 4:30 PM CDT
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Chicago's rank-and-file firefighters union has all but landed a long-sought collective bargaining agreement with the city.
The Chicago Fire Fighters Union Local 2 and Mayor Brandon Johnson's administration reached a tentative agreement that, if confirmed, will end [four years of negotiations](https://www.chicagotribune.com/2025/04/08/mayor-brandon-johnson-firefighters-contract-standoff/), Johnson and Local 2 President Pat Cleary said Tuesday.
The deal must still be approved by both the union's members and the City Council, a process that could take a month, Cleary said. But if finalized, the contract would trigger the spending of hundreds of millions in retroactive pay that city officials say they had already planned for in this year's budget.
"Until all of that's done, it's not done," Cleary said. "I don't want to comment until it's done. I don't want to ruin anything."
The union president, who has loudly criticized the mayor for failing to land the deal —after Johnson's predecessor, Lori Lightfoot, also went years without reaching one — said the pay raises included in the agreement were broadly in line with the 5% bumps [given to the Fraternal Order of Police](https://www.chicagotribune.com/2023/12/13/city-council-sides-with-mayor-on-chicago-police-contract-more-money-for-cops-but-disciplinary-provision-rebuffed/) Chicago Lodge 7, the city's rank-and-file police union.
Cleary said the deal does not lower staffing requirements on fire trucks, a change Lightfoot explored to reduce spending and ramp up the city's ambulatory services. He added that he passed a bill in Springfield this spring to force the city to spend a portion of its ambulance revenue on its ambulance fleet.
But the union president carefully avoided praising the tentative deal first reported Tuesday by Crain's Chicago Business, instead promising to speak about it once it is made official.
"If my membership disapproves of it, we go back to negotiation," Cleary said. "It's not done yet until we jump those last hurdles."
He later described the deal as "a good contract" for firefighters, but criticized the long-running process.
Johnson similarly noted the deal's tentative nature. There are "still some steps," he said.
"We have worked hard to get this deal done," he said during an unrelated Tuesday news conference. " This one was important to me. I'm glad that we are moving forward."
The mayor added that his administration has in the last two years budgeted for the back pay included in the contract. There will be "no disruption in our first responders' pay," he said.
Source Name [25]: Mayor Brandon Johnson's head tax plan defeated in council committee vote Full URL: https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/ Scraped Date/Time: 2025-11-22 22:53:50
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<span style="color: #0066cc; font-weight: bold;"></span> [25]
Chicago Mayor Brandon Johnson speaks at City Hall after his proposed head tax was voted down in a City Council committee meeting, Nov. 17, 2025. Chicago Ald. Jason Ervin, 28th, is at left. (Terrence Antonio James/Chicago Tribune)
By [Alice Yin](https://www.chicagotribune.com/author/alice-yin/ "Posts by Alice Yin") \| [ayin@chicagotribune.com](mailto:ayin@chicagotribune.com) \| Chicago Tribune, [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune and [A.D. Quig](https://www.chicagotribune.com/author/a-d-quig/ "Posts by A.D. Quig") \| [aquig@chicagotribune.com](mailto:aquig@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 17, 2025 at 11:39 AM CST \| UPDATED: November 17, 2025 at 6:21 PM CST
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee, a remarkably rebellious display against the freshman mayor who has been struggling to shore up support for his [controversial head tax](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/).
But to hear Johnson tell it, the fight over the per-employee tax on Chicago's bigger companies is far from over.
After the rancorous Finance Committee meeting adjourned, he challenged aldermen to come up with a better spending plan, but promised to veto any budget that includes a property tax increase, a grocery tax or a garbage fee hike. That means the City Council would need 34 out of 50 votes to override him.
"Working-class Chicagoans can simply just not afford a property tax increase," the mayor told reporters. "Let me be clear: There are not any magic third options in cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
And even after its defeat Monday, Johnson doubled down on his backing of the head tax as a way to make corporations pay their fair share, setting up a difficult stretch run as he and aldermen try to find common ground on a balanced budget before the end of the year. "The corporate tax is in this budget. It will stay in this budget. Is that clear enough?" he said.
Johnson's defiance came after he got outmaneuvered in the Finance Committee meeting.
His handpicked Finance chair, Ald. Pat Dowell, tried to dodge a vote on the head tax by recessing the meeting instead of considering the revenue ordinance for the mayor's $16.6 billion budget, a sign Johnson expected to lose after Dowell publicly warned [a Monday vote](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) would be "premature."
Ald. Pat Dowell, 3rd, who chairs the Finance Committee, takes part in the meeting where Mayor Brandon Johnson's proposed head tax was voted down Nov. 17, 2025. (Terrence Antonio James/Chicago Tribune)
Mayoral foes Aldermen Raymond Lopez and Anthony Beale tabled her recess motion on a 24-7 roll call. Johnson's budget chair, Ald. Jason Ervin, then attempted to delay a vote on the head tax, only to see that move fail by a single vote in an 18-18 tie.
Finally forced to consider the ordinance, the committee struck it down 25-10, a stunning rebuke of the chief executive who has overseen more losses in City Council than his predecessors.
How aldermen navigate the waters after Monday's defiance could chart a new course in City Hall's power dynamics and prove consequential to Chicago's long-standing fiscal woes, but their stance against the mayor sends the process for a second straight year toward a critical end-of-year deadline.
Johnson brushed off talk that his Monday defeat was politically significant. "If you're asking me if I'm afraid of a no, then you don't know me very well," he said. "I'm not afraid of a no."
Still, his budget path won't get any easier. Aldermen who now smell blood in the water will be less likely to follow his lead, though Johnson is trying to put the onus on them to come up with an alternative from among an unpopular set of options.
The mayor clearly would have rather not seen his head tax go down in Finance.
Earlier Monday afternoon, top Johnson adviser Jason Lee clutched a paper with what appeared to be his vote predictions as he approached on-the-fence aldermen during a presentation from the mayor's budget and finance teams. A few moments later, Lopez interjected to accuse Lee of improperly lobbying on the City Council floor. Lee quickly left the room, but turned back to aldermen and blew a two-handed kiss.
The council must finalize the 2026 budget by the end of this year. Last year, the mayor took that timeline to the latest it's been pushed in decades but ultimately clinched 27 votes by mid-December.
Johnson first pitched the head tax, which his team projected to raise $100 million, when he unveiled his plan to close a $1.19 billion budget gap for next year in an his October address to City Council. He framed the proposal as the city's best chance to stand up to President Donald Trump and tax the rich but has faced hurdles in getting an aldermanic majority on board.
Last week, Johnson's team started floating a modified version that would up the minimum company size from 100 to 200 employees. The $100 million revenue estimate went down to $82 million, with the gap then being filled by bumping up the personal property lease tax to 15%.
Dowell then told reporters she opposed the head tax in any form, and the mayor's team floated another version this weekend where the levy would again apply to companies with 100 or more employees, but the $18 million that would be restored from that tweak would mainly go toward eligible businesses in South and West side wards, among other categories of spending.
Johnson's third budget cycle was expected to be his most difficult yet given the city's long-standing fiscal issues and the limited options he had to pull new levers for revenue.
His road to 26 out of 50 votes — or 25, if he's willing to cast a tie-breaker — has proven difficult for Johnson given that his most ideologically aligned bloc — the Progressive Caucus — is not sizable enough to get over that hump, and not all of those aldermen are won over by his proposal. Thus, the mayor will need the Black Caucus on board, but some of those members are also hesitant on the head tax.
Dowell, who has been caught between her role on the mayor's leadership team and her unequivocal disapproval of that major revenue component, sided with her colleagues against her own motion to recess.
Johnson's stark red line against a property tax hike or grocery tax reinstatement for 2026 comes after he tried and failed to raise property taxes in the 2025 budget, and could not win over a council majority for the grocery tax earlier this year. Asked Monday what has changed to make him now steadfastly against raising those taxes, Johnson pointed to moves by Trump he said have left working-class Chicagoans in dire financial straits and unable to bear those additional burdens on their pocketbooks.
The debate roils at the same time the latest round of Cook County property bills are hitting the city's South and West sides the hardest while Loop values and bills have dropped. The dynamic has cemented some existing aldermanic opposition to Johnson's head tax, fueling fears it will further hurt businesses that would otherwise hire residents.
Meanwhile, his unsuccessful weekend push to quickly pass the budget clearly left an impact among some aldermen: frayed trust.
Ald. Timmy Knudsen said the mayor's team spread "a complete lie" about him by telling other City Council members that the Lincoln Park alderman supported a head tax. "I have been a 'heck no' the whole time," he added.
Knudsen, 43rd, called the move a "grasping at straws" effort to "get a few cheap votes."
"This body does not trust them, and things like this are pretty direct evidence as to why," he said.
Johnson on Monday told reporters it was Knudsen who was lying: "He said that? That's not true."
At times during the tense Finance Committee meeting, mayoral allies argued his opponents were lining up with Trump to support corporations at the expense of the working class.
Progressive Ald. Anthony Quezada posed a volley of rhetorical questions, asking how much some of America's wealthiest corporations made in profits.
"We need to stop playing games and we need to stop just trying to make the mayor look bad, and actually work on passing policies that are sound," he said.
Dowell fired back: "I don't take kindly to the 'stop playing games' thing when none of us are down here playing games. We are here doing the work of our constituents. We are not monolithic."
Moments later, Ervin trotted out a favorite line he uses when aldermen are caught between unsavory financial choices, noting that "Everybody wants to get to heaven, but nobody wants to die."
Ald. Andre Vasquez, a critical swing vote who heads the Progressive Caucus, rose from his seat, spread his arms and looked toward the ceiling as Ervin spoke.
But the prayers weren't enough for the mayor, as aldermen regardless lined up against the revenue ordinance.
Vasquez, who voted against the revenue package, noted City Hall has few options to land the budget — and worried there was no one who could bridge the mayor-aldermen divide.
"I don't believe that any option has been fully taken off the table," he said. "We still have to solve a math problem."
Source Name [26]: Chicago Set to Borrow $283.3M to Resolve Police Misconduct Lawsuits Full URL: https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits Scraped Date/Time: 2025-11-22 22:58:48
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## Chicago Set to Borrow $283.3M to Resolve Police Misconduct Lawsuits
[Heather Cherone](https://news.wttw.com/stories-by-author/heather%20cherone) \| November 17, 2025, 5:00 am
(Michael Izquierdo / WTTW News)
Chicago must borrow $283.3 million to cover the soaring cost of lawsuits alleging Chicago police officers committed a wide range of misconduct — including wrongful convictions and improper pursuits — as part of the city's 2026 budget, Mayor Brandon Johnson said.
It will likely cost Chicago taxpayers approximately $52 million in interest to borrow that money and pay off during the next five years, according to estimates provided to the Chicago City Council by Chief Financial Officer Jill Jaworski.
Johnson told reporters the move was "prudent," given the massive liability the city faces after decades of police scandals, misconduct and brutality.
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Resolving the lawsuits will also allow the city to provide "restoration and restitution to families who have been harmed by police misconduct," Johnson said.
Several members of the City Council said they were shocked by the amount of money Johnson's administration is proposing to borrow to resolve lawsuits alleging police misconduct.
"It's additional money going just to debt service, that's not going to paying down the pension debt, that's not going to affordable housing or public safety initiatives, mental health initiatives," Ald. Matt Martin (47th Ward) said. "That is not the sort of investment that I think Chicagoans want to see."
Martin, who said the proposal was "not in the best interest of Chicagoans" was one of two members of the Progressive Caucus who voted against last year's budget, giving Johnson only the slimmest of margins of victory.
Ald. Mike Rodriguez (22nd Ward) said the scale of the city's police misconduct liability caught him off guard.
"It's overwhelming," Rodriguez said. "The fact is, this has been in the background for a number of years. But the chickens are coming home to roost now. The day of reckoning is absolutely here."
City officials must step up efforts to comply with the consent decree, the federal court order designed to compel the department to change the way it trains, supervises and disciplines officers and stop routinely violating the civil rights of Black and Latino Chicagoans.
"These settlements are going to keep on coming unless we really dig deep on the consent decree," Rodriguez said.
Six and a half years after the consent decree was implemented, CPD had fully complied with 22% of its requirements by the end of June, [according to the court-appointed monitoring team charged with keeping track of reform efforts](https://news.wttw.com/2025/10/16/after-6-12-years-cpd-now-compliance-22-consent-decree-monitors).
Ald. Jessie Fuentes (26th Ward) said she hoped this moment serves as a reckoning about both the financial toll and the human cost of police misconduct.
Fuentes represents Humboldt Park, home to many people who contend they were framed by disgraced former CPD Detective Reynaldo Guevara. [Taxpayers have paid $112 million](https://news.wttw.com/2025/11/14/cost-resolve-lawsuits-tied-disgraced-ex-cpd-detective-tops-112m-44-lawsuits-pending) to resolve nine cases naming Guevara; 44 cases are pending, records show.
"These families had to suffer an immense amount of trauma, and not just the individuals who were behind bars, but their children, their parents, their relatives, who still live in our community," Fuentes said, calling it an injury added to an insult that those residents' tax dollars are being used to defend Guevara and other officers.
In all, Chicago taxpayers have paid at least $42.4 million to defend Guevara and the other officers he worked with during his 29-year career, on top of the amount paid to resolve the lawsuits.
"I think it is extremely important for us to recognize that something needs to change," Fuentes said.
The city has not borrowed funds to cover the cost of resolving police misconduct lawsuits since former Mayor Rahm Emanuel's tenure. Johnson's proposal represents the first time ever that the City Council has been asked to approve funds outside of CPD's regular budget to pay to resolve the lawsuits.
Chicago taxpayers have spent at least $285.3 million to resolve lawsuits alleging Chicago police officers committed a wide range of misconduct so far in 2025, according to an analysis of city data by WTTW News.
That is $200 million more than the city's annual budget to resolve lawsuits alleging police misconduct, city records show.
In 2024, taxpayers spent at least $107.5 million to resolve police misconduct lawsuits, [according to a separate WTTW News analysis](https://news.wttw.com/2025/02/10/final-tally-chicago-taxpayers-spent-least-1075m-resolve-police-misconduct-lawsuits-2024).
In 2026, taxpayers are set to pay an additional $90 million to 180 people who spent a combined nearly 200 years in prison after being wrongfully convicted based on what they allege was fabricated evidence gathered by former Chicago Police Sgt. Ronald Watts, who was convicted in 2013 of taking bribes, and other officers.
Despite that, the 2026 budget [sets aside just $82.5 million to cover the cost of resolving police misconduct lawsuits](https://news.wttw.com/2025/10/23/johnson-s-2026-budget-sets-aside-just-825m-resolve-police-misconduct-lawsuits-even).
That should be increased, Martin said, to ensure that the city's budget accurately reflects what it expects to spend to resolve police misconduct lawsuits and ensure it is acting transparently.
"There are no free lunches, and so we're going to have to buckle down and figure out what the least harmful tradeoffs are going to be and level with our community before making those decisions," Martin said.
The 2026 budget will include provisions to ensure that CPD continues to move in a "stronger and better direction," Johnson said.
Police brass will be required to submit monthly reports to the City Council on efforts to create a system designed to alert supervisors about which officers have been the subject of repeated police misconduct allegations.
CPD must implement that system under the terms of the consent decree.
The University of Chicago Crime Lab began work on the so-called Officer Support System, also known as OSS, in 2016, and began testing it in a South Side police district in September 2020, only to face repeated and lengthy delays, caused in part by decisions by CPD leadership to transfer the staff members assigned to run the system to patrol, according to a letter obtained by WTTW News through the Freedom of Information Act.
That system could have been rolled out citywide in May 2021, but it remains in use in only two of Chicago's 22 police districts. CPD officials are developing a new system, officials have told the judge overseeing the reform push.
* * *
_WTTW News coverage of policing and police reform is supported by The Joyce Foundation._
* * *
_Contact Heather Cherone:_ [_@HeatherCherone_](https://bsky.app/profile/heathercherone.bsky.social) _\| (773) 569-1863 \|_ [_hcherone@wttw.com_](mailto:hcherone@wttw.com)
Source Name [27]: Chicago Officials Make the Case for Funding Youth Programs in 2026 Budget Full URL: https://news.wttw.com/2025/11/12/chicago-officials-make-case-funding-youth-programs-2026-budget Scraped Date/Time: 2025-11-22 22:58:48
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## Chicago Officials Make the Case for Funding Youth Programs in 2026 Budget
[Joel Ortiz](https://news.wttw.com/stories-by-author/joel%20ortiz) \| November 12, 2025, 6:55 pm
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City Officials Make the Case for Johnson's Budget to Fund Youth Services
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Mayor Brandon Johnson's 2026 budget proposal includes a controversial head tax he hopes will generate $100 million to fund violence prevention and youth employment programs in the city.
Under the proposal, more than $58 million would go toward youth programs through the Department of Family and Support Services. Specifically, the budget would allocate $49 million to youth employment programs — creating 19,000 new jobs — with another $5.2 million going toward violence prevention programs. There would also be funding for youth intervention services and [My CHI. My Future.](https://explore.mychimyfuture.org/)
Under Johnson's head tax proposal, companies with more than 100 employees would need to pay a tax of $21 per employee per month.
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Critics believe the tax could stifle business growth and retention within the city, but Angela Green, newly appointed DFSS commissioner, said the tax serves as another way for corporations to invest in the city.
"We know our corporations just received a federal tax break," Green said. "At that same time, we're seeing many of our families struggle with food insecurity with the SNAP pause and possibly even with health care access. We actually kind of need everyone to join in and support our most vulnerable populations."
Green said funding these programs is not charity, but rather an investment in the future of the workforce.
"This is a way that our corporations can take part in that," Green said. "We need that support. ... It's really them investing back into the city that has so much promise."
The DFSS Youth Services Division provides funding for 150 community-based organizations, which together serve more than 108,000 residents, according to a recent [report from the city of Chicago](https://www.chicago.gov/content/dam/city/depts/mayor/Press%20Room/Press%20Releases/2025/October/DFSS%202025%20Youth%20Impact%20Report.pdf).
Through the [One Summer Chicago](https://www.onesummerchicago.org/) program, DFSS was able to partner with community-based organizations and companies to employ 31,122 young people this summer, offering around 2.8 million hours of work experience and project-based learning.
Kathy Cullick, deputy commissioner of the DFSS Youth Services Division, pointed to [recent findings](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/august/Fact-Sheet-2025-Crime-Decline.html) that show overall violent crime is down in the city.
"We have youth that have told us that ... being involved in summer programming, having events to go to that they know are safe with their peers has kept them out of trouble, has given them hope, has given them tools that they feel that they need and can use to help navigate through life," Cullick said.
Cullick said opportunities to invest in youth put money in the pockets of young people, who often use the money they earn to help their families.
In addition to summer programming, DFSS provides a number of youth support services, Cullick said. The Service Coordination and Navigation (SCaN) program, for example, provides wraparound services that allow people to access employment help, rental assistance and other resources that prevent them from homelessness, violence or crime.
"I know that this is different, and this is new," Cullick said, "but we really have to think about what the future of our city looks like, what we want it to look like. And being able to provide programs for youth that keep them safe, keep them employed, give them mentorship ... just continues to help our city be the thriving safe community that it can be."
Source Name [28]: Mayor Brandon Johnson's plan to borrow money to pay police settlements raises questions Full URL: https://www.chicagotribune.com/2025/11/21/mayor-brandon-johnsons-plan-to-borrow-money-to-pay-police-settlements-raises-questions/ Scraped Date/Time: 2025-11-22 22:58:48
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<span style="color: #0066cc; font-weight: bold;"></span> [28]
Chief Financial Officer Jill Jaworski speaks while Mayor Brandon Johnson and team meets with the Chicago Tribune Editorial Board on Oct. 28, 2025. (Brian Cassella/Chicago Tribune)
By [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 21, 2025 at 5:00 AM CST
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Mayor Brandon Johnson wants to take out $283 million in loans to pay for police settlements, but his plan has left aldermen wondering how a lot of the money will be spent.
The borrowing proposal revives [a practice past mayors discontinued](https://www.chicagotribune.com/2014/02/03/emanuel-seeks-to-borrow-900-million-3/) and derided as financially reckless. While members of the City Council raise concerns and questions, Johnson's team is defending the move as a way to finally clear a backlog of looming police misconduct lawsuits and save money.
"The Department of Law has been very focused on settling cases and lowering our costs by getting them settled quicker," Johnson's chief financial officer, Jill Jaworski, told aldermen Monday. "Instead of increasing those costs all in the budget this year and spiking up our expenses, we're spreading that out over a five year repayment period."
The plan would spread the $283 million in settlements over five years, starting in 2027 and ending in 2031. It would also force the city to pay an additional estimated $42 million in interest, according to the Johnson administration.
A $90 million chunk of the borrowed money would pay for the so-called global settlement to resolve almost [200 wrongful conviction lawsuits](https://www.chicagotribune.com/2025/09/11/mayor-brandon-johnson-90-million-settlement-corrupt-cop/) involving disgraced police Sgt. Ronald Watts, according to a statement shared by the Law Department and Jaworski's office.
Former Chicago police Sgt. Ronald Watts, center, leaves the Dirksen U.S. Courthouse on Oct. 9, 2013, after being sentenced to 22 months in prison. Watts pleaded guilty to stealing thousands of dollars from a purported drug dealer who turned out to be an informant for the FBI in an undercover sting. (Phil Velasquez/Chicago Tribune)
But it remains unclear how the remaining $193 million would be used, an omission aldermen say makes them fear Chicago is taking a financial misstep as City Hall slowly crafts a 2026 budget.
One possibility, said Northwest Side Ald. Scott Waguespack, 32nd, is that the money would go toward another global settlement to resolve the around 40 remaining cases involving disgraced Detective Reynaldo Guevara. The handful of Guevara cases already settled by the City Council have cost around $10 million each, an ominous portending of the exorbitant price Chicago will likely pay by settlement or verdict, now or later.
City officials might also be planning to use the money to pay off the record-setting costs of settlements approved by aldermen this year, said North Side Ald. Andre Vasquez, 40th. Aldermen have approved over $258 million in settlements in 2025, a massive total that towers above past high marks — and dwarfs the dollar figures underlying some of the city's most contentious budget fights, like Johnson's controversial $100 million corporate head tax.
That 2025 sum excludes the $90 million Watts settlement, a $120 million pair of wrongful conviction verdicts the city is appealing and an array of smaller settlements that don't require aldermanic approval. It is also likely to rise further before the end of this year.
City officials declined to comment on the possibility of a Guevara global settlement. Their statement said the $193 million "will be used for settlements approved and expected to be paid in 2025 and 2026," but they did not answer questions about what types of settlements, or whether it will go toward specific cases.
Former Chicago police Detective Reynaldo Guevara hides his face as he leaves the Dirksen U.S. Courthouse on June 8, 2018. (Terrence Antonio James/Chicago Tribune)
There's a big difference between using the money to pay for global settlements and using it to pay for the individual settlements Chicago approves monthly, said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a nonpartisan fiscal policy think tank.
The oft-approved individual settlements have become more like an operating cost for the city as they regularly pass through the City Council and onto the city's ledger.
"You never want to be incurring debt to cover operating costs, just as a general principle," said Martire, whom Johnson named to his budget working group in May. "That's Fiscal Policy 101."
But the global settlements are more akin to an "exceptional, one-time" liability, he said. And if the city paid them off in one year, it would have to take money out of basic services, like policing, firefighting or street maintenance, to cover the cost, he said.
For cash-strapped Chicago, there are not a lot of "fun options" to plug long-term holes or respond to expensive challenges, Martire added.
"It's still not ideal, right?" he said. "It gets to the bigger picture that the city does need structural revenue reform, and that's very difficult to accomplish."
The $42 million in interest would be better spent to shore up underfunded pensions or bolster violence prevention programs, Ald. Matt Martin, 47th, said. Because many of the lawsuits have been expected for years, the interest costs could have been avoided by using better planning to pay more quickly, he argued.
"We don't need to send that money to banks if we can avoid it," Martin said. "It's really challenging for me to go to my community and say, 'I think we should spend $42 million on interest payments alone for costs that we knew were coming.'"
To hold the department accountable, the city should budget for the actual amount it expects to spend on police-related settlements in its police budget, Martin said. Chicago has overspent on its police settlement budget in all but two years since 2010, according to a Tribune analysis. Johnson's 2026 spending plan proposes $82.6 million be budgeted to cover police-related lawsuits, the same amount that has been budgeted since 2020.
Martin praised former Mayor Rahm Emanuel for weaning the city off its old practice of borrowing to pay for police settlements. He also credited former Mayor Lori Lightfoot for continuing the practice. Lightfoot slammed the debt for settlements as a "bad borrowing practice" in her final midyear budget forecast.
Still, Martin said he supports the city's pursuit of more global settlements. City Council members, including Johnson's most committed opponents, broadly praised the Watts deal as a smart, money-saving move.
Martin hopes the Johnson administration's plan to more quickly resolve long-standing lawsuits will "bend the cost curve." Johnson's administration in its statement predicted costs will be concentrated over the next two years, but "settlements and judgements will return to being within the budgeted levels" after the spike.
The Law Department is weighing global settlements and created a division specialized in resolving old, potentially high-cost lawsuits, the statement added.
Ald. Scott Waguespack, 32nd, speaks outside Chicago City Hall on Dec. 3, 2024. (Eileen T. Meslar/Chicago Tribune)
Waguespack, often a Johnson critic, said he is frustrated by the lack of clarity on how the borrowed money would be spent. But, like Martin, he supports the global settlements approach. He believes it is being used to settle the Guevara cases.
Waguespack, 32nd, said he can understand why the Law Department might stay tight-lipped publicly on its plans: Nodding to a future global settlement could give attorneys bargaining against the city an advantage in high-stakes negotiations. But he wishes aldermen could get details about Johnson's intentions in confidential meetings.
"It's hard to find trust when you can't get the documents until the last possible second," he said.
And Vasquez, chair of the aldermanic Progressive Caucus, shared similar concerns about a lack of communication over the borrowing plan.
"I need more insight, more transparency," Vasquez said. "When the budget gets presented as us being taxing the rich to get all this revenue, then why are we creating larger deficits and larger debt on the other side of it?"
The two got only limited details during the Monday hearing, when Jaworski argued the city's efforts to decisively resolve cases were creating a temporary "extraordinary cost." While it would take five years to pay off the debt, it would also take five years to settle many of the involved cases at the city's normal pace, she said.
Settlements are typically an "operating cost" because they occur every year, she said.
"This is more one time because of the size and the nature of it," she said.
Source Name [29]: CPS gets $522M boost from Mayor Brandon Johnson's budget proposal Full URL: https://www.chicagotribune.com/2025/10/16/proposed-mayor-johnson-budget-cps/ Scraped Date/Time: 2025-11-22 23:07:10
Mayor Brandon Johnson's [new budget proposal](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/) recommends the city declare a historic surplus of funds from special taxing districts' funds, shoring up the finances of Chicago Public Schools for the academic year.
The draft budget, unveiled Thursday, calls for the city to draw $1 billion from its tax increment financing districts, or TIFs. More than half of that money is slated for CPS, covering the $379 million the district anticipated and a controversial $175 million municipal pension payment.
The move marks a rare victory for CPS, allowing school officials to maintain their August spending plan — which relied heavily on TIF money — and spare classrooms from deeper cuts.
The pooled funds from TIF districts, taxing areas around the city, are intended for local development projects. But when the TIFs expire or are declared to have surplus, meaning there are excess funds that are not obligated to specific projects, the money is disbursed across local government bodies. CPS receives a roughly 52% cut, while the city receives 23%. This year, that amounts to a potential $522 million for the district.
Before the Chicago Board of Education [passed](https://www.chicagotribune.com/2025/08/28/cps-board-approves-balanced-budget-loan/) the district's $10.25 billion budget in late August, school officials said they had received assurances from City Council that a declared TIF surplus would allocate at least $379 million to CPS. But questions remained over whether that record surplus would actually materialize, and the district lacked a clear backup plan.
CPS also pledged that it would help the city cover the $175 million municipal pension payment for nonteaching employees, but only "contingent on additional revenue."
The payment had become a major point of contention: While more than half of recipients of the Municipal Employees' Annuity and Benefit Fund are district staff, up until 2020, the city footed the bill as required by state law. Johnson and former Mayor Lori Lightfoot, have since shifted the responsibility to CPS.
The political back-and-forth over the payment contributed to the [resignation](https://www.chicagotribune.com/2024/10/04/entire-chicago-board-of-education-to-resign-as-mayor-johnson-continues-push-to-oust-school-ceo/) of the entire school board last year, and the subsequent [firing](https://www.chicagotribune.com/2024/12/20/chicago-school-board-fires-school-chief/) of CPS CEO Pedro Martinez. Johnson's budget proposal offers some closure to the protracted debate — at least for now. It's unclear who will assume liability in future budget seasons.
Board of Education member Michilla Blaise lauded the move at a news conference Thursday morning, noting that it came from direct negotiations between some board members and the mayor's office. The CPS budget passed in August was built on hope and balanced on paper, but not in reality, Blaise said, leaving a looming threat of mid-year cuts if funding fell short. The securing of TIF funding alleviates that pressure, she added.
"This commitment prevents any mid-year cuts and allows us to maintain stability in our classrooms," Blaise said. "It also provides essential support for the pensions of CPS nonteaching personnel, the front-line staff who clean our buildings, who feed our children and support our students who have the greatest needs."
The potential TIF revenue would also cover a canceled [$8 million federal grant](https://www.chicagotribune.com/2025/04/29/feds-probe-chicago-public-schools-over-alleged-racial-discrimination-in-black-student-success-plan/). The U.S. Department of Education's Office for Civil Rights announced last month that it would [withhold the mopney](https://www.chicagotribune.com/2025/09/25/cps-financial-management-uncertainties/) after CPS refused to end its Black Student Success Program, which Trump officials say violates federal antidiscrimination laws. The extra revenue helps maintain those inclusivity programs facing criticism from the government, Blaise said.
"Despite pressure from the White House, this agreement is essentially Trump-proofing the CPS budget," Blaise said.
City Council must approve Johnson's budget by Dec. 31. Aldermen could still object to declaring such a large TIF surplus, as the money is intended to drive redevelopment in their wards. But in August, the majority signed a letter committing to a substantial surplus to help CPS.
Educational nonprofit Kids First Chicago applauded the city Wednesday for the potential bump in funding, but also advocated for the district not to sign any intergovernmental agreement that would commit funds to Chicago before the TIF surplus amount is decided on or a budget is passed.
Some budget watchdogs, such as the Civic Federation, [argue that](https://www.chicagotribune.com/2023/10/11/digging-into-the-numbers-in-mayor-brandon-johnsons-budget/) relying on TIF surplus money is an unsustainable solution that could exacerbate the city's structural deficit. Still, recent mayors have declared increasingly large surpluses to plug their budget gaps.
In 2014, the city declared a TIF surplus of $65 million, and CPS received $36 million. By 2025, the total surplus amount topped a record $570 million. CPS received $379 million, which accounted for 4% of its budget.
The district continues to grapple with its own [fiscal woes](https://www.chicagotribune.com/2025/01/13/report-cps-on-the-financial-brink-state-takeover-not-out-of-the-question/), after years of borrowing to cover expenses and outstanding debt. CPS has about $9.1 billion in long-term debt and $450 million of short-term debt. Its bond rating is considered "junk" by three of four rating agencies, which makes borrowing more expensive. The district's expenses will only grow as it funds the Chicago Teachers Union's new contract, which will cost [$1.5 billion](https://www.chicagotribune.com/2025/04/01/ctu-cps-deal-what-to-know/) over four years.
_Chicago Tribune's A.D. Quig contributed._
Source Name [30]: Alderman warning Mayor Brandon Johnson budget vote 'premature' Full URL: https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/ Scraped Date/Time: 2025-11-22 23:20:33
<span style="color: #0066cc; font-weight: bold;"># Alderman warning Mayor Brandon Johnson budget vote 'premature'</span> [30]
By Alice Yin and A.D. Quig
November 14, 2025
Mayor Brandon Johnson began hedging Friday on whether his 2026 budget will see its first vote next week, following his Finance Committee chair publicly targeting his controversial head tax as a nonstarter with her.
Ald. Pat Dowell, 3rd, told reporters after weeks of budget hearings for Johnson's $16.6 billion spending plan concluded Thursday that she advised the Johnson administration not to proceed with a vote in her committee Monday. But she stopped short of saying she would try to block a vote should the mayor proceed regardless.
"I think going on Monday is premature. I have said that to the administration," Dowell said. "My role as the Finance chair is to give advice, and on Monday I'm going to have a meeting, and those things will either be on the agenda or they won't. And I will call balls and strikes, and we'll see where this goes."
The fifth-term alderman also came out swinging against Johnson's $21-per-employee monthly tax on corporations.
"I am not a supporter of the head tax at any level," Dowell said when asked if the mayor's latest proposal bumping the minimum company size up from 100 to 200 workers satisfies her.
It was a remarkable break from one of the two aldermen Johnson has handpicked to lead his budget through the City Council, and one that could set the freshman mayor up for an embarrassing defeat were he to lose Monday's Finance Committee vote. His revenue ordinance, which contains the head tax that is now projected to raise $82 million to go into a public safety fund, must be advanced through that panel.
Johnson, for his part, shrugged off the naysayers. And he wouldn't concede his head tax is on life support, either in Monday's scheduled vote that would be a key test, or for the rest of the year as he tries to get the full package through the council.
"I'm for more deliberation if we're actually debating over something, but to slow it down just for the sake of slowing it down, it just doesn't make sense," the mayor told reporters after a City Council meeting Friday. "No alder has put forth an alternative vision to my proposal."
Johnson also argued that without the head tax the only alternative is "increasing taxes on working people," which he's drawn a red line against for 2026, after trying unsuccessfully to pass a property tax hike for this year's budget. Increasing property taxes would be far more politically perilous now given the upcoming 2027 election.
Some aldermen have argued the city needs to show more shared sacrifice before they can justify a "yes" vote to their constituents, pointing to the Ernst and Young accounting firm's report commissioned this year that they say the Johnson administration did not fully heed. The mayor's team has shot back that the updates require time.
On Friday, Johnson said he was still waiting for suggestions on alternative revenue measures but said they must target the rich.
"I don't think this is the time to push for regressive revenue," the mayor said. "If there are some progressive revenue ideas that have not been brought before us, there's still time."
Dowell's comments against the head tax also came on the heels of some council pushback to Johnson's borrowing plans for the coming years. On Friday, he introduced ordinances requesting authorization for up to $3.8 billion in debt to pay for capital projects, legal settlements, back pay for the new firefighters contract, and refinancing for savings. Authorization for that borrowing will be voted alongside the regular budget.
A common adage in Chicago politics and beyond is to never call a vote you may lose, but Johnson's team — under three different heads of intergovernmental affairs, the team tasked with whipping votes in council — has struggled mightily with counting their yeses and nos. The mayor has cast three tie-breakers so far, and been defeated on the floor in losses that were extremely rare under his predecessors.
However, Johnson's rhetoric and movement lately suggest he could take his controversial budget to the brink next week, hoping aldermen will in the end support the head tax rather than defeating it and instead having to find another way to raise money on the backs of working-class Chicagoans.
During a budget town hall Wednesday night in Dowell's ward without her present, the mayor framed how he views the path ahead for aldermen.
"The City Council has two options, y'all. They can tax the rich, or they can decimate services and tax working-class people," Johnson told a room of progressive supporters from the Chicago Teachers Union and other organizations. "You have members of the City Council that are calling for increasing taxes on working people. … What kind of sick and demented society do we live in, where you have politicians who are more afraid of billionaires and these large corporations?"
His bullish stance despite the doubt among his legislative counterparts that he has the votes led some aldermen to surmise that he plans to get them on record voting against his head tax so he can paint them as anti-working class — and pin on them any unpopular alternative solutions to close the $1.19 billion gap next year. Johnson on Friday dodged a question on whether that was his endgame.
"I really don't like that it looks like we're being forced to vote on this," Ald. Nicole Lee, 11th, said during budget hearings Thursday. "I'm nowhere near ready to do that."
Lee added that she was not able to schedule a sit-down offered by the mayor because of how rushed the timeline felt to her. Meanwhile, Johnson has been traversing the city for a series of town halls — many of them in the wards of expected budget swing votes, such as Dowell's — but often without the local aldermen present.
During those events, he often takes his mission to make the case for his third budget, unveiled a month ago as a bulwark against President Donald Trump, directly to the people of Chicago and implores them to lobby aldermen to vote yes and Springfield to give the city more revenue.
It appears that Johnson's bold speech Wednesday evening on Dowell's home turf didn't budge her, however. The Finance chair calmly ended her Thursday evening remarks with reporters by saying that while she supports Johnson's record $1 billion tax-increment financing surplus and hiking up the personal property lease tax to 15%, "I think they could do more" with cutting costs.
Johnson's budget chair, Ald. Jason Ervin, was nonplussed when asked the potentially dramatic showdown next week but called upon his colleagues to work more with the mayor's team instead of complaining. He did not say where he stands on the head tax beyond "I'm not saying yes to anything. I'm not saying no to anything."
"I do believe that we will get to some sort of solution. Will it be on Monday? Maybe yes, maybe not," Ervin told reporters Thursday. "Again, I continue to ask for alternatives as it relates to spending, as it relates to revenue. Crickets. … Council has the budget. Council has the budget. The mayor has presented what he's presented."
City Council adjourned Friday without the mayor introducing his budget ordinances, meaning that the spending package could still see tweaks before a direct introduction in the Budget and Finance committees on Monday. That's a sign the votes still aren't there, but Ervin kept his cards close to his chest when approached by reporters on his way out of council chambers.
"I've not had a conversation in that vein," Ervin said when asked whether Johnson has informed him whether he will hold the committee vote or not. "Today is Friday. Monday is three days away. We'll see."
The mayor's team has offered aldermanic budget briefings Saturday and Sunday.
Johnson's borrowing plans — presented in part to aldermen Wednesday — asks for authorization to borrow up to $1.3 billion to fund infrastructure projects in 2026 and 2027. Of that sum, $216 million would go to aldermen to use in their wards on projects of their choosing, $230.6 million would fund upgrades to the city's fleet of vehicles, IT and equipment, and $175 million would pay for street resurfacing. The rest would help cover bridges and viaducts, sidewalks, street lighting, and traffic signals, according to administration officials.
Aldermen already pushed back on Johnson's last $830 million proposed infrastructure borrowing in January, taking issue with the backloaded schedule to pay down the debt and fears that the money would be diverted to Chicago Public Schools. Administration officials tweaked that borrowing to affirm no money would flow to CPS. They said Wednesday the payback schedule was not final but their intention was to keep the city's overall debt more balanced from year to year.
The mayor's capital improvement plans through 2029 call for $18.1 billion in spending, a mix of money from tax increment financing districts, issuing water and sewer and aviation debt, and federal money.
The mayor is asking for permission for another $500 million in general obligation debt, which includes money to help pay for the $90 million "global" settlement to resolve nearly 200 lawsuits tied to former CPD Sgt. Ronald Watts and the recently-inked contract with Firefighters Local 2. Together, the infrastructure, back pay and settlement G.O. bond would cost up to $1.8 billion.
Late Thursday, Chief Financial Officer Jill Jaworski disclosed the estimated extra interest to borrow for those settlement and contract costs instead of paying them from regular city funds would be roughly $50 million. The Local 2 backpay will accrue roughly $6 million a year on top of $166 million in principal over five years, she said, while the Watts settlement would run in the low $20 million range over the same period.
There is also a separate authorization ordinance to refinance up to $2 billion in old debt for potential savings. Johnson administration officials said they plan to ask for the votes on both as part of the broader budget package. A key uncertainty are the interest rates the city could fetch on that debt in the future, as ratings agency S&P previously warned the mayor's budget plans could trigger a downgrade, likely pushing up interest costs.
Also as aldermen and Johnson held a Friday meeting, the council finalized a $17 million police misconduct settlement tied to a decades-old alleged wrongful conviction. The hefty sum will go to Jose Maysonet, who spent 27 years in custody for a double murder before Cook County prosecutors dropped charges against him eight years ago.
Before his 2017 release, Maysonet alleged police, including disgraced Chicago police Detective Reynaldo Guevara, beat him into confessing to the 1990 murders of two brothers on the Northwest Side and fabricated a police report claiming he admitted involvement.
Aldermen also unanimously approved $12 million in tax incremental financing spending on an Ogden Park field house in Ald. David Moore's ward, a white whale for him for years. Johnson's promise to support the measure was crucial to winning Moore's support on the city's 2025 budget last fall, the alderman said.
Source Name [31]: Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions Full URL: https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/ Scraped Date/Time: 2025-11-22 23:29:34
<span style="color: #0066cc; font-weight: bold;"># Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions</span> [31]
By The Editorial Board
November 18, 2025
Mayor Brandon Johnson's bid to revive Chicago's corporate head tax is dead. The resounding 25-10 City Council Finance Committee vote Monday against the mayor's revenue proposals should have made that clear.
Unfortunately, after the embarrassing rebuke, which carried distinct echoes of last year's unanimous council vote against Johnson's proposed $300 million property tax hike, the mayor seemed to struggle to wrap his head around the obvious reality, sounding like the Monty Python character shouting "not dead yet."
"The corporate tax is in the budget," a clearly frustrated Johnson told reporters after the vote. "It will stay in this budget."
For those who've forgotten long-ago psychology classes, the famous Kubler-Ross stages of grief went like this: first denial, then anger and after that depression, bargaining and acceptance. The mayor seemed to exhibit the first two reactions in a single day.
Hopefully, we can proceed quickly to more constructive responses. Johnson's budget is a non-starter. Twenty-five members voted against it, and there are plenty more not on the Finance Committee who won't support it either. We've written repeatedly on why this jobs tax is such a terrible idea, so we won't repeat ourselves here.
The key question is, what now? For a second straight year, the mayor has lost control of the budget process. But by law he must produce a balanced budget, and no matter who he blames for his predicament, it's his responsibility to find a majority on the 50-member council to support one.
The mayor's budget team initially projected the head tax would generate $100 million a year. Who knows if it would have really produced that much, but for budgetary purposes that's the first hole that must be plugged.
The mayor's opponents have called for more cost cutting. Under Johnson's initiative, the city paid Ernst & Young more than $3 million to propose various options for efficiencies. The Johnson administration claims it has incorporated many of EY's proposals, but they've left out any that would require significant sacrifice from the city's mainly unionized workforce, which numbers more than 30,000. So the ones they've agreed to adopt save relatively small sums.
With the rejection of Johnson's budget, it's time to engage with the unions representing city workers.
That step should have happened weeks, if not months, ago, but the council's clear message that the $1.2 billion budget deficit for 2026 can't — and won't — be filled by taxing job creators in Chicago leaves little choice now.
Nor, as a philosophical matter, should workforce concessions be off the table. Cities around the country, also led by Democratic mayors, have faced daunting budget deficits and haven't hesitated to demand union concessions on behalf of taxpayers.
In Los Angeles, Mayor Karen Bass signed a budget that included about 600 layoffs, which she was able to rescind after unions agreed to other money-saving concessions to save those jobs. In San Francisco, Mayor Daniel Lurie's finalized budget resulted in about 40 layoffs and the elimination of 1,300 positions.
And in Denver, Mayor Mike Johnston's budget resulted in 169 layoffs while also imposing unpaid furlough days on thousands of city workers. Notably, Johnston's furloughs exempted police officers and firefighters, jobs that Johnston said were "mission critical."
None of these mayors wanted to take such steps. They did so because they understood the job of a big-city mayor means making hard decisions.
No one expects Johnson, who owes his 2023 election victory primarily to public-sector unions, to insist his political benefactors make sacrifices. But that's what he should do. This moment requires leadership. If the mayor, having been rebuffed yet again by the council, isn't willing to lead, he should leave it to aldermen to command the process.
Yes, we understand the Chicago Federation of Labor met with numerous aldermen in early October, as the budget process was about to get started in earnest, and read the riot act to them about asking workers to contribute to solving this budget emergency. But here in mid-November, the facts on the ground have changed.
If Johnson won't do the job, we believe the council ought to identify a person who has enough goodwill with both unions and the business community to lead talks with the unions.
Who might that be? Ald. Pat Dowell, 3rd, who chairs the Finance Committee and voted against Johnson's revenue proposal, comes to mind. Former Ald. Walter Burnett, who left the council this past summer, is another who could serve that role. We're sure there are others.
And here's the thing. The unions wouldn't even have to agree to layoffs or furloughs to contribute mightily to helping with structural solutions to Chicago's budget woes. The Ernst & Young report, as we've written before, identified up to $103 million in savings simply by bringing the gold-plated health benefits city workers get today in line with those received by employees of peer cities.
Look again at that number: $103 million. That's more than the head tax was projected to generate.
Would such a concession be painful? Of course. But workers throughout the country, whether they get their health insurance through their employer or buy it via the Obamacare exchanges, are having to pay more in the form of premiums and out-of-pocket expenses. Taxpayers not on the public payroll aren't likely to be sympathetic to arguments that city workers should be immune to what the rest of us are experiencing. And in many cases, experiencing to a far greater extent.
We've said before that the solution to the city's budget crisis requires the burden to be shared. This adamant rejection of the mayor's dramatically unbalanced plan by aldermen with ears to the ground makes clear this is the will of the vast majority of Chicagoans.
Source Name [32]: Wall Street Ratings Agency Sounds Alarm About Chicago's Finances Full URL: https://news.wttw.com/2025/11/06/wall-street-ratings-agency-sounds-alarm-about-chicago-s-finances Scraped Date/Time: 2025-11-22 23:32:46
<span style="color: #0066cc; font-weight: bold;"># Wall Street Ratings Agency Sounds Alarm About Chicago's Finances</span> [32]
By Heather Cherone
November 6, 2025
A Wall Street ratings agency sounded the alarm over Chicago's finances on Thursday as alderpeople continued weighing Mayor Brandon Johnson's $16.6 billion spending plan for 2026.
S&P, one of a handful of major ratings agencies, revised its rating outlook for Chicago from stable to negative, according to an analysis released Thursday.
"Internal political conflicts around taxing, spending, and other issues have produced gridlock resulting in suboptimal fiscal outcomes, most recently precipitating a downgrade in the city's rating in January 2025," the ratings agency wrote.
There is at least a one-in-three chance of a lower rating within the next two years, "based on the final fiscal 2026 budget and actual performance during the year relative to the budget; city leadership's efficacy in delivering structural solutions to address the gap as the city draws on recent consultant and task force reports identifying wide-ranging gap-closing options; and the fate of the city's advance pension payment, as the payment is set to grow considerably next year and may prove an ongoing challenge absent additional budget adjustments."
Chicago's credit rating is BBB with a negative outlook, according to S&P. A credit rating of BBB indicates a government agency has "adequate capacity to meet financial commitments," but is susceptible to "adverse economic conditions." It is two notches above a junk rating.
"The revision was prompted by the city's ongoing, heavy reliance on one-time measures in the fiscal 2026 budget proposal, its significantly diminished balance sheet following consecutive years of large budget deficits and the proposed reduction in the city's advance pension contribution to about half of what is required by the policy," S&P analysts Scott Nees, Blake Yocom and Jane Ridley wrote.
The ratings issued by the four major ratings agencies help determine how much the city must pay in interest to borrow money, much like an individual's credit score.
Johnson's proposed spending plan calls for more than $617 million in new taxes on the wealthiest Chicagoans and largest firms in order to blunt cuts imposed by the Trump administration while avoiding drastic cuts in city services and thousands of layoffs.
Johnson defended his spending plan proposal as a "structurally sound budget."
"The structural tension is so pronounced because . . . for a very long time we have embraced this mediocre approach towards how we solve these challenges," Johnson said.
Chicago's finances remain structurally unbalanced, pinched by soaring pension costs, spiraling personnel costs and a massive amount of debt. Officials are staring into a financial abyss after hitting the so-called "fiscal cliff," with Chicago's federal COVID-19 relief funds exhausted and tax revenues lagging after a period of high inflation.
Chicago's financial condition is also threatened by a looming economic slowdown, rising inflation and efforts by the Trump administration to scale back funding for Chicago as the president continues to target his political opponents, officials said.
Johnson's spending plan calls for the city to make an additional payment of $120.8 million to the city's four underfunded pension funds. That additional payment is more than 55% smaller than the additional payment made in 2025, records show.
In August, the city had planned to make an additional payment to the city's four pension funds of $219.4 million, records show.
The city faces a nearly $2.85 billion pension bill in 2026 in order to comply with a state law that requires two of Chicago's pension funds be funded at a 90% level by 2055 and the other two by 2058, ensuring they can pay benefits to employees as they retire, according to the forecast released Friday.
The city faces a deadline of Dec. 31 to approve a spending plan for 2026.
Source Name [33]: Mayor Brandon Johnson floating change to head tax proposal: sources Full URL: https://www.chicagotribune.com/2025/11/12/mayor-brandon-johnson-change-head-tax-proposal/ Scraped Date/Time: 2025-11-22 23:32:46
<span style="color: #0066cc; font-weight: bold;"># Mayor Brandon Johnson floating change to head tax proposal: sources</span> [33]
By Alice Yin
November 12, 2025
Mayor Brandon Johnson's team has been floating a change to his corporate head tax proposal that would increase the minimum size of companies affected from 100 to 200 employees, sources told the Tribune.
Johnson administration officials this week have begun asking some members of the City Council if they would support the $21-per-employee-per-month tax if it applied only to the larger companies, according to three sources familiar with budget discussions. Johnson has wanted to enact the head tax on the smaller companies as part of his 2026 budget, but he is struggling to convince 26 out of 50 aldermen to vote for that.
Asked Wednesday morning about the potential head tax change, mayoral spokesperson Cassio Mendoza did not answer directly. In a statement, Mendoza said "conversations are ongoing with Aldermen on a number of potential changes," but "no final decisions have been made at this time."
Johnson last month proposed a $16.6 billion spending plan that must be finalized before the end of this year. His big pitch to bring back the head tax and use a projected $100 million in revenue to replace expiring funds for public safety programs has divided the City Council.
To fill the hole left by raising the head tax floor to 200 workers, Johnson would seek to additionally hike the city's personal property lease tax, the sources said. It was not immediately clear where the new number would land.
The personal property lease tax is currently at 11% and would go up to 14% under the mayor's initial 2026 budget proposal in order to net $333 million. The mayor has labeled that a "tax on big tech," though it is not levied directly on the cloud companies but rather Chicago businesses using their services. It also applies to other infrastructure leases such as rental cars.
The latest behind-the-scenes negotiations come as the mayor's third budget cycle is shaping up to be another grueling fight, given the perfect storm of the city's difficult fiscal issues and constraints on how it can raise new revenue.
With the mayor trying to avoid another attempt to raise property taxes, he has turned to the head tax as a way to raise a significant amount of money without needing state approval. A frustrated Johnson has at times challenged aldermen who are negative on it to come up with a better solution to address the city's structural deficit.
In his opening budget bid, Johnson wanted to charge the head tax on companies with more than 100 employees who work more than half their time in Chicago. That means it would cost an employer with 101 workers just shy of $25,500 annually. For larger companies that have thousands of people on their payrolls — Chase, AT&T, Walgreens, American and United airlines, Jewel-Osco, Allstate and Aon — the head tax tab would be magnitudes higher.
But aldermen across the city have expressed reservations that the levy — billed by Johnson as the next frontier in his tax-the-rich agenda — would drive out businesses, even smaller ones. For example, some restaurant operators who own multiple locations would surpass the 100-worker minimum.
Bumping that floor up to 200 would cause other issues, however. The mayor's $100 million revenue estimate from the 100-worker-minimum version of his levy — already doubted by some skeptics given that Chicago's old head tax generated about $20 million in annual revenue before its 2014 repeal — would plug in funding for antiviolence programs that he said he is not willing to negotiate away.
Besides $18.6 million that would go toward outside grants for the street outreach organizations, other allocations include $48.9 million to sustain youth job funding on top of smaller pools for violence interruption programs, resources for domestic violence survivors and 31 professional counseling jobs with Chicago police, documents show.
Most of those jobs and programs were buoyed by federal stimulus dollars under President Joe Biden that are expiring this year — except for the Chicago police positions, which have been under the city's Corporate Fund. Johnson has sought to make the case that under Republican President Donald Trump's second term, Chicago is under attack and needs his budget plan's spending priorities to protect itself from what he deems "Trump cuts."
However, the Tribune reported that the city's $1.19 billion deficit for next year isn't driven by federal cuts this year but mostly long-standing fiscal issues that long predated Trump, as well as Johnson. Still, there is a lot at stake politically for the mayor to usher this tax over the finish line, not just for the $100 million hole in the budget but also to shore up his base given past failures in enacting his progressive revenue agenda.
Source Name [34]: Mayor Brandon Johnson faces complaints about property tax sweep plan to balance budget Full URL: https://www.chicagotribune.com/2025/10/26/mayor-brandon-johnson-faces-complaints-about-property-tax-sweep-plan-to-balance-budget/ Scraped Date/Time: 2025-11-22 23:35:17
[Skip to content](https://www.chicagotribune.com/2025/10/26/mayor-brandon-johnson-faces-complaints-about-property-tax-sweep-plan-to-balance-budget/#content)
<span style="color: #0066cc; font-weight: bold;"></span> [34]
Chicago Budget Director Annette Guzman, from left, listens as Ald. Jason Ervin, 28th, chair of the Budget Committee, leads a budget hearing in City Council chambers, Oct. 21, 2025. (Terrence Antonio James/Chicago Tribune)
By [A.D. Quig](https://www.chicagotribune.com/author/a-d-quig/ "Posts by A.D. Quig") \| [aquig@chicagotribune.com](mailto:aquig@chicagotribune.com) \| Chicago Tribune and [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: October 26, 2025 at 5:00 AM CDT
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Mayor Brandon Johnson finds himself in an unexpected fight as he [works to rally](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-budget-plan-applause-hostility/) at least 26 votes to pass his $16 billion 2026 spending plan.
Though aldermen have agreed in every Chicago budget for the past decade to pull money out of tax increment financing districts around the city, both allies and opponents of the mayor on the City Council are voicing serious reservations about the bulk and breadth of this year's deficit-plugging standby.
[The mayor's proposal](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/) to sweep [a record $1 billion](https://www.chicagotribune.com/2025/10/19/mayor-brandon-johnson-budget-short-term-fixes/) out of the city's TIF piggy banks has even drawn criticism from Ald. Jason Ervin, the mayor's hand-picked budget shepherd, Ald. Michelle Harris, his Rules Committee chair, and Ald. Walter "Red" Burnett, his latest appointee to the council.
The sum is nearly double what the city surplused last year and would hit 68 of the city's 108 TIF districts, according to projections provided to aldermen.
By Ervin's estimate, more than half of the dollars would come out of "socially, economically disadvantaged areas," and potentially delay much-needed improvements in those TIF districts. He cast it as yet another example in a long history of the South and West sides getting short shrift.
To delay projects "for other communities that are not putting in their total share, in my opinion, is having the residents of the South and West sides ultimately have to bail out CPS when other communities are not having to pay that burden," Ervin said immediately after Johnson introduced his budget.
When the mayor touted the TIF surplus in his 2026 budget speech to aldermen, he could hardly have predicted it would turn into a racially charged front on which he would need to try to convince them to support him.
Johnson has echoed decadeslong criticism of TIFs as an inequitable development policy that traps dollars inside already-wealthy areas and prevents other taxing bodies such as CPS from accessing the broadest tax base possible. When he convinced aldermen in fall 2024 to back his bonding plan that was funded by allowing some TIF districts to expire and recouping the money in them, he said "too many communities on the South and West sides in particular have not benefited from the prosperity of our tremendous city."
In his budget speech, Johnson said this year's surplus maneuver was designed to protect special education teachers and the city's youth "from the Trump administration's attempts to dismantle and privatize our public education system," to help restore funding for CPS' Black student success plan, and to make sure the district's lowest-paid workers receive their pensions.
Mayor Brandon Johnson delivers his budget address to the City Council on Oct. 16, 2025, at City Hall. (Brian Cassella/Chicago Tribune)
And administration officials said such a hefty surplus would be a major relief for other local governments being hit by federal cuts, who are entitled to a proportional split from the surplus under law.
An estimated $552 million would go to CPS (plus another $20.6 million for its building improvement fund), $233 million to the city's corporate fund, and $18.6 million for the Chicago Public Library system. On Tuesday, Ervin demanded to see "plans for these dollars" from CPS and the other taxing bodies. Ald. Lamont Robinson, 4th, asked for the same.
In recent Chicago history, elected officials have seen dipping into the huge sums of property tax money in the development districts as a path of least resistance to fill major budget gaps. Though fiscal watchdogs and ratings agencies tend to criticize City Hall for relying on the short-term fix, mayors and aldermen often prefer their scolding to anger from voters over tax increases or pushback from powerful public sector unions over layoffs.
And progressives in particular have long derided TIF districts as mayoral slush funds, so Johnson had reason to believe his base would largely back the idea for 2026.
Broader council politics also made the decision a no-brainer: surplus money mostly came from districts that were already flush and guaranteed to fill up again quickly when people paid their next property tax bills. As property values grow inside the boundaries of a TIF district, more tax dollars are sequestered in the TIF.
The booming districts in and around downtown usually paid out the most. Smaller, less prosperous districts got to keep growing uninterrupted.
But next year's billion dollar figure means in addition to those downtown areas, dozens more districts well outside the Loop will get partially drained, some for the first time.
Among them: the Midwest and Northwest Industrial Corridor districts that blanket part of Ervin's ward. Johnson's budget calls for surplusing $36 and $26 million from each, respectively. $125 million would come from the Pilsen Industrial Corridor TIF on the Southwest Side. $27 million would come from the 47th/King TIF in Finance Chair Pat Dowell's Near South Side ward. $5.4 million would come from the 87th/Cottage Grove TIF in Harris' ward.
The city has a surplus policy that mandates sweeping out all balances above $2.5 million that are not already dedicated to a project. Some districts are exempt, such as the city's two transit TIFs, new districts created in the past two years, or TIFs created for a specific project.
Like the city, CPS would use the funds to plug their own budget this year. The district also pledged to pay the city back for a portion of a $175 million pension payment the city picked up.
That payback will close the city's deficit for the rest of this year. Without it, the city would end 2025 with "very little" in one of its key reserve funds, Budget Director Annette Guzman told aldermen this week.
The city's 2026 budget doesn't count on any pension payback from CPS.
One after another on Tuesday, aldermen expressed reservations that hoped-for projects to eliminate blight or otherwise spiff up their neighborhoods would be delayed or abandoned. Ald. Monique Scott, 24th, said members of the City Council would be like "crabs in a barrel," fighting for what dollars were left. Ald. Nicole Lee said she was "shocked" at the overall figure and that she was put off that Johnson's administration did not discuss its plans with aldermen beforehand.
TIF dollars typically fund everything from smaller roadwork to park and school improvements and large-scale bridge replacements and affordable housing projects. Most are split between several wards and subject to review processes across city departments, but those projects are one way aldermen can claim they're bringing home the proverbial bacon from City Hall.
Guzman assured aldermen that TIFs at large were performing so well that the funds would be quickly replenished. $523 million would still be left after this proposed surplus, then filled back up with an estimated $1.3 billion by the end of next year, she said. Later in the day, Ervin said he was relieved to see his projects still in place as part of the city's 10-year plans.
Projects that were "sort of ideas not fully formed" or "no longer viable" were nixed, Guzman said.
Those half-baked ideas — not yet approved by city agencies or on the paperwork runway — seemed to be the biggest worry to aldermen.
At the defunct site of the Lincoln Yards development on the North Side, long-awaited construction that is supposed to finally kick off under new ownership could "take a potential hit," Ald. Scott Waguespack, 32nd, told the Tribune. The controversial "mega-TIF" encompassing the site, which Waguespack opposed at its founding, will see nearly $34 million go back to taxing bodies under the mayor's plan.
Ald. Scott Waguespack, 32nd, talks with a reporter Oct. 16, 2025, outside City Council chambers after Mayor Brandon Johnson delivered his budget address at City Hall. (Brian Cassella/Chicago Tribune)
The property's former owners were on the hook for vast infrastructure upgrades. They would get paid back for city-approved projects with TIF dollars. The team behind "Foundry Park," due to replace Lincoln Yards, will need to strike a new city agreement to take over and potentially put together new TIF spending plans, which they have hinted would be far more modest.
Waguespack has said it presented an opportunity to "reset" how the site will look, but he worries the loss of TIF funding to balance the budget will cause the site to sit vacant longer. The district's proposed 10-year plan calls for the realignment of Elston Avenue and roadwork on Wabansia Avenuev to kick off in 2027.
"This administration is making arbitrary decisions without consulting aldermen," Waguespack said.
"Most of them don't know what's going on. And just making decisions that are not based on discussions with aldermen who've been working on some of these projects for years is just wrongheaded, and it's going to lead to serious problems."
Waguespack argued it should not be difficult for Johnson's team to sort out which projects matter most to aldermen and make adjustments. But if they don't, their current plan will have lasting effects both in neighborhoods and inside City Hall, he predicted.
"The consequence is holding up affordable housing, it's holding up necessary infrastructure, it's breaking down what's left of some of the relationships with the City Council members," Waguespack said.
Chicago Ald. Walter "Red" Burnett, 27th, asks a question during a City Council budget hearing Oct. 21, 2025. (Terrence Antonio James/Chicago Tribune)
Burnett, a Johnson appointee who joined the City Council last month, leads the ward with some of the city's richest TIF districts: Kinzie Industrial, Near North, Central West and River West, which combined started 2025 with a balance of $667 million.
For red-hot TIFs such as Kinzie, the money lost to the planned mega-surplus would quickly replenish, he told the Tribune. But for slower-growing funds serving other neighborhoods, the big sweep could handicap his ability to plan out future developments by snagging money that will not simply reappear, he added.
He worries the $126 million taken from the Near North TIF will make it harder to support development in Cabrini Green. Around the United Center, where the Wirtz and Reinsdorf families are planning a $7 billion mixed-use development, the $23.7 million sweep of Central West may take money that could have helped fund a new CTA Pink Line station near the arena.
"It wasn't confirmed yet, so it's not on the docket," Burnett said.
"If we completely sweep those TIF dollars, are we really preparing for the influx of people who are going to be in this new neighborhood?" he asked.
Burnett also criticized the size of the sweep as a short-term solution to a budget in need of structural changes.
But as with any budget give-and-take, aldermen opposed to Johnson's plan to use the TIF dollars will need to come up with an alternative.
Ald. Byron Sigcho Lopez reminded his colleagues that 27 had signed on to a letter promising to support a surplus "to help balance both the city and CPS budget" earlier this year.
"I fully support for us to make those commitments, especially those that signed the letter," Sigcho Lopez said Tuesday during a budget hearing.
"I know in my ward, there's a surplus of $125 million. … Even though some of the proposals we've had have not come to fruition, I support us being responsible in what we commit."
The Chicago Teachers Union celebrated the surplus. Pavlyn Jankov, CTU's research director, told the Tribune the infusion would help prevent mid-year cuts at schools while stabilizing the city's parks and library systems after the loss of pandemic relief and frozen funds from the Trump administration.
But he acknowledged record surpluses can't last forever. TIFs can see values drop during recessions or when real estate bubbles pop, a key reason why they are not considered a stable, or "structural" source of revenue by fiscal watchdogs. CTU, like the mayor, are among critics that note TIF dollars are over-concentrated in wealthy areas and would be better spent on citywide initiatives such as the mayor's Housing and Economic Development bond.
Jankov said the union views recent surpluses as a bridge until adequate state funding comes through.
"There's a reason why that magnitude is needed, and it's because of the gap that the state has created," he said. "The city is making every effort to fill the gap when the state is falling even further behind."
Source Name [35]: Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance, Signaling Steep Climb Full URL: https://news.wttw.com/2025/11/17/mayor-brandon-johnson-s-2026-spending-plan-fails-advance-signaling-steep-climb Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;"># Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance, Signaling Steep Climb</span> [35]
[Heather Cherone](https://news.wttw.com/stories-by-author/heather%20cherone) \\| November 17, 2025, 2:14 pm
Mayor Brandon Johnson's $16.6 billion proposed spending plan for 2026, which eliminates a $1.19 billion projected shortfall, failed to advance Monday, signaling it faces a steep climb to win the support of a majority of the Chicago City Council before the end of the year.
The refusal of the City Council's Finance Committee to advance Johnson's proposed spending plan to the full City Council is another sign the bulk of Johnson's proposal to impose $623 million in new taxes on the wealthiest Chicagoans and largest firms faces intense opposition that has shown no sign of waning.
Ald. Pat Dowell (3rd Ward), the chair of the Finance Committee, tried to prevent a vote on the budget until Dec. 3, a move that was rejected by an overwhelming vote by the committee. More than an hour after the meeting was scheduled to start, Budget Director Annette Guzman [introduced the revised version of the mayor's spending plan](https://news.wttw.com/2025/11/13/mayor-brandon-johnson-reduces-corporate-tax-hike-proposal-crucial-votes-loom).
Much of the debate over Johnson's spending plan has centered on his proposal to impose a $21 per month per employee tax on large companies to fund violence prevention and youth employment programs.
Originally, the tax would have applied to all firms with more than 100 employees, but Johnson revised it to apply to firms with more than 200 employees. That would have generated $82 million in 2026, according to budget projections.
But Guzman said Monday morning the proposal had been revised, again, to apply to all firms with 100 employees to once again generate $100 million. The violence prevention and youth employment programs would get $82 million, with the remaining $18 million funding small business grants.
After two hours of debate, Ald. Jason Ervin (28th Ward) tried again to recess the meeting, and the effort resulted in a tie vote, with 18 alderpeople against and 18 in favor.
A vote to advance the part of the mayor's budget that generates all of the city's revenue for 2026 failed on a vote of 10-25, leaving the budget proposal in limbo and all but assuring that the debate over the spending plan will continue into December.
Led by Ald. Brendan Reilly (42nd Ward), opponents of the mayor insisted on the vote in an effort to publicly demonstrate the mayor's inability to push through his proposal after more than a month of debate.
Ald. Raymond Lopez (15th Ward), flanked by 13 members of the City Council, after the vote that served as a public rebuke of Johnson and his administration, said he hoped the head tax proposal was dead.
Shortly after the defeat, Johnson attempted to reframe the debate over the budget as a contest between "working people" or the "ultra rich" and said he would not withdraw his proposal for the head tax.
There is no "magic third option between cuts to core services and layoffs," Johnson said. "Anyone who wants to pretend otherwise is being disingenuous."
Johnson promised to veto a budget that includes a reimposed grocery tax or increases to garbage fees or property taxes.
Ald. Jason Ervin (28th Ward) canceled a meeting of the Budget Committee, which had been scheduled for 2 p.m. Monday to consider the ordinances that would allow that revenue to be spent.
The revised budget proposal would boost the tax levied on software licenses, cloud services and other digital goods from 11% to 15% to generate $416 million, according to the proposal. The mayor has touted that as a tax hike on "big tech."
Johnson has steadfastly campaigned for the so-called head tax, noting that business leaders have told him his highest priority should be public safety. Johnson has said it only makes sense for Chicago's largest companies to "put more skin in the game" in order to allow the city to "double down" on efforts that are working.
The mayor has also downplayed the size of the head tax, noting that it is the equivalent of big firms buying their employees lunch once or twice a month.
The head tax proposal has triggered outrage in the city's business community, which blasted that proposal as a job killer.
Johnson has repeatedly told reporters it was time for members of the City Council who don't like his spending plan to make the case for their own budget proposal.
"If alders have other ideas, it is time to bring them forward so we can debate them," Johnson said.
Johnson has not proposed reducing the $2.1 billion proposed budget for the Chicago Police Department in 2026. CPD's budget accounts for one-third of the city's $6 billion corporate fund, which the City Council has wide discretion to spend.
Johnson said he would veto any spending plan that cuts CPD's budget, noting that would result in layoffs of police officers.
Johnson's budget relies on $157.6 million in TIF surplus to help fill the city's budget gap. An additional $550 million would flow to Chicago Public Schools, which is also facing its own financial crunch.
The CPS budget approved by the Chicago Board of Education for the 2025-26 academic year counted on getting $379 million in TIF funds in order to close a $734 million budget gap.
That means the surplus declared by the mayor will give CPS an additional $173 million, enough to cover the $175 million payment that Johnson has asked the school district to make into the pension fund controlled by the city that pays for the retirement of some CPS employees.
The Chicago Board of Education approved a measure to make that payment for 2025, assuming the TIF surplus is approved by the City Council.
That would close the $146 million deficit the city is facing by the end of 2025, officials said.
Alderpeople have also questioned Johnson's plan to generate $31 million by taxing social media companies with a tax of 50 cents per month for every active user after the first 100,000 users, under the city's amusement tax authority.
That money would be used to fund the city's public mental health clinics and crisis response program, according to Johnson's proposed budget.
Several alderpeople said they were skeptical that the first-of-its-kind tax, assessed under the city's amusement tax authority, would withstand a legal challenge, but lawyers for the city told alderpeople they were confident it would be upheld.
Chicago's 2026 budget does not count on that tax immediately flowing into the city's coffers, anticipating a legal challenge, officials said.
The spending plan would also borrow $283.3 million to [cover the massive cost of resolving police misconduct lawsuits](https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits), records show. That debt will be paid off during the next five years, at a cost of approximately $52 million in interest, Chief Financial Officer Jill Jaworski said.
The city will also borrow $166 million to pay Chicago firefighters and paramedics what they are owed after working without a contract for four years. That debt will be paid off over three years and cost the city $30 million in interest, Jaworski said.
In all, the spending plan proposes borrowing a total of $1.8 billion to cover those expenses and fund the city's infrastructure program for 2026 and 2027, which includes $144.6 million to repair bridges and viaducts, $174 million for street resurfacing and [$173 million to replace lead service lines](https://news.wttw.com/2025/10/24/crews-have-replaced-less-4-lead-service-lines-shown-contaminate-tap-water-chicago-homes).
The revised spending plan would also hike the congestion surcharge for all rides to and from an expanded area downtown to generate $17 million. Johnson's original plan would have generated $65.4 million, but faced intense opposition.
The budget still calls for the city to impose a local tax on online wagers to generate $26.2 million, but would no longer seek to tax the sale of intoxicating hemp products.
S&P, one of a handful of major ratings agencies, revised its credit rating outlook for Chicago from stable to negative earlier this month.
The ratings agency was alarmed by Johnson's decision to make an additional payment of just $120.8 million to the city's four underfunded pension funds. That additional payment is more than 55% smaller than the additional payment made in 2025, records show.
In August, the city had planned to make an additional payment to the city's four pension funds of $219.4 million, records show.
The city now plans to make an additional pension payment of $130 million in 2026, Jaworski said.
The city faces a nearly $2.76 billion pension bill in 2026 in order to comply with a state law that requires two of Chicago's pension funds be funded at a 90% level by 2055 and the other two by 2058.
_Contact Heather Cherone:_ [_@HeatherCherone_](https://bsky.app/profile/heathercherone.bsky.social) _\\| (773) 569-1863 \\|_ [_hcherone@wttw.com_](mailto:hcherone@wttw.com)
Source Name [36]: Vicki Kurzydlo: Mayor Brandon Johnson's budget is about the Chicago we want. Vote yes, aldermen. Full URL: https://www.chicagotribune.com/2025/11/06/opinion-chicago-budget-corporate-tax-vote-yes/ Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;">As a veteran elementary school teacher, union member, wife and mother of four Chicago Public Schools graduates, I have spent my life raising a family and teaching in the city that I love. I know firsthand what happens when we invest in people. I also know what happens when we don't.</span> [36]
That's why I'm urging Chicagoans to stand with Mayor Brandon Johnson's 2026 budget. This is more than a budget — it's a line of defense against President Donald Trump and a statement of values.
It's about who we are as a city and whose side we're on. An October poll of 600 registered voters, conducted by HIT Strategies, found that an unheard-of majority — [90% of Black and Latino Chicagoans](https://www.ctulocal1.org/wp-content/uploads/2025/11/HIT_CTU-Chicago-Survey-Slidedeck-10.28.25.pdf?link_id=0&can_id=47fa6b87121fd8b0080fc75ff8fc6ad1&source=email-new-poll-shows-90-of-black-and-latine-chicagoans-support-taxing-wealthy-corporations-to-fund-our-schools&email_referrer=email_2966440&email_subject=new-poll-shows-90-of-black-and-latine-chicagoans-support-taxing-wealthy-corporations-to-fund-our-schools&&) — prefer that the city raise taxes on ultra-wealthy corporations.
So the question for our aldermen becomes: Are you on the side of the working people who have been made to pay through tax hikes and service fees every year? Such as teachers, paraprofessionals, clinicians, custodians, postal workers, construction crews, bus and taxi drivers, food service workers. Or, are you on the side of billionaires and corporations that are losing their minds that corporations might have to pay 0.4% more in order to prevent massive midyear cuts in our schools and to invest in community safety for all of us?
For far too long, Chicago's budgets have been balanced on the backs of working people. Give away the parking meters and take away the clinics and schools. When schools lose funding, students go without special education services, sports and after-school programs. When libraries close or bus routes are cut, families lose vital connections.
The budget for 2026 changes that equation. It invests in the people who make this city work. It funds reentry programs, violence prevention and rapid rehousing. It funds the Department of Environment to protect communities facing flooding and pollution. It funds Law Department litigation to protect immigrants and holds corporations accountable. And Johnson's budget directs a historic half-billion dollars in tax increment financing surplus funds to our public schools — restoring essential programs and preventing cuts that would keep every child from receiving the world-class education and services they deserve.
That's what a people-first budget looks like. Instead of raising property taxes on working families, Johnson calls on the ultra-rich to pay their fair share to the city they profit from. That's not radical — it's repair.
Johnson's plan pursues progressive revenue solutions asking Chicago's 127,000 millionaires, 25 billionaires and largest corporations to put more skin in the game. It's about tax fairness and shared responsibility.
This approach shifts the burden off the backs of working families who have already paid enough. It's about building a city where every neighborhood in every ZIP code has a fully funded school, a clean park and an open library. A city where our seniors live with dignity and our children have real opportunity.
As an educator, proud Chicago Teachers Union member and elected officer, I've seen how much working people sacrifice to keep this city running. We teach through overcrowded classrooms, show up in snowstorms and keep going when there isn't enough. We worked through a pandemic. We've carried Chicago through hard times when others profited from it.
We've done our part. It's time for the wealthiest receiving enormous tax breaks from Trump to do theirs.
Protecting Chicago turns the budget into something larger. It's about the kind of Chicago we want to be and the future we envision and build together.
For me, there is no other choice. I stand with the families who believe in fairness, opportunity and dignity for every neighborhood.
Johnson's budget gives us a chance to finally build a city that reflects those values. A city that protects people, not profits.
_Vicki Kurzydlo is a 30-plus year veteran educator and the recording secretary for the Chicago Teachers Union._
Source Name [37]: More money, stricter rules for Chicago police overtime spending face City Council scrutiny Full URL: https://www.chicagotribune.com/2025/11/05/more-money-stricter-rules-police-overtime-spending-city-council/ Scraped Date/Time: 2025-11-22 23:50:01
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<span style="color: #0066cc; font-weight: bold;"></span> [37]
Superintendent Larry Snelling, center, stands with other police officers while people gather downtown to protest President Donald Trump's immigration enforcement actions on Sept. 6, 2025, in Chicago. (Armando L. Sanchez/Chicago Tribune)
By [A.D. Quig](https://www.chicagotribune.com/author/a-d-quig/ "Posts by A.D. Quig") \| [aquig@chicagotribune.com](mailto:aquig@chicagotribune.com) \| Chicago Tribune and [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 5, 2025 at 3:28 PM CST \| UPDATED: November 5, 2025 at 4:05 PM CST
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Mayor Brandon Johnson [hopes to give](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/) the Chicago Police Department a bigger pot of cash to spend on overtime next year, but wants the money to come with strings attached.
As aldermen wrapped their heads around the plan to rein in sky-high overspending during a Wednesday hearing on the department's 2026 budget, police Superintendent Larry Snelling welcomed the new restrictions, but defended spending an annual nine-figure sum on overtime as a necessary practice.
"There's no way I'm ever going to sit up and tell you that it's never going to be necessary to use overtime. We're a police department, things happen," Snelling said. "We have to make sure if we're using it, that we're using it in the most careful manner, the most responsible manner, and in order to do that, we have to have measures in place."
The department, already the city's largest, has consistently outspent its set budget — with the exception of 2020 — for roughly the past decade, according to the city's annual comprehensive financial reports. Johnson's budget proposal includes what he says is stronger oversight of overtime and efforts to move administrative jobs from costlier sworn staff to civilian professionals.
Chicago Police Department budgeted appropriation versus actual spending, 2016-2024
### Chicago Police Department budgeted appropriation versus actual spending, 2016-2024
Mayor Brandon Johnson's administration is proposing a $2.1 billion total budget for the Chicago Police Department next year, introducing controls he hopes will wrangle overtime spending that has helped drive CPD spending past its set budget for several years.
1.4B1.5B1.6B1.7B1.8B1.9B2B$2.1B$1.94B
Appropriation
$2.11B
Final Spend
Chart:A.D. QuigSource: [City of Chicago ACFR, 2016-2024; City of Chicago Budgets, 2025-2026](https://www.chicago.gov/city/en/depts/fin/supp_info/comprehensive_annualfinancialstatements.html)Get the dataCreated with [Datawrapper](https://www.datawrapper.de/_/yTLkI)
According to the Civic Federation, overtime has exceeded budget amounts for the past six years "at times by staggering amounts." While the city budgeted $100 million for CPD overtime in 2023 and 2024, for example, it actually spent about $283 million and $238 million respectively, which either indicates unrealistic budgeting, "inefficient use of personnel, or both," the analysis concluded.
Snelling, a Johnson appointee said his department has worked to reduce the spend, bringing down costs down $25 million compared with this time last year. "We're keeping much better records of overtime … we use it judiciously," he said.
The department has meanwhile underspent on regular payroll, thanks to consistent vacancies, the Civic Federation analysis found. The department has $92 million budgeted for turnover, or money expected to be saved because of unfilled new or existing vacancies.
The department is expected to provide monthly reports and participate in quarterly City Council hearings on its overtime spending next year, where aldermen will decide whether the department can exceed its new overtime cap of $200 million. Police officials are required to compile a monthly report with hours of overtime within each district, the reason for the overtime and other details, including whether it is reimbursable or when officers are detailed to a sister agency such as the Park District.
Mayor Brandon Johnson, however, can directly allow the department to exceed the cap "when a bona fide emergency occurs," according to his proposed management ordinance for 2026.
The funded, but unfilled vacancies and high overtime spending have become a target for progressive activists who argue the police budget hides "slush fund" spending.
The Public Health & Safety for Chicago coalition, made up in part of progressive groups that have backed Johnson, has called on the mayor to broadly cut vacancies and instead spend the $200 million they estimate is set aside for those empty jobs on policies such as youth jobs, violence prevention and non-police mental health response teams.
While the total amount for the Police Department in Johnson's proposed budget exceeds this year, there is a small reduction of full-time positions. Personnel costs are higher this year because of scheduled salary and benefit increases under the city's contract with the Fraternal Order of Police. Snelling noted Wednesday the increased salaries further drive up overtime costs.
An upcoming and long awaited workforce allocation study suggesting changes to where officers should be deployed is also expected in the months to come.
The department expects civilianization efforts — especially in communications, human resources and records — will save $100 million over 10 years. CPD and the city's Law, HR and budget offices are supposed to collaborate on other potential positions to switch over, but won't provide their findings until next summer.
Asked by Ald. Byron Sigcho-Lopez about the efforts, Snelling said the civilianization efforts are ongoing and further changes are being assessed. The civilians being hired by the department are taking on administrative work, not the typical work of sworn officers, he said.
"What we're not doing is swapping out sworn positions for civilians," Snelling said.
CPD has also traditionally overspent its budgeted $82.5 million for legal judgments and settlements, and will again blow by that sum — and additional money set aside in the city's catch-all "Finance General" fund — by the end of this year.
Johnson's finance team plans to issue bonds to help pay for a $90 million settlement to alleged victims of disgraced police Sgt. Ronald Watts, resurrecting a phased-out practice because of the "extraordinary" nature of the settlement and the long-term savings the settlement will present compared to reaching individual agreements with plaintiffs or taking each case to court.
Budgeted and final cost of judgments, outside counsel and expert costs at CPD, 2016-2024
### Budgeted and final cost of judgments, outside counsel and expert costs at CPD, 2016-2024
Aside from 2020 when courts were largely shut down, the Chicago Police Department's spend on settlements, outside lawyers and expert witnesses has consistently outstripped what the city has budgeted. 2025 is expected to similarly exceed the budgeted cost.
Budget
Allocation
Actual
Spend
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: [City of Chicago ACFRs, 2016-2024](https://www.chicago.gov/content/dam/city/depts/fin/supp_info/CAFR/2024CAFR/ACFR_2024.pdf)Get the dataCreated with [Datawrapper](https://www.datawrapper.de/_/Tedpf)
The city borrowed for other legal settlements as recently as 2014 and 2017, but former Mayor Rahm Emanuel pledged to retire the practice by 2019 to signal to ratings agencies and other watchdogs it could set aside money to cover those costs as part of the regular budget. Johnson officials have not yet shared how much extra they expect to pay in interest for that borrowing.
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Source Name [38]: With No Easy Fixes in Sight, Debate Over Chicago's 2026 Spending Plan Reaches Tipping Point Full URL: https://news.wttw.com/2025/11/12/no-easy-fixes-sight-debate-over-chicago-s-2026-spending-plan-reaches-tipping-point Scraped Date/Time: 2025-11-22 23:50:01
<span style="color: #0066cc; font-weight: bold;">Members of the Chicago City Council vehemently opposed to Mayor Brandon Johnson's plan to bridge a portion of the city's massive budget gap by taxing large firms had hoped a consultant's report could give them a way to reject the tax — while avoiding deeply unpopular cuts.</span> [38]
But a marathon session before the City Council's Budget and Government Operations Committee on Monday made it clear there is no easy way to bridge the city's $1.19 billion projected shortfall, leaving alderpeople across the political spectrum frustrated as the budget debate hits a tipping point.
Even as departmental budget hearings are set to wrap up Thursday, there is no clear consensus on the bulk of Johnson's proposal to impose $617 million in new taxes on the wealthiest Chicagoans and largest firms. That makes it likely negotiations over the city's spending plan will once again stretch past Thanksgiving, forcing alderpeople to scramble to meet a Dec. 31 deadline.
An effort to put the mayor's finance team on the hot seat fizzled Monday as Adam Chepenik, the principal author of a report from consulting firm Ernst & Young designed to help Chicago officials root out inefficiencies, declined to tell committee members that the Johnson administration had failed to implement the bulk of the cuts and efficiencies recommended by the report.
"I think the options in the report identify options and opportunities to capture what is not currently captured," said Chepenik, who told the committee the report was neither an audit designed to identify waste, fraud and abuse nor an evaluation of the merits of Johnson's budget proposal. "The report was designed to provide as many options as possible, and in terms of how things are implemented and the timeline that they take to implement, it is in the city's discretion."
Budget Director Annette Guzman, sitting beside Chepenik, fielded most of the questions about the mayor's budget proposal and repeatedly assured alderpeople that she and Chief Financial Officer Jill Jaworski were using the report as a "roadmap to structural balance for the city." Guzman reminded alderpeople that the city's financial woes have been decades in the making and cannot be solved in a single year.
"The city didn't get here overnight, and the structural reform won't happen overnight, but you have to begin somewhere," Guzman said.
The Ernst & Young report, which cost the city $3.2 million, identified between $530 million and $1.4 billion in potential savings and new revenue.
But Johnson's spending plan includes just $80 million in cuts identified by the report, with the bulk of those savings coming from a year-long hiring freeze to be imposed on every city department except for those focused on public safety or revenue collection.
However, the changes lay the groundwork for more significant changes in future years, Guzman said, including $100 million by consolidating the city's vast real estate holdings and selling vacant land sales. Another $100 million could be saved by consolidating how the city contracts with private firms to buy goods and services, according to the report.
Millions more could be saved by changing the structure of the city's workforce to reduce the number of managers and ensuring that the city's fleet of vehicles are used and maintained efficiently, according to the report.
But none of those technocratic changes can be made quickly enough to have a significant impact on the city's 2026 budget, which remains structurally unbalanced, with expenses outpacing revenues, as officials scramble to pay soaring pension bills and find an additional $100 million to cover the cost of employee health care, Guzman said.
Many of the changes that would have the biggest impact on the city's bottom line would require changes to Chicago's agreements with the labor organizations that represent 90% of the city's more than 32,400 employers, Guzman said. The Ernst & Young report will allow officials to make the case to labor leaders for changes by pointing out what other big cities are doing, Guzman said.
Much of the debate over Johnson's 2026 spending plan has centered on his proposal to impose a $21 per month per employee tax on large companies to generate $100 million to fund violence prevention and youth employment programs.
Johnson has steadfastly campaigned for the tax, noting that business leaders have told him his highest priority should be public safety. Johnson has said it only makes sense for Chicago's largest companies to "put more skin in the game" in order to allow the city to "double down" on efforts that are working.
The mayor has also downplayed the size of the head tax, noting that it is the equivalent of big firms buying their employees lunch once or twice a month.
That proposal immediately triggered outrage in the city's business community, which blasted that proposal as a job killer.
Gov. JB Pritzker joined that chorus, saying he is "absolutely, four-square opposed" to the imposition of the head tax, and called on city officials to make enough cuts to offset the need for the head tax.
Before the hearing, Johnson said it was time for those who oppose his plan to make their own proposal, and reckon with what it would mean to residents who rely on city services.
"We hear a lot of calls for cuts, and people like to refer to them as efficiencies, but folks get real quiet when we ask them to provide some of the specifics," Johnson said, just hours after the season's first snowfall. "Chicagoans do not want to see our snow plowing reduced. They do not want to see less workers out there working in the night so their mornings can be better."
No one, including the mayor, has proposed reducing the $2.1 billion proposed budget for the Chicago Police Department in 2026. CPD's budget accounts for one-third of the city's $6 billion corporate fund, which the City Council has wide discretion to spend.
Guzman said the Johnson administration was committed to expanding the number of non-sworn positions in CPD to reduce costs.
Non-sworn members of the police department do not have to attend the police academy and are usually paid less than officers, resulting in eventual budget savings.
While approximately 20% of CPD's members do not have police powers, 35% of the New York Police Department and 30% of the Los Angeles Police Department are civilians, Guzman said.
In addition, Guzman vowed to save money by reducing the number of officers on medical leave and long-term disability, which has become an increasing source of frustration for city officials, by implementing the results of an audit.
Officials are also rolling out a new timekeeping system for officers that will allow managers to better control overtime spending, even as CPD's budget to pay officers for working extra hours is set to double to $200 million.
In all, the budgets for the Office of Public Safety Administration, the Chicago Police Board, the Office of Emergency Management and Communications, the Chicago Fire Department, the Civilian Office of Police Accountability and the Community Commission for Public Safety and Accountability have a combined budget of $3.2 billion, or more than half of all of the discretionary funds the City Council has authority to spend.
Johnson's spending plan proposes to borrow to cover the cost of "extraordinary and one-time" expenses, including the massive cost of resolving police misconduct lawsuits and paying Chicago firefighters and paramedics the $185 million retroactive pay they are owed after working without a contract for four years.
The city needs to borrow $156 million to pay the firefighters what they are owed, after using the money set aside in previous years' budgets to cover other, more pressing bills, Guzman said.
Through Nov. 1, Chicago taxpayers have spent at least $267.8 million to resolve lawsuits alleging a wide-range of misconduct by CPD officers, according to a WTTW News analysis.
The City Council agreed to pay an additional $90 million to 180 people who spent a combined nearly 200 years in prison after being wrongfully convicted based on what they allege was fabricated evidence gathered by former CPD Sgt. Ronald Watts, who was convicted in 2013 of taking bribes, and other officers. Those payments are due in 2026.
Despite that, city's proposed 2026 spending plan sets aside just $82.5 million to cover the cost of resolving police misconduct lawsuits, the same amount as in the 2025 budget.
With budget hearings set to end Thursday, the mayor and City Council will soon have no choice but to make a series of hard decisions.
Several community groups and employee unions blasted Johnson's proposal to cut 69 vacant positions at the city's 81 public libraries and slash the Chicago Public Library's budget to purchase books, materials and subscriptions in half to $5 million.
Although the mayor has said those cuts won't result in a reduction in services for Chicagoans, two of Johnson's staunchest allies on the City Council demanded those cuts be reversed, complicating Johnson's path to winning at least 26 votes on the City Council.
The lack of progress toward a budget deal during the three and a half weeks since Johnson unveiled his proposal contributed to the decision by S&P, one of a handful of major ratings agencies, to revise its credit rating outlook for Chicago from stable to negative.
The ratings agency was alarmed by Johnson's decision to make an additional payment of just $120.8 million to the city's four underfunded pension funds. That additional payment is more than 55% smaller than the additional payment made in 2025, records show.
In August, the city had planned to make an additional payment to the city's four pension funds of $219.4 million, records show.
The city faces a nearly $2.76 billion pension bill in 2026 in order to comply with a state law that requires two of Chicago's pension funds be funded at a 90% level by 2055 and the other two by 2058.
S&P downgraded Chicago's credit rating in January, making it more expensive for the city to borrow money, much like an individual's credit score.
A second consecutive credit rating downgrade would be catastrophic, warned Joe Ferguson, the president of the Civic Federation, a nonpartisan fiscal watchdog group, who has been fiercely critical of Johnson's financial stewardship of the city.
Ferguson and other critics of the mayor have blasted Johnson for crafting a spending plan that fills the city's budget gap with one-time measures, rather than making changes that reduce the city's expenses or increase its revenue.
Even though a task force charged by Johnson with finding solutions to the city's fiscal crisis urged the City Council to automatically hike property taxes annually to keep pace with inflation, Johnson ruled out such a proposal and no one on the City Council has proposed reviving it.
Unless the city's largest revenue source starts to keep pace with inflation over time, officials will have no choice but to cut city services or hike other taxes, according to the interim report from the Chicago Financial Future Task Force.
Increasing the city's property tax to keep pace with inflation would generate $56 million in 2026, according to the task force's report.
Johnson's initial 2025 budget proposal, which included a $300 million property tax hike, was unanimously rejected by the City Council.
Alderpeople have also given Johnson's proposal to declare $1 billion in property taxes earmarked to fight blight to be "surplus" a cool reception, warning that could thwart badly needed economic development projects on the South and West sides.
Although Chicago mayors have routinely eased the city's fiscal woes with massive infusions from the city's tax increment financing districts, known as TIFs, it is unclear how long officials can rely on TIFs as a source of ready cash.
Johnson's budget relies on $157.6 million in TIF surplus to help fill the city's budget gap. An additional $550 million would flow to Chicago Public Schools, which is also facing its own financial crunch.
The CPS budget approved by the Chicago Board of Education for the 2025-26 academic year counted on getting $379 million in TIF funds in order to close a $734 million budget gap.
That means the surplus declared by the mayor will give CPS an additional $173 million, enough to cover the $175 million payment that Johnson has asked the school district to make into the pension fund controlled by the city that pays for the retirement of some CPS employees.
The Chicago Board of Education approved a measure to make that payment for 2025, assuming the TIF surplus is approved by the City Council.
That would close the $146 million deficit the city is facing by the end of 2025, officials said.
Interim CPS CEO Macquline King sent an email to CPS families Friday urging school families to ask their alderperson to support Johnson's $1 billion TIF surplus plan "to prevent mid-year cuts."
Alderpeople have also questioned Johnson's plan to generate $31 million by taxing social media companies with a tax of 50 cents per month for every active user after the first 100,000 users, under the city's amusement tax authority.
That money would be used to fund the city's public mental health clinics and crisis response program, according to Johnson's proposed budget.
Several alderpeople said they were skeptical that the first-of-its-kind tax, assessed under the city's amusement tax authority, would withstand a legal challenge, but Guzman said the lawyers for the city were confident it would be upheld.
Chicago's 2026 budget does not count on that tax immediately flowing into the city's coffers, anticipating a legal challenge, officials said.
It is also unclear whether Johnson's attempt to regulate intoxicating hemp products will generate $10 million in tax revenue for the city.
The agreement to reopen the federal government after a shutdown of nearly a month and a half would ban the sale of products that contain less than 0.3% delta-9 tetrahydrocannabinol, the main intoxicating compound in cannabis better known as THC, in one year.
Chicago Department of Public Health Commissioner Dr. Olusimbo "Simbo" Ige said Johnson's proposal to regulate the sale of the products, and add a $2 per item city tax, are needed to protect Chicago's children.
The proposal would ban the sale of delta-8 and other hemp-derived snacks, drinks and products to those younger than 21 years old while prohibiting the sale of all products designed "to resemble a branded candy, cookie, chip or other snack food" in an attempt to stop the items from attracting the attention of children looking for a treat, according to the proposal.
While the U.S. Senate has passed that legislation, the U.S. House must act and President Donald Trump must sign it before it becomes law.
Source Name [39]: Mayor Brandon Johnson's plan to borrow money to pay police settlements raises questions Full URL: https://www.chicagotribune.com/2025/11/21/mayor-brandon-johnsons-plan-to-borrow-money-to-pay-police-settlements-raises-questions/ Scraped Date/Time: 2025-11-22 23:58:00
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<span style="color: #0066cc; font-weight: bold;"></span> [39]
Chief Financial Officer Jill Jaworski speaks while Mayor Brandon Johnson and team meets with the Chicago Tribune Editorial Board on Oct. 28, 2025. (Brian Cassella/Chicago Tribune)
By [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 21, 2025 at 5:00 AM CST
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Mayor Brandon Johnson wants to take out $283 million in loans to pay for police settlements, but his plan has left aldermen wondering how a lot of the money will be spent.
The borrowing proposal revives [a practice past mayors discontinued](https://www.chicagotribune.com/2014/02/03/emanuel-seeks-to-borrow-900-million-3/) and derided as financially reckless. While members of the City Council raise concerns and questions, Johnson's team is defending the move as a way to finally clear a backlog of looming police misconduct lawsuits and save money.
"The Department of Law has been very focused on settling cases and lowering our costs by getting them settled quicker," Johnson's chief financial officer, Jill Jaworski, told aldermen Monday. "Instead of increasing those costs all in the budget this year and spiking up our expenses, we're spreading that out over a five year repayment period."
The plan would spread the $283 million in settlements over five years, starting in 2027 and ending in 2031. It would also force the city to pay an additional estimated $42 million in interest, according to the Johnson administration.
A $90 million chunk of the borrowed money would pay for the so-called global settlement to resolve almost [200 wrongful conviction lawsuits](https://www.chicagotribune.com/2025/09/11/mayor-brandon-johnson-90-million-settlement-corrupt-cop/) involving disgraced police Sgt. Ronald Watts, according to a statement shared by the Law Department and Jaworski's office.
Former Chicago police Sgt. Ronald Watts, center, leaves the Dirksen U.S. Courthouse on Oct. 9, 2013, after being sentenced to 22 months in prison. Watts pleaded guilty to stealing thousands of dollars from a purported drug dealer who turned out to be an informant for the FBI in an undercover sting. (Phil Velasquez/Chicago Tribune)
But it remains unclear how the remaining $193 million would be used, an omission aldermen say makes them fear Chicago is taking a financial misstep as City Hall slowly crafts a 2026 budget.
One possibility, said Northwest Side Ald. Scott Waguespack, 32nd, is that the money would go toward another global settlement to resolve the around 40 remaining cases involving disgraced Detective Reynaldo Guevara. The handful of Guevara cases already settled by the City Council have cost around $10 million each, an ominous portending of the exorbitant price Chicago will likely pay by settlement or verdict, now or later.
City officials might also be planning to use the money to pay off the record-setting costs of settlements approved by aldermen this year, said North Side Ald. Andre Vasquez, 40th. Aldermen have approved over $258 million in settlements in 2025, a massive total that towers above past high marks — and dwarfs the dollar figures underlying some of the city's most contentious budget fights, like Johnson's controversial $100 million corporate head tax.
That 2025 sum excludes the $90 million Watts settlement, a $120 million pair of wrongful conviction verdicts the city is appealing and an array of smaller settlements that don't require aldermanic approval. It is also likely to rise further before the end of this year.
City officials declined to comment on the possibility of a Guevara global settlement. Their statement said the $193 million "will be used for settlements approved and expected to be paid in 2025 and 2026," but they did not answer questions about what types of settlements, or whether it will go toward specific cases.
Former Chicago police Detective Reynaldo Guevara hides his face as he leaves the Dirksen U.S. Courthouse on June 8, 2018. (Terrence Antonio James/Chicago Tribune)
There's a big difference between using the money to pay for global settlements and using it to pay for the individual settlements Chicago approves monthly, said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a nonpartisan fiscal policy think tank.
The oft-approved individual settlements have become more like an operating cost for the city as they regularly pass through the City Council and onto the city's ledger.
"You never want to be incurring debt to cover operating costs, just as a general principle," said Martire, whom Johnson named to his budget working group in May. "That's Fiscal Policy 101."
But the global settlements are more akin to an "exceptional, one-time" liability, he said. And if the city paid them off in one year, it would have to take money out of basic services, like policing, firefighting or street maintenance, to cover the cost, he said.
For cash-strapped Chicago, there are not a lot of "fun options" to plug long-term holes or respond to expensive challenges, Martire added.
"It's still not ideal, right?" he said. "It gets to the bigger picture that the city does need structural revenue reform, and that's very difficult to accomplish."
The $42 million in interest would be better spent to shore up underfunded pensions or bolster violence prevention programs, Ald. Matt Martin, 47th, said. Because many of the lawsuits have been expected for years, the interest costs could have been avoided by using better planning to pay more quickly, he argued.
"We don't need to send that money to banks if we can avoid it," Martin said. "It's really challenging for me to go to my community and say, 'I think we should spend $42 million on interest payments alone for costs that we knew were coming.'"
To hold the department accountable, the city should budget for the actual amount it expects to spend on police-related settlements in its police budget, Martin said. Chicago has overspent on its police settlement budget in all but two years since 2010, according to a Tribune analysis. Johnson's 2026 spending plan proposes $82.6 million be budgeted to cover police-related lawsuits, the same amount that has been budgeted since 2020.
Martin praised former Mayor Rahm Emanuel for weaning the city off its old practice of borrowing to pay for police settlements. He also credited former Mayor Lori Lightfoot for continuing the practice. Lightfoot slammed the debt for settlements as a "bad borrowing practice" in her final midyear budget forecast.
Still, Martin said he supports the city's pursuit of more global settlements. City Council members, including Johnson's most committed opponents, broadly praised the Watts deal as a smart, money-saving move.
Martin hopes the Johnson administration's plan to more quickly resolve long-standing lawsuits will "bend the cost curve." Johnson's administration in its statement predicted costs will be concentrated over the next two years, but "settlements and judgements will return to being within the budgeted levels" after the spike.
The Law Department is weighing global settlements and created a division specialized in resolving old, potentially high-cost lawsuits, the statement added.
Ald. Scott Waguespack, 32nd, speaks outside Chicago City Hall on Dec. 3, 2024. (Eileen T. Meslar/Chicago Tribune)
Waguespack, often a Johnson critic, said he is frustrated by the lack of clarity on how the borrowed money would be spent. But, like Martin, he supports the global settlements approach. He believes it is being used to settle the Guevara cases.
Waguespack, 32nd, said he can understand why the Law Department might stay tight-lipped publicly on its plans: Nodding to a future global settlement could give attorneys bargaining against the city an advantage in high-stakes negotiations. But he wishes aldermen could get details about Johnson's intentions in confidential meetings.
"It's hard to find trust when you can't get the documents until the last possible second," he said.
And Vasquez, chair of the aldermanic Progressive Caucus, shared similar concerns about a lack of communication over the borrowing plan.
"I need more insight, more transparency," Vasquez said. "When the budget gets presented as us being taxing the rich to get all this revenue, then why are we creating larger deficits and larger debt on the other side of it?"
The two got only limited details during the Monday hearing, when Jaworski argued the city's efforts to decisively resolve cases were creating a temporary "extraordinary cost." While it would take five years to pay off the debt, it would also take five years to settle many of the involved cases at the city's normal pace, she said.
Settlements are typically an "operating cost" because they occur every year, she said.
"This is more one time because of the size and the nature of it," she said.
Source Name [40]: Chicago Set to Borrow $283.3M to Resolve Police Misconduct Lawsuits Full URL: https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits Scraped Date/Time: 2025-11-22 23:58:00
<span style="color: #0066cc; font-weight: bold;">Chicago must borrow $283.3 million to cover the soaring cost of lawsuits alleging Chicago police officers committed a wide range of misconduct — including wrongful convictions and improper pursuits — as part of the city's 2026 budget, Mayor Brandon Johnson said.</span> [40]
It will likely cost Chicago taxpayers approximately $52 million in interest to borrow that money and pay off during the next five years, according to estimates provided to the Chicago City Council by Chief Financial Officer Jill Jaworski.
Johnson told reporters the move was "prudent," given the massive liability the city faces after decades of police scandals, misconduct and brutality.
Resolving the lawsuits will also allow the city to provide "restoration and restitution to families who have been harmed by police misconduct," Johnson said.
Several members of the City Council said they were shocked by the amount of money Johnson's administration is proposing to borrow to resolve lawsuits alleging police misconduct.
"It's additional money going just to debt service, that's not going to paying down the pension debt, that's not going to affordable housing or public safety initiatives, mental health initiatives," Ald. Matt Martin (47th Ward) said. "That is not the sort of investment that I think Chicagoans want to see."
Martin, who said the proposal was "not in the best interest of Chicagoans" was one of two members of the Progressive Caucus who voted against last year's budget, giving Johnson only the slimmest of margins of victory.
Ald. Mike Rodriguez (22nd Ward) said the scale of the city's police misconduct liability caught him off guard.
"It's overwhelming," Rodriguez said. "The fact is, this has been in the background for a number of years. But the chickens are coming home to roost now. The day of reckoning is absolutely here."
City officials must step up efforts to comply with the consent decree, the federal court order designed to compel the department to change the way it trains, supervises and disciplines officers and stop routinely violating the civil rights of Black and Latino Chicagoans.
"These settlements are going to keep on coming unless we really dig deep on the consent decree," Rodriguez said.
Six and a half years after the consent decree was implemented, CPD had fully complied with 22% of its requirements by the end of June, according to the court-appointed monitoring team charged with keeping track of reform efforts.
Ald. Jessie Fuentes (26th Ward) said she hoped this moment serves as a reckoning about both the financial toll and the human cost of police misconduct.
Fuentes represents Humboldt Park, home to many people who contend they were framed by disgraced former CPD Detective Reynaldo Guevara. Taxpayers have paid $112 million to resolve nine cases naming Guevara; 44 cases are pending, records show.
"These families had to suffer an immense amount of trauma, and not just the individuals who were behind bars, but their children, their parents, their relatives, who still live in our community," Fuentes said, calling it an injury added to an insult that those residents' tax dollars are being used to defend Guevara and other officers.
In all, Chicago taxpayers have paid at least $42.4 million to defend Guevara and the other officers he worked with during his 29-year career, on top of the amount paid to resolve the lawsuits.
"I think it is extremely important for us to recognize that something needs to change," Fuentes said.
The city has not borrowed funds to cover the cost of resolving police misconduct lawsuits since former Mayor Rahm Emanuel's tenure. Johnson's proposal represents the first time ever that the City Council has been asked to approve funds outside of CPD's regular budget to pay to resolve the lawsuits.
Chicago taxpayers have spent at least $285.3 million to resolve lawsuits alleging Chicago police officers committed a wide range of misconduct so far in 2025, according to an analysis of city data by WTTW News.
That is $200 million more than the city's annual budget to resolve lawsuits alleging police misconduct, city records show.
In 2024, taxpayers spent at least $107.5 million to resolve police misconduct lawsuits, according to a separate WTTW News analysis.
In 2026, taxpayers are set to pay an additional $90 million to 180 people who spent a combined nearly 200 years in prison after being wrongfully convicted based on what they allege was fabricated evidence gathered by former Chicago Police Sgt. Ronald Watts, who was convicted in 2013 of taking bribes, and other officers.
Despite that, the 2026 budget sets aside just $82.5 million to cover the cost of resolving police misconduct lawsuits.
That should be increased, Martin said, to ensure that the city's budget accurately reflects what it expects to spend to resolve police misconduct lawsuits and ensure it is acting transparently.
"There are no free lunches, and so we're going to have to buckle down and figure out what the least harmful tradeoffs are going to be and level with our community before making those decisions," Martin said.
The 2026 budget will include provisions to ensure that CPD continues to move in a "stronger and better direction," Johnson said.
Police brass will be required to submit monthly reports to the City Council on efforts to create a system designed to alert supervisors about which officers have been the subject of repeated police misconduct allegations.
CPD must implement that system under the terms of the consent decree.
The University of Chicago Crime Lab began work on the so-called Officer Support System, also known as OSS, in 2016, and began testing it in a South Side police district in September 2020, only to face repeated and lengthy delays, caused in part by decisions by CPD leadership to transfer the staff members assigned to run the system to patrol, according to a letter obtained by WTTW News through the Freedom of Information Act.
That system could have been rolled out citywide in May 2021, but it remains in use in only two of Chicago's 22 police districts. CPD officials are developing a new system, officials have told the judge overseeing the reform push.
Source Name [41]: Alderman warning Mayor Brandon Johnson budget vote 'premature' Full URL: https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/ Scraped Date/Time: 2025-11-23 05:17:56
[Skip to content](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/#content)
<span style="color: #0066cc; font-weight: bold;"></span> [41]
Ald. Pat Dowell, 3rd, talks to reporters, Oct. 16, 2025, in City Council chambers after Mayor Brandon Johnson delivered his budget address at Chicago City Hall. (Brian Cassella/Chicago Tribune)
By [Alice Yin](https://www.chicagotribune.com/author/alice-yin/ "Posts by Alice Yin") \| [ayin@chicagotribune.com](mailto:ayin@chicagotribune.com) \| Chicago Tribune and [A.D. Quig](https://www.chicagotribune.com/author/a-d-quig/ "Posts by A.D. Quig") \| [aquig@chicagotribune.com](mailto:aquig@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 14, 2025 at 9:47 AM CST \| UPDATED: November 14, 2025 at 4:37 PM CST
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Mayor Brandon Johnson began hedging Friday on whether [his 2026 budget](http://if%20there%20are%20some%20ways%20in%20which%20we%20can%20make%20adjustments%20based%20upon%20progressive%20revenue,%20because%20i%20don't%20think%20this%20is%20the%20time%20to%20push%20for%20regressive%20revenue.%20if%20there%20are%20some%20progressive%20revenue%20ideas%20that%20have%20not%20been%20brought%20before%20us,%20there's%20still%20time./) will see its first vote next week, following his Finance Committee chair publicly targeting his [controversial head tax](https://www.chicagotribune.com/2025/11/12/mayor-brandon-johnson-change-head-tax-proposal/) as a nonstarter with her.
Ald. Pat Dowell, 3rd, told reporters after weeks of budget hearings for Johnson's $16.6 billion spending plan concluded Thursday that she advised the Johnson administration not to proceed with a vote in her committee Monday. But she stopped short of saying she would try to block a vote should the mayor proceed regardless.
"I think going on Monday is premature. I have said that to the administration," Dowell said. "My role as the Finance chair is to give advice, and on Monday I'm going to have a meeting, and those things will either be on the agenda or they won't. And I will call balls and strikes, and we'll see where this goes."
The fifth-term alderman also came out swinging against Johnson's $21-per-employee monthly tax on corporations.
"I am not a supporter of the head tax at any level," Dowell said when asked if the mayor's latest proposal bumping the minimum company size up from 100 to 200 workers satisfies her.
It was a remarkable break from one of the two aldermen Johnson has handpicked to lead his budget through the City Council, and one that could set the freshman mayor up for an embarrassing defeat were he to lose Monday's Finance Committee vote. His revenue ordinance, which contains the head tax that is now projected to raise $82 million to go into a public safety fund, must be advanced through that panel.
Johnson, for his part, shrugged off the naysayers. And he wouldn't concede his head tax is on life support, either in Monday's scheduled vote that would be a key test, or for the rest of the year as he tries to get the full package through the council.
"I'm for more deliberation if we're actually debating over something, but to slow it down just for the sake of slowing it down, it just doesn't make sense," the mayor told reporters after a City Council meeting Friday. "No alder has put forth an alternative vision to my proposal."
Johnson also argued that without the head tax the only alternative is "increasing taxes on working people," which he's drawn a red line against for 2026, after trying unsuccessfully to pass a property tax hike for this year's budget. Increasing property taxes would be far more politically perilous now given the upcoming 2027 election.
Some aldermen have argued the city needs to show more shared sacrifice before they can justify a "yes" vote to their constituents, pointing to the Ernst and Young accounting firm's report commissioned this year that they say the Johnson administration did not fully heed. The mayor's team has shot back that the updates require time.
On Friday, Johnson said he was still waiting for suggestions on alternative revenue measures but said they must target the rich.
"I don't think this is the time to push for regressive revenue," the mayor said. "If there are some progressive revenue ideas that have not been brought before us, there's still time."
Dowell's comments against the head tax also came on the heels of some council pushback to Johnson's borrowing plans for the coming years. On Friday, he introduced ordinances requesting authorization for up to $3.8 billion in debt to pay for capital projects, legal settlements, back pay for the new firefighters contract, and refinancing for savings. Authorization for that borrowing will be voted alongside the regular budget.
A common adage in Chicago politics and beyond is to never call a vote you may lose, but Johnson's team — under three different heads of intergovernmental affairs, the team tasked with whipping votes in council — has struggled mightily with counting their yeses and nos. The mayor has cast three tie-breakers so far, and been defeated on the floor in losses that were extremely rare under his predecessors.
However, Johnson's rhetoric and movement lately suggest he could take his controversial budget to the brink next week, hoping aldermen will in the end support the head tax rather than defeating it and instead having to find another way to raise money on the backs of working-class Chicagoans.
During a budget town hall Wednesday night in Dowell's ward without her present, the mayor framed how he views the path ahead for aldermen.
"The City Council has two options, y'all. They can tax the rich, or they can decimate services and tax working-class people," Johnson told a room of progressive supporters from the Chicago Teachers Union and other organizations. "You have members of the City Council that are calling for increasing taxes on working people. … What kind of sick and demented society do we live in, where you have politicians who are more afraid of billionaires and these large corporations?"
His bullish stance despite the doubt among his legislative counterparts that he has the votes led some aldermen to surmise that he plans to get them on record voting against his head tax so he can paint them as anti-working class — and pin on them any unpopular alternative solutions to close the $1.19 billion gap next year. Johnson on Friday dodged a question on whether that was his endgame.
"I really don't like that it looks like we're being forced to vote on this," Ald. Nicole Lee, 11th, said during budget hearings Thursday. "I'm nowhere near ready to do that."
Lee added that she was not able to schedule a sit-down offered by the mayor because of how rushed the timeline felt to her. Meanwhile, Johnson has been traversing the city for a series of town halls — many of them in the wards of expected budget swing votes, such as Dowell's — but often without the local aldermen present.
Chicago Mayor Brandon Johnson leads a City Council meeting on Nov. 14, 2025. Many people spoke about his proposed budget during the public comment portion of the meeting. (Terrence Antonio James/Chicago Tribune) -
During those events, he often takes his mission to make the case for his third budget, unveiled a month ago as a bulwark against President Donald Trump, directly to the people of Chicago and implores them to lobby aldermen to vote yes and Springfield to give the city more revenue.
It appears that Johnson's bold speech Wednesday evening on Dowell's home turf didn't budge her, however. The Finance chair calmly ended her Thursday evening remarks with reporters by saying that while she supports Johnson's record $1 billion tax-increment financing surplus and hiking up the personal property lease tax to 15%, "I think they could do more" with cutting costs.
Johnson's budget chair, Ald. Jason Ervin, was nonplussed when asked the potentially dramatic showdown next week but called upon his colleagues to work more with the mayor's team instead of complaining. He did not say where he stands on the head tax beyond "I'm not saying yes to anything. I'm not saying no to anything."
"I do believe that we will get to some sort of solution. Will it be on Monday? Maybe yes, maybe not," Ervin told reporters Thursday. "Again, I continue to ask for alternatives as it relates to spending, as it relates to revenue. Crickets. … Council has the budget. Council has the budget. The mayor has presented what he's presented."
Alex Goldenberg, of United Working Families, speaks in support of Chicago Mayor Brandon Johnson's proposed budget during a City Council meeting at City Hall, Nov. 14, 2025. (Terrence Antonio James/Chicago Tribune)
City Council adjourned Friday without the mayor introducing his budget ordinances, meaning that the spending package could still see tweaks before a direct introduction in the Budget and Finance committees on Monday. That's a sign the votes still aren't there, but Ervin kept his cards close to his chest when approached by reporters on his way out of council chambers.
"I've not had a conversation in that vein," Ervin said when asked whether Johnson has informed him whether he will hold the committee vote or not. "Today is Friday. Monday is three days away. We'll see."
The mayor's team has offered aldermanic budget briefings Saturday and Sunday.
Johnson's borrowing plans — presented in part to aldermen Wednesday — asks for authorization to borrow up to $1.3 billion to fund infrastructure projects in 2026 and 2027. Of that sum, $216 million would go to aldermen to use in their wards on projects of their choosing, $230.6 million would fund upgrades to the city's fleet of vehicles, IT and equipment, and $175 million would pay for street resurfacing. The rest would help cover bridges and viaducts, sidewalks, street lighting, and traffic signals, according to administration officials.
Aldermen already pushed back on Johnson's last $830 million proposed infrastructure borrowing in January, taking issue with the backloaded schedule to pay down the debt and fears that the money would be diverted to Chicago Public Schools. Administration officials tweaked that borrowing to affirm no money would flow to CPS. They said Wednesday the payback schedule was not final but their intention was to keep the city's overall debt more balanced from year to year.
The mayor's capital improvement plans through 2029 call for $18.1 billion in spending, a mix of money from tax increment financing districts, issuing water and sewer and aviation debt, and federal money.
The mayor is asking for permission for another $500 million in general obligation debt, which includes money to help pay for the $90 million "global" settlement to resolve nearly 200 lawsuits tied to former CPD Sgt. Ronald Watts and the recently-inked contract with Firefighters Local 2. Together, the infrastructure, back pay and settlement G.O. bond would cost up to $1.8 billion.
Late Thursday, Chief Financial Officer Jill Jaworski disclosed the estimated extra interest to borrow for those settlement and contract costs instead of paying them from regular city funds would be roughly $50 million. The Local 2 backpay will accrue roughly $6 million a year on top of $166 million in principal over five years, she said, while the Watts settlement would run in the low $20 million range over the same period.
There is also a separate authorization ordinance to refinance up to $2 billion in old debt for potential savings. Johnson administration officials said they plan to ask for the votes on both as part of the broader budget package. A key uncertainty are the interest rates the city could fetch on that debt in the future, as ratings agency S&P previously warned the mayor's budget plans could trigger a downgrade, likely pushing up interest costs.
Also as aldermen and Johnson held a Friday meeting, the council finalized a $17 million police misconduct settlement tied to a decades-old alleged wrongful conviction. The hefty sum will go to Jose Maysonet, who spent 27 years in custody for a double murder before Cook County prosecutors dropped charges against him eight years ago.
Before his 2017 release, Maysonet alleged police, including disgraced Chicago police Detective Reynaldo Guevara, beat him into confessing to the 1990 murders of two brothers on the Northwest Side and fabricated a police report claiming he admitted involvement.
Aldermen also unanimously approved $12 million in tax incremental financing spending on an Ogden Park field house in Ald. David Moore's ward, a white whale for him for years. Johnson's promise to support the measure was crucial to winning Moore's support on the city's 2025 budget last fall, the alderman said.
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Source Name [42]: Mayor Brandon Johnson's plan to borrow money to pay police settlements raises questions Full URL: https://www.chicagotribune.com/2025/11/21/mayor-brandon-johnsons-plan-to-borrow-money-to-pay-police-settlements-raises-questions/ Scraped Date/Time: 2025-11-23 04:58:39
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<span style="color: #0066cc; font-weight: bold;"></span> [42]
Chief Financial Officer Jill Jaworski speaks while Mayor Brandon Johnson and team meets with the Chicago Tribune Editorial Board on Oct. 28, 2025. (Brian Cassella/Chicago Tribune)
By [Jake Sheridan](https://www.chicagotribune.com/author/jake-sheridan/ "Posts by Jake Sheridan") \| [jsheridan@chicagotribune.com](mailto:jsheridan@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 21, 2025 at 5:00 AM CST
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Mayor Brandon Johnson wants to take out $283 million in loans to pay for police settlements, but his plan has left aldermen wondering how a lot of the money will be spent.
The borrowing proposal revives [a practice past mayors discontinued](https://www.chicagotribune.com/2014/02/03/emanuel-seeks-to-borrow-900-million-3/) and derided as financially reckless. While members of the City Council raise concerns and questions, Johnson's team is defending the move as a way to finally clear a backlog of looming police misconduct lawsuits and save money.
"The Department of Law has been very focused on settling cases and lowering our costs by getting them settled quicker," Johnson's chief financial officer, Jill Jaworski, told aldermen Monday. "Instead of increasing those costs all in the budget this year and spiking up our expenses, we're spreading that out over a five year repayment period."
The plan would spread the $283 million in settlements over five years, starting in 2027 and ending in 2031. It would also force the city to pay an additional estimated $42 million in interest, according to the Johnson administration.
A $90 million chunk of the borrowed money would pay for the so-called global settlement to resolve almost [200 wrongful conviction lawsuits](https://www.chicagotribune.com/2025/09/11/mayor-brandon-johnson-90-million-settlement-corrupt-cop/) involving disgraced police Sgt. Ronald Watts, according to a statement shared by the Law Department and Jaworski's office.
Former Chicago police Sgt. Ronald Watts, center, leaves the Dirksen U.S. Courthouse on Oct. 9, 2013, after being sentenced to 22 months in prison. Watts pleaded guilty to stealing thousands of dollars from a purported drug dealer who turned out to be an informant for the FBI in an undercover sting. (Phil Velasquez/Chicago Tribune)
But it remains unclear how the remaining $193 million would be used, an omission aldermen say makes them fear Chicago is taking a financial misstep as City Hall slowly crafts a 2026 budget.
One possibility, said Northwest Side Ald. Scott Waguespack, 32nd, is that the money would go toward another global settlement to resolve the around 40 remaining cases involving disgraced Detective Reynaldo Guevara. The handful of Guevara cases already settled by the City Council have cost around $10 million each, an ominous portending of the exorbitant price Chicago will likely pay by settlement or verdict, now or later.
City officials might also be planning to use the money to pay off the record-setting costs of settlements approved by aldermen this year, said North Side Ald. Andre Vasquez, 40th. Aldermen have approved over $258 million in settlements in 2025, a massive total that towers above past high marks — and dwarfs the dollar figures underlying some of the city's most contentious budget fights, like Johnson's controversial $100 million corporate head tax.
That 2025 sum excludes the $90 million Watts settlement, a $120 million pair of wrongful conviction verdicts the city is appealing and an array of smaller settlements that don't require aldermanic approval. It is also likely to rise further before the end of this year.
City officials declined to comment on the possibility of a Guevara global settlement. Their statement said the $193 million "will be used for settlements approved and expected to be paid in 2025 and 2026," but they did not answer questions about what types of settlements, or whether it will go toward specific cases.
Former Chicago police Detective Reynaldo Guevara hides his face as he leaves the Dirksen U.S. Courthouse on June 8, 2018. (Terrence Antonio James/Chicago Tribune)
There's a big difference between using the money to pay for global settlements and using it to pay for the individual settlements Chicago approves monthly, said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a nonpartisan fiscal policy think tank.
The oft-approved individual settlements have become more like an operating cost for the city as they regularly pass through the City Council and onto the city's ledger.
"You never want to be incurring debt to cover operating costs, just as a general principle," said Martire, whom Johnson named to his budget working group in May. "That's Fiscal Policy 101."
But the global settlements are more akin to an "exceptional, one-time" liability, he said. And if the city paid them off in one year, it would have to take money out of basic services, like policing, firefighting or street maintenance, to cover the cost, he said.
For cash-strapped Chicago, there are not a lot of "fun options" to plug long-term holes or respond to expensive challenges, Martire added.
"It's still not ideal, right?" he said. "It gets to the bigger picture that the city does need structural revenue reform, and that's very difficult to accomplish."
The $42 million in interest would be better spent to shore up underfunded pensions or bolster violence prevention programs, Ald. Matt Martin, 47th, said. Because many of the lawsuits have been expected for years, the interest costs could have been avoided by using better planning to pay more quickly, he argued.
"We don't need to send that money to banks if we can avoid it," Martin said. "It's really challenging for me to go to my community and say, 'I think we should spend $42 million on interest payments alone for costs that we knew were coming.'"
To hold the department accountable, the city should budget for the actual amount it expects to spend on police-related settlements in its police budget, Martin said. Chicago has overspent on its police settlement budget in all but two years since 2010, according to a Tribune analysis. Johnson's 2026 spending plan proposes $82.6 million be budgeted to cover police-related lawsuits, the same amount that has been budgeted since 2020.
Martin praised former Mayor Rahm Emanuel for weaning the city off its old practice of borrowing to pay for police settlements. He also credited former Mayor Lori Lightfoot for continuing the practice. Lightfoot slammed the debt for settlements as a "bad borrowing practice" in her final midyear budget forecast.
Still, Martin said he supports the city's pursuit of more global settlements. City Council members, including Johnson's most committed opponents, broadly praised the Watts deal as a smart, money-saving move.
Martin hopes the Johnson administration's plan to more quickly resolve long-standing lawsuits will "bend the cost curve." Johnson's administration in its statement predicted costs will be concentrated over the next two years, but "settlements and judgements will return to being within the budgeted levels" after the spike.
The Law Department is weighing global settlements and created a division specialized in resolving old, potentially high-cost lawsuits, the statement added.
Ald. Scott Waguespack, 32nd, speaks outside Chicago City Hall on Dec. 3, 2024. (Eileen T. Meslar/Chicago Tribune)
Waguespack, often a Johnson critic, said he is frustrated by the lack of clarity on how the borrowed money would be spent. But, like Martin, he supports the global settlements approach. He believes it is being used to settle the Guevara cases.
Waguespack, 32nd, said he can understand why the Law Department might stay tight-lipped publicly on its plans: Nodding to a future global settlement could give attorneys bargaining against the city an advantage in high-stakes negotiations. But he wishes aldermen could get details about Johnson's intentions in confidential meetings.
"It's hard to find trust when you can't get the documents until the last possible second," he said.
And Vasquez, chair of the aldermanic Progressive Caucus, shared similar concerns about a lack of communication over the borrowing plan.
"I need more insight, more transparency," Vasquez said. "When the budget gets presented as us being taxing the rich to get all this revenue, then why are we creating larger deficits and larger debt on the other side of it?"
The two got only limited details during the Monday hearing, when Jaworski argued the city's efforts to decisively resolve cases were creating a temporary "extraordinary cost." While it would take five years to pay off the debt, it would also take five years to settle many of the involved cases at the city's normal pace, she said.
Settlements are typically an "operating cost" because they occur every year, she said.
"This is more one time because of the size and the nature of it," she said.
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Source Name [43]: Illinois lawmakers pass mass transit funding bill. Here's what that means for CTA, Metra and Pace riders. Full URL: https://www.chicagotribune.com/2025/10/31/transit-funding-fiscal-cliff-illinois-lawmakers/ Scraped Date/Time: 2025-11-23 06:38:06
For months, Illinois transit leaders warned of a doomsday scenario that would hobble the region's mass transit systems.
Dozens of bus lines were on the chopping block, they warned, along with whole portions of the "L." <span style="color: #0066cc; font-weight: bold;">Thousands of workers faced the threat of layoffs. Transit advocates warned that service cuts would have wide-ranging consequences for the Chicago economy and the environment.</span> [43]
As of Friday morning, that scenario seems to be in the rearview mirror.
After multiple failed legislative proposals, state lawmakers finally got a transit funding deal across the finish line in the early-morning hours on Friday. Gov. JB Pritzker said he intends to sign the measure into law.
In addition to raising around $1.5 billion, the deal will overhaul the Chicago region's mass transit system by creating a new governing body to oversee the CTA, Metra and Pace called the Northern Illinois Transit Authority.
The deal includes various initiatives intended to bolster safety on the region's transit systems. It appears to pump the brakes on planned fare increases next year.
Perhaps of most importance to riders, the deal will prevent planned service cuts and layoffs on the CTA next year, according to the agency itself.
"This legislation is the most transformative change to our public transit systems in the state of Illinois in five decades," said state Sen. Ram Villivalam of Chicago, 8th District, a Democrat who has helped lead transit reform and funding.
The legislative effort addresses what experts have termed the transit "fiscal cliff," a financial crisis that loomed as the CTA, Metra and Pace started running out of aid they received from the federal government during the pandemic. At the same time, ridership numbers have simply not returned to 2019 levels, meaning agencies aren't making as much of their revenue from fares as they used to.
The agencies were facing a structural budget deficit that would start next year and balloon to more than $800 million in 2027 and beyond.
The deal comes with enough dollars to address the budget deficit each year and provides even more funding on top of that, which the region's transit agencies have said they'd use to make improvements in service.
The new bill funds mass transit without the broad taxes and fees that seemed to tank previous versions of the legislation.
The biggest chunks of money come from diverting funds that would typically be used for road construction projects to mass transit. That includes $860 million in sales tax revenue on motor fuel and $200 million from the interest earned on the state's road fund that would now go to transit.
Another $400 million would come from authorizing an increase of 0.25 percentage points in the sales tax issued by the Regional Transportation Authority in Cook County and the collars.
To make up for the money diverted away from roadwork, the bill also includes a sharp 45-cent-per-toll increase on the Illinois Tollway.
There won't be service cuts or layoffs on the CTA, according to interim agency President Nora Leerhsen.
"With these funds, we will expand our bus and rail service, invest in new technologies, and implement new strategies to support our riders and employees," Leerhsen said in a statement Friday.
The bill will replace the RTA with a new entity called the Northern Illinois Transit Authority, or NITA, which is supposed to act as an empowered version of the RTA with the ability to set fares and service standards across the entire region.
The NITA board would have 20 members — five each from the city of Chicago, Cook County government, the collar counties and the governor.
The CTA, Metra and Pace would continue to have their own boards, too.
On the safety front, the bill calls for the creation of a transit ambassador program intended to improve safety on mass transit. Transit ambassadors would be trained and unarmed personnel stationed on buses, trains and transit stations.
A law enforcement task force led by the Cook County sheriff's office is charged with studying best practices for safety on the region's mass transit systems. And within a year of the law's effective date, the NITA board is supposed to vote on the creation of a sworn law enforcement officer crime prevention program on transit, per the measure.
Source Name [44]: No service cuts, no layoffs and no fare increases: CTA board approves rosy-looking 2026 budget Full URL: https://www.chicagotribune.com/2025/11/12/cta-budget-fares/ Scraped Date/Time: 2025-11-23 06:38:14
<span style="color: #0066cc; font-weight: bold;">Officials said the Chicago Transit Authority was back on track as they approved a no-cuts budget Wednesday, just two weeks after state lawmakers passed a massive $1.5 billion package to prevent devastating cuts to the Chicago area's public transit systems.</span> [44]
There will be no service cuts, layoffs or fare increases for the CTA next year — despite previous plans to hike fares by 25 cents per ride Feb. 1.
An influx of about $142 million in new revenue derived from the state's mass transit funding bill, which lawmakers got over the finish line after 4 a.m. on Halloween, will prevent any cuts next year and allow for some modest improvements at the agency, transit leaders said.
But plans for more significant upgrades — such as running the Orange Line to Midway Airport 24 hours a day and adding bus routes to the Frequent Network — are in limbo as the agency waits for an allocation of additional funds held by its current oversight body, the Regional Transportation Authority, officials said.
Still, on Wednesday morning, transit leaders threw the word "marvelous" around the CTA boardroom when describing the agency's financial situation.
Acting CTA President Nora Leerhsen quoted the poet Mary Oliver in her remarks at Wednesday's meeting.
Leerhsen referenced Oliver's poem "Don't Hesitate," which includes the line, "Joy is not made to be a crumb."
"We will celebrate this," Leerhsen said. "Because this agency, its employees and its riders deserve that."
"Being able to speak about expanding our Orange Line service to 24 hours, being able to speak about expanding our bus Frequent Network has us in a conversation on a national level as a transit agency that we were not before," Leerhsen said. "The future is very bright."
But leaders also reminded each other that transit riders are expecting significant improvements to transit service following the passage of the transit bill in Springfield two weeks ago. Those improvements, CTA leaders said, are reliant on receiving additional funds currently held by the RTA.
At Wednesday's meeting, CTA board Chair Lester Barclay cautioned against counting too many chickens before they're hatched.
"The public thinks that we got a lot of money to do a lot of these creative things," Barclay said. "And I don't think that's quite the case. This is our wish list, this is what we hope will happen. But it's subject to RTA."
The oversight body — which will soon be scrapped and replaced by a new, more powerful body called the Northern Illinois Transit Authority, per the transit bill — said last week it is for now holding onto a projected $319 million in additional new revenue, which will later be distributed to the CTA, Metra and Pace.
Transit leaders Wednesday also celebrated the staving off of fare hikes on the system next year. The CTA has not raised fares in years, and its initial budget proposal last month proposed a 25-cent-per-ride price increase.
Leerhsen has said the ticket price increase would have put between $30 million and $35 million back in the CTA's coffers next year. The CTA, like Metra and Pace, proposed fare increases at the direction of the RTA.
But the transit funding legislation passed two weeks ago also put a moratorium on fare increases for the first year after its effective date, June 1.
Technically, that wouldn't have prevented the CTA, Metra and Pace from going full steam ahead on their fare hikes slated to take effect Feb. 1. But key lawmakers made it clear they wanted the agencies to hit the brakes.
"I believe there is consensus from the Illinois General Assembly that fare increases should not be implemented until service is stabilized," state Sen. Ram Villivalam, an architect of the legislation, told the Tribune.
Last week, the RTA cleared up some confusion when it confirmed it would not ask transit agencies to increase ticket prices next year.
The transit funding bill also overhauls the governing structure of Chicago-area mass transit, replacing the soon-to-be-defunct RTA with a new entity that is intended to act as a stronger governing body with the power to set fares and service standards across the region. Lawmakers suggested the new body should be given the power to make decisions about any future fare increases.
Source Name [45]: Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions Full URL: https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/ Scraped Date/Time: 2025-11-23 05:40:20
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<span style="color: #0066cc; font-weight: bold;"></span> [45]
Ald. Brendan Reilly, 42nd, is joined by colleagues as he speaks after Mayor Brandon Johnson's proposed head tax was voted down in a City Council committee meeting, Nov. 17, 2025. Reilly opposes the tax. (Terrence Antonio James/Chicago Tribune)
By [The Editorial Board](https://www.chicagotribune.com/author/the-editorial-board/ "Posts by The Editorial Board") \| Chicago Tribune
PUBLISHED: November 18, 2025 at 5:00 AM CST
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Mayor Brandon Johnson's bid [to revive Chicago's corporate head tax](https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/) is dead. The resounding 25-10 City Council Finance Committee vote Monday against the mayor's revenue proposals should have made that clear.
Unfortunately, after the embarrassing rebuke, which carried distinct echoes of last year's unanimous council vote against Johnson's proposed $300 million property tax hike, the mayor seemed to struggle to wrap his head around the obvious reality, sounding like the Monty Python character shouting "not dead yet."
"The corporate tax is in the budget," a clearly frustrated Johnson told reporters after the vote. "It will stay in this budget."
For those who've forgotten long-ago psychology classes, the famous Kubler-Ross stages of grief went like this: first denial, then anger and after that depression, bargaining and acceptance. The mayor seemed to exhibit the first two reactions in a single day.
Hopefully, we can proceed quickly to more constructive responses. Johnson's budget is a non-starter. Twenty-five members voted against it, and there are plenty more not on the Finance Committee who won't support it either. We've [written repeatedly](https://www.chicagotribune.com/2025/11/11/editorial-head-tax-brandon-johnson-business-derek-douglas-civic-committee/) on why this jobs tax is such a terrible idea, so we won't repeat ourselves here.
The key question is, what now? For a second straight year, the mayor has lost control of the budget process. But by law he must produce a balanced budget, and no matter who he blames for his predicament, it's his responsibility to find a majority on the 50-member council to support one.
The mayor's budget team initially projected the head tax would generate $100 million a year. Who knows if it would have really produced that much, but for budgetary purposes that's the first hole that must be plugged.
The mayor's opponents have called for more cost cutting. Under Johnson's initiative, the city paid Ernst & Young more than $3 million to propose various options for efficiencies. The Johnson administration claims it has incorporated many of EY's proposals, but they've left out any that would require significant sacrifice from the city's mainly unionized workforce, which numbers more than 30,000. So the ones they've agreed to adopt save relatively small sums.
With the rejection of Johnson's budget, it's time to engage with the unions representing city workers.
That step should have happened weeks, if not months, ago, but the council's clear message that the $1.2 billion budget deficit for 2026 can't — and won't — be filled by taxing job creators in Chicago leaves little choice now.
Nor, as a philosophical matter, should workforce concessions be off the table. Cities around the country, also led by Democratic mayors, have faced daunting budget deficits and haven't hesitated to demand union concessions on behalf of taxpayers.
In Los Angeles, Mayor Karen Bass signed a budget that included about 600 layoffs, which she was able to rescind after unions agreed to other money-saving concessions to save those jobs. In San Francisco, Mayor Daniel Lurie's finalized budget resulted in about 40 layoffs and the elimination of 1,300 positions.
And in Denver, Mayor Mike Johnston's budget resulted in 169 layoffs while also imposing unpaid furlough days on thousands of city workers. Notably, Johnston's furloughs exempted police officers and firefighters, jobs that Johnston said were "mission critical."
None of these mayors wanted to take such steps. They did so because they understood the job of a big-city mayor means making hard decisions.
No one expects Johnson, who owes his 2023 election victory primarily to public-sector unions, to insist his political benefactors make sacrifices. But that's what he _should_ do. This moment requires leadership. If the mayor, having been rebuffed yet again by the council, isn't willing to lead, he should leave it to aldermen to command the process.
Yes, we understand the Chicago Federation of Labor met with numerous aldermen in early October, as the budget process was about to get started in earnest, and read the riot act to them about asking workers to contribute to solving this budget emergency. But here in mid-November, the facts on the ground have changed.
If Johnson won't do the job, we believe the council ought to identify a person who has enough goodwill with both unions and the business community to lead talks with the unions.
Who might that be? Ald. Pat Dowell, 3rd, who chairs the Finance Committee and voted against Johnson's revenue proposal, comes to mind. Former Ald. Walter Burnett, who left the council this past summer, is another who could serve that role. We're sure there are others.
And here's the thing. The unions wouldn't even have to agree to layoffs or furloughs to contribute mightily to helping with structural solutions to Chicago's budget woes. The Ernst & Young report, as we've written before, identified up to $103 million in savings simply by bringing the gold-plated health benefits city workers get today in line with those received by employees of peer cities.
Look again at that number: $103 million. That's _more than_ the head tax was projected to generate.
Would such a concession be painful? Of course. But workers throughout the country, whether they get their health insurance through their employer or buy it via the Obamacare exchanges, are having to pay more in the form of premiums and out-of-pocket expenses. Taxpayers not on the public payroll aren't likely to be sympathetic to arguments that city workers should be immune to what the rest of us are experiencing. And in many cases, experiencing to a far greater extent.
We've said before that the solution to the city's budget crisis requires the burden to be shared. This adamant rejection of the mayor's dramatically unbalanced plan by aldermen with ears to the ground makes clear this is the will of the vast majority of Chicagoans.
Source Name [46]: Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance Full URL: https://news.wttw.com/2025/11/18/alderpeople-weigh-path-forward-budget-negotiations-after-johnson-s-plan-fails-advance Scraped Date/Time: 2025-11-23 05:40:40
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## Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance
[Blake Thor](https://news.wttw.com/stories-by-author/blake%20thor) \| November 18, 2025, 7:30 pm
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City Council Members Weigh in on Chicago's 2026 Budget
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Mayor Brandon Johnson's $16.6 billion budget proposal for 2026 suffered a major blow Monday when the Chicago City Council's Finance Committee rejected it in a 10–25 vote.
A number of alderpeople oppose Johnson's proposed corporate head tax, which would impose a monthly $21 per employee tax on companies with more than 100 employees, arguing it will stifle business growth in Chicago.
Johnson said in a news conference that despite the setback in City Hall, his administration is standing firm on the head tax, setting up a debate likely to run close to the Dec. 30 deadline to pass a budget.
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"We stand by our budget proposal," Johnson said. "We stand behind the progressive revenue that we have put forward because this moment calls for those with means to put more skin in the game."
Alds. Daniel La Spata (1st Ward), William Hall (6th Ward) and Bill Conway (34th Ward) joined "Chicago Tonight" to discuss the ongoing budget negotiations. Here's a snapshot of where they stand:
### Reaction to Johnson's Budget Failing in Committee
On Monday, 18 members of the City Council's Finance Committee voted to adjourn, signaling that a large bloc preferred more debate over taking a final vote.
The attempt to adjourn failed, leading to the 10-25 vote rejecting Johnson's proposed budget.
Johnson pressed for a vote even after it became clear most City Council members opposed the revenue ordinance, [leading some alderpeople](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) to believe he wanted them on the record opposing the head tax.
Hall likened the stalling negotiations in City Hall to the recent record-long 43-day federal government shutdown.
"Trump has found his way into City Hall," Hall said. "These are some of the same tactics we saw in D.C. with the government shutdown and we now see them in the city of Chicago. We see nitpicking, we see arguments but no solutions, no counters to negotiate. … I see the beginning of a stand-down."
Johnson has [called for](https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/) a recess until early December to give time for alderpeople to come up with their own proposals to raise revenue.
La Spata was one of the 18 alderpeople who voted to delay a vote on Johnson's revenue ordinances, arguing that he and his colleagues needed more time to assess every option.
"There's questions about how do we find in a way that is progressive, that, as Ald. Hall called for, asks those who can pay more and pay their fair share to pay their fair share, but also do it in ways that continues to grow our economy rather than deter economic growth," La Spata said. "That's a needle that we can thread, and I know that we can thread, but it deserves more time and deliberation. If we knew that the votes weren't there for the revenue package, we should've taken the time to get to a place that everyone can agree on."
### The Ernst & Young Report and Budget Cuts
The city hired consulting firm Ernst & Young to produce a report analyzing Chicago's finances and outlining ways to cut costs and boost revenue. The report cost $3.1 million, and identified between $530 million and $1.4 billion in potential savings and new revenue.
Johnson's budget proposal only includes $80 million in cuts recommended by the report.
Hall commended Johnson for allowing an accounting firm to perform an audit on the city, but pointed to the identified cuts as those that would "break the backs of Chicagoans."
"When you look at those recommendations, those recommendations phase in over time, especially in the year 2026," Hall said. "So the committee is doing its job in finding efficiencies for the year 2026. … I have yet to find an idea that does not break the backs of Chicagoans. If you ask any Chicagoan right now, 'Do you want to pay more in their property taxes?' they'll say no. If you ask them, 'Do you wanna pay more on garbage fees?' they'll say no. If you ask them if they want to get nickel and dimed on other fees, they'll say no."
Johnson has said he would veto any budget that cuts the Chicago Police Department's budget, and has also opposed reducing services such as street sweeping and snow removal.
Conway said the city should focus on trimming its own departments and eliminating inefficiencies instead of cutting services for Chicagoans or asking them to pay more.
"I agree we don't wanna ask people in the 6th Ward, the 34th Ward or the 1st Ward for more money, and that's why we have to be efficient with taxpayer dollars, and the report had some clear places to do that," Conway said. "For example, fleet optimization. The average car owned by the city is driven 7,000 miles a year, and Ernst & Young said we can get 29.6 million (dollars) in efficiency in Year 1 — there's 3 million of that in the budget. Procurement — only 51% of the stuff we buy goes through the procurement department. They identified $55-111 million in savings we could get through that — only $10 million in this budget."
La Spata, who said the current budget proposal will need significant changes before it can pass, argued for a plan that pairs new revenue with cuts identified in the Ernst & Young report.
"We sometimes conflate cuts with efficiencies," La Spata said. "Efficiency is providing the same high level of service to Chicagoans that they deserve and doing it with the same amount or less revenue. There's so much more in the Ernst & Young report that we can dig into. There is no single way that we are going to get to a balanced budget, we should all be clear on that. It's efficiencies, it has a revenue side to it. It's more transparency in terms of how we use our revenue."
### Is the Head Tax a Nonstarter?
Johnson's proposed tax on corporations has become the most incendiary part of his spending plan and the sticking point for many alderpeople.
Conway said that more cuts outlined in the Ernst & Young report need to be implemented before a head tax is considered.
"What I hear in the 34th Ward is we need to show taxpayers that we are being efficient with their tax dollars before we go asking for more, and Ernst & Young identified several areas in savings," Conway said. "We need to really go back to departments and show taxpayers we're being efficient with those dollars, that we have worked that out before we do anything like a head tax."
Hall said he doesn't see any budget passing unless it asks wealthy Chicagoans to "put more skin in the game."
"I don't see a way forward unless corporations pay their fair share," Hall said. "We've made concessions for corporations, and in those concessions we are saying this tax will be reinvested directly into the communities, number one, that need investment. … It's now the time for corporations to pay for the roads they drive on, for the utilities that they use and stop breaking the backs of the employees and using them as pawns to threaten to leave."
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[William Hall](https://news.wttw.com/tags/william-hall)
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P
The Ernst Young report says that on average Chicago has one manager for every two to three employees! Other cities have about 8! Lots of cuts can be made, but these socialist alder think that Chicago should increase taxes and there backing Johnson? All should be voted out!
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T
".... and pay their fair share..."
and who exactly determines what is "fair"? Does "fair" just mean 'someone else'?
I've asked before, where in the Bible does it codify a progressive system of tithing? Isn't everyone paying the SAME percentage "fair"?
Don't Tax You.
Don't Tax Me.
Tax That Fellow Behind the Tree
see more
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Source Name [47]: Mayor Brandon Johnson blames past administrations after rating agency's negative budget outlook Full URL: https://www.chicagotribune.com/2025/11/06/mayor-brandon-johnson-rating-agency-negative-budget-outlook/ Scraped Date/Time: 2025-11-23 05:40:45
[Skip to content](https://www.chicagotribune.com/2025/11/06/mayor-brandon-johnson-rating-agency-negative-budget-outlook/#content)
<span style="color: #0066cc; font-weight: bold;"></span> [47]
Mayor Brandon Johnson speaks with the Chicago Tribune Editorial Board on Oct. 28, 2025. (Brian Cassella/Chicago Tribune)
By [Alice Yin](https://www.chicagotribune.com/author/alice-yin/ "Posts by Alice Yin") \| [ayin@chicagotribune.com](mailto:ayin@chicagotribune.com) \| Chicago Tribune
PUBLISHED: November 6, 2025 at 1:46 PM CST \| UPDATED: November 6, 2025 at 4:34 PM CST
**Getting your [Trinity Audio](https://trinityaudio.ai/) player ready...**
Mayor Brandon Johnson defended his [2026 budget proposal](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/) Thursday following a rating agency lowering its outlook on the city this week, which signaled a potential future credit downgrade to one notch above junk status.
And he addressed budget cuts he wants to make in 2026 at Chicago libraries, which have drawn criticism.
Speaking to reporters at City Hall, the mayor responded to S&P Global Ratings dropping Chicago from stable to negative the previous day by arguing his $16.6 billion spending plan for next year is in fact "very sound" despite scaling back an advance pension payment. S&P [knocked](https://www.chicagotribune.com/2025/01/14/chicago-credit-downgrade-johnson-2025-budget/) Chicago down to two notches about junk status in January following the mayor's 2025 budget.
"I know that there have been questions around pensions, and when the executive order was put into place under the previous administration, it was set up to provide an additional advance payment based upon an assigned balance," Johnson said, referring to former Mayor Lori Lightfoot's directive on her way out of office. "Well, we no longer have that. However, we still were able to, even in these very difficult, tumultuous times, still put forth an advanced payment while not cutting services."
On her way out the door in 2023, Lightfoot [signed](https://www.chicagotribune.com/politics/ct-chicago-budget-mayor-brandon-johnson-20230730-g4p24i7kareqva5kzd3fxhnnkq-story.html) an executive order requiring the city to establish a "pension advance fund" using budget surpluses to help the pension funds tread water, [telling](https://www.chicagotribune.com/politics/ct-lightfoot-budget-deficit-johnson-2024-20230418-cnie24maqzfobjkvi2if4eznn4-story.html) Johnson not to "screw it up."
But Johnson's plan more than halves the city's planned advance pension payment next year, from $271.8 million to $120.2 million. Though Lightfoot's executive order does not legally bind Johnson today, his own finance team has insisted on making the extra payments because that would save billions down the line.
Mayor-elect Brandon Johnson and outgoing Mayor Lori Lightfoot before he was sworn in at his inauguration, May 15, 2023. (Brian Cassella/Chicago Tribune)
The move also won praise from ratings agencies such as S&P, which help determine how much taxpayers owe in interest costs when Chicago borrows money.
However, Lightfoot was only able to earmark past extra pension payments thanks to American Rescue Plan Act dollars that padded the rest of the budget. Chicago's "unassigned" fund balance, a flexible pot of money the city can draw from in emergencies, was zeroed out in 2024.
That balance has not dipped that low even during the depths of the 2008 recession, when it held just $226,000, according to the city's annual financial reports.
Johnson on Thursday insisted that his budget plan provides a structural fix to the city's long-standing fiscal issues where past administrations have failed. Though he didn't offer specifics, Johnson said that "for a very long time, we have embraced this mediocre, I think, approach toward how we solve these challenges."
He repeated that his proposal provides 65% structural remedies to the deficit, though his Budget Director Annette Guzman has said the ratio is in fact 60-40, down from the 2025 budget's makeup of 68-32.
"Well, look, whether it's 60% or 65%, the point is, it is overwhelmingly a structurally sound budget. That's the most important thing," Johnson said before spinning the question to why aldermen should support his $21-per-employee tax on corporations. "If you've never been in a position to have to choose whether or not you're going to have lunch for your children or rent, then you may not ever fully understand the impetus behind this budget."
However, the mayor's budget plan assumes the passage of his head tax — far from guaranteed — and still does not fulfill the entire supplement payment. Instead, the $100 million in projected revenue would go toward replacing expiring ARPA funding for community violence intervention programs and other public safety initiatives, which the mayor said is a worthy price to pay for the "ultra-rich."
Should S&P make good on its warning about another Chicago downgrade following the 2026 budget vote, it would be the first time that rating agency has placed the city one notch above junk rating in at least 20 years. Another agency, Fitch Ratings, downgraded the city in 2016 to one notch above junk status, where it remained until 2022.
Also on Thursday, the mayor addressed pressure he's getting from his progressive allies and one of the city's biggest labor organizations to restore cuts he wants to make next year to the public library system.
Under Johnson's 2026 plan, 89 vacant positions at the Chicago Public Library and 50% of the collections fund used to buy books would be slashed. The American Federation of State, County and Municipal Employees (AFSCME) Local 1215, which represents front-line library workers, held a City Hall news conference Tuesday condemning the moves.
"We need alders to not just say they support libraries, but to stand up and vote for the revenue needed to fund us," library clerk Fernando Contreras said Tuesday. "Now more than ever, we can't continue to accept cuts of programs and services our residents rely on. I can't tell you how many people have come to my branch to print out their immigration forms or materials for work."
Johnson, for his part, responded two days later by nodding to the record $1 billion sweep of tax increment financing funds, some of which would go to the libraries.
"In this budget, there are no layoffs, there are no furloughs, there's no reduction of services or hours," the mayor said, sidestepping the question on whether he'd restore the CPL cuts. "We're going to continue to find ways in which we can address all of the needs. But I want to make this absolutely clear that I put forth a budget that ensures that there's no reduction, no loss of jobs and furloughs, no reduction of hours, even Sundays, to ensure that people continue to have access to our libraries."
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Source Name [48]: Mayor Brandon Johnson proposes $16.6 billion budget with new social media tax, record TIF surplus Full URL: https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/ Scraped Date/Time: 2025-11-22 22:09:42
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<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson announced a $16.6 billion budget plan for 2026 on Thursday, relying on a number of new or increased taxes on corporations to close a $1.2 billion shortfall while protecting the city from funding cuts by the Trump administration.</span> [48]</span> [48]
"We are asking large corporations and big tech companies that have made trillions of dollars to pitch in a little bit more," Johnson said.
<span style="color: #0066cc; font-weight: bold;">If Johnson's budget plan is approved, social media companies could find themselves on the hook for a new tax next year. Chicago would be the first city to impose such a tax, and it's just one of a few ideas the mayor claims will balance the budget without federal funding Chicago has grown used to.</span> [48]
"The Protecting Chicago Budget protects Chicagoans from Trump's cuts and his attacks on our city," Johnson said.
<span style="color: #0066cc; font-weight: bold;">The mayor's budget plan takes aim at a $1.2 billion budget shortfall and the Trump administration.</span> [48]
"Our budget proposal asks the large corporations and the ultra-wealthy to chip in a little bit more, so that working families are not burdened with higher property taxes or grocery taxes or garbage fees," Johnson said.
The mayor is proposing a first-of-its-kind "social media amusement tax" <span style="color: #0066cc; font-weight: bold;">that would raise an estimated $31 million by taxing social media companies 50 cents per active user over 100,000 in Chicago. The revenue from that tax would be dedicated to funding the city's mental health clinics and mental health crisis response program.</span> [48]
"We have to do things differently. We can't keep doing the same thing and being in a budget hole. Social media companies are getting some of the biggest tax breaks, and they're having a huge impact. They take, and they take, and they take. They're not paying local taxes. They're not contributing to the city of Chicago. Why shouldn't they help contribute?" <span style="color: #0066cc; font-weight: bold;">said Ald. Maria Hadden (49th).</span> [48]
<span style="color: #0066cc; font-weight: bold;">Other City Council members raised concerns that the social media tax might not hold up in court if challenged by companies like Meta or X.</span> [48]
"I suspect there's a reason no other municipality would do it, despite it would be very popular. It's just I suspect there's going to be some significant legal issues with that one," Ald. Bill Conway (34th) said.
The largest tax hike in Johnson's budget would increase the personal property lease transaction tax, the tax on cloud computing companies including Microsoft and Amazon, to generate $333.2 million. The mayor said the additional funds would help pay for services that were previously relying on COVID relief funding from the federal government.
"That is how we protect these funds from federal clawbacks and grant terminations," Johnson said.
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">The mayor also hopes to use a record-breaking $1 billion surplus from the city's tax increment financing districts, or TIFs, nearly double last year's record of $570 million. That surplus would provide $232.6 million for the city, while Chicago Public Schools would get $522 million, and nearly $19 million would go to the Chicago Public Library.</span> [48]</span> [48]
<span style="color: #0066cc; font-weight: bold;">Some City Council members were leery about the mayor's financial projections for the TIF surplus.</span> [48]
"Having not yet seen a TIF waterfall, it has hard to see how a billion-dollar TIF surplus is even possible," <span style="color: #0066cc; font-weight: bold;">Conway said.</span> [48]
<span style="color: #0066cc; font-weight: bold;">Most aldermen were cautiously optimistic about the plan as they begin to review its details. Many of their wards rely on TIF dollars to pay for redevelopment projects.</span> [48]
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">While aldermen rely on TIF funds for economic development projects in their wards, 26 City Council members this summer signed a letter vowing to back a TIF surplus to help CPS reimburse City Hall for a $175 million pension payment covering non-teacher employees and to avoid taking out a high-interest loan to help balance the school district's budget.</span> [48]</span> [48]
Johnson also is pushing for a "community safety surcharge" <span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">that would essentially revive a per-employee head tax on large businesses. The mayor's office said tax would be $21 per employee per month for companies with 100 or more employees, although it would exempt 97% of such businesses, and apply only to 3% of large corporations.</span> [48]</span> [48]
The mayor's budget team estimates that tax would raise $100 million for the city's coffers.
<span style="color: #0066cc; font-weight: bold;">Under former Mayor Rahm Emanuel, the City Council eliminated the city's original head tax in 2014, after Emanuel argued it was a job killer that punished businesses for creating more jobs.</span> [48]
Johnson also is proposing a new "yacht tax" that significantly increases the rate for boat mooring at Chicago's harbors to bring in an additional $4.1 million a year.
The mayor's office said the budget plan also will cut $200 million in existing costs by continuing an existing targeted hiring freeze – which exempts public safety jobs and positions in revenue collection – as well as consolidating office space, selling vacant city land, reducing police overtime spending, and increasing cost recovery efforts for large special events. The budget plan would set a cap on police overtime that could only be increased if the City Council voted to approve an additional appropriation.
The City Council's Progressive Caucus sounded a cautiously optimistic note about the mayor's budget plan.
"Property tax increases alone aren't going to help us keep up with the rising cost of the continued services that we know our constituents want," Hadden said.
City Council members will spend the next month poring over the mayor's budget plan in a series of departmental budget hearings at City Hall, where they'll question the mayor's budget team and individual agencies about the spending plan before possibly offering amendments to Johnson's budget.
A final budget vote could come as early as next month, depending on how quickly Johnson can get the 26 votes he needs to approve his budget.
[Chris Tye](https://www.cbsnews.com/team/chris-tye/)
contributed to this report.
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### Featured Local Savings
Mayor proposes social media tax, record TIF surplus in 2026 budget plan
[Mayor proposes social media tax, record TIF surplus in 2026 budget plan02:14](https://www.cbsnews.com/chicago/video/mayor-proposes-social-media-tax-record-tif-surplus-in-2026-budget-plan/)
#### Mayor proposes social media tax, record TIF surplus in 2026 budget plan
(02:14)
Source Name [49]: Chicago Outlook Cut One Notch by S&P on Deficits, Pension Woes Full URL: https://www.bloomberg.com/news/articles/2025-11-06/chicago-outlook-cut-one-notch-by-s-p-on-deficits-pension-woes Scraped Date/Time: 2025-11-22 22:09:42
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By [Shruti Singh](https://www.bloomberg.com/authors/AOazxMUSBUg/shruti-singh)
November 5, 2025 at 7:09 PM EST
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November 6, 2025 at 1:03 PM EST
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### **Takeaways** by Bloomberg AIHideChevron Up
- S&P Global Ratings lowered Chicago's credit outlook to negative after Mayor Brandon Johnson proposed making a partial supplemental pension contribution next year.
- The revision was prompted by the city's reliance on one-time measures in the fiscal 2026 budget proposal and its significantly diminished balance sheet following consecutive years of large budget deficits.
- The reduction to a negative outlook reflects S&P's view of "at least a one-in-three chance of a lower rating" <span style="color: #0066cc; font-weight: bold;">within a two-year outlook horizon, according to the report.</span> [49]
Chicago had its credit outlook lowered one notch to negative by [S&P Global Ratings](https://www.bloomberg.com/quote/SPGI:US) on Wednesday after Mayor Brandon Johnson proposed making just a partial supplemental pension contribution next year as the city grapples with back-to-back deficits and weaker reserves.
"The revision was prompted by the city's ongoing, heavy reliance on one-time measures in the fiscal 2026 budget proposal, its significantly diminished balance sheet following consecutive years of large budget deficits, and the proposed reduction in the city's advance pension contribution to about half of what is required by the policy," <span style="color: #0066cc; font-weight: bold;">S&P analysts Scott Nees, Blake Yocom and Jane Ridley wrote.</span> [49]
It's S&P's latest warning about the finances of the third-largest US city. In [JanuaryBloomberg Terminal](https://www.bloomberg.com/news/terminal/SQ3MM46QRTHC), the credit rating company lowered the city's rating to BBB — two notches above junk — from BBB+ citing budget challenges expected in coming years. In [August](https://www.bloomberg.com/news/articles/2025-08-05/s-p-warns-chicago-that-pension-cost-hike-to-pressure-budget), it warned that a law intended to raise pension benefits for some Chicago police and firefighters threatens to further strain finances. Now, the reduction to a negative outlook reflects the rating company's view of "at least a one-in-three chance of a lower rating" <span style="color: #0066cc; font-weight: bold;">within a two-year outlook horizon, according to the report Wednesday.</span> [49]
Johnson for 2026 is proposing to include a reduced advance pension payment of $120.2 million, an amount that is nevertheless still more than the statutorily required amount the city must contribute to shore up its underfunded retirement systems. Between 2023 and 2025, the city added $820.5 million in advance contributions, according to budget [documents](https://chicityclerk.s3.us-west-2.amazonaws.com/s3fs-public-1/2026%20Budget%20Overview_0.pdf "Chicago 2026 Budget Overview").
"We believe the advance payments are a critical source of outyear budget stability, given the distressed status of the city's pension funds and the likelihood of material pension cost escalation if action is not taken to stabilize funding levels," the S&P analysts wrote.
Scaling back on this payment "dilutes the mechanism" the city had put into place to keep its unfunded pension liability from growing, said Lisa Washburn, a managing director for [Municipal Market Analytics](https://www.bloomberg.com/quote/1327578D:US). Chicago had [shed its one junk rating](https://www.bloomberg.com/news/articles/2022-11-08/chicago-wins-moody-s-upgrade-exiting-seven-years-of-junk-status) from Moody's Ratings in late 2022 partly because of higher pension contributions under former Mayor Lori Lightfoot.
Johnson is trying to close a 2026 budget deficit of nearly $1.2 billion with a variety of new and higher levies on large corporations and the rich. The first-term Democrat has [proposed](https://www.bloomberg.com/news/articles/2025-10-16/chicago-mayor-seeks-21-monthly-employee-tax-on-big-corporations) roughly $586.6 million in additional revenue from various types of companies and business activities. His plan would bring back a so-called head tax, which would levy $21 per employee per month on companies with at least 100 employees to raise $100 million to support community safety programs.
Johnson said on Thursday that his proposed spending plan is a "very sound, balanced budget" <span style="color: #0066cc; font-weight: bold;">and said his administration tried to include some supplemental pension funding even with fewer resources.</span> [49]
"We still were able to even in these very difficult, tumultuous times still put forth an advanced payment while not cutting services," Johnson said in response to a reporter's question on Thursday.
The city council is required to vote on a balanced budget by year end.
"We are watching as the fiscal 2026 budget negotiations advance over the coming weeks to assess the credit significance of the final budget package, but, absent a significant change in the approach to achieving structural balance, we believe the probability of a downgrade could remain elevated into the fiscal 2027 budget cycle," S&P said in the report.
Given renewed budget challenges as federal pandemic aid winds down on top of long-term pressures from underfunded pensions, investors aren't surprised about the outlook cut, said Ryan Ciavarelli, senior vice president for credit research at [Belle Haven Investments](https://www.bloomberg.com/quote/8265198Z:US), which owns Chicago bonds as part of $22.8 billion in municipal assets.
Spreads for a number of Chicago general obligation bonds have widened over the last two months given threats to federal funding and expectations for a weaker budget period, he added.
"The market got ahead of the rating pressure," Ciavarelli said.
Read more: [Chicago Bond Penalty Widens as Mayor Weighs How to Close Deficit](https://www.bloomberg.com/news/articles/2025-09-19/chicago-bond-penalty-widens-as-mayor-weighs-how-to-close-deficit)
_(Updates with comments from analyst in sixth paragraph, mayor in eighth and ninth paragraphs and investor in last three paragraphs.)_
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Source Name [50]: Mayor Brandon Johnson's corporate head tax plan fails to clear first big hurdle Full URL: https://www.nbcchicago.com/news/local/mayor-brandon-johnsons-corporate-head-tax-plan-fails-to-clear-first-big-hurdle/3852461/ Scraped Date/Time: 2025-11-23 05:58:48
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<span style="color: #0066cc; font-weight: bold;"></span> [50]
[Chicago City Council](https://www.nbcchicago.com/tag/chicago-city-council)
# Mayor Brandon Johnson's corporate head tax plan fails to clear first big hurdle
## The proposed tax would be imposed on companies with at least 100 employees in Chicago
#### By Rose Schmidt and [Mary Ann Ahern](https://www.nbcchicago.com/author/mary-ann-ahern/)•Published November 17, 2025•Updated on November 17, 2025 at 5:23 pm
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Chicago City Council's Finance Committee voted down Mayor Brandon Johnson's 2026 revenue proposals Monday, signaling an uphill battle to pass the budget before the end of the year. Mary Ann Ahern reports.
Chicago City Council's Finance Committee voted down Mayor Brandon Johnson's 2026 revenue proposals Monday, signaling an uphill battle to pass the budget before the end of the year.
The committee's chair, Ald. Pat Dowell, tried to stall the vote but lacked the support to keep the committee from voting on the budget Monday. The committee voted down the plan 25 to 10.
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The steepest hill for the mayor will likely be convincing enough alderpeople to approve his corporate head tax proposal, which would charge large companies $21 per employee per month. Critics have argued the tax would discourage hiring and push employers outside the city.
Last week, Johnson offered to scale down the corporate head tax, only imposing it on companies with 200 or more employees, instead of 100 or more employees as originally proposed. However, it appears that change is off the table, as a substitute ordinance put forth Monday morning showed the proposed tax would once again be imposed on companies with at least 100 employees, with the extra $18 million being used for business grants.
Jason Lee, a top mayoral aide, was spotted with council members in a small copy room at City Hall amid budget negotiations. The mayor's opponents called the conversations "arm twisting" and believed they stemmed from the mayor's attempts to stall the budget vote.
When questioned by reporters whether the committee's rejection of the budget means the mayor should kill the head tax plan, Johnson criticized the vote.
"There's still only one clear choice here for us, and that's to pass a budget that protects the interests of working people. There are obviously some members of City Council that are more interested in protecting corporations," he said. "They have not provided an alternative proposal to my budget. And that's why we're going to extend the time so that they have an opportunity to offer up something."
### Local
[](https://www.nbcchicago.com/news/local/aurora-shooting-investigation-unfolds-saturday-with-residents-asked-to-avoid-area/3854841/)
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17 mins ago
### [Aurora shooting investigation unfolds Saturday, with residents asked to avoid area](https://www.nbcchicago.com/news/local/aurora-shooting-investigation-unfolds-saturday-with-residents-asked-to-avoid-area/3854841/)
[](https://www.nbcchicago.com/news/local/metra-train-strikes-vehicle-in-suburban-arlington-heights-saturday/3854830/)
[Arlington Heights](https://www.nbcchicago.com/tag/arlington-heights/)
1 hour ago
### [Metra train strikes vehicle in suburban Arlington Heights Saturday](https://www.nbcchicago.com/news/local/metra-train-strikes-vehicle-in-suburban-arlington-heights-saturday/3854830/)
The vote comes the same day as media outlets have been reporting on record property tax hikes in Chicago neighborhoods. [Property owners across Cook County are being asked to pay about $872 million more in taxes,](https://www.nbcchicago.com/news/local/treasurer-reveals-why-property-taxes-rose-dramatically-for-some-chicago-homeowners/3852483/) an increase of almost 4.8 percent. On Chicago's South and West sides, median bills increased by more than 30 percent in 15 community areas, according to an analysis from the Cook County Treasurer's Office.
Ald. Brendan Reilly used the increase in property taxes as part of his argument of why he opposes the current budget proposal. He noted that due to vacant office space downtown Chicago, Cook County assessors reduced the assessed value of some commercial buildings, shifting the burden to homeowners. He said the corporate head tax would only make the problem worse.
"There's no amount of money that's going to convince us that a head tax is good for Chicago when we are literally reading in every newspaper in town on the front page today that the reason homeowners are getting socked on their property tax bills is because our commercial buildings have lost $400 million worth of value since the last assessment, and the reason why is because they aren't tenanted. We're seeing major tenants revising down their leases," Reilly said.
Johnson reiterated Monday that he would veto a budget plan that increases property taxes next year.
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[Watch CBS News](https://www.cbsnews.com/live/ "Watch CBS News"<span style="color: #0066cc; font-weight: bold;">)</span> [51][Watch CBS News](https://www.cbsnews.com/live/<span style="color: #0066cc; font-weight: bold;">)</span> [51]
The Chicago City Council was set to meet Tuesday morning, and Mayor Brandon Johnson was set to hold a town hall on the Southwest Side Tuesday night — after a key City Council committee voted down his tax plan for the 2026 city budget.
The vote put the budget in limbo.
On Monday, the City Council Finance Committee's 25-10 vote [against the mayor's tax package](https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/<span style="color: #0066cc; font-weight: bold;">)</span> [51] came only after repeated efforts to delay any vote were blocked.
The key sticking point for many critics of [Johnson's budget plan](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/<span style="color: #0066cc; font-weight: bold;">)</span> [51] was his push for a $21 per month per employee tax on large businesses, also known as a head tax.
A head tax was on the books in Chicago 1973 through 2014, It taxed companies with more than 50 Chicago-based employees $4 per employee per month.
That tax raised $35 million in its final year under Mayor Rahm Emanuel, who phased out the head tax starting in 2012, calling it a job killer.
When details first emerged about reinstating the head tax, an independent expert lambasted the idea. He said charging corporations $21 per employee would not bode well for business, and also said aldermen would not let the head tax fly.
Indeed they did not.
Ald. Brendan Reilly (42nd<span style="color: #0066cc; font-weight: bold;">)</span> [51], one of the mayor's most outspoken critics, argued that the head tax would only drive more businesses out of Chicago.
Reilly noted that [a recent analysis by Cook County Treasurer Maria Pappas' office](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf<span style="color: #0066cc; font-weight: bold;">)</span> [51] determined the median property tax bill for homeowners in Chicago rose 16.7% in the past year, in large part because of a $134 million drop in property taxes collected from commercial properties.
Mayor Johnson continues to defend the idea, saying it will generate more than $80 million for violence reduction and youth job programs.
That money would otherwise need to come from service cuts.
"Let me be clear, there are not any magic third options between cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous," said Mayor Johnson. "We stand behind the progressive revenue that we have put forward because this moment calls for those with means to put more skin in the game."
On Tuesday night, Mayor Johnson is inviting community members to weigh in on his budget proposal, in his eighth townhall in two weeks.
The mayor said he will answer questions and address concerns at Curie Metro High School, 4959 S. Archer Ave., at 6 p.m.
The mayor's budget proposal also includes other revenue generators that are catching some heat, including a 50-cent-per-user amusement tax on social media companies.
The City Council has until the end of the year to pass a 2026 budget.
# In:
- [Chicago City Council](https://www.cbsnews.com/chicago/tag/chicago-city-council/<span style="color: #0066cc; font-weight: bold;">)</span> [51]
- [Brandon Johnson](https://www.cbsnews.com/chicago/tag/brandon-johnson/<span style="color: #0066cc; font-weight: bold;">)</span> [51]
### Featured Local Savings
Mayor Johnson to hold townhall after Finance Committee rejects tax plan
[Mayor Johnson to hold townhall after Finance Committee rejects tax plan02:09](https://www.cbsnews.com/chicago/video/mayor-johnson-to-hold-townhall-after-finance-committee-rejects-budget-plan/<span style="color: #0066cc; font-weight: bold;">)</span> [51]
#### Mayor Johnson to hold townhall after Finance Committee rejects tax plan
(02:09<span style="color: #0066cc; font-weight: bold;">)</span> [51]
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Source Name [52]: Chicago Outlook Cut One Notch by S&P on Deficits, Pension Woes Full URL: https://www.bloomberg.com/news/articles/2025-11-06/chicago-outlook-cut-one-notch-by-s-p-on-deficits-pension-woes Scraped Date/Time: 2025-11-22 22:45:45
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<span style="color: #0066cc; font-weight: bold;"></span> [52]
Chicago Mayor Brandon Johnson
Photographer: Scott Olson/Getty Images
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By [Shruti Singh](https://www.bloomberg.com/authors/AOazxMUSBUg/shruti-singh)
November 5, 2025 at 7:09 PM EST
Updated on
November 6, 2025 at 1:03 PM EST
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Chicago had its credit outlook lowered one notch to negative by [S&P Global Ratings](https://www.bloomberg.com/quote/SPGI:US) on Wednesday after Mayor Brandon Johnson proposed making just a partial supplemental pension contribution next year as the city grapples with back-to-back deficits and weaker reserves.
"The revision was prompted by the city's ongoing, heavy reliance on one-time measures in the fiscal 2026 budget proposal, its significantly diminished balance sheet following consecutive years of large budget deficits, and the proposed reduction in the city's advance pension contribution to about half of what is required by the policy," S&P analysts Scott Nees, Blake Yocom and Jane Ridley wrote.
[Before it's here, it's on the Bloomberg Terminal\\
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Source Name [53]: Finance Committee votes down Mayor Brandon Johnson's 2026 tax plan, putting budget in limbo Full URL: https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/ Scraped Date/Time: 2025-11-22 22:53:50
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson's $16.6 billion spending plan for 2026 was dealt a major blow on Monday, as a key City Council committee voted down his plan for roughly $600 million in new taxes.</span> [53]
The Finance Committee's 25-10 vote against the mayor's tax package came only after repeated efforts to delay any vote were blocked.
The key sticking point for many critics of [Johnson's budget plan](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/) was his push for a $21 per month per employee tax on large businesses, also known as a head tax.
The mayor's original head tax plan would have applied to all businesses with more than 100 employees, generating an estimated $100 million a year toward violence reduction and youth jobs programs. But in the face of resistance, Johnson revised his plan to apply the tax only to companies with more than 200 employees, generating $82 million in annual revenue.
Monday morning, in a signal the mayor still couldn't get enough support for his head tax plan, his budget team told alders the latest plan would again apply to all companies with more than 100 employees. Violence prevention and youth jobs programs would get $82 million from that tax, with the remaining $18 million going toward small business grants.
Those changes weren't enough to win over a majority of alders.
Ald. Brendan Reilly (42nd), one of the mayor's most outspoken critics, argued that the head tax would only drive more businesses out of Chicago.
Reilly noted that [a recent analysis by Cook County Treasurer Maria Pappas' office](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf) determined the median property tax bill for homeowners in Chicago rose 16.7% in the past year, in large part because of a $134 million drop in property taxes collected from commercial properties.
"The bottom line is this head tax is only going to make things worse," Reilly said. "The shift is being put on the homeowners, because commercial properties are paying less, because they're valued less, because they're empty. That's why."
Early in the meeting, the panel's chair, Ald. Pat Dowell (3rd) moved to recess the meeting until next month, in an apparent effort to buy Johnson more time to shore up support for his budget, but the mayor's critics tabled her motion on a 24-7 vote. After more than an hour of debate, Budget Committee chairman Ald. Jason Ervin (28th) again sought to recess the meeting until December, but his motion failed in an 18-18 tie.
"Can we just get this vote done now?" Ald. Matt O'Shea (19th) said in the midst of Monday's debate. "This is a joke. They're calling people out there right now to delay this."
The mayor's budget team argued that, without the head tax, the only way to continue funding violence prevention programs and youth jobs would be service cuts, including reductions in the budgets for the Police and Fire departments.
Ervin, who has been one of the mayor's most vocal allies on his annual budget plans, "Ultimately, this body's just got to make some decisions. Are we going to reduce expenditures? We say efficiencies, but efficiencies at this point in time amount to service reductions. Are we going to make those service reductions?"
"Pick today whom you will serve, and the question is are we going to serve the residents of the city, or are we going to serve folks downtown? It's just that simple. Are we going to help Google out, or are we going to help grandma? Are we going to help the stock market or the supermarket?" he said.
The ultimate 25-10 defeat of the mayor's tax plan sends him back to the drawing board to craft a tax and spending plan that can get the support of 26 alders.
After the meeting, Johnson vowed to veto any budget that includes a property tax hike, increase in garbage collection fees, or reinstatement of a grocery tax.
"We are calling on City Council to work with us to pass a budget that does not include a property tax increase, or additional taxes on garbage or groceries," Johnson said. "It is incumbent upon all of us to work toward solutions that do not disproportionately burden poor and working people."
While defending his push for the head tax, Johnson signaled after Monday's Finance Committee meeting that he would be open to changes to his proposal. But the mayor said critics of his budget need to offer concrete alternatives, not simply reject his proposals.
"There's still only one clear choice here, for us, and that's to pass a budget that protects the interests of working people. There are obviously some members of City Council that are more interested in protecting corporations. They have not provided an alternative proposal to my budget, and that's why we're going to extend the time so that they have the time to offer up something," Johnson said. "There are not any magic third options between cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
It's the second year in a row a key provision of the mayor's budget plan has been voted down. Last year, alders [unanimously rejected his push for a $300 million property tax hike.](https://www.cbsnews.com/chicago/news/chicago-city-council-set-to-vote-down-mayor-johnsons-proposed-300-million-property-tax-hike/)
The City Council has until the end of the year to pass a balanced budget plan for 2026.
In addition to the head tax plan, the mayor's tax package includes increasing the city's tax on cloud computing and software licenses to 15%, raising $416 million in new revenue; a first-of-its-kind "social media amusement tax" that would raise an estimated $31 million by taxing social media companies 50 cents per active user over 100,000 in Chicago; and a new "yacht tax" that significantly increases the rate for boat mooring at Chicago's harbors to bring in an additional $4.1 million a year
Source Name [54]: City Council Members Weigh in on Chicago's 2026 Budget Full URL: https://www.pbs.org/video/city-council-members-weigh-in-on-chicagos-2026-budget-hbhrgx/ Scraped Date/Time: 2025-11-22 22:53:50
[Skip to Main Content](https://www.pbs.org/video/city-council-members-weigh-in-on-chicagos-2026-budget-hbhrgx/#maincontent)
[<span style="color: #0066cc; font-weight: bold;">](https://www.pbs.org/show/chicago-tonight/)</span> [54]
City Council Members Weigh in on Chicago's 2026 Budget
Clip: 11/18/2025 \| 14m 14sVideo has Closed Captions \| CC
Mayor Brandon Johnson's $16.6 billion budget proposal failed to advance this week.
11/18/2025 \| Rating NR
Mayor Brandon Johnson's $16.6 billion budget proposal for 2026 suffered a major blow this week when the City Council's Finance Committee rejected it in a 10–25 vote.
A number of alderpeople oppose Johnson's proposed corporate head tax, which would impose a monthly $21 per employee tax on companies with more than 100 employees, arguing it will stifle business growth in Chicago.
Johnson says he's standing firm on the head tax, setting up a debate likely to run close to the December 31st deadline.
Joining the discussion were 6th Ward Alderman William Hall representing communities including Chatham, Auburn, Gresham and Englewood; 34th Ward Alderman Bill Conway representing downtown communities like the West and South Loop; and First Ward Alderman Daniel La Spata representing communities like Logan Square, West Town and Wicker Park.
The discussion covered reactions to the budget rejection, the Ernst & Young report and potential budget cuts, and whether the head tax is a nonstarter.
Source Name [55]: What is a social media tax? Chicago mayor's proposed new tax explained Full URL: https://www.nbcchicago.com/news/local/chicago-politics/what-is-a-social-media-tax-chicago-mayors-proposed-new-tax-explained/3839999/ Scraped Date/Time: 2025-11-22 22:58:48
[Skip to content](https://www.nbcchicago.com/news/local/chicago-politics/what-is-a-social-media-tax-chicago-mayors-proposed-new-tax-explained/3839999/#content)
<span style="color: #0066cc; font-weight: bold;"></span> [55]
[Brandon Johnson](https://www.nbcchicago.com/tag/brandon-johnson/)
# What is a social media tax? Chicago mayor's proposed new tax explained
## According to the mayor's office, the tax would be an extension of the city's amusement tax and would include "large tech companies that profit from data monetization and users' attention."
#### By Rose Schmidt and Alex Dvorak •Published October 17, 2025•Updated on October 17, 2025 at 2:46 pm
BOOKMARKER
NBC Universal, Inc.
Chicago Mayor Brandon Johnson has released his budget proposal, aiming to close a projected deficit of more than $1 billion.
Chicago Mayor Brandon Johnson [revealed his 2026 budget plan](https://www.nbcchicago.com/news/local/chicago-politics/brandon-johnson-unveils-chicago-budget-as-city-seeks-to-close-deficit/3839400/) Thursday and in it was a mention of a social media-based tax.
But what exactly is that and what would it mean if the budget is passed?
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[ WATCH HERE](https://www.nbcchicago.com/watch/)
The tax is not specifically on social media users, but rather on large social media companies like Meta, which owns Facebook and Instagram. Other companies like YouTube and TikTok would also be included.
According to the mayor's office, the tax would be an extension of the city's amusement tax and would include "large tech companies that profit from data monetization and users' attention."
The proposed Social Media Amusement & Responsibility Tax, or SMART, would charge big social media companies $0.50 per month per active user, exempting the first 100,000 users.
The tax would generate an estimated $31 million to fund expanded mental health services. Citing growing research about the negative affects of social media on mental health, the mayor's office said it would be the nation's first social media amusement tax, and city lawyers are prepared to defend against any potential legal challenges.
"For far too long, we have allowed social media companies to collect our data and sell it for profit. They've implemented more and more aggressive strategies to get Chicagoans addicted to their apps. As a result, we have seen significantly higher trends of depression, anxiety and mental illness – especially in our young people," Johnson said. "This has become a serious public health issue, one that was acknowledged by the Surgeon General. And just like we tax other addictive vices that are bad for our health like nicotine and tobacco, it is far past time we treat social media companies the same way. That's why we are putting forward this new tax – the first of its kind in the nation – that will tax social media companies to fund our network of city-run free mental health clinics and our mental health crisis response teams."
It's not the only new tax proposed by the mayor for the budget.
The Johnson administration also wants to revive the corporate head tax on big companies and increase other taxes to plug the city's projected budget gap of more than a billion dollars next year.
The mayor unveiled his so-called Protecting Chicago Budget plan to the Chicago City Council Thursday morning. It is now subject to council approval.
Here's what else it include:
-a corporate head tax for the top 3 percent of businesses in Chicago.
-increased taxes on big tech companies.
-a tenfold increase in the vacant buildings fee.
-a new hemp tax.
-an increase in the boat-mooring rate at city harbors.
-a new online sports wagering tax.
-a restructuring of the ground transportation tax, or congestion surcharge.
The city is facing a projected gap of $1.12 billion next year and an even larger gap in 2027. Johnson, citing large cuts made by the Trump administration, is making good on his repeated promise to tax the "ultra-rich."
"This budget is really designed to challenge our larger corporations and those with means to put more skin in the game," Johnson told reporters. "It was increasingly clear that after the Trump cuts, that we have to push those with means to put more skin in the game."
Noticeably absent from his budget proposal is a property tax increase, likely given his failed attempt to raise property taxes the previous fiscal year -- after his original plan was unanimously rejected by Chicago City Council. The budget does not include an increase in the garbage collection fee as previously expected, and it removes the local grocery tax.
"There are a number of families who are reeling from Trump's cuts to everything, but in particular ... cuts to the SNAP program," Johnson said. "Even though 600 municipalities around the state have decided to collect (the local grocery tax), because the state of Illinois decided not to collect it, we didn't think at this time it was appropriate."
Source Name [56]: Finance Committee votes down Mayor Brandon Johnson's 2026 tax plan, putting budget in limbo Full URL: https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/ Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson's $16.6 billion spending plan for 2026 was dealt a major blow on Monday, as a key City Council committee voted down his plan for roughly $600 million in new taxes.</span> [56]
The Finance Committee's 25-10 vote against the mayor's tax package came only after repeated efforts to delay any vote were blocked.
The key sticking point for many critics of [Johnson's budget plan](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/) was his push for a $21 per month per employee tax on large businesses, also known as a head tax.
The mayor's original head tax plan would have applied to all businesses with more than 100 employees, generating an estimated $100 million a year toward violence reduction and youth jobs programs. But in the face of resistance, Johnson revised his plan to apply the tax only to companies with more than 200 employees, generating $82 million in annual revenue.
Monday morning, in a signal the mayor still couldn't get enough support for his head tax plan, his budget team told alders the latest plan would again apply to all companies with more than 100 employees. Violence prevention and youth jobs programs would get $82 million from that tax, with the remaining $18 million going toward small business grants.
Those changes weren't enough to win over a majority of alders.
Ald. Brendan Reilly (42nd), one of the mayor's most outspoken critics, argued that the head tax would only drive more businesses out of Chicago.
Reilly noted that [a recent analysis by Cook County Treasurer Maria Pappas' office](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf) determined the median property tax bill for homeowners in Chicago rose 16.7% in the past year, in large part because of a $134 million drop in property taxes collected from commercial properties.
"The bottom line is this head tax is only going to make things worse," Reilly said. "The shift is being put on the homeowners, because commercial properties are paying less, because they're valued less, because they're empty. That's why."
Early in the meeting, the panel's chair, Ald. Pat Dowell (3rd) moved to recess the meeting until next month, in an apparent effort to buy Johnson more time to shore up support for his budget, but the mayor's critics tabled her motion on a 24-7 vote. After more than an hour of debate, Budget Committee chairman Ald. Jason Ervin (28th) again sought to recess the meeting until December, but his motion failed in an 18-18 tie.
"Can we just get this vote done now?" Ald. Matt O'Shea (19th) said in the midst of Monday's debate. "This is a joke. They're calling people out there right now to delay this."
The mayor's budget team argued that, without the head tax, the only way to continue funding violence prevention programs and youth jobs would be service cuts, including reductions in the budgets for the Police and Fire departments.
Ervin, who has been one of the mayor's most vocal allies on his annual budget plans, "Ultimately, this body's just got to make some decisions. Are we going to reduce expenditures? We say efficiencies, but efficiencies at this point in time amount to service reductions. Are we going to make those service reductions?"
"Pick today whom you will serve, and the question is are we going to serve the residents of the city, or are we going to serve folks downtown? It's just that simple. Are we going to help Google out, or are we going to help grandma? Are we going to help the stock market or the supermarket?" he said.
The ultimate 25-10 defeat of the mayor's tax plan sends him back to the drawing board to craft a tax and spending plan that can get the support of 26 alders.
After the meeting, Johnson vowed to veto any budget that includes a property tax hike, increase in garbage collection fees, or reinstatement of a grocery tax.
"We are calling on City Council to work with us to pass a budget that does not include a property tax increase, or additional taxes on garbage or groceries," Johnson said. "It is incumbent upon all of us to work toward solutions that do not disproportionately burden poor and working people."
While defending his push for the head tax, Johnson signaled after Monday's Finance Committee meeting that he would be open to changes to his proposal. But the mayor said critics of his budget need to offer concrete alternatives, not simply reject his proposals.
"There's still only one clear choice here, for us, and that's to pass a budget that protects the interests of working people. There are obviously some members of City Council that are more interested in protecting corporations. They have not provided an alternative proposal to my budget, and that's why we're going to extend the time so that they have the time to offer up something," Johnson said. "There are not any magic third options between cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
It's the second year in a row a key provision of the mayor's budget plan has been voted down. Last year, alders [unanimously rejected his push for a $300 million property tax hike.](https://www.cbsnews.com/chicago/news/chicago-city-council-set-to-vote-down-mayor-johnsons-proposed-300-million-property-tax-hike/)
The City Council has until the end of the year to pass a balanced budget plan for 2026.
In addition to the head tax plan, the mayor's tax package includes increasing the city's tax on cloud computing and software licenses to 15%, raising $416 million in new revenue; a first-of-its-kind "social media amusement tax" that would raise an estimated $31 million by taxing social media companies 50 cents per active user over 100,000 in Chicago; and a new "yacht tax" that significantly increases the rate for boat mooring at Chicago's harbors to bring in an additional $4.1 million a year
Source Name [57]: Chicago Outlook Cut One Notch by S&P on Deficits, Pension Woes Full URL: https://www.bloomberg.com/news/articles/2025-11-06/chicago-outlook-cut-one-notch-by-s-p-on-deficits-pension-woes Scraped Date/Time: 2025-11-22 23:53:58
<span style="color: #0066cc; font-weight: bold;">Chicago had its credit outlook lowered one notch to negative by S&P Global Ratings on Wednesday after Mayor Brandon Johnson proposed making just a partial supplemental pension contribution next year as the city grapples with back-to-back deficits and weaker reserves.</span> [57]
"The revision was prompted by the city's ongoing, heavy reliance on one-time measures in the fiscal 2026 budget proposal, its significantly diminished balance sheet following consecutive years of large budget deficits, and the proposed reduction in the city's advance pension contribution to about half of what is required by the policy," S&P analysts Scott Nees, Blake Yocom and Jane Ridley wrote.
Source Name [58]: Mayor Brandon Johnson defends Chicago budget proposal: "We're not going backwards" Full URL: https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-chicago-budget-proposal/ Scraped Date/Time: 2025-11-22 23:58:00
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Mayor Brandon Johnson spoke with CBS News Chicago Monday morning to defend his[2026 budget proposal](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/<span style="color: #0066cc; font-weight: bold;">)</span> [58], which aims to close a fiscal hole of more than $1 billion.
The proposal notably does not raise property taxes, but instead relies on a combination of tax increment finance, or TIF, funding and new taxes focused on the ultra-wealthy and largest corporations.
The budget is proposes using $1 billion in TIF funds to balance the budget, including $500 million earmarked for Chicago Public Schools. Some budget analysts outside City Hall, like Joe Ferguson of the Civic Federation called it poor fiscal process.
Johnson said he's confident he can get his budget passed, and noted his proposal does not raise property taxes and eliminates the grocery tax in the city.
"Donald Trump has cut resources from Chicago," he said. "He's taken funding away from transportation, away from healthcare, away from education. This budget ensures we're protecting all Chicagoans."
Johnson said more than 60% of the budget is structural, and course corrects for ills his administration inherited. He said it allows the city to pay into pensions without laying people off and placing the burden on working people. Instead, he said, it asks the ultra-rich and large corporations to pay their fair share of taxes, something he said has never been done in Chicago before.
The proposed employee head tax would apply to large businesses with mor than 100 employees, levying a tax of $21 per employee per month. But Johnson said 97% of businesses in Chicago will not be impacted; instead it will apply to 3% of the largest corporations doing business in the city.
The money is earmarked for mental and behavioral health care services for the Chicago Polcie Department, domestic violence survivors services and investment in the Chicago Violence Intervention programs that Johnson said has led to the greatest decline of shootings and homicides in the city in more than 60 years.
"We're not going backwards when we make these investments," Johnson said. "It's not unreasonable to ask the ultra-rich to put more skin in the game."
He said he is not worried that businesses will stop coming to Chicago, pointing out that the city has seen the highest CTA ridership this year, record numbers of air travel through Chicago's airports, and the best summer for hotel revenue in years. The mayor said that shows exactly why businesses have lots of reasons to stay here and help invest in making the city safe and affordable.
Johnson [addressed a crowd of more than 250,000 people](https://www.cbsnews.com/chicago/news/no-kings-chicago-protest-grant-park-saturday/<span style="color: #0066cc; font-weight: bold;">)</span> [58] who gathered for the "No Kings" Chicago protest on Saturday in Grant Park, telling them Chicago will not submit to the "authoritarianism of the Trump Administration." And he said Monday he is not concerned that his rhetoric may cause President Trump to double down on his actions in Chicago.
"The biggest concern is the fact that this administration has cut services to all the vital institutions we rely on," he said. "The Trump cuts have caused tremendous harm."
He said the city will use every tool at its disposal, from [court cases to litigation](https://www.cbsnews.com/chicago/news/federal-judge-hearing-ice-border-patrol-agents-use-of-force-body-cameras-operation-midway-blitz/<span style="color: #0066cc; font-weight: bold;">)</span> [58], [executive orders](https://www.cbsnews.com/chicago/news/chicago-mayor-executive-order-immigration-enforcement/<span style="color: #0066cc; font-weight: bold;">)</span> [58] and more, to protect its citizens from the administration's actions. He also encouraged Chicagoans to take to the streets to protest, use their voices and their First Amendment rights, and demand the government work for the people.
He also said it's clear the administration is targeting the city's Black and brown populations, saying the administration "does not adhere to the constitutional values that the framers established."
Johnson noted every court case the city has filed against the administration has been decided in the city's favor and that he'd like to see the city again be able to cooperate with the federal government as it has done in the past. Chicago has previously coordinated between local law enforcement and the U.S. Bureau of Alcohol, Tobacco and Firearms to target illegal guns and get them off the streets.
"But \[Trump\] cut the budget by 30%," Johnson said of that partnership. "This isn't about immigration or safety. If it were, he wouldn't have taken money from the ATF and cut more than $800 million in funding for violence prevention."
Source Name [59]: City Council approves Mayor Johnson's "green social housing" plan to boost affordable housing Full URL: https://www.cbsnews.com/chicago/news/brandon-johnson-green-social-housing-approved-affordable-housing-city-council/ Scraped Date/Time: 2025-11-23 06:37:48
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson's plan to create a city-owned nonprofit developer to help confront Chicago's affordable housing crisis was approved by the City Council on Wednesday.</span> [59]
The council voted 30-18 to approve the mayor's so-called "green social housing plan," which would establish a nonprofit real estate development corporation under the Chicago Department of Housing.
That nonprofit, known as the Residential Investment Corp., would control a $135 million fund that would be used to provide low-cost loans to developers to build environmentally friendly buildings. Projects seeking $5 million or more in loans would require approval from the City Council.
Loan payments from developers would go back into the fund to finance future projects.
At least 30 percent of the units built in such projects would be set aside as affordable housing, while the city would maintain majority ownership stakes in the buildings. Officials said the goal of the program is to create 400 affordable units per year.
Buildings financed through the program would have to meet Green Building Standards aimed at decreasing carbon emissions, reducing utility bills, and improving indoor air quality.
The nonprofit would be overseen by a board of 15 directors, mostly appointed by the mayor, including seven experts in housing and real estate development; as well as the city's Housing Commissioner, Chief Financial Officer, and Planning and Development Commissioner. Their meetings would have to be open to the public, and their records would be subject to the Freedom of Information Act.
"I'm confident that Green Social Housing in Chicago will become a model for the nation," Johnson said in a statement after the ordinance was approved.
The proposal faced weeks of debate in committee before the vote, and underwent at least two revisions to satisfy concerns from labor unions who feared it could privatize existing city jobs.
The ordinance includes guarantees that the loan fund will use Department of Housing workers for any services similar to existing jobs within the department.
Several aldermen also had raised concerns about ethics oversight of the nonprofit, but the version of the ordinance approved on Wednesday guarantees the city's Inspector General and Board of Ethics have investigative jurisdiction over the new nonprofit.
Ald. Leni Manaa-Hoppenworth (48th), who sponsored the ordinance with the mayor, said it was important to pass the ordinance at a time when the Trump administration's budget proposals threaten funding for 2,500 units of affordable housing currently in the pipeline in Chicago.
"This will be another tool in our toolbox to help spur development in tough financial environments across the city, and not just for affluent communities, but this tool can help invest in neighborhoods where investors have been unwilling to," she said. "We know city government cannot do this alone, we know the private sector cannot do this alone, and we urgently need new solutions to fill the gaps in both the public and private sector."
The $135 million fund will be financed from a $1.25 billion borrowing plan approved by the City Council last year.
Source Name [60]: Finance Committee votes down Mayor Brandon Johnson's 2026 tax plan, putting budget in limbo Full URL: https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/ Scraped Date/Time: 2025-11-23 05:41:00
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Mayor Brandon Johnson's $16.6 billion spending plan for 2026 was dealt a major blow on Monday, as a key City Council committee voted down his plan for roughly $600 million in new taxes.
The Finance Committee's 25-10 vote against the mayor's tax package came only after repeated efforts to delay any vote were blocked.
The key sticking point for many critics of [Johnson's budget plan](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/<span style="color: #0066cc; font-weight: bold;">)</span> [60] was his push for a $21 per month per employee tax on large businesses, also known as a head tax.
The mayor's original head tax plan would have applied to all businesses with more than 100 employees, generating an estimated $100 million a year toward violence reduction and youth jobs programs. But in the face of resistance, Johnson revised his plan to apply the tax only to companies with more than 200 employees, generating $82 million in annual revenue.
Monday morning, in a signal the mayor still couldn't get enough support for his head tax plan, his budget team told alders the latest plan would again apply to all companies with more than 100 employees. Violence prevention and youth jobs programs would get $82 million from that tax, with the remaining $18 million going toward small business grants.
Those changes weren't enough to win over a majority of alders.
Ald. Brendan Reilly (42nd<span style="color: #0066cc; font-weight: bold;">)</span> [60], one of the mayor's most outspoken critics, argued that the head tax would only drive more businesses out of Chicago.
Reilly noted that [a recent analysis by Cook County Treasurer Maria Pappas' office](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf<span style="color: #0066cc; font-weight: bold;">)</span> [60] determined the median property tax bill for homeowners in Chicago rose 16.7% in the past year, in large part because of a $134 million drop in property taxes collected from commercial properties.
"The bottom line is this head tax is only going to make things worse," Reilly said. "The shift is being put on the homeowners, because commercial properties are paying less, because they're valued less, because they're empty. That's why."
Early in the meeting, the panel's chair, Ald. Pat Dowell (3rd<span style="color: #0066cc; font-weight: bold;">)</span> [60] moved to recess the meeting until next month, in an apparent effort to buy Johnson more time to shore up support for his budget, but the mayor's critics tabled her motion on a 24-7 vote. After more than an hour of debate, Budget Committee chairman Ald. Jason Ervin (28th<span style="color: #0066cc; font-weight: bold;">)</span> [60] again sought to recess the meeting until December, but his motion failed in an 18-18 tie.
"Can we just get this vote done now?" Ald. Matt O'Shea (19th<span style="color: #0066cc; font-weight: bold;">)</span> [60] said in the midst of Monday's debate. "This is a joke. They're calling people out there right now to delay this."
The mayor's budget team argued that, without the head tax, the only way to continue funding violence prevention programs and youth jobs would be service cuts, including reductions in the budgets for the Police and Fire departments.
Ervin, who has been one of the mayor's most vocal allies on his annual budget plans, "Ultimately, this body's just got to make some decisions. Are we going to reduce expenditures? We say efficiencies, but efficiencies at this point in time amount to service reductions. Are we going to make those service reductions?"
"Pick today whom you will serve, and the question is are we going to serve the residents of the city, or are we going to serve folks downtown? It's just that simple. Are we going to help Google out, or are we going to help grandma? Are we going to help the stock market or the supermarket?" he said.
The ultimate 25-10 defeat of the mayor's tax plan sends him back to the drawing board to craft a tax and spending plan that can get the support of 26 alders.
After the meeting, Johnson vowed to veto any budget that includes a property tax hike, increase in garbage collection fees, or reinstatement of a grocery tax.
"We are calling on City Council to work with us to pass a budget that does not include a property tax increase, or additional taxes on garbage or groceries," Johnson said. "It is incumbent upon all of us to work toward solutions that do not disproportionately burden poor and working people."
While defending his push for the head tax, Johnson signaled after Monday's Finance Committee meeting that he would be open to changes to his proposal. But the mayor said critics of his budget need to offer concrete alternatives, not simply reject his proposals.
"There's still only one clear choice here, for us, and that's to pass a budget that protects the interests of working people. There are obviously some members of City Council that are more interested in protecting corporations. They have not provided an alternative proposal to my budget, and that's why we're going to extend the time so that they have the time to offer up something," Johnson said. "There are not any magic third options between cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
It's the second year in a row a key provision of the mayor's budget plan has been voted down. Last year, alders [unanimously rejected his push for a $300 million property tax hike.](https://www.cbsnews.com/chicago/news/chicago-city-council-set-to-vote-down-mayor-johnsons-proposed-300-million-property-tax-hike/<span style="color: #0066cc; font-weight: bold;">)</span> [60]
The City Council has until the end of the year to pass a balanced budget plan for 2026.
In addition to the head tax plan, the mayor's tax package includes increasing the city's tax on cloud computing and software licenses to 15%, raising $416 million in new revenue; a first-of-its-kind "social media amusement tax" that would raise an estimated $31 million by taxing social media companies 50 cents per active user over 100,000 in Chicago; and a new "yacht tax" that significantly increases the rate for boat mooring at Chicago's harbors to bring in an additional $4.1 million a year
# In:
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- [**Mayor urges state to expedite transit funding after woman set on fire on Blue Line**\\
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Source Name [61]: What is a social media tax? Chicago mayor's proposed new tax explained Full URL: https://www.nbcchicago.com/news/local/chicago-politics/what-is-a-social-media-tax-chicago-mayors-proposed-new-tax-explained/3839999/ Scraped Date/Time: 2025-11-23 05:41:20
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<span style="color: #0066cc; font-weight: bold;"></span> [61]
[Brandon Johnson](https://www.nbcchicago.com/tag/brandon-johnson/)
# What is a social media tax? Chicago mayor's proposed new tax explained
## According to the mayor's office, the tax would be an extension of the city's amusement tax and would include "large tech companies that profit from data monetization and users' attention."
#### By Rose Schmidt and Alex Dvorak •Published October 17, 2025•Updated on October 17, 2025 at 2:46 pm
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Chicago Mayor Brandon Johnson has released his budget proposal, aiming to close a projected deficit of more than $1 billion.
Chicago Mayor Brandon Johnson [revealed his 2026 budget plan](https://www.nbcchicago.com/news/local/chicago-politics/brandon-johnson-unveils-chicago-budget-as-city-seeks-to-close-deficit/3839400/) Thursday and in it was a mention of a social media-based tax.
But what exactly is that and what would it mean if the budget is passed?
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The tax is not specifically on social media users, but rather on large social media companies like Meta, which owns Facebook and Instagram. Other companies like YouTube and TikTok would also be included.
According to the mayor's office, the tax would be an extension of the city's amusement tax and would include "large tech companies that profit from data monetization and users' attention."
The proposed Social Media Amusement & Responsibility Tax, or SMART, would charge big social media companies $0.50 per month per active user, exempting the first 100,000 users.
The tax would generate an estimated $31 million to fund expanded mental health services. Citing growing research about the negative affects of social media on mental health, the mayor's office said it would be the nation's first social media amusement tax, and city lawyers are prepared to defend against any potential legal challenges.
"For far too long, we have allowed social media companies to collect our data and sell it for profit. They've implemented more and more aggressive strategies to get Chicagoans addicted to their apps. As a result, we have seen significantly higher trends of depression, anxiety and mental illness – especially in our young people," Johnson said. "This has become a serious public health issue, one that was acknowledged by the Surgeon General. And just like we tax other addictive vices that are bad for our health like nicotine and tobacco, it is far past time we treat social media companies the same way. That's why we are putting forward this new tax – the first of its kind in the nation – that will tax social media companies to fund our network of city-run free mental health clinics and our mental health crisis response teams."
### Chicago Politics
[](https://www.nbcchicago.com/news/local/mayor-tries-to-save-head-tax-but-business-leaders-warn-of-adverse-effects/3854057/)
[chicago politics](https://www.nbcchicago.com/tag/chicago-politics/)
Nov 20
### [Mayor tries to save head tax, but business leaders warn of adverse effects](https://www.nbcchicago.com/news/local/mayor-tries-to-save-head-tax-but-business-leaders-warn-of-adverse-effects/3854057/)
[](https://www.nbcchicago.com/news/local/chicago-politics/giannoulias-teases-special-announcement-for-secretary-of-states-office/3852660/)
[Alexi Giannoulias](https://www.nbcchicago.com/tag/alexi-giannoulias/)
Nov 17
### [Watch Live: Giannoulias makes major announcement about something 'big' coming to Illinois](https://www.nbcchicago.com/news/local/chicago-politics/giannoulias-teases-special-announcement-for-secretary-of-states-office/3852660/)
It's not the only new tax proposed by the mayor for the budget.
The Johnson administration also wants to revive the corporate head tax on big companies and increase other taxes to plug the city's projected budget gap of more than a billion dollars next year.
The mayor unveiled his so-called Protecting Chicago Budget plan to the Chicago City Council Thursday morning. It is now subject to council approval.
Here's what else it include:
-a corporate head tax for the top 3 percent of businesses in Chicago.
-increased taxes on big tech companies.
-a tenfold increase in the vacant buildings fee.
-a new hemp tax.
-an increase in the boat-mooring rate at city harbors.
-a new online sports wagering tax.
-a restructuring of the ground transportation tax, or congestion surcharge.
The city is facing a projected gap of $1.12 billion next year and an even larger gap in 2027. Johnson, citing large cuts made by the Trump administration, is making good on his repeated promise to tax the "ultra-rich."
"This budget is really designed to challenge our larger corporations and those with means to put more skin in the game," Johnson told reporters. "It was increasingly clear that after the Trump cuts, that we have to push those with means to put more skin in the game."
Noticeably absent from his budget proposal is a property tax increase, likely given his failed attempt to raise property taxes the previous fiscal year -- after his original plan was unanimously rejected by Chicago City Council. The budget does not include an increase in the garbage collection fee as previously expected, and it removes the local grocery tax.
"There are a number of families who are reeling from Trump's cuts to everything, but in particular ... cuts to the SNAP program," Johnson said. "Even though 600 municipalities around the state have decided to collect (the local grocery tax), because the state of Illinois decided not to collect it, we didn't think at this time it was appropriate."
#### This article tagged under:
[Brandon Johnson](https://www.nbcchicago.com/tag/brandon-johnson/)
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Source Name [62]: Chicago's FY2026 Proposed Budget: A Stumbling Start Full URL: https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start Scraped Date/Time: 2025-11-22 22:09:42
<span style="color: #0066cc; font-weight: bold;"># Chicago's FY2026 Proposed Budget: A Stumbling Start</span> [62]
October 22, 2025
###### **By Grant McClintock and Daniel Vesecky**
_Update 11/6/2025: On November 5, S&P Global Ratings adjusted its outlook on Chicago's credit rating from stable to negative. Read the Civic Federation's_ [_statement on the adjustment here_](https://civicfed.org/blogs/statement-sp-credit-outlook-adjustment) _._
The introduction of Chicago Mayor Brandon Johnson's proposed FY2026 budget on October 16 provides Chicagoans with insight into how this administration proposes to address a $1.2 billion budget deficit and what they aim to prioritize in the coming year. Excluding grant funds, the proposed budget is 2.7% higher than the previous year, despite a significant deficit necessitating unprecedented revenue measures. The budget proposes closing the deficit by substantially increasing the cloud computing tax, levying a head tax on large corporations, reducing the City's pension contributions, and utilizing other one-time fixes, including declaring yet another record-breaking Tax Increment Finance district surplus.
In a recent [piece](https://www.civicfed.org/blog/setting-stage-fy2026-chicago-budget), the Civic Federation outlined the key fiscal issues facing Chicago in advance of the FY2026 budget release—noting the unprecedented position the City finds itself in and calling for a focus on long-term solutions and structural improvements to the budget. Unfortunately, the proposed budget is a transactional proposal that technically balances the budget with short-term fixes but fails to make the difficult decisions needed at the moment. Instead, the proposed budget continues a status quo widely understood as unsustainable and unacceptable, using some of the same disreputable bad practices of the past. The proposal balances the budget not through shared sacrifice between stakeholders, but with tax increases targeted at businesses, one-time revenue influxes, and borrowing to pay for operating costs. It largely ignores the work done by the Mayor's own [Financial Future Task Force](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf), as well as supplemental work conducted by the City's retained consultants, EY, to identify [opportunities for savings and efficiencies](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf).
Budget proponents are justifying the proposed revenue increases by arguing that the City needs to compensate for federal funding cuts by the Trump administration. But that narrative isn't supported by the facts. While the federal government has tried to rescind a variety of Chicago's grants, the City has parried those attempted cuts by [challenging them in court](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/emergency-grants-lawsuit.html#:~:text=CHICAGO%20%E2%80%93%20Today%2C%20the%20City%20of,dollar%20intended%20for%20public%20safety.%22). Although grants that have not yet been awarded may be at risk in future years, a first blush look reveals only $30-$40 million of existing federal grant funding to be on hold. The City has seen a significant decrease in overall federal funding, but this is due largely to the expiration of temporary American Rescue Plan Act (ARPA) funding from the pandemic era, which the City itself has been projecting and socializing for years, well before the present Administration in Washington won office.
<span style="color: #0066cc; font-weight: bold;">The Mayor's proposal is the opening gambit in what will be a longer process that requires deep and meaningful engagement by City Council to reach a budget that identifies long-term, sustainable solutions for the City's financial struggles.</span> [62]
##### Key Takeaways:
- **Closing the budget gap:** The proposed budget closes the projected FY2026 budget gap through new and increasing taxes on business, sending the wrong message to the business community at a time when the City desperately needs jobs and economic growth. Several proposed options are one-time in nature and revert to bad past practices, such as borrowing for operational costs. These actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit, which could trigger future downgrades by rating agencies.
- **Expenditure Drivers:** Overall expenditures will decrease in FY2026 only when including grant funds. The core budget actually proposes a year-over-year increase of 2.7%. This is driven primarily by increases in salaries and employee healthcare costs.
- **Addressing the Structural Deficit:** In order to reduce future borrowing costs, the City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies.
- **Relationship with Chicago Public Schools (CPS):** The record-high TIF surplus of $1 billion provides a $552 million\* windfall to CPS. This amount more than covers the school district's assumptions in its own FY2026 budget and leaves open the question of whether CPS will use the remaining TIF funds to reimburse the City for a portion of the annual contribution to the Municipal Employees' Pension Fund (MEABF). Whether CPS reimburses Chicago for these pension costs should be decided based on the District's financial situation mid-year. Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators, ideally with CPS taking on its portion of the MEABF pension liability, but with a funding source sufficient to cover the cost.
- **What the Civic Federation hopes to see:** As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as what was produced in the Chicago Financial Future Task Force's [report](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) and EY's financial and strategic reform options [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf). The final budget should not rely on one-time fixes or poor financial practices, but instead rely on recurring revenues and sustainable savings or cuts.
<span style="color: #0066cc; font-weight: bold;">#### How the City Proposes Closing the FY2026 Budget Deficit</span> [62]
<span style="color: #0066cc; font-weight: bold;">The City of Chicago (Chicago or the 'City') estimates a $1.19 billion budget gap in 2026. This is the largest budget gap in the City's history—rivaled only by the budget gap in 2021 during the COVID-19 pandemic before the federal government came through with funding relief for state and local governments through the American Rescue Plan Act (ARPA). With no remaining ARPA funds, the question of how the City will balance the budget is critical.</span> [62]
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">The Mayor proposes closing the $1.19 billion deficit through nearly $800 million in revenue increases and approximately $400 million in purported savings and efficiencies. The plan relies on revenue solutions that would deter business, along with several actions that are one-time in nature, and neither will address the City's structural problems, and could even trigger a rating downgrade.</span> [62]</span> [62]
##### **Revenue Proposals:**
The proposed revenue solutions rely heavily on taxing businesses—primarily through an increase to the personal property lease transaction tax from 11% to 14%, which is estimated to generate $333.2 million, and the reinstallation of a per-employee head tax at a rate of $21 per month per employee for businesses with more than 100 employees, which is estimated to generate $100 million. Both of these proposals would make Chicago an outlier compared to other U.S. cities and arguably send the wrong message to the business community, which already pays other high taxes through income and property taxes. The head tax, in particular, has been met with opposition from the [business community](https://civiccommittee.org/wp-content/uploads/2025/10/Jobs-Tax-Statement102225b_FINAL.pdf) and [Governor Pritzker](https://www.chicagobusiness.com/politics/pritzker-opposes-head-tax-bears-tax-breaks-econ-club).
<span style="color: #0066cc; font-weight: bold;">Although not included in this year's revenue estimates, the City also plans to implement a first-in-the-nation tax on social media companies applied through the existing amusement tax. The legality of this tax is highly questionable and will likely need to be resolved through the courts. Other proposals include a new online sports betting tax, an adjustment to the existing Ground Transportation tax on ridesharing, an increase to the boat mooring tax, and a new hemp tax. Together, the revenue proposals are expected to generate $433.2 million.</span> [62]
Another $157.6 million would be generated through the City declaring a record-high tax increment financing (TIF) surplus of $1 billion, of which approximately $232.6 million would go to the City's Corporate Fund. While sweeping TIF surplus funds has become common practice with increasingly lucrative payouts in recent years, increases in this revenue source are not sustainable at the current pace. TIF is also a revenue source that is not intended to fund general government operations but rather to fund economic development in blighted areas. The record FY2026 TIF surplus declaration indicates that the City is increasing its reliance on a revenue source that is projected to decrease in future years.
The City also plans to generate $166 million in bond financing by taking out short-term debt to cover operating costs, a move that will increase debt service costs in future years and is likely to attract negative attention from credit rating agencies. Borrowing for general operations, such as paying employee salaries, goes against best practice and would be a repeat of past mistakes that got the City into its current financial straits. The proposed budget justifies these moves by framing the debt as paying for [retroactive salary increases for firefighters](https://chicago.suntimes.com/city-hall/2025/10/16/chicago-firefighters-contract-185-million-back-pay-borrowing-city-council), as well as an unusually large amount of costs incurred by settlements of legal cases against the City, mostly involving police misconduct. The retroactive salary payments would be funded over three years, whereas the settlement payments would be funded over five. Borrowing for operating costs like salaries and settlements is precisely the sort of disfavored practice that is in part responsible for the fiscal straits we are in, and that the recent past Administration had phased out.
##### **Spending and Efficiency Proposals:**
<span style="color: #0066cc; font-weight: bold;">It is especially disappointing that this budget did not do the hard work of identifying real and lasting efficiencies. Rather than working to identify long-term cuts to programs or positions, the budget relies on efficiencies that are one-time in nature and will only leave the City in a similar or worse position in 2027.</span> [62]
The proposal calls for a little over $200 million in operational efficiencies and personnel savings, including a hiring freeze to save $50 million and smaller initiatives to improve procurement processes, modernize fleet management, recover the cost of special events, and consolidate real estate. While a hiring freeze is a reasonable way to tamp down spending, it is not a structural solution unless the positions are cut. They are not in any meaningful measure. Noticeably absent from the budget proposal is any mention of furloughs or unpaid days off. To generate structural savings from personnel would require work to determine which positions are needed and a request for labor unions to make a shared sacrifice.
Another key cost-saving measure identified is a $117.8 million reduction in the City's supplemental pension payment to the four Chicago pension funds. The City began making supplemental pension contributions beyond the amount required by state law in 2023, as a strategy to stop mounting growth in unfunded liabilities. This has helped prevent unfunded liabilities from growing faster than contributions, reduced future pension costs, and resulted in rating upgrades from credit rating agencies. Cutting the advance pension payment in half this year could be looked at unfavorably by the rating agencies and lower the City's credit rating. It is also a risky move given that a recent state [pension sweetener](https://legiscan.com/IL/bill/HB3657/2025) bill increased benefits for Chicago police and firefighters, adding to the City's unfunded liabilities and required pension contributions beginning in 2027.
##### Key Takeaways:
- The proposed budget closes the gap primarily through new and increasing taxes on business, sending the wrong message at a time when the City desperately needs jobs and economic growth.
- Several options proposed are one-time in nature, and some, such as borrowing for operational costs, revert to bad past practices.
- Taken together, these actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit and could trigger future downgrades by rating agencies.
- The Mayor's proposal only includes a small number of the budget options that were included in the Chicago Financial Future Task Force report, a group convened by the Mayor himself.
#### Drivers of Spending Increases
<span style="color: #0066cc; font-weight: bold;">The FY2026 budget proposal decreases from the prior year by 3.5% across all funds, including grants, due to the wind-down of federal COVID-19 grant funds. But when excluding grant funds, the budget, totaling $12.7 billion, actually increases by $330.4 million, or 2.7%, from FY2025.</span> [62]
There are several drivers of budget growth between the adopted FY2025 and proposed FY2026 budgets. Chief among them is employee benefits, which grew by 42%, or $319.4 million. Another major source of growth is public safety. The City's overall public safety budget grew by $267.6 million from 2025 to 2026. $143.3 million in growth is attributable to an 8% increase in the Chicago Police Department's budget, reflecting increased salary costs and higher estimates of overtime for 2026, but not a significant increase in staffing. The other significant surge in public safety spending is within the Chicago Fire Department, which will see a $124.3 million increase in spending, or 20%. This increase is due to the ratification of a collective bargaining agreement for firefighters, which stalled in negotiations for several years and will now require the City to provide back pay for retroactive raises. The City also expects significant increases in infrastructure services spending—a 7% increase of $121.9 million. The Department of Water Management and Department of Aviation will see 8% and 11% increases, respectively, while the Department of Transportation and Department of Streets and Sanitation see little change to their budgets.
The increases in FY2026 spending are partially offset by a reduction in the City's pension contributions. In 2025, the City contributed $2.91 billion to its pension funds, but in 2026, it plans to contribute only $2.76 billion. This reduction is due to the City's decision to cut in half its advance pension payment.
While personnel costs overall are increasing in FY2026 due to increasing salaries and healthcare benefits, the total number of personnel is proposed to decline by 446 from FY2025. These eliminated positions are not due to layoffs, but rather the closing of vacant positions. The City has a total of [4,022 vacant positions](https://data.cityofchicago.org/Administration-Finance/Workforce-Vacancies/9v3e-pcjs/about_data). The departments with the largest proposed position reductions are the Chicago Department of Public Health (CDPH) (282), the Department of Transportation (95), the Department of Streets and Sanitation (52), and the Chicago Public Library (69). Preliminary review suggests that a significant percentage of the CDPH reductions may be COVID/ARPA-specific grant-funded positions. Moreover, these departments' expenditure levels will remain roughly constant between FY2025 and FY2026. The budget proposes personnel growth in some departments, including the Department of Aviation due to the O'Hare Airport Expansion program (53 positions) and the Department of Environment (65 positions).
##### Key Takeaways:
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">- Total non-grant spending is proposed to _increase_ by 2.7% from FY2025. Spending increases are driven by growing salaries, employee benefits, increased spending on CPD and infrastructure services, and a new Fire Department contract.
- The City's overall pension contribution is proposed to decrease by about $150 million due to a reduction in the advance pension payment.
- Overall budgeted positions are decreasing by 446, driven by the Departments of Public Health, Transportation, and Streets and Sanitation.</span> [62]</span> [62]
#### Addressing the Structural Deficit
For decades, the City's expenditures have outpaced growth in revenues, leading to annual budget gaps in almost every year in recent memory. This is what is referred to as a "structural deficit." In the past, City leaders have made poor financial decisions to close these budget gaps, such as borrowing to pay for operating expenses, refinancing debt to push off costs to the future ("scoop and toss"), spending down rainy day reserves, and failing to raise ongoing revenues commensurate with spending increases. This year's FY2026 budget proposal reverts to the same kinds of mistakes made by City leadership in the past, which have contributed to the financial situation the City finds itself in today.
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">In a series of credit downgrades following the passage of last year's budget, rating agencies made it clear that the City needed to address its structural budget deficit and reduce the reliance on one-time revenues to fund ongoing expenses to avoid the risk of further downgrades. Unfortunately, many of the agencies' concerns remain unaddressed. Pensions and debt service payments still account for approximately 40% of the operating budget, and recent pension enhancements for police officers and firefighters threaten to bring two of the City's funds into insolvency.</span> [62]</span> [62]
<span style="color: #0066cc; font-weight: bold;">Sustainable solutions to the City's decades-long structural budget deficit must involve a combination of efficiencies and revenues. However, the budget proposal does not make a meaningful effort to address spending. While the budget across all funds, including grants, will decrease by 3.5% from FY2025, much of that is attributed to the decline of federal grant funding. Excluding grant funds, spending is actually up 2.7%.</span> [62]
The [Financial Future Task Force](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) report laid out 89 revenue and efficiency options for consideration by the Mayor and City Council, supplemented by additional work by consulting firm EY. While a handful of these options made it into the Mayor's budget proposal, such as controlling overtime costs and modernizing fleet and procurement management, many ideas were left off the table. Ideas to generate sustainable revenue to match cost inflation, such as indexing taxes and fees to inflation and recouping costs through fees commensurate with the cost of service delivery, warrant further consideration. The proposed budget also barely scrapes the surface of possible efficiencies. EY conducted an in-depth [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf) at the call of the Mayor's Office of Management and Budget, identifying 100 opportunities for cost savings. As City Council pursues budget deliberations in the coming weeks, it should work with the administration to implement these efficiency recommendations, as well as consider revenue options that align with good budgeting principles.
##### Key Takeaways:
- As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as those produced in the Chicago Financial Future Task Force's report and EY's financial and strategic reform options report.
- The final budget should not rely on one-time fixes or poor financial practices and instead should rely on recurring revenues and sustainable savings or cuts.
- The City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies in order to reduce future borrowing costs.
#### Relationship with Chicago Public Schools
During and following the passage of the Chicago Public Schools' (CPS or the 'District') FY2026 budget over the summer, there was a question over how much TIF surplus funding the City of Chicago would declare and whether it would be enough to cover CPS' projection. The proposed TIF surplus of $1 billion provides CPS with $552 million\*—more than enough to cover the $379 million revenue assumption.
With CPS receiving TIF funding in excess of its projection, observers have reopened the possibility of a $175 million reimbursement from CPS to the City for the Municipal Employees Annuity and Benefit Fund (MEABF). For many years, the City has met a mandatory legal obligation to cover this payment, which applies to non-teacher CPS employees. Amid a surge in federal pandemic funding, Mayor Lightfoot negotiated an intergovernmental agreement with CPS to secure payment reimbursements beginning in 2021, which continued and grew through 2023. However, CPS did not provide the City with the reimbursement in FY2024 or FY2025 as the District dealt with its own budget crisis. The City's FY2025 budget assumed continued reimbursement for this payment, totaling $175 million. CPS' ultimate refusal to reimburse the City amid its own budget deficit set off a lengthy debate that resulted in a year-end budget deficit for the City. The City's FY2026 budget proposal does not rely on reimbursement from CPS.
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">However, the size of the projected TIF surplus in FY2026 would provide CPS with an extra $140 million. The CPS budget indicated that the District would make the $175 million MEABF payment contingent on additional revenue beyond budgeted assumptions in the form of additional FY2026 TIF surplus revenue, other local resources, or additional state revenue. Whether CPS reimburses the City is a decision that should depend on the financial state of the District and the Board's assessment of its stability through the remainder of the 2026 fiscal year.</span> [62]</span> [62]
<span style="color: #0066cc; font-weight: bold;">Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators. Ideally, CPS would take on its share of pension costs related to the MEABF, but should also be given authority to establish a revenue source sufficient to cover the cost of the payment.</span> [62]
<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Regardless of whether CPS makes this pension payment, the size of this year's TIF sweep is unsustainable. The City and CPS should both anticipate weaning off this revenue source, as it is likely to decline as more TIF districts close in the coming years.</span> [62]</span> [62]
##### Key Takeaways:
- The question of whether the City should continue to cover the full MEABF payment warrants negotiation and fixing through cooperative dialogue between CPS, the City, and Springfield. However, absent a change in State law, it remains the City that is still legally [required](https://civicfed.org/blog/how-chicago-public-schools-pensions-work-explainer) to cover this cost.
- The City and CPS should work with the State of Illinois to resolve the legal and financial entanglements between the two governments, and if legal responsibility is assigned to CPS to pay the employer contributions for its MEABF-covered employees, the District should be afforded commensurate, dedicated revenue authority to cover the obligation.
- Until the entanglement issue is legally reset, the City should not assume reimbursement, nor should CPS, which itself is in a fiscally precarious situation, make any such payment.
#### Conclusion
In a budget that could have marked the beginning of a more responsible era of fiscal stewardship, the FY2026 proposed budget avoids making necessary, difficult decisions. Although technically balanced, this budget is heavily reliant on one-time revenues, reduces supplemental pension funding, and all but ensures a similar conversation will be taking place next year.
This budget proposal also leaves out several options for right-sizing the City's finances—many of which were included in the reports commissioned by the Mayor's Office of Management and Budget. As City Council works to finalize the budget in the coming weeks, alders should engage with the Mayor's administration and consider every measure necessary to begin to correct Chicago's course. The Civic Federation looks forward to working with all stakeholders to achieve a responsible final budget plan.
_\*The total TIF amount allocated to the Chicago Public Schools is based on best estimates from the City of Chicago budget proposal. This was most recently updated as of 10/30/2025._
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Source Name [63]: Chicago Mayor Brandon Johnson proposes 2026 city budget with half a billion dollars for public schools Full URL: https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/ Scraped Date/Time: 2025-11-22 22:09:42
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<span style="color: #0066cc; font-weight: bold;"># Chicago's 2026 city budget proposal includes $552 million for CPS</span> [63]
By
[Becky Vevea](https://www.chalkbeat.org/authors/becky-vevea)
\| October 16, 2025, 4:00pm EDT
[Republish](https://www.chalkbeat.org/republish/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/)
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<span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Chicago Mayor Brandon Johnson's 2026 budget proposal for the city includes a $1 billion TIF surplus, half of which would go to Chicago Public Schools. (Laura McDermott for Chalkbeat)</span> [63]</span> [63]</span> [63]
_Sign up for_ [_Chalkbeat Chicago's free daily newsletter_](https://ckbe.at/4fmTEo8 "https://ckbe.at/4fmTEo8") _to keep up with the latest news on Chicago Public Schools._
Chicago Mayor Brandon Johnson proposed a$16.6 billion city budget Thursday that allocates $552.4 million to Chicago Public Schools, significantly more than the $379 million the school board anticipated when it passed [its own $10.2 billion budget](https://www.chalkbeat.org/chicago/2025/08/29/cps-budget-does-not-include-pension-payment-loan-and-more-debt/) in late August.
The additional money would allow CPS to [avoid midyear cuts](https://www.chalkbeat.org/chicago/2025/08/12/chicago-public-schools-to-propose-budget-plan-without-pension-payment/) and fill gaps created by the [Trump administration canceling millions in magnet school grants](https://www.chalkbeat.org/chicago/2025/09/24/cps-loses-magnet-school-money-over-dispute-with-trump-administration-over-dei-initiatives/). It could also allow the school board to approve [a pension reimbursement payment to the city](https://www.chalkbeat.org/chicago/2025/03/12/city-hall-wantsschool-staff-pension-payment-from-cps/), as outlined in the school district's budget plan, but the city budget overview documents say that is not assumed in its 2026 plan.
"These funds will ensure that we are protecting our young people from the Trump administration's attempts to dismantle and privatize our public education system, that we are protecting special education teachers, restoring funding for our Black Student Success Plan, and making sure our lowest-paid workers receive their pensions," <span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Johnson said in a speech to the City Council Thursday.</span> [63]</span> [63]
<span style="color: #0066cc; font-weight: bold;">The city's 2026 budget, which will need to be approved by at least 26 of 50 aldermen on the City Council before the end of the calendar year, declares a surplus of funds from special taxing districts, known as TIFs, aimed at spurring development in blighted areas.</span> [63]
Before the meeting, Johnson outlined highlights of his budget alongside supporters and allies, including school board members Michilla Blaise, a mayoral appointee, and Jitu Brown an elected member who is an ally of the mayor, both of whom represent the city's west side, and Chicago Teachers Union president Stacy Davis Gates.
He said this year's budget was "written long before I took office" and represents the work of "generations of organizers," drawing on [his own background and experience as a CTU organizer](https://www.chalkbeat.org/chicago/2023/3/14/23640368/chicago-mayor-election-runoff-public-schools-brandon-johnson-teachers-union-paul-vallas/) before he became mayor.
"Back then, it was about trying to protect and save one school even if it took a hunger strike," Johnson said. "Now, this budget is about saving our entire education system."
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Blaise spoke in support of the budget and said a coalition of board members who voted down CPS' spending plan in August because it was "balanced on paper, but not reality" pushed the mayor's administration to deliver more money for CPS.
"This commitment prevents any midyear cuts and allows us to maintain stability in our classrooms," Blaise said.
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<span style="color: #0066cc; font-weight: bold;">She also applauded the mayor for declaring a record TIF surplus to help CPS fill an $8 million hole created by the Trump administration's decision to cut some magnet school grants over the district's commitment to improve Black student achievement and protect the rights of LGBTQ students.</span> [63]
"This agreement is essentially Trump-proofing our budget," Blaise said.
There are [more than 100 TIF districts](https://igchicago.org/information-portal/data-dashboards/chicago-tif-districts-map-fund-balances/) across Chicago collecting more than $1 billion in property tax revenue each year. Any amount of money not committed to development projects in those areas can be declared as "surplus" by the mayor and City Council. By law, CPS gets 52% of any TIF surplus and the city gets 24% with the remaining sent to other taxing bodies.
Johnson's budget proposal does not rely on CPS making a pension reimbursement payment to the city, but school board members may still decide to do so. The district's $10.2 billion budget included a statement that if additional revenue came through, the school board would consider reimbursing the city to cover a portion of the pensions of non-teaching staff covered by the city plan.
That pension reimbursement has been a source of conflict between the school board and city hall in recent years. Faced with ballooning payments and given that about half of the fund's beneficiaries are CPS employees or retirees, former Mayor Lori Lightfoot's administration implemented an [intergovernmental agreement](https://projects.chalkbeat.org/2025/uploads/2020_IGA_CPS-City_MEABF.pdf) with her appointed school board in 2020 to have CPS reimburse the city for an increasing portion of the required annual payment.
The cost-sharing irked the Chicago Teachers Union at the time, which lambasted Lightfoot for burdening the school system with the city's financial obligations. But when CTU organizer and former teacher Johnson became mayor, he continued to push CPS for the reimbursement.
The Board of Education has not made a pension reimbursement payment to the city since early 2024 when it [sent $175 million to cover part of the cost of the 2023 payment](https://projects.chalkbeat.org/2025/uploads/2023_IGA_CPS-City_MEABF.pdf). Blaise told Chalkbeat Wednesday the school board may discuss a new intergovernmental agreement at its next meeting on Oct. 23.
Blaise said approving such an agreement would help alleviate concerns from alderpeople who want to "see something in writing" about how CPS will use the additional TIF surplus dollars.
<span style="color: #0066cc; font-weight: bold;">In addition to the record TIF surplus, the Chicago city budget includes $7 million for increasing the pay of more than 3,000 early childhood workers at 86 programs run through the city's Department of Family and Support Services and additional dollars for summer youth employment programs.</span> [63]
Johnson's budget also includes a new, first-of-its-kind tax on social media companies. He noted the link between social media use and higher rates of depression, anxiety, and mental illness among young people, especially. "Just like we've taxed other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way," <span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">he said.</span> [63]</span> [63]
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<span style="color: #0066cc; font-weight: bold;">The tax would charge social media companies 50 cents per active user over 100,000 in Chicago and is estimated to generate $31 million to support mental health services, Johnson's office said.</span> [63]
_Reema Amin contributed reporting._
_Becky Vevea is the bureau chief for Chalkbeat Chicago. Contact Becky at_ [_bvevea@chalkbeat.org_](mailto:bvevea@chalkbeat.org) _._
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Source Name [64]: Which Cuts Didn't Make the Cut - Efficiency Opportunities for Chicago's FY2026 Budget Full URL: https://civicfed.org/blog/which-cuts-didnt-make-cut-efficiency-opportunities-chicagos-fy2026-budget Scraped Date/Time: 2025-11-23 05:58:48
# Which Cuts Didn't Make the Cut - Efficiency Opportunities for Chicago's FY2026 Budget
November 07, 2025
###### **by Daniel Vesecky**
_**Note:** This summary was prepared in advance of the November 10, 2025, hearing to serve as an easy reference for City Council members, media, advocates, and Chicago residents._
With the City of Chicago (Chicago or the 'City') facing a nearly [$1.2 billion deficit](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Forecast%20Book.pdf) heading into the 2026 fiscal year, potential spending reductions are and should be a top priority for stakeholders in the budget process.
In May 2025, the City commissioned the consulting group EY – formerly known as Ernst & Young – to create a [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf) on possible efficiencies the City could implement in future budgets. The City released that report (the EY "report") on October 15, 2025, after the administration issued its proposed FY2026 budget. In addition, in the spring of this year, the Mayor issued an [executive order](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/april/Mayor-Johnson-Signs-Budget-Review-Executive-Order.html), creating a [working group,](https://chicagofinancialfuture.org/) called the Chicago Financial Future Task Force (CFFTF), composed of business, finance, civic, policy, and labor organizations and experts, to provide recommendations on cost-saving measures and potential revenues. EY was assigned to support the CFFTF efforts and was principally responsible for generating the resulting report that the group issued on September 15, 2025. The EY report is more extensive than the Financial Future Task Force's report, identifying a broader range of efficiency options and estimated cost savings. Only a few CFFTF recommendations are not included in the full EY study and are not discussed here, as the CFFTF report provides few details on their potential savings.
In aggregate, the two reports present hundreds of millions of potential efficiencies and savings that the City might immediately implement. Many require few to no layoffs or service reductions. Others require additional input from operating departments and the development of implementation plans.
The City's decision to hold back the release of the EY report has hindered the City Council's ability to analyze and pose questions regarding the potential efficiencies during the budget hearings conducted to date. This piece aims to help City Council members use the EY report to its fullest potential in advance of a Council hearing scheduled for November 10 on the report itself.
Below, we summarize some of the biggest items on the list.
### Fleet Services
The EY report found startling inefficiencies in the City's [vehicle fleet](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=15). The average City vehicle was driven only 7,000 miles per year, less than a third of the rate of vehicle usage in Chicago's peer cities. The City owns one vehicle for every 17 full-time equivalent (FTE) positions, far in excess of the industry equivalent of one per 65 FTE. The report contained recommendations for establishing metrics for fleet utilization, optimizing maintenance of City vehicles, and accelerating resale of old vehicles. Although some of the reforms recommended by EY will take time to implement, the report identified several that are immediately doable, including improving the City's warranty recovery capabilities, optimizing the Department of Fleet and Facility Management's operating model, implementing multi-shift and seasonal flex labor, analyzing mechanic labor distribution, and accelerating the vehicle disposition process. The report estimated between $16 million and $31 million in cost savings from optimizing the City's vehicle fleet management.
The proposed budget only seeks to generate $3 million in savings by accelerating the sale of [end-of-life vehicles](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23).
### Real Estate
Chicago [owns and leases](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=25) over 500 properties and over 10,000 vacant parcels of land. EY found that between the City's ten largest office buildings, the amount of workspace exceeds the number of employees by 33%, indicating substantial room for downsizing. In addition to notable one-time revenue, the City could garner operational and maintenance savings by selling three or more of these large buildings.
The report also points out that the City makes far less on licenses for businesses on the Riverwalk than peer cities do for comparable high-traffic locations. The City earned $2.5 million in license fees from riverwalk businesses in 2024, and aligning this policy with peers could generate an estimated $13 million over ten years.
Finally, the report recommends that the City accelerate its efforts to sell industrial buildings and land parcels in neighborhoods with high levels of development. These sales would generate significant one-time revenue for the City and would have the added impact of increasing property tax revenue in the long term, as private holders of the land would be required to pay taxes, whereas the City is not.
Overall, the report identifies $157-$202 million in real estate savings over the course of ten years, with approximately $30 million generated in the first year. The [proposed budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23) aims to generate $12 million in savings by accelerating vacant land sales and exiting two office building leases.
### Fees and Fines
The EY report itemized a variety of [fees and fines](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=34) across many City departments and compared them to benchmark fees in peer cities. The total potential revenue from raising existing fees and fines varies widely based on which fees are raised. Some of the largest revenue options included storage, towing, driveway permits, business licenses, and canopy permits, all of which are below peer averages and currently generate above $4 million each in annual revenue. The report also raises the idea of drastically increasing the vehicle sticker tax, which currently generates $119 million per year and is higher than most peer cities. However, that revenue only covers one-third of road maintenance expenses, and raising the fee would help to offset these costs. Raising the Vehicle Sticker Tax alone could generate over $100 million in revenue. In addition, the report projects $20-$74 million in annual revenue through increases to other fees and fines.
The EY report excludes a handful of additional fees identified by the [Financial Future](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf#page=51) task force, including an increase in the garbage fee, which could raise nearly $300 million if matched to service delivery costs. The CFFTF working group report also recommends indexing most fees and fines to inflation so that the City Council does not regularly have to raise dozens of fees that no longer cover the cost of providing services or fines that have fallen behind peer averages.
The 2026 proposed budget seeks to raise only one fee – the [vacant building mortgage renewal fee](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=22). The proposal argues that this will disincentivize landlords who hold long-term vacant properties and will incentivize development. The fee is projected to raise an additional $400,000 in2026.
### Employee Benefits
Chicago's [employee benefits](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=42) expenses are far higher than those of its peer cities, Cook County, and the State of Illinois. EY identified $80-$103 million in savings the City could realize from moving itself to align its benefit structure with its peers. The City could save $33 million by increasing employee medical contributions, and $10 million by raising copays and other out-of-pocket costs for employees. The City could also save $10 million by instituting a formal return-to-work program, recouping costs from employees who take extended leaves of absence.
In addition, the City could realize significant savings through more efficient healthcare plan design and negotiations with Pharmacy Benefit Managers (PBMs). The report estimates $15-$24 million in annual savings from refining PBM contracts, commissioning a claims and fee integrity study, refining carrier networks, and expanding the City's use of Centers of Excellence for cancer care.
Many of these proposals will require negotiation with organized labor. The proposed budget contains none of these ideas, and the Mayor's Office has shown no inclination to open negotiations with local public unions.
### Procurement
EY found a wide variety of [stunning inefficiencies](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=47) in Chicago's procurement systems. The City's procurement is highly decentralized, with 49% of total spending not managed by the Department of Procurement Services (DPS). This leads to frequent duplication of contracts across departments and a large amount of non-contract spending, which increases costs and risks. Additionally, the City concentrates 80% of its spending with only 182 vendors, while the remaining 20% is handled by a massive roster of 5,312 vendors. This misallocation of resources leads the City to miss opportunities for cheaper bulk purchasing and often leads to small contracts with unfavorable payment terms. Additionally, decentralized procurement prevents the City from leveraging its power as a large purchaser to negotiate better deals with vendors. EY also found that DPS did not provide sufficiently detailed policies to prevent fraud, waste, or abuse, and that DPS and the Department of Finance (DOF) have unclear roles in vendor assessment and management.
Because of these findings, the report recommends implementing Category Management (CM), a strategic approach to procurement that would centralize spending, planning, forecasting, vendor management, performance management, and other strategic roles with DPS. Category Management would eliminate the duplication issue and allow DPS to fully manage all procurement spending, leveraging the City's size to secure the most advantageous contracts. EY estimates $55-$111 million in savings based on the 2024 budget, although the report cautions that a complete shift to CM will likely take three to five years.
Although the proposed budget does not mention procurement reform, a budget presentation provided by the Office of the Mayor indicates that the City will aim to save $10 million through procurement modernization in FY2026. However, no further details are available.
### Organizational Analysis
The [organizational structure](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=55) of Chicago's bureaucracy is top-heavy and redundant. Many back-office functions, such as payroll and HR, are spread across each department instead of being centralized within a single administrative body, leading to inefficiencies and duplication of effort. Recruitment and onboarding processes are prolonged, causing service delays and loss of high-talent potential recruits. Additionally, Chicago has thousands of vacant positions, many of which the EY report deemed non-critical. Consolidating overlapping divisions, labor pools, and back-office support is estimated to save $67-$157 million annually. Streamlining hiring could generate $25 million in revenue by quickly filling revenue-generating positions.
Additionally, many departments are poorly structured, with unusually high numbers of managerial positions, with some departments averaging as few as three direct reports per manager, rather than the leading practice of six to eight. A handful of departments, such as DOF, have a high number of layers, leading to a distance between strategic objectives and implementation. EY projects $37 million in savings from optimizing managerial spans of control.
The proposed budget does not include any implementation of the organizational recommendations outlined in the report. Instead, it saves $50 million by implementing a [hiring freeze](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23) and promises to conduct an organizational analysis in 2026, with the goal of generating savings in 2027. It is worth noting that although this $50 million is billed as an efficiency, it is not a structural saving. Chicago has leaned on hiring freezes over several of the last budget cycles. Each freeze reduces the City's ability to fill vacant positions and attract top talent, and although freezes provide short-term budget patches, they can result in many positions going unfilled for years. This creates inefficiency in government operations, potentially leading to higher costs in future years.
### Service Optimization
EY identified significant inefficiencies in the structure of Chicago's [public safety apparatus](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=71). Though many of the reforms needed would take multiple years to implement, there are options for up to $41 million in first-year savings and over $1.4 billion in savings over ten years.
First and foremost, the report recommended civilianizing sworn positions at the Chicago Fire Department (CFD) and the Chicago Police Department (CPD). Both departments have significantly lower civilianization rates than their peers, resulting in an environment where sworn officers are assigned to desk jobs that non-officers could perform. Meanwhile, slow hiring creates understaffing problems for deployed officers, leading to overspending on overtime. Together, the two departments could save approximately $7.5 million in the first year of civilianization and over $150 million over ten years. Additional savings of $84 million over ten years could be generated by replacing overtime CPD officers on traffic management and parking enforcement duty with Office of Emergency Management and Communications (OEMC) employees.
<span style="color: #0066cc; font-weight: bold;">The report also recommends implementing new fees for CFD and CPD responses to certain situations, including false alarms, inspections, and hazmat usage. It also recommends raising existing fees for DUIs, pyrotechnics, and sprinkler review to cover the cost of service delivery. Although many of these fees may not be implemented immediately, they could raise a total of over $200 million over ten years.</span> [64]
Restructuring the fire department could yield $650 million in savings over the next ten years. This would require reducing the minimum manning requirements for fire engines from 5 to 4, in line with many peer cities, as well as converting some of the City's 80 advanced life support ambulances to basic life support. Reducing manning requirements would require negotiation with the firefighters' union, which refused pressure for this reform during its last contract negotiations, which ended recently.
<span style="color: #0066cc; font-weight: bold;">Restructuring the police department could generate over $100 million in savings over ten years. This would include disbanding the CPD mounted division and implementing an early warning system to detect problematic officers, thereby reducing future settlement costs.</span> [64]
The report identified a grab-bag of smaller savings opportunities as well, including utilizing chatbots for the City's 311 call center, diverting 911 calls to telehealth, adding part-time 911 dispatchers to reduce overtime, adding cameras to CFD and CPD vehicles to increase accountability, and accelerating hiring of timekeepers through the Office of Public Safety Administration. Helpfully, the report provides a one-page [tear sheet](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=76) for each proposed reform.
The proposed 2026 budget commits to proceeding with [phase II of civilianization](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23) within CPD, but does not provide projected savings from civilianization in 2026. The budget projects $100 million in civilianization savings over ten years. The budget also aims to implement overtime controls on CPD, capping overtime expenditures at $200 million and requiring approval from the City Council to allow CPD to spend past that cap. None of the other public safety service optimization proposals advanced by EY are included in the budget.
[**Download this summary report**](https://civicfed.org/sites/default/files/2025-11/FY2026%20Efficiencies%20Report%20with%20Chart_0.pdf)
[**Download the efficiency options chart**](https://civicfed.org/sites/default/files/2025-11/Efficiencies%20Chart%202026_1.pdf)
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Mayor Brandon Johnson arrives during a City Council meeting on Nov. 14, 2025. Credit: Colin Boyle/Block Club Chicago
<span style="color: #0066cc; font-weight: bold;">CITY HALL — The City Council's finance committee on Monday voted against Mayor Brandon Johnson's latest 2026 budget proposal, throwing what some alderpeople have characterized as an already-strained negotiations process into further uncertainty.</span> [65]
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"This Budget Is A Disaster" — The Committee That Told The Mayor 'No'
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17:26
"This Budget Is A Disaster" — The Committee That Told The Mayor 'No'
After a few hours of debate over a proposed corporate head tax as well as borrowing plans and other issues, the finance committee voted decisively against the [budget's revenue ordinance](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/2c33d42a-7a70-4325-93a0-527c189577fa.pdf).
The final vote was 25 alderpeople against, 10 in support.
"This budget is a disaster," Ald. Gilbert Villegas (36th) said during a press conference after the vote alongside 14 of his colleagues who also opposed the mayor's spending plan. "Let's go back to the drawing board."
A major sticking point has been over the proposed corporate head tax, which progressive groups and some City Council members argue is an opportunity to force wealthy corporations to support public safety programs. But the idea has drawn opposition from Gov. JB Pritzker and business groups who have labeled it a job killer.
Johnson originally proposed that the $21 per person, per month tax should apply to companies with more than 100 employees in Chicago. Last week, the mayor's budget team [raised that threshold to 200 people](https://blockclubchicago.org/2025/11/14/mayors-head-tax-plan-tweaked-but-2026-budget-still-faces-uphill-battle-ahead-of-vote/) in a bid to win more support from the City Council.
<span style="color: #0066cc; font-weight: bold;">On Monday, however, the threshold had returned to 100 employees, which would bring in $100 million annually for a dedicated community safety fund, according to a presentation by budget officials.</span> [65]
One major change embedded in the latest proposal is that $18 million of that fund would now go toward a grant program for smaller businesses impacted by the head tax if they meet certain criteria.
Still, the changes and last minute lobbying by the mayor's office over the weekend wasn't enough to win over skeptical alderpeople by Monday's finance committee meeting.
Finance chair Ald. Pat Dowell (3rd) began the meeting by attempting to recess it to Dec. 2, but committee members voted to deny that motion and force a debate and vote on the revenue ordinance.
Johnson, who held a press conference immediately after the committee vote, said he's calling for a "recess" until early December so alderpeople can propose additional revenue ideas. But the mayor stood by his head tax proposal, and said he would veto any budget with a property tax hike, a [grocery tax](https://blockclubchicago.org/2025/06/04/chicagos-grocery-tax-was-slated-to-end-in-2026-now-mayor-wants-to-keep-it-going/) or an increase in city garbage fees.
"We are asking the largest corporations in our city to pay a little bit more," <span style="color: #0066cc; font-weight: bold;">Johnson said.</span> [65] "We stand behind the progressive revenue that we have put forward because this moment calls for those with means to put more skin in the game."
Annette Guzman, budget director, and Mayor Brandon Johnson answer questions after signing an executive order which launches a citywide review and budget working group amid Chicago's budget woes at City Hall on April 21, 2025. Credit: Colin Boyle/Block Club Chicago
Fifteen of the alderpeople who voted "no" — many of them longtime opponents of Johnson — said at the press conference a head tax would cause companies to move to the suburbs or out of state, or cause corporations to possibly lay people off. Chicago previously had a $4 per person head tax that was eliminated over a decade ago by then-Mayor Rahm Emanuel.
Several alderpeople also criticized the budget process and communication from the mayor's office.
"We cannot afford to rush into a decision and to not look at every possible angle," Ald. Nicole Lee (11th) said. "We owe it to the residents of the city of Chicago to make sure that we've looked for every efficiency possible under every couch cushion, for every penny before we come and look for other things."
Ald. Scott Waguespack (32nd) denied Johnson's frequent argument that alderpeople have not contributed revenue ideas as possible replacements for the head tax. He pointed to a handful of recommendations from a recent report commissioned by the city from accounting firm Ernst and Young, which he believes could bring in approximately $30-$60 million in efficiencies.
"I think a lot of our colleagues have been saying the same thing, 'here's another solution, here's another solution,'" Waguespack said. "Until they start accepting the fact that there are solutions on the table, we have to stand up and push back against this budget."
Asked about those ideas Monday afternoon, Johnson said his administration already plans to implement some of them this year or in the future, although he has concerns about others, such as reducing 311 call center hours.
"$30 to $60 million, I mean, that's not a significant shift, quite frankly, in the ultimate goal, which is not only to balance this budget, but to make sure that we are investing in community safety," <span style="color: #0066cc; font-weight: bold;">Johnson said.</span> [65]
Ald. Feliz Cardona Jr. (31st), Ald. Peter Chico (10th), Ald. Anthony Beale (9th), Ald. Matthew O'Shea (19th) and Ald. Brendan Reilly (42nd) talk during a City Council meeting on Nov. 14, 2025. Credit: Colin Boyle/Block Club Chicago
Ald. Andre Vasquez (40th) also voted against the budget proposal on Monday. The North Side alderperson said his opposition was primarily over concerns with the budget's borrowing plans, which includes more than $280 million to cover police misconduct cases, [WTTW News reported](https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits).
In general, Vasquez said he's supportive of a corporate head tax.
"Those are very real concerns, and we want to make sure that whatever we do going forward doesn't settle that kind of debt and deficit on future generations," he said. "What we know is that the business community has to put some skin in the game."
Johnson's few yes votes on Monday came from allies like Ald. Anthony Quezada (35th), who during the hearing listed off information about Google's profits and [a recent donation the company made](https://www.bbc.com/news/articles/c891yxgj44ko) to President Donald Trump's new White House ballroom.
"They can pay a corporate head tax," he said.
Ervin, Johnson's budget chair who also voted yes, defended his support for the latest budget package by using his oft-cited quote about making hard decisions: "Everybody wants to get to heaven, but nobody wants to die."
"The question is, are we going to serve the residents of the city? Or are we going to serve folks Downtown? It's just that simple," Ervin added. "You're going to help Google out or are we going to help grandma? We going to help the stock market, or the supermarket?"
Ald. Jason Ervin (28th) during a City Council meeting on Nov. 14, 2025. Credit: Colin Boyle/Block Club Chicago
Monday's proceedings were often spirited and sometimes bizarre.
Before the vote, Ald. Timmy Knudsen (43rd) approached reporters to blast both the head tax and budget negotiations process. He said he had heard from other alderpeople and organized labor leaders that the mayor's office was incorrectly telling his colleagues he supports the head tax proposal — a "direct lie," Knudsen said.
"They're just trying to politick their way to a budget, and I think that is to the detriment of the Chicago people, and it's no surprise," he said. "This body does not trust them, and things like this are pretty direct evidence as to why."
Asked about Knudsen's claims later on Monday, Johnson said the Lincoln Park alderperson "was not being truthful."
And around 12:15 p.m. Monday, Ald. Raymond Lopez (15th) asked for a point of order to call out Johnson's senior aide Jason Lee, whom he alleged was lobbying Ald. Nick Sposato (38th) on the council floor, in contradiction with the body's rules.
Dowell cut him off and said "you don't know what he was saying."
Lee then quickly walked away but, before leaving the Council chamber, blew a two-handed kiss in Lopez' direction.
The City Council must legally pass a budget by the end of the year. Right now, it's not clear when that will happen, but Johnson said he remains open to negotiations.
"I get the storyline. People want the drama," he said. "The drama is the fact that we have people who are starving in our city, who don't even feel safe going to get groceries because they're afraid of what Donald Trump is doing. Let's stay focused here."
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Breast Cancer Diagnoses Are Up — But More Women Are Surviving Than Ever
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# An out-of-state campaign just entered Chicago's budget battle
##### By [Tiffany Walden](https://thetriibe.com/author/triibeadmin/ "Posts by Tiffany Walden")
Published on November 21, 2025
#### Paid Instagram ad created by Black Voters Matter Fund targets Ald. Andre Vasquez (40th Ward) amid Chicago's 2026 budget battle. Graphic by Ash Lane for The TRiiBE®
Political attack ads are flowing as Mayor Brandon Johnson and the Chicago City Council race against the clock to pass a 2026 budget before the Dec. 31 deadline, with particular focus on the mayor's push to [reinstate a corporate head tax](https://thetriibe.com/2025/11/emanuel-killed-it-johnson-wants-it-back-chicagos-corporate-head-tax-debate-is-about-more-than-money/).
One ad, paid for by the Atlanta-based Black Voters Matter Fund (BVMF), caused a stir this week for what some saw as a characterization of Ald. Andre Vasquez as [a puppet](https://www.instagram.com/reel/DRNq9a4DjDd/?igsh=dmd2cTBqbDA0emtj) of President Donald J. Trump, Elon Musk and their rich pals. Vasquez leads the City Council's Progressive Caucus.
"Alderman Andre Vasquez is protecting billionaires and big corporations over Black + Brown working-class Chicago in the middle of Trump's cuts," the political ad reads. "Tell him to stand with Mayor Brandon Johnson and working-class Chicago." The ad encourages residents to text the word "BUDGET" to a five-digit number, which yields more information from the mayor's Protecting Chicago Budget and links out to an Action Now page where residents [can send scripted letters](https://actionnetwork.org/letters/tell-your-alderman-support-chicagos-2026-budget-for-a-safer-fairer-city/) to their alders.
But here's where things heat up: In [a fiery video](https://www.instagram.com/reel/DRNyU_IDv2e/?igsh=d3VraTU5dWw5Zzlv) posted Tuesday on Instagram, Vasquez accused Johnson's administration of being behind the attack.
"Let's keep it real because I got people hitting me up, \[saying\], 'I wonder who put out that ad?'" <span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">Vasquez told his Instagram audience, accusing the mayor of coming for his progressive bona fides. Vasquez voted 10-25 with the Chicago Finance Committee on Monday to reject the revenue-generating options in Johnson's budget proposal, which includes the head tax. Vasquez said he did so because of a plan to borrow money to cover police-misconduct spending.</span> [66]</span> [66]
"Literally, there's only one group that's gonna put out that ad. The Fifth Floor. The Johnson administration," Vasquez continued.
In so many words, the mayor's office said it wasn't them.
"Independent groups across the political spectrum are spending money to push councilmembers to support their agenda during this budget cycle," reads an emailed statement from the mayor's office. "We cannot speak to the motivations behind the groups that are buying ads both in support of the mayor's proposed budget and against it."
In a Wednesday phone interview with _The TRiiBE_, Vasquez said he learned about the ad about 30 minutes after a meeting he had with the Johnson administration about the budget. He thought the ad was funny because it looks like an AI-generated "No Limit album cover from the 2000s."
"The city needs us to come together and figure it out," Vasquez said. "So let's not take shots at each other, and understand that if you're going to take shots at somebody, be prepared for responses. We're adults. Some people know I'm a battle rapper. … probably not the one you want to bring it to."
Afterward, his friend created a tricked-out version of the graphic with the words "Andre Vasquez The Budget Don. 40th Wardd \[sic\] Mob Platinum Puppet Master." Vasquez [posted the meme to his Instagram page](https://www.instagram.com/p/DRPdZI-jrt2/?igsh=YTA1YTFjbXdodjN3) to the soundtrack of "Make 'Em Say Uhh," a late-1990s platinum rap track by No Limit Records founder Master P.
Screengrab of a recreation of the original paid Instagram ad created by Black Voters Matter Fund targeting Ald. Andre Vasquez (40th Ward) amid Chicago's 2026 budget battle. Graphic by Ash Lane for The TRiiBE®
"It's pretty clear where it might be coming from, and so it may not be directly from \[the administration\]," Vasquez said, "but it's clearly someone aligned and there had to be some level of conversation to know, like, 'Hey, they voted a certain way so go send these out.'"
On Thursday, _The TRiiBE_ spoke with Black Voters Matter Fund co-founder Cliff Albright. He said his team has had no communication with the mayor nor his administration.
"It's interesting that the alderman would think the mayor's office would be the only entity interested in seeing this kind of budget be passed. We've got a long track record of dealing with issues like this, not as much in Chicago because it's not one of the core states where we do our work, but this whole issue of the ways governments at all levels — city, state and federal — often carry themselves on the backs of Black communities," Albright said.
Instagram
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[andrefor40th](https://www.instagram.com/andrefor40th/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
Original audio
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andrefor40th\\\\
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2,386 posts · 7K followers\\\\
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Who put out that ad against me? watch the video and share, let's stop the okey doke and keep it all the way 100!
[View all 42 comments](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
[Add a comment...](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083) [_Instagram_](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
According to its website, BVMF aims to increase power in marginalized and predominantly Black communities across the U.S. Among its five core beliefs is supporting individuals and organizations striving to obtain social justice.
The point of the Atlanta group's local ad campaign is to help residents connect the dots between the ways billionaires influence federal policy and the trickle-down effect on local government, Albright explained.
"Part of the reason we're doing this campaign," Albright said, "is because we don't want this to be a conversation between Black Voters Matter and Ald. Vasquez or any single alderman. We want it to be a public conversation. That's why what's asked for in the ads is for folks to get more information, to reach out to the alders and to even ask the question — which one of our other ads are about to do. If not the head tax, then what?"
BVMF was founded in 2016 by Albright and LaTosha Brown. A related organization BVM Capacity Building Institute is a 501(c)(3) that lists as board members #MeToo Movement leader Tarana Burke; Baye Adofo-Wilson, former Newark, New Jersey, deputy mayor; and Jackson, Mississippi, activist Rukia Lumumba, daughter of civil rights activist and former Jackson Mayor [Chokwe Lumumba](https://www.vice.com/en/article/free-the-land-v23n2/) and sister to [Chokwe Antar Lumumba](https://mississippitoday.org/2025/06/30/lumumba-on-final-day-as-jackson-mayor/), who also served as that city's mayor. _The 19th\*_ called BVMF a "get-out-the-vote powerhouse" in its [2021 profile](https://19thnews.org/2021/01/black-voters-matter-latosha-brown-georgia-runoff-elections/) of co-founder Brown.
"It's pretty interesting that a group based out of Atlanta is paying attention to Chicago alderpeople and how they vote in a finance committee hearing, which is a pretty niche meeting to be watching," Vasquez said.
Albright told _The TRiiBE_ he learned about Chicago's budget season and Vasquez's position on Johnson's proposed corporate head tax through a [_Chicago Sun-Times_ article.](https://chicago.suntimes.com/city-hall/2025/11/13/mayor-brandon-johnson-concessions-proposed-2026-budget-corporate-head-tax-cloud-computing-city-council) Published on Nov. 13, the _Sun-Times_ reported that Vasquez is "still searching for head tax alternatives." He also said, according to the article, it may be a better idea "to restore the automatic escalator locking in annual property tax increases at the rate of inflation" and possibly doubling the garbage collection fee.
"They're pushing the corporate head tax as the end-all-be-all, and I don't know if that's the right answer or not," Vasquez told _Sun-Times_ political reporter Fran Spielman.
Albright said they're learning about the budget season through publicly available press conferences and media reports.
"And to be honest, we really, like a lot of the nation, started paying more attention to Chicago and the mayor because of the battle over ICE and the National Guard. That's how I first found out about _The TRiiBE_," Albright said. "And so it was really in the aftermath of following that, and continuing to follow that, that we come across this budget question, which fits into one of the priority areas that we routinely deal with."
It was not their intention to cause confusion or disruption, Albright said.
Screengrab of paid Instagram ad created by Black Voters Matter Fund targets Ald. Andre Vasquez (40th Ward) amid Chicago's 2026 budget battle. Graphic by Ash Lane for The TRiiBE®
"To do this type of campaign, which inevitably involves mentioning specific alders, we don't want to harm relationships that some local comrades and they have," Albright said. "Sometimes it's easier for somebody who doesn't have to navigate all of that to ask some of the questions that, quite honestly, need to be asked."
Parts of Johnson's 2026 budget proposal are [a call from community organizers](https://thetriibe.com/2025/10/as-trump-cuts-vital-services-chicago-organizers-push-city-council-to-pass-a-progressive-city-budget-for-fy-2026/) with the People's Unity Platform, who are pushing for more progressive forms of taxation. They rallied behind the proposal through their Babies Before Billionaires campaign over the summer. Johnson also [stood with labor and community organizers](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/) in October during a pep rally before unveiling his budget proposal.
"Just in terms of us as an organization, look, we want to learn from community," Albright said. "If folks have issues with the way we've gone about this, we want to be in discussion."
Albright shared that his Atlanta-based organization is willing to pull the graphic of Vasquez out of their political text campaign with his commitment to the corporate head tax: "We're already making some changes to some of the graphics and videos we'll be doing. So we don't view ourselves as above debate."
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Source Name [67]: Chicago's 2026 city budget proposal includes $552 million for CPS Full URL: https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/ Scraped Date/Time: 2025-11-22 22:42:42
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<span style="color: #0066cc; font-weight: bold;"># Chicago's 2026 city budget proposal includes $552 million for CPS</span> [67]
By
[Becky Vevea](https://www.chalkbeat.org/authors/becky-vevea)
| October 16, 2025, 4:00pm EDT
[Republish](https://www.chalkbeat.org/republish/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/)
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Chicago Mayor Brandon Johnson's 2026 budget proposal for the city includes a $1 billion TIF surplus, half of which would go to Chicago Public Schools. (Laura McDermott for Chalkbeat)
_Sign up for_ [_Chalkbeat Chicago's free daily newsletter_](https://ckbe.at/4fmTEo8 "https://ckbe.at/4fmTEo8") _to keep up with the latest news on Chicago Public Schools._
Chicago Mayor Brandon Johnson proposed a$16.6 billion city budget Thursday that allocates $552.4 million to Chicago Public Schools, significantly more than the $379 million the school board anticipated when it passed [its own $10.2 billion budget](https://www.chalkbeat.org/chicago/2025/08/29/cps-budget-does-not-include-pension-payment-loan-and-more-debt/) in late August.
The additional money would allow CPS to [avoid midyear cuts](https://www.chalkbeat.org/chicago/2025/08/12/chicago-public-schools-to-propose-budget-plan-without-pension-payment/) and fill gaps created by the [Trump administration canceling millions in magnet school grants](https://www.chalkbeat.org/chicago/2025/09/24/cps-loses-magnet-school-money-over-dispute-with-trump-administration-over-dei-initiatives/). It could also allow the school board to approve [a pension reimbursement payment to the city](https://www.chalkbeat.org/chicago/2025/03/12/city-hall-wantsschool-staff-pension-payment-from-cps/), as outlined in the school district's budget plan, but the city budget overview documents say that is not assumed in its 2026 plan.
"These funds will ensure that we are protecting our young people from the Trump administration's attempts to dismantle and privatize our public education system, that we are protecting special education teachers, restoring funding for our Black Student Success Plan, and making sure our lowest-paid workers receive their pensions," Johnson said in a speech to the City Council Thursday.
The city's 2026 budget, which will need to be approved by at least 26 of 50 aldermen on the City Council before the end of the calendar year, declares a surplus of funds from special taxing districts, known as TIFs, aimed at spurring development in blighted areas.
Before the meeting, Johnson outlined highlights of his budget alongside supporters and allies, including school board members Michilla Blaise, a mayoral appointee, and Jitu Brown an elected member who is an ally of the mayor, both of whom represent the city's west side, and Chicago Teachers Union president Stacy Davis Gates.
He said this year's budget was "written long before I took office" and represents the work of "generations of organizers," drawing on [his own background and experience as a CTU organizer](https://www.chalkbeat.org/chicago/2023/3/14/23640368/chicago-mayor-election-runoff-public-schools-brandon-johnson-teachers-union-paul-vallas/) before he became mayor.
"Back then, it was about trying to protect and save one school even if it took a hunger strike," Johnson said. "Now, this budget is about saving our entire education system."
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Blaise spoke in support of the budget and said a coalition of board members who voted down CPS' spending plan in August because it was "balanced on paper, but not reality" pushed the mayor's administration to deliver more money for CPS.
"This commitment prevents any midyear cuts and allows us to maintain stability in our classrooms," Blaise said.
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She also applauded the mayor for declaring a record TIF surplus to help CPS fill an $8 million hole created by the Trump administration's decision to cut some magnet school grants over the district's commitment to improve Black student achievement and protect the rights of LGBTQ students.
"This agreement is essentially Trump-proofing our budget," Blaise said.
There are [more than 100 TIF districts](https://igchicago.org/information-portal/data-dashboards/chicago-tif-districts-map-fund-balances/) across Chicago collecting more than $1 billion in property tax revenue each year. Any amount of money not committed to development projects in those areas can be declared as "surplus" by the mayor and City Council. By law, CPS gets 52% of any TIF surplus and the city gets 24% with the remaining sent to other taxing bodies.
Johnson's budget proposal does not rely on CPS making a pension reimbursement payment to the city, but school board members may still decide to do so. The district's $10.2 billion budget included a statement that if additional revenue came through, the school board would consider reimbursing the city to cover a portion of the pensions of non-teaching staff covered by the city plan.
That pension reimbursement has been a source of conflict between the school board and city hall in recent years. Faced with ballooning payments and given that about half of the fund's beneficiaries are CPS employees or retirees, former Mayor Lori Lightfoot's administration implemented an [intergovernmental agreement](https://projects.chalkbeat.org/2025/uploads/2020_IGA_CPS-City_MEABF.pdf) with her appointed school board in 2020 to have CPS reimburse the city for an increasing portion of the required annual payment.
The cost-sharing irked the Chicago Teachers Union at the time, which lambasted Lightfoot for burdening the school system with the city's financial obligations. But when CTU organizer and former teacher Johnson became mayor, he continued to push CPS for the reimbursement.
The Board of Education has not made a pension reimbursement payment to the city since early 2024 when it [sent $175 million to cover part of the cost of the 2023 payment](https://projects.chalkbeat.org/2025/uploads/2023_IGA_CPS-City_MEABF.pdf). Blaise told Chalkbeat Wednesday the school board may discuss a new intergovernmental agreement at its next meeting on Oct. 23.
Blaise said approving such an agreement would help alleviate concerns from alderpeople who want to "see something in writing" about how CPS will use the additional TIF surplus dollars.
In addition to the record TIF surplus, the Chicago city budget includes $7 million for increasing the pay of more than 3,000 early childhood workers at 86 programs run through the city's Department of Family and Support Services and additional dollars for summer youth employment programs.
Johnson's budget also includes a new, first-of-its-kind tax on social media companies. He noted the link between social media use and higher rates of depression, anxiety, and mental illness among young people, especially. "Just like we've taxed other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way," he said.
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The tax would charge social media companies 50 cents per active user over 100,000 in Chicago and is estimated to generate $31 million to support mental health services, Johnson's office said.
_Reema Amin contributed reporting._
_Becky Vevea is the bureau chief for Chalkbeat Chicago. Contact Becky at_ [_bvevea@chalkbeat.org_](mailto:bvevea@chalkbeat.org) _._
Source Name [68]: Chicago mayor commits $7 million to raises for early childhood education workers Full URL: https://www.chalkbeat.org/chicago/2025/05/13/mayor-announces-pay-raises-for-early-childhood-education-workers/ Scraped Date/Time: 2025-11-22 22:42:42
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<span style="color: #0066cc; font-weight: bold;"># Chicago mayor commits $7 million to raises for early childhood education workers</span> [68]
By
[Reema Amin](https://www.chalkbeat.org/authors/reema-amin)
| May 13, 2025, 3:21pm EDT
[Republish](https://www.chalkbeat.org/republish/chicago/2025/05/13/mayor-announces-pay-raises-for-early-childhood-education-workers/)
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A preschool child makes art with her teacher. Mayor Brandon Johnson announced the city will spend $7 million on increasing salaries for early childhood education workers. (Getty Images)
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Mayor Brandon Johnson announced Tuesday that Chicago will spend $7 million on increasing salaries for 3,000 early childhood workers, as part of an effort to pay them closer to what their counterparts at K-12 schools earn.
The money will boost wages by 5-10% for a range of staffers whose jobs are funded by state money, including teachers and teacher assistants at dozens of community-based early childhood providers. These providers are part of the city's early learning system overseen by the Department of Family and Support Services, or DFSS, city officials said.
In addition, workers at Head Start, a federally funded program that serves kids from low-income households, will get a one-time 2% bonus, according to a city press release.
These programs are separate from Chicago Public Schools' preschool programs, which provide half- and full-day programming for 3- and 4-year-olds at schools.
Many early childhood education providers [have struggled to fund their programs](https://www.chalkbeat.org/chicago/2023/10/6/23906843/chicago-child-care-workers-federal-covid-relief-funds/) and stave off a teacher shortage that they say stems from low wages — especially since federal relief from the pandemic ended. Officials say low pay and high stress are contributing to the teacher shortage in the early childhood field.
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Full-time early childhood teachers in Chicago earned roughly $36,000 a year, according to a [2023 state survey](https://www.dhs.state.il.us/OneNetLibrary/27897/documents/EC/SalaryStaffingSurvey/FY23SalaryStaffingSurvey_A11Y.pdf). A [2022 study](https://www.chalkbeat.org/chicago/2022/11/22/23474102/chicago-early-childhood-education-illinois-wages-disparities-benefits/#:~:text=The%20study%20found%20that:%20*%20Entry%2Dlevel%20Head,receive%20better%20benefits%20and%20bonuses%20for%20workers) found that Chicago's early childhood educators are paid on average $18,000 less than elementary school teachers, even if they have the same degree.
Johnson noted that almost 20 years ago, as a new CPS teacher with a master's degree, he earned close to $45,000.
"It's time we have salaries that are showing up for the people that are showing up for the families," Johnson said during a press conference at the North Lawndale YMCA, which is one of at least 86 early childhood providers where workers will receive wage increases.
DFSS uses state and federal funds to provide early childhood education to about 13,000 kids, according to the city press release. The city's $7 million contribution towards pay raises comes from the city budget's corporate fund, which is used for basic city services.
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Johnson's announcement came after SEIU Healthcare, a union that represents thousands of early childhood workers in Chicago, pushed the city to address pay parity for their members. The union held town halls and testified to the City Council, according to Brynn Seibert, vice president at SEIU Healthcare Illinois.
Seibert said the next step is to push elected officials to ensure the wage increase "becomes permanent." The wage increases, which will be implemented by child care agencies, will go into effect after July 1 for one fiscal year. Johnson said he plans to whip up support in the City Council for future raises.
Tahiti Hamer, an early childhood teacher at North Lawndale YMCA and an SEIU union leader, said she's struggled to financially support her two children with her salary for the past 25 years. While she's stuck it out, others have left the profession, leaving teachers like her working through their prep time and even struggling to eat lunch or use the bathroom.
"For kids, it means the family's faces they're used to seeing every day are gone and there are fewer staff to support them," Hamer said, "and it is hard for parents, too, who are entrusting us with their children every day … who face a huge burden when classrooms close because there are not enough staff to keep them open."
_Reema Amin is a reporter covering Chicago Public Schools. Contact Reema at ramin@chalkbeat.org._
Source Name [69]: Chicago's FY2026 Proposed Budget: A Stumbling Start Full URL: https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start Scraped Date/Time: 2025-11-22 22:42:42
<span style="color: #0066cc; font-weight: bold;"># Chicago's FY2026 Proposed Budget: A Stumbling Start</span> [69]
October 22, 2025
###### **By Grant McClintock and Daniel Vesecky**
_Update 11/6/2025: On November 5, S&P Global Ratings adjusted its outlook on Chicago's credit rating from stable to negative. Read the Civic Federation's_ [_statement on the adjustment here_](https://civicfed.org/blogs/statement-sp-credit-outlook-adjustment) _._
The introduction of Chicago Mayor Brandon Johnson's proposed FY2026 budget on October 16 provides Chicagoans with insight into how this administration proposes to address a $1.2 billion budget deficit and what they aim to prioritize in the coming year. Excluding grant funds, the proposed budget is 2.7% higher than the previous year, despite a significant deficit necessitating unprecedented revenue measures. The budget proposes closing the deficit by substantially increasing the cloud computing tax, levying a head tax on large corporations, reducing the City's pension contributions, and utilizing other one-time fixes, including declaring yet another record-breaking Tax Increment Finance district surplus.
In a recent [piece](https://www.civicfed.org/blog/setting-stage-fy2026-chicago-budget), the Civic Federation outlined the key fiscal issues facing Chicago in advance of the FY2026 budget release—noting the unprecedented position the City finds itself in and calling for a focus on long-term solutions and structural improvements to the budget. Unfortunately, the proposed budget is a transactional proposal that technically balances the budget with short-term fixes but fails to make the difficult decisions needed at the moment. Instead, the proposed budget continues a status quo widely understood as unsustainable and unacceptable, using some of the same disreputable bad practices of the past. The proposal balances the budget not through shared sacrifice between stakeholders, but with tax increases targeted at businesses, one-time revenue influxes, and borrowing to pay for operating costs. It largely ignores the work done by the Mayor's own [Financial Future Task Force](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf), as well as supplemental work conducted by the City's retained consultants, EY, to identify [opportunities for savings and efficiencies](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf).
Budget proponents are justifying the proposed revenue increases by arguing that the City needs to compensate for federal funding cuts by the Trump administration. But that narrative isn't supported by the facts. While the federal government has tried to rescind a variety of Chicago's grants, the City has parried those attempted cuts by [challenging them in court](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/emergency-grants-lawsuit.html#:~:text=CHICAGO%20%E2%80%93%20Today%2C%20the%20City%20of,dollar%20intended%20for%20public%20safety.%22). Although grants that have not yet been awarded may be at risk in future years, a first blush look reveals only $30-$40 million of existing federal grant funding to be on hold. The City has seen a significant decrease in overall federal funding, but this is due largely to the expiration of temporary American Rescue Plan Act (ARPA) funding from the pandemic era, which the City itself has been projecting and socializing for years, well before the present Administration in Washington won office.
The Mayor's proposal is the opening gambit in what will be a longer process that requires deep and meaningful engagement by City Council to reach a budget that identifies long-term, sustainable solutions for the City's financial struggles.
##### Key Takeaways:
- **Closing the budget gap:** The proposed budget closes the projected FY2026 budget gap through new and increasing taxes on business, sending the wrong message to the business community at a time when the City desperately needs jobs and economic growth. Several proposed options are one-time in nature and revert to bad past practices, such as borrowing for operational costs. These actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit, which could trigger future downgrades by rating agencies.
- **Expenditure Drivers:** Overall expenditures will decrease in FY2026 only when including grant funds. The core budget actually proposes a year-over-year increase of 2.7%. This is driven primarily by increases in salaries and employee healthcare costs.
- **Addressing the Structural Deficit:** In order to reduce future borrowing costs, the City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies.
- **Relationship with Chicago Public Schools (CPS):** The record-high TIF surplus of $1 billion provides a $552 million\* windfall to CPS. This amount more than covers the school district's assumptions in its own FY2026 budget and leaves open the question of whether CPS will use the remaining TIF funds to reimburse the City for a portion of the annual contribution to the Municipal Employees' Pension Fund (MEABF). Whether CPS reimburses Chicago for these pension costs should be decided based on the District's financial situation mid-year. Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators, ideally with CPS taking on its portion of the MEABF pension liability, but with a funding source sufficient to cover the cost.
- **What the Civic Federation hopes to see:** As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as what was produced in the Chicago Financial Future Task Force's [report](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) and EY's financial and strategic reform options [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf). The final budget should not rely on one-time fixes or poor financial practices, but instead rely on recurring revenues and sustainable savings or cuts.
#### How the City Proposes Closing the FY2026 Budget Deficit
The City of Chicago (Chicago or the 'City') estimates a $1.19 billion budget gap in 2026. This is the largest budget gap in the City's history—rivaled only by the budget gap in 2021 during the COVID-19 pandemic before the federal government came through with funding relief for state and local governments through the American Rescue Plan Act (ARPA). With no remaining ARPA funds, the question of how the City will balance the budget is critical.
The Mayor proposes closing the $1.19 billion deficit through nearly $800 million in revenue increases and approximately $400 million in purported savings and efficiencies. The plan relies on revenue solutions that would deter business, along with several actions that are one-time in nature, and neither will address the City's structural problems, and could even trigger a rating downgrade.
##### **Revenue Proposals:**
The proposed revenue solutions rely heavily on taxing businesses—primarily through an increase to the personal property lease transaction tax from 11% to 14%, which is estimated to generate $333.2 million, and the reinstallation of a per-employee head tax at a rate of $21 per month per employee for businesses with more than 100 employees, which is estimated to generate $100 million. Both of these proposals would make Chicago an outlier compared to other U.S. cities and arguably send the wrong message to the business community, which already pays other high taxes through income and property taxes. The head tax, in particular, has been met with opposition from the [business community](https://civiccommittee.org/wp-content/uploads/2025/10/Jobs-Tax-Statement102225b_FINAL.pdf) and [Governor Pritzker](https://www.chicagobusiness.com/politics/pritzker-opposes-head-tax-bears-tax-breaks-econ-club).
Although not included in this year's revenue estimates, the City also plans to implement a first-in-the-nation tax on social media companies applied through the existing amusement tax. The legality of this tax is highly questionable and will likely need to be resolved through the courts. Other proposals include a new online sports betting tax, an adjustment to the existing Ground Transportation tax on ridesharing, an increase to the boat mooring tax, and a new hemp tax. Together, the revenue proposals are expected to generate $433.2 million.
Another $157.6 million would be generated through the City declaring a record-high tax increment financing (TIF) surplus of $1 billion, of which approximately $232.6 million would go to the City's Corporate Fund. While sweeping TIF surplus funds has become common practice with increasingly lucrative payouts in recent years, increases in this revenue source are not sustainable at the current pace. TIF is also a revenue source that is not intended to fund general government operations but rather to fund economic development in blighted areas. The record FY2026 TIF surplus declaration indicates that the City is increasing its reliance on a revenue source that is projected to decrease in future years.
The City also plans to generate $166 million in bond financing by taking out short-term debt to cover operating costs, a move that will increase debt service costs in future years and is likely to attract negative attention from credit rating agencies. Borrowing for general operations, such as paying employee salaries, goes against best practice and would be a repeat of past mistakes that got the City into its current financial straits. The proposed budget justifies these moves by framing the debt as paying for [retroactive salary increases for firefighters](https://chicago.suntimes.com/city-hall/2025/10/16/chicago-firefighters-contract-185-million-back-pay-borrowing-city-council), as well as an unusually large amount of costs incurred by settlements of legal cases against the City, mostly involving police misconduct. The retroactive salary payments would be funded over three years, whereas the settlement payments would be funded over five. Borrowing for operating costs like salaries and settlements is precisely the sort of disfavored practice that is in part responsible for the fiscal straits we are in, and that the recent past Administration had phased out.
##### **Spending and Efficiency Proposals:**
It is especially disappointing that this budget did not do the hard work of identifying real and lasting efficiencies. Rather than working to identify long-term cuts to programs or positions, the budget relies on efficiencies that are one-time in nature and will only leave the City in a similar or worse position in 2027.
The proposal calls for a little over $200 million in operational efficiencies and personnel savings, including a hiring freeze to save $50 million and smaller initiatives to improve procurement processes, modernize fleet management, recover the cost of special events, and consolidate real estate. While a hiring freeze is a reasonable way to tamp down spending, it is not a structural solution unless the positions are cut. They are not in any meaningful measure. Noticeably absent from the budget proposal is any mention of furloughs or unpaid days off. To generate structural savings from personnel would require work to determine which positions are needed and a request for labor unions to make a shared sacrifice.
Another key cost-saving measure identified is a $117.8 million reduction in the City's supplemental pension payment to the four Chicago pension funds. The City began making supplemental pension contributions beyond the amount required by state law in 2023, as a strategy to stop mounting growth in unfunded liabilities. This has helped prevent unfunded liabilities from growing faster than contributions, reduced future pension costs, and resulted in rating upgrades from credit rating agencies. Cutting the advance pension payment in half this year could be looked at unfavorably by the rating agencies and lower the City's credit rating. It is also a risky move given that a recent state [pension sweetener](https://legiscan.com/IL/bill/HB3657/2025) bill increased benefits for Chicago police and firefighters, adding to the City's unfunded liabilities and required pension contributions beginning in 2027.
##### Key Takeaways:
- The proposed budget closes the gap primarily through new and increasing taxes on business, sending the wrong message at a time when the City desperately needs jobs and economic growth.
- Several options proposed are one-time in nature, and some, such as borrowing for operational costs, revert to bad past practices.
- Taken together, these actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit and could trigger future downgrades by rating agencies.
- The Mayor's proposal only includes a small number of the budget options that were included in the Chicago Financial Future Task Force report, a group convened by the Mayor himself.
#### Drivers of Spending Increases
The FY2026 budget proposal decreases from the prior year by 3.5% across all funds, including grants, due to the wind-down of federal COVID-19 grant funds. But when excluding grant funds, the budget, totaling $12.7 billion, actually increases by $330.4 million, or 2.7%, from FY2025.
There are several drivers of budget growth between the adopted FY2025 and proposed FY2026 budgets. Chief among them is employee benefits, which grew by 42%, or $319.4 million. Another major source of growth is public safety. The City's overall public safety budget grew by $267.6 million from 2025 to 2026. $143.3 million in growth is attributable to an 8% increase in the Chicago Police Department's budget, reflecting increased salary costs and higher estimates of overtime for 2026, but not a significant increase in staffing. The other significant surge in public safety spending is within the Chicago Fire Department, which will see a $124.3 million increase in spending, or 20%. This increase is due to the ratification of a collective bargaining agreement for firefighters, which stalled in negotiations for several years and will now require the City to provide back pay for retroactive raises. The City also expects significant increases in infrastructure services spending—a 7% increase of $121.9 million. The Department of Water Management and Department of Aviation will see 8% and 11% increases, respectively, while the Department of Transportation and Department of Streets and Sanitation see little change to their budgets.
The increases in FY2026 spending are partially offset by a reduction in the City's pension contributions. In 2025, the City contributed $2.91 billion to its pension funds, but in 2026, it plans to contribute only $2.76 billion. This reduction is due to the City's decision to cut in half its advance pension payment.
While personnel costs overall are increasing in FY2026 due to increasing salaries and healthcare benefits, the total number of personnel is proposed to decline by 446 from FY2025. These eliminated positions are not due to layoffs, but rather the closing of vacant positions. The City has a total of [4,022 vacant positions](https://data.cityofchicago.org/Administration-Finance/Workforce-Vacancies/9v3e-pcjs/about_data). The departments with the largest proposed position reductions are the Chicago Department of Public Health (CDPH) (282), the Department of Transportation (95), the Department of Streets and Sanitation (52), and the Chicago Public Library (69). Preliminary review suggests that a significant percentage of the CDPH reductions may be COVID/ARPA-specific grant-funded positions. Moreover, these departments' expenditure levels will remain roughly constant between FY2025 and FY2026. The budget proposes personnel growth in some departments, including the Department of Aviation due to the O'Hare Airport Expansion program (53 positions) and the Department of Environment (65 positions).
##### Key Takeaways:
- Total non-grant spending is proposed to _increase_ by 2.7% from FY2025. Spending increases are driven by growing salaries, employee benefits, increased spending on CPD and infrastructure services, and a new Fire Department contract.
- The City's overall pension contribution is proposed to decrease by about $150 million due to a reduction in the advance pension payment.
- Overall budgeted positions are decreasing by 446, driven by the Departments of Public Health, Transportation, and Streets and Sanitation.
#### Addressing the Structural Deficit
For decades, the City's expenditures have outpaced growth in revenues, leading to annual budget gaps in almost every year in recent memory. This is what is referred to as a "structural deficit." In the past, City leaders have made poor financial decisions to close these budget gaps, such as borrowing to pay for operating expenses, refinancing debt to push off costs to the future ("scoop and toss"), spending down rainy day reserves, and failing to raise ongoing revenues commensurate with spending increases. This year's FY2026 budget proposal reverts to the same kinds of mistakes made by City leadership in the past, which have contributed to the financial situation the City finds itself in today.
In a series of credit downgrades following the passage of last year's budget, rating agencies made it clear that the City needed to address its structural budget deficit and reduce the reliance on one-time revenues to fund ongoing expenses to avoid the risk of further downgrades. Unfortunately, many of the agencies' concerns remain unaddressed. Pensions and debt service payments still account for approximately 40% of the operating budget, and recent pension enhancements for police officers and firefighters threaten to bring two of the City's funds into insolvency.
Sustainable solutions to the City's decades-long structural budget deficit must involve a combination of efficiencies and revenues. However, the budget proposal does not make a meaningful effort to address spending. While the budget across all funds, including grants, will decrease by 3.5% from FY2025, much of that is attributed to the decline of federal grant funding. Excluding grant funds, spending is actually up 2.7%.
The [Financial Future Task Force](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) report laid out 89 revenue and efficiency options for consideration by the Mayor and City Council, supplemented by additional work by consulting firm EY. While a handful of these options made it into the Mayor's budget proposal, such as controlling overtime costs and modernizing fleet and procurement management, many ideas were left off the table. Ideas to generate sustainable revenue to match cost inflation, such as indexing taxes and fees to inflation and recouping costs through fees commensurate with the cost of service delivery, warrant further consideration. The proposed budget also barely scrapes the surface of possible efficiencies. EY conducted an in-depth [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf) at the call of the Mayor's Office of Management and Budget, identifying 100 opportunities for cost savings. As City Council pursues budget deliberations in the coming weeks, it should work with the administration to implement these efficiency recommendations, as well as consider revenue options that align with good budgeting principles.
##### Key Takeaways:
- As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as those produced in the Chicago Financial Future Task Force's report and EY's financial and strategic reform options report.
- The final budget should not rely on one-time fixes or poor financial practices and instead should rely on recurring revenues and sustainable savings or cuts.
- The City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies in order to reduce future borrowing costs.
#### Relationship with Chicago Public Schools
During and following the passage of the Chicago Public Schools' (CPS or the 'District') FY2026 budget over the summer, there was a question over how much TIF surplus funding the City of Chicago would declare and whether it would be enough to cover CPS' projection. The proposed TIF surplus of $1 billion provides CPS with $552 million\*—more than enough to cover the $379 million revenue assumption.
With CPS receiving TIF funding in excess of its projection, observers have reopened the possibility of a $175 million reimbursement from CPS to the City for the Municipal Employees Annuity and Benefit Fund (MEABF). For many years, the City has met a mandatory legal obligation to cover this payment, which applies to non-teacher CPS employees. Amid a surge in federal pandemic funding, Mayor Lightfoot negotiated an intergovernmental agreement with CPS to secure payment reimbursements beginning in 2021, which continued and grew through 2023. However, CPS did not provide the City with the reimbursement in FY2024 or FY2025 as the District dealt with its own budget crisis. The City's FY2025 budget assumed continued reimbursement for this payment, totaling $175 million. CPS' ultimate refusal to reimburse the City amid its own budget deficit set off a lengthy debate that resulted in a year-end budget deficit for the City. The City's FY2026 budget proposal does not rely on reimbursement from CPS.
However, the size of the projected TIF surplus in FY2026 would provide CPS with an extra $140 million. The CPS budget indicated that the District would make the $175 million MEABF payment contingent on additional revenue beyond budgeted assumptions in the form of additional FY2026 TIF surplus revenue, other local resources, or additional state revenue. Whether CPS reimburses the City is a decision that should depend on the financial state of the District and the Board's assessment of its stability through the remainder of the 2026 fiscal year.
Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators. Ideally, CPS would take on its share of pension costs related to the MEABF, but should also be given authority to establish a revenue source sufficient to cover the cost of the payment.
Regardless of whether CPS makes this pension payment, the size of this year's TIF sweep is unsustainable. The City and CPS should both anticipate weaning off this revenue source, as it is likely to decline as more TIF districts close in the coming years.
##### Key Takeaways:
- The question of whether the City should continue to cover the full MEABF payment warrants negotiation and fixing through cooperative dialogue between CPS, the City, and Springfield. However, absent a change in State law, it remains the City that is still legally [required](https://civicfed.org/blog/how-chicago-public-schools-pensions-work-explainer) to cover this cost.
- The City and CPS should work with the State of Illinois to resolve the legal and financial entanglements between the two governments, and if legal responsibility is assigned to CPS to pay the employer contributions for its MEABF-covered employees, the District should be afforded commensurate, dedicated revenue authority to cover the obligation.
- Until the entanglement issue is legally reset, the City should not assume reimbursement, nor should CPS, which itself is in a fiscally precarious situation, make any such payment.
#### Conclusion
In a budget that could have marked the beginning of a more responsible era of fiscal stewardship, the FY2026 proposed budget avoids making necessary, difficult decisions. Although technically balanced, this budget is heavily reliant on one-time revenues, reduces supplemental pension funding, and all but ensures a similar conversation will be taking place next year.
This budget proposal also leaves out several options for right-sizing the City's finances—many of which were included in the reports commissioned by the Mayor's Office of Management and Budget. As City Council works to finalize the budget in the coming weeks, alders should engage with the Mayor's administration and consider every measure necessary to begin to correct Chicago's course. The Civic Federation looks forward to working with all stakeholders to achieve a responsible final budget plan.
_\*The total TIF amount allocated to the Chicago Public Schools is based on best estimates from the City of Chicago budget proposal. This was most recently updated as of 10/30/2025._
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Source Name [70]: Mayor Brandon Johnson took your calls about property taxes and the Chicago budget Full URL: https://www.wbez.org/city-hall/2025/11/21/ask-the-mayor-wants-your-questions-for-chicago-mayor-brandon-johnson-this-friday Scraped Date/Time: 2025-11-22 22:42:42
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Mayor Brandon Johnson joins Sasha-Ann Simons in studio at WBEZ for In the Loop's monthly Ask the Mayor series where Johnson answers calls from listeners Wednesday morning, Oct. 8, 2025.
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# Mayor Brandon Johnson took your calls about property taxes and the Chicago budget
## "In The Loop" host Sasha-Ann Simons pressed Johnson on the city's concerns in WBEZ's monthly call-in hour.
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Mayor Brandon Johnson returned to WBEZ 91.5 on Friday to answer listener questions live on the morning talk show "In the Loop" with host Sasha-Ann Simons, defending his tax proposals and clarifying that the city of Chicago is not behind Cook County property tax increases.
The average residential property tax bill in Cook County increased 16.7%, with Black and Latino communities among the hardest hit, according to a Cook County Treasurer's Office report this week.
"I don't assess property," Johnson said. "That's not what I do; that's not what the city does. The assessment is done by the Cook County assessor."
After the City Council Finance Committee rejected Johnson's budget plan earlier this week, Ald. Raymond Lopez (15th) called the defeat embarrassing for the mayor.
Ask the Mayor: Chicago Mayor Brandon Johnson talks budget, CTA safety, and tax policy - YouTube
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[Ask the Mayor: Chicago Mayor Brandon Johnson talks budget, CTA safety, and tax policy](https://www.youtube.com/watch?v=kpQ9H9RBZpU)
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But Johnson told "In the Loop" the committee's decision was more a response to the proposal than an outright failure.
"\[So far\] we have not seen anything of substance that has been returned to us first for us to debate," he added.
When a caller from Chicago's Edgewater neighborhood asked what recommendations the mayor took into account for improving the city's finances, Johnson said his budget instituted about half the guidance.
"And that's just about cost savings," he said. "Everything from fleet management to procurement to the consolidation and the selling of city buildings, real estate that we just don't use anymore or we don't need the space. ... For revenue generation, as simple as making sure that CPD is being reimbursed for for services that they provide."
When a West Loop resident asked if Johnson would consider taxing out-of-state residents as an alternative to a corporate head tax, the mayor said the "vast majority of taxes is really at the hands of the state."
"There are a number of ideas we have taken to Springfield, and if they're not willing to institute it, then I'm willing to do it and bring it before the voters," Johnson added.
_WBEZ's "In the Loop" connects you with the people behind the stories: experts, neighbors and newsmakers who shape the city we share. For more on "In the Loop" and to listen to their segments, visit their_ [_website_](https://www.wbez.org/in-the-loop-with-sasha-ann-simons) _. You can also listen to the show on Spotify or the WBEZ app._
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In the 20,000 pages of documents released by a congressional committee, convicted sex offender Jeffrey Epstein and Thomas Pritzker connect by email at least 20 times. In one exchange, Epstein writes Pritzker, "nice to see you, please come more often."
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The Illinois General Assembly passed a law last year allowing for people to carry their IDs on their cellphones.
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Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
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The Department of Homeland Security claims its agents' actions led to a "historic drop" in crime, but a WBEZ analysis contradicts that claim.
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Source Name [71]: Librarians, Aldermen Push Back Against Proposed Library Cuts Full URL: https://blockclubchicago.org/2025/11/05/librarians-aldermen-push-back-against-proposed-library-cuts/ Scraped Date/Time: 2025-11-22 22:53:50
Librarian Carlynn Lampton speaking out against proposed library cuts at City Hall on Nov. 4, 2025. Credit: Quinn Myers/Block Club Chicago
CITY HALL — Facing the elimination of dozens of currently vacant positions and other cuts, Chicago librarians and some alderpeople are urging Mayor Brandon Johnson to allocate more funding in next year's budget to the city's 81 library branches.
Under Johnson's proposed 2026 spending plan, the Chicago Public Library would see the elimination of 69 currently vacant positions, according to data shared Tuesday by the City Council's Office of Financial Analysis.
That comes on top of a proposed 50 percent reduction in the library's collections budget, which is set to go from $10 million in 2025 to $5 million in 2026. Those funds are used every year to buy books and pay for subscriptions and other library assets.
The proposed 2026 library budget would decline by about $2 million from last year, from $109.34 million in revised 2025 appropriations to $107.23 million, according to the financial analysis office.
Johnson's overall budget, which is being vetted by alderpeople, [aims to fill a $1.19 billion spending gap](https://blockclubchicago.org/2025/10/16/mayor-revives-head-tax-adds-social-media-fee-to-avoid-property-tax-hike-under-proposed-2026-budget/) by instituting a corporate head tax on companies over a certain size, a tax on social media companies and a hiring freeze, among other measures.
It also eliminates some vacant positions across city departments, including at the library — a move Johnson and his budget team said will help avoid layoffs of active employees.
Those cuts have drawn most of the ire from librarians and other system staff, who held a press conference calling for more funding this year ahead of a library budget hearing, which was Tuesday evening.
Nick Ayala, a librarian at the Harold Washington Library Center, said staffing reductions in recent years have hurt the library's ability to serve Chicagoans. More cuts could make things worse, he said.
"Year after year, frontline library employees are being asked to do more and more with less and less," Ayala said Tuesday. "Around this time last year, patrons at branches were waiting a month or more for books to be delivered to their local branches. With adequate staff, those books could be delivered in a matter of days."
Carlynn Lampton, a librarian at the Brainerd branch on the South Side, said cutting the collections budget would also limit the library's mission to serve all Chicagoans.
"It's a 50 percent cut to our ability to buy special material that our visually impaired patrons need, and a 50 percent cut to the budget, to our collection, \[that\] we maintain for our seniors, our teen readers, our children and their parents who come for activities such as story time, which is our signature program in the library," Lampton said.
In a statement from mayoral spokesperson Cassio Mendoza, Johnson's office pushed back at the budget criticism and said the library has been at an "operational deficit" in recent years with personnel costs exceeding revenues from the property tax-funded Library Fund.
"Strategically reducing vacant positions prevents the need for library closings, reduced hours, or staff layoffs. These vacancy reductions will not impact services for Chicagoans," the Mayor's Office said in the statement.
Mendoza added that the library's collections budget has also seen steady levels of funding in recent years.
"Starting in 2022, Chicago Public Library increased the collection budget by $2 million and maintained that funding level until this year," according to the Mayor's Office. "That increased funding allowed \[the library\] to amass more than 6 million units of material, including books, audiobooks, and other media, available to all Chicagoans."
Speaking at Tuesday's budget hearing, library Commissioner Chris Brown said the cuts to the collections budget and removal of vacant positions were necessary to retain "core services" across the city.
"This allows us to not close libraries, to not reduce hours of service and to avoid layoffs," Brown said. "These are positions that we felt confident, in looking at what we need to operate those locations and to continue core services, like our summer reading program, our children's program, \[that\] we could maintain those in giving up those positions."
Some alderpeople were also skeptical about the budget cuts.
Ald. Daniel La Spata (1st) joined library workers at Tuesday's press conference to call for more funding in next year's budget, and he said he would not support a final spending plan unless library funding was increased.
"For you to know that I'm not just saying this in front of you, this is the email that I sent last week to the administration: 'I forgot to note, cutting in half the \[Chicago Public Library\] funding for new books is insulting to who Chicago is and what its libraries mean. Please raise the levy or do whatever is needed to correct this,'" La Spata said.
Ald. William Hall (6th) also spoke out against the cuts at the press conference, although he stopped short of explicitly saying he would not vote for a budget if funding levels didn't change.
"What I'm committed to is simply this: that if the dignity of workers is not in this budget, then it doesn't have my vote," Hall said.
Other alderpeople during Tuesday's budget hearing suggested the library should raise its property tax levy to ensure the collections budget remains funded.
"People just will not accept this kind of cut. So we have to figure out what that levy number is. If we have to do it in this budget, let's do it," Ald. Scott Waguespack (32nd) said. "I can't think of anybody in here who thought this was a good idea, and I can't believe anybody up on the fifth floor thinks it's a good idea either."
The fifth floor is the location of the mayor's office in City Hall.
A final 2026 budget must be passed by City Council before the end of the year. In his statement, Mendoza said Johnson's budget would also direct an "estimated $18 million" in tax-increment financing dollars to the library to "maintain programs and prevent additional staff or vacancy reductions."
Brown on Tuesday said the city would need to allocate an additional $4.46 million next year to the library to avoid cutting the projected 69 vacant positions.
Source Name [72]: An out-of-state campaign just entered Chicago's budget battle Full URL: https://thetriibe.com/2025/11/an-out-of-state-campaign-just-entered-chicagos-budget-battle/ Scraped Date/Time: 2025-11-22 22:53:50
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# An out-of-state campaign just entered Chicago's budget battle
##### By [Tiffany Walden](https://thetriibe.com/author/triibeadmin/ "Posts by Tiffany Walden")
Published on November 21, 2025
#### Paid Instagram ad created by Black Voters Matter Fund targets Ald. Andre Vasquez (40th Ward) amid Chicago's 2026 budget battle. Graphic by Ash Lane for The TRiiBE®
Political attack ads are flowing as Mayor Brandon Johnson and the Chicago City Council race against the clock to pass a 2026 budget before the Dec. 31 deadline, with particular focus on the mayor's push to [reinstate a corporate head tax](https://thetriibe.com/2025/11/emanuel-killed-it-johnson-wants-it-back-chicagos-corporate-head-tax-debate-is-about-more-than-money/).
One ad, paid for by the Atlanta-based Black Voters Matter Fund (BVMF), caused a stir this week for what some saw as a characterization of Ald. Andre Vasquez as [a puppet](https://www.instagram.com/reel/DRNq9a4DjDd/?igsh=dmd2cTBqbDA0emtj) of President Donald J. Trump, Elon Musk and their rich pals. Vasquez leads the City Council's Progressive Caucus.
"Alderman Andre Vasquez is protecting billionaires and big corporations over Black + Brown working-class Chicago in the middle of Trump's cuts," the political ad reads. "Tell him to stand with Mayor Brandon Johnson and working-class Chicago." The ad encourages residents to text the word "BUDGET" to a five-digit number, which yields more information from the mayor's Protecting Chicago Budget and links out to an Action Now page where residents [can send scripted letters](https://actionnetwork.org/letters/tell-your-alderman-support-chicagos-2026-budget-for-a-safer-fairer-city/) to their alders.
But here's where things heat up: In [a fiery video](https://www.instagram.com/reel/DRNyU_IDv2e/?igsh=d3VraTU5dWw5Zzlv) posted Tuesday on Instagram, Vasquez accused Johnson's administration of being behind the attack.
"Let's keep it real because I got people hitting me up, \[saying\], 'I wonder who put out that ad?'" Vasquez told his Instagram audience, accusing the mayor of coming for his progressive bona fides. Vasquez voted 10-25 with the Chicago Finance Committee on Monday to reject the revenue-generating options in Johnson's budget proposal, which includes the head tax. Vasquez said he did so because of a plan to borrow money to cover police-misconduct spending.
"Literally, there's only one group that's gonna put out that ad. The Fifth Floor. The Johnson administration," Vasquez continued.
In so many words, the mayor's office said it wasn't them.
"Independent groups across the political spectrum are spending money to push councilmembers to support their agenda during this budget cycle," reads an emailed statement from the mayor's office. "We cannot speak to the motivations behind the groups that are buying ads both in support of the mayor's proposed budget and against it."
In a Wednesday phone interview with _The TRiiBE_, Vasquez said he learned about the ad about 30 minutes after a meeting he had with the Johnson administration about the budget. He thought the ad was funny because it looks like an AI-generated "No Limit album cover from the 2000s."
"The city needs us to come together and figure it out," Vasquez said. "So let's not take shots at each other, and understand that if you're going to take shots at somebody, be prepared for responses. We're adults. Some people know I'm a battle rapper. … probably not the one you want to bring it to."
Afterward, his friend created a tricked-out version of the graphic with the words "Andre Vasquez The Budget Don. 40th Wardd \[sic\] Mob Platinum Puppet Master." Vasquez [posted the meme to his Instagram page](https://www.instagram.com/p/DRPdZI-jrt2/?igsh=YTA1YTFjbXdodjN3) to the soundtrack of "Make 'Em Say Uhh," a late-1990s platinum rap track by No Limit Records founder Master P.
Screengrab of a recreation of the original paid Instagram ad created by Black Voters Matter Fund targeting Ald. Andre Vasquez (40th Ward) amid Chicago's 2026 budget battle. Graphic by Ash Lane for The TRiiBE®
"It's pretty clear where it might be coming from, and so it may not be directly from \[the administration\]," Vasquez said, "but it's clearly someone aligned and there had to be some level of conversation to know, like, 'Hey, they voted a certain way so go send these out.'"
On Thursday, _The TRiiBE_ spoke with Black Voters Matter Fund co-founder Cliff Albright. He said his team has had no communication with the mayor nor his administration.
"It's interesting that the alderman would think the mayor's office would be the only entity interested in seeing this kind of budget be passed. We've got a long track record of dealing with issues like this, not as much in Chicago because it's not one of the core states where we do our work, but this whole issue of the ways governments at all levels — city, state and federal — often carry themselves on the backs of Black communities," Albright said.
Instagram
[](https://www.instagram.com/stories/andrefor40th/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
[andrefor40th](https://www.instagram.com/andrefor40th/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
Original audio
[View profile](https://www.instagram.com/andrefor40th/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
[](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
[\\\\
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andrefor40th\\\\
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2,386 posts · 7K followers\\\\
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[andrefor40th](https://www.instagram.com/andrefor40th/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
Who put out that ad against me? watch the video and share, let's stop the okey doke and keep it all the way 100!
[View all 42 comments](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
[Add a comment...](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083) [_Instagram_](https://www.instagram.com/reel/DRNyU_IDv2e/?utm_source=ig_embed&ig_rid=776dc3ab-e8a6-48d1-ac20-e14675f9d083)
According to its website, BVMF aims to increase power in marginalized and predominantly Black communities across the U.S. Among its five core beliefs is supporting individuals and organizations striving to obtain social justice.
The point of the Atlanta group's local ad campaign is to help residents connect the dots between the ways billionaires influence federal policy and the trickle-down effect on local government, Albright explained.
"Part of the reason we're doing this campaign," Albright said, "is because we don't want this to be a conversation between Black Voters Matter and Ald. Vasquez or any single alderman. We want it to be a public conversation. That's why what's asked for in the ads is for folks to get more information, to reach out to the alders and to even ask the question — which one of our other ads are about to do. If not the head tax, then what?"
BVMF was founded in 2016 by Albright and LaTosha Brown. A related organization BVM Capacity Building Institute is a 501(c)(3) that lists as board members #MeToo Movement leader Tarana Burke; Baye Adofo-Wilson, former Newark, New Jersey, deputy mayor; and Jackson, Mississippi, activist Rukia Lumumba, daughter of civil rights activist and former Jackson Mayor [Chokwe Lumumba](https://www.vice.com/en/article/free-the-land-v23n2/) and sister to [Chokwe Antar Lumumba](https://mississippitoday.org/2025/06/30/lumumba-on-final-day-as-jackson-mayor/), who also served as that city's mayor. _The 19th\*_ called BVMF a "get-out-the-vote powerhouse" in its [2021 profile](https://19thnews.org/2021/01/black-voters-matter-latosha-brown-georgia-runoff-elections/) of co-founder Brown.
"It's pretty interesting that a group based out of Atlanta is paying attention to Chicago alderpeople and how they vote in a finance committee hearing, which is a pretty niche meeting to be watching," Vasquez said.
Albright told _The TRiiBE_ he learned about Chicago's budget season and Vasquez's position on Johnson's proposed corporate head tax through a [_Chicago Sun-Times_ article.](https://chicago.suntimes.com/city-hall/2025/11/13/mayor-brandon-johnson-concessions-proposed-2026-budget-corporate-head-tax-cloud-computing-city-council) Published on Nov. 13, the _Sun-Times_ reported that Vasquez is "still searching for head tax alternatives." He also said, according to the article, it may be a better idea "to restore the automatic escalator locking in annual property tax increases at the rate of inflation" and possibly doubling the garbage collection fee.
"They're pushing the corporate head tax as the end-all-be-all, and I don't know if that's the right answer or not," Vasquez told _Sun-Times_ political reporter Fran Spielman.
Albright said they're learning about the budget season through publicly available press conferences and media reports.
"And to be honest, we really, like a lot of the nation, started paying more attention to Chicago and the mayor because of the battle over ICE and the National Guard. That's how I first found out about _The TRiiBE_," Albright said. "And so it was really in the aftermath of following that, and continuing to follow that, that we come across this budget question, which fits into one of the priority areas that we routinely deal with."
It was not their intention to cause confusion or disruption, Albright said.
Screengrab of paid Instagram ad created by Black Voters Matter Fund targets Ald. Andre Vasquez (40th Ward) amid Chicago's 2026 budget battle. Graphic by Ash Lane for The TRiiBE®
"To do this type of campaign, which inevitably involves mentioning specific alders, we don't want to harm relationships that some local comrades and they have," Albright said. "Sometimes it's easier for somebody who doesn't have to navigate all of that to ask some of the questions that, quite honestly, need to be asked."
Parts of Johnson's 2026 budget proposal are [a call from community organizers](https://thetriibe.com/2025/10/as-trump-cuts-vital-services-chicago-organizers-push-city-council-to-pass-a-progressive-city-budget-for-fy-2026/) with the People's Unity Platform, who are pushing for more progressive forms of taxation. They rallied behind the proposal through their Babies Before Billionaires campaign over the summer. Johnson also [stood with labor and community organizers](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/) in October during a pep rally before unveiling his budget proposal.
"Just in terms of us as an organization, look, we want to learn from community," Albright said. "If folks have issues with the way we've gone about this, we want to be in discussion."
Albright shared that his Atlanta-based organization is willing to pull the graphic of Vasquez out of their political text campaign with his commitment to the corporate head tax: "We're already making some changes to some of the graphics and videos we'll be doing. So we don't view ourselves as above debate."
Source Name [73]: Chicago's FY2026 Proposed Budget: A Stumbling Start Full URL: https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start Scraped Date/Time: 2025-11-22 22:53:50
<span style="color: #0066cc; font-weight: bold;"># Chicago's FY2026 Proposed Budget: A Stumbling Start</span> [73]
October 22, 2025
###### **By Grant McClintock and Daniel Vesecky**
_Update 11/6/2025: On November 5, S&P Global Ratings adjusted its outlook on Chicago's credit rating from stable to negative. Read the Civic Federation's_ [_statement on the adjustment here_](https://civicfed.org/blogs/statement-sp-credit-outlook-adjustment) _._
The introduction of Chicago Mayor Brandon Johnson's proposed FY2026 budget on October 16 provides Chicagoans with insight into how this administration proposes to address a $1.2 billion budget deficit and what they aim to prioritize in the coming year. Excluding grant funds, the proposed budget is 2.7% higher than the previous year, despite a significant deficit necessitating unprecedented revenue measures. The budget proposes closing the deficit by substantially increasing the cloud computing tax, levying a head tax on large corporations, reducing the City's pension contributions, and utilizing other one-time fixes, including declaring yet another record-breaking Tax Increment Finance district surplus.
In a recent [piece](https://www.civicfed.org/blog/setting-stage-fy2026-chicago-budget), the Civic Federation outlined the key fiscal issues facing Chicago in advance of the FY2026 budget release—noting the unprecedented position the City finds itself in and calling for a focus on long-term solutions and structural improvements to the budget. Unfortunately, the proposed budget is a transactional proposal that technically balances the budget with short-term fixes but fails to make the difficult decisions needed at the moment. Instead, the proposed budget continues a status quo widely understood as unsustainable and unacceptable, using some of the same disreputable bad practices of the past. The proposal balances the budget not through shared sacrifice between stakeholders, but with tax increases targeted at businesses, one-time revenue influxes, and borrowing to pay for operating costs. It largely ignores the work done by the Mayor's own [Financial Future Task Force](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf), as well as supplemental work conducted by the City's retained consultants, EY, to identify [opportunities for savings and efficiencies](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf).
Budget proponents are justifying the proposed revenue increases by arguing that the City needs to compensate for federal funding cuts by the Trump administration. But that narrative isn't supported by the facts. While the federal government has tried to rescind a variety of Chicago's grants, the City has parried those attempted cuts by [challenging them in court](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/emergency-grants-lawsuit.html#:~:text=CHICAGO%20%E2%80%93%20Today%2C%20the%20City%20of,dollar%20intended%20for%20public%20safety.%22). Although grants that have not yet been awarded may be at risk in future years, a first blush look reveals only $30-$40 million of existing federal grant funding to be on hold. The City has seen a significant decrease in overall federal funding, but this is due largely to the expiration of temporary American Rescue Plan Act (ARPA) funding from the pandemic era, which the City itself has been projecting and socializing for years, well before the present Administration in Washington won office.
The Mayor's proposal is the opening gambit in what will be a longer process that requires deep and meaningful engagement by City Council to reach a budget that identifies long-term, sustainable solutions for the City's financial struggles.
##### Key Takeaways:
- **Closing the budget gap:** The proposed budget closes the projected FY2026 budget gap through new and increasing taxes on business, sending the wrong message to the business community at a time when the City desperately needs jobs and economic growth. Several proposed options are one-time in nature and revert to bad past practices, such as borrowing for operational costs. These actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit, which could trigger future downgrades by rating agencies.
- **Expenditure Drivers:** Overall expenditures will decrease in FY2026 only when including grant funds. The core budget actually proposes a year-over-year increase of 2.7%. This is driven primarily by increases in salaries and employee healthcare costs.
- **Addressing the Structural Deficit:** In order to reduce future borrowing costs, the City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies.
- **Relationship with Chicago Public Schools (CPS):** The record-high TIF surplus of $1 billion provides a $552 million\* windfall to CPS. This amount more than covers the school district's assumptions in its own FY2026 budget and leaves open the question of whether CPS will use the remaining TIF funds to reimburse the City for a portion of the annual contribution to the Municipal Employees' Pension Fund (MEABF). Whether CPS reimburses Chicago for these pension costs should be decided based on the District's financial situation mid-year. Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators, ideally with CPS taking on its portion of the MEABF pension liability, but with a funding source sufficient to cover the cost.
- **What the Civic Federation hopes to see:** As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as what was produced in the Chicago Financial Future Task Force's [report](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) and EY's financial and strategic reform options [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf). The final budget should not rely on one-time fixes or poor financial practices, but instead rely on recurring revenues and sustainable savings or cuts.
#### How the City Proposes Closing the FY2026 Budget Deficit
The City of Chicago (Chicago or the 'City') estimates a $1.19 billion budget gap in 2026. This is the largest budget gap in the City's history—rivaled only by the budget gap in 2021 during the COVID-19 pandemic before the federal government came through with funding relief for state and local governments through the American Rescue Plan Act (ARPA). With no remaining ARPA funds, the question of how the City will balance the budget is critical.
The Mayor proposes closing the $1.19 billion deficit through nearly $800 million in revenue increases and approximately $400 million in purported savings and efficiencies. The plan relies on revenue solutions that would deter business, along with several actions that are one-time in nature, and neither will address the City's structural problems, and could even trigger a rating downgrade.
##### **Revenue Proposals:**
The proposed revenue solutions rely heavily on taxing businesses—primarily through an increase to the personal property lease transaction tax from 11% to 14%, which is estimated to generate $333.2 million, and the reinstallation of a per-employee head tax at a rate of $21 per month per employee for businesses with more than 100 employees, which is estimated to generate $100 million. Both of these proposals would make Chicago an outlier compared to other U.S. cities and arguably send the wrong message to the business community, which already pays other high taxes through income and property taxes. The head tax, in particular, has been met with opposition from the [business community](https://civiccommittee.org/wp-content/uploads/2025/10/Jobs-Tax-Statement102225b_FINAL.pdf) and [Governor Pritzker](https://www.chicagobusiness.com/politics/pritzker-opposes-head-tax-bears-tax-breaks-econ-club).
Although not included in this year's revenue estimates, the City also plans to implement a first-in-the-nation tax on social media companies applied through the existing amusement tax. The legality of this tax is highly questionable and will likely need to be resolved through the courts. Other proposals include a new online sports betting tax, an adjustment to the existing Ground Transportation tax on ridesharing, an increase to the boat mooring tax, and a new hemp tax. Together, the revenue proposals are expected to generate $433.2 million.
Another $157.6 million would be generated through the City declaring a record-high tax increment financing (TIF) surplus of $1 billion, of which approximately $232.6 million would go to the City's Corporate Fund. While sweeping TIF surplus funds has become common practice with increasingly lucrative payouts in recent years, increases in this revenue source are not sustainable at the current pace. TIF is also a revenue source that is not intended to fund general government operations but rather to fund economic development in blighted areas. The record FY2026 TIF surplus declaration indicates that the City is increasing its reliance on a revenue source that is projected to decrease in future years.
The City also plans to generate $166 million in bond financing by taking out short-term debt to cover operating costs, a move that will increase debt service costs in future years and is likely to attract negative attention from credit rating agencies. Borrowing for general operations, such as paying employee salaries, goes against best practice and would be a repeat of past mistakes that got the City into its current financial straits. The proposed budget justifies these moves by framing the debt as paying for [retroactive salary increases for firefighters](https://chicago.suntimes.com/city-hall/2025/10/16/chicago-firefighters-contract-185-million-back-pay-borrowing-city-council), as well as an unusually large amount of costs incurred by settlements of legal cases against the City, mostly involving police misconduct. The retroactive salary payments would be funded over three years, whereas the settlement payments would be funded over five. Borrowing for operating costs like salaries and settlements is precisely the sort of disfavored practice that is in part responsible for the fiscal straits we are in, and that the recent past Administration had phased out.
##### **Spending and Efficiency Proposals:**
It is especially disappointing that this budget did not do the hard work of identifying real and lasting efficiencies. Rather than working to identify long-term cuts to programs or positions, the budget relies on efficiencies that are one-time in nature and will only leave the City in a similar or worse position in 2027.
The proposal calls for a little over $200 million in operational efficiencies and personnel savings, including a hiring freeze to save $50 million and smaller initiatives to improve procurement processes, modernize fleet management, recover the cost of special events, and consolidate real estate. While a hiring freeze is a reasonable way to tamp down spending, it is not a structural solution unless the positions are cut. They are not in any meaningful measure. Noticeably absent from the budget proposal is any mention of furloughs or unpaid days off. To generate structural savings from personnel would require work to determine which positions are needed and a request for labor unions to make a shared sacrifice.
Another key cost-saving measure identified is a $117.8 million reduction in the City's supplemental pension payment to the four Chicago pension funds. The City began making supplemental pension contributions beyond the amount required by state law in 2023, as a strategy to stop mounting growth in unfunded liabilities. This has helped prevent unfunded liabilities from growing faster than contributions, reduced future pension costs, and resulted in rating upgrades from credit rating agencies. Cutting the advance pension payment in half this year could be looked at unfavorably by the rating agencies and lower the City's credit rating. It is also a risky move given that a recent state [pension sweetener](https://legiscan.com/IL/bill/HB3657/2025) bill increased benefits for Chicago police and firefighters, adding to the City's unfunded liabilities and required pension contributions beginning in 2027.
##### Key Takeaways:
- The proposed budget closes the gap primarily through new and increasing taxes on business, sending the wrong message at a time when the City desperately needs jobs and economic growth.
- Several options proposed are one-time in nature, and some, such as borrowing for operational costs, revert to bad past practices.
- Taken together, these actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit and could trigger future downgrades by rating agencies.
- The Mayor's proposal only includes a small number of the budget options that were included in the Chicago Financial Future Task Force report, a group convened by the Mayor himself.
#### Drivers of Spending Increases
The FY2026 budget proposal decreases from the prior year by 3.5% across all funds, including grants, due to the wind-down of federal COVID-19 grant funds. But when excluding grant funds, the budget, totaling $12.7 billion, actually increases by $330.4 million, or 2.7%, from FY2025.
There are several drivers of budget growth between the adopted FY2025 and proposed FY2026 budgets. Chief among them is employee benefits, which grew by 42%, or $319.4 million. Another major source of growth is public safety. The City's overall public safety budget grew by $267.6 million from 2025 to 2026. $143.3 million in growth is attributable to an 8% increase in the Chicago Police Department's budget, reflecting increased salary costs and higher estimates of overtime for 2026, but not a significant increase in staffing. The other significant surge in public safety spending is within the Chicago Fire Department, which will see a $124.3 million increase in spending, or 20%. This increase is due to the ratification of a collective bargaining agreement for firefighters, which stalled in negotiations for several years and will now require the City to provide back pay for retroactive raises. The City also expects significant increases in infrastructure services spending—a 7% increase of $121.9 million. The Department of Water Management and Department of Aviation will see 8% and 11% increases, respectively, while the Department of Transportation and Department of Streets and Sanitation see little change to their budgets.
The increases in FY2026 spending are partially offset by a reduction in the City's pension contributions. In 2025, the City contributed $2.91 billion to its pension funds, but in 2026, it plans to contribute only $2.76 billion. This reduction is due to the City's decision to cut in half its advance pension payment.
While personnel costs overall are increasing in FY2026 due to increasing salaries and healthcare benefits, the total number of personnel is proposed to decline by 446 from FY2025. These eliminated positions are not due to layoffs, but rather the closing of vacant positions. The City has a total of [4,022 vacant positions](https://data.cityofchicago.org/Administration-Finance/Workforce-Vacancies/9v3e-pcjs/about_data). The departments with the largest proposed position reductions are the Chicago Department of Public Health (CDPH) (282), the Department of Transportation (95), the Department of Streets and Sanitation (52), and the Chicago Public Library (69). Preliminary review suggests that a significant percentage of the CDPH reductions may be COVID/ARPA-specific grant-funded positions. Moreover, these departments' expenditure levels will remain roughly constant between FY2025 and FY2026. The budget proposes personnel growth in some departments, including the Department of Aviation due to the O'Hare Airport Expansion program (53 positions) and the Department of Environment (65 positions).
##### Key Takeaways:
- Total non-grant spending is proposed to _increase_ by 2.7% from FY2025. Spending increases are driven by growing salaries, employee benefits, increased spending on CPD and infrastructure services, and a new Fire Department contract.
- The City's overall pension contribution is proposed to decrease by about $150 million due to a reduction in the advance pension payment.
- Overall budgeted positions are decreasing by 446, driven by the Departments of Public Health, Transportation, and Streets and Sanitation.
#### Addressing the Structural Deficit
For decades, the City's expenditures have outpaced growth in revenues, leading to annual budget gaps in almost every year in recent memory. This is what is referred to as a "structural deficit." In the past, City leaders have made poor financial decisions to close these budget gaps, such as borrowing to pay for operating expenses, refinancing debt to push off costs to the future ("scoop and toss"), spending down rainy day reserves, and failing to raise ongoing revenues commensurate with spending increases. This year's FY2026 budget proposal reverts to the same kinds of mistakes made by City leadership in the past, which have contributed to the financial situation the City finds itself in today.
In a series of credit downgrades following the passage of last year's budget, rating agencies made it clear that the City needed to address its structural budget deficit and reduce the reliance on one-time revenues to fund ongoing expenses to avoid the risk of further downgrades. Unfortunately, many of the agencies' concerns remain unaddressed. Pensions and debt service payments still account for approximately 40% of the operating budget, and recent pension enhancements for police officers and firefighters threaten to bring two of the City's funds into insolvency.
Sustainable solutions to the City's decades-long structural budget deficit must involve a combination of efficiencies and revenues. However, the budget proposal does not make a meaningful effort to address spending. While the budget across all funds, including grants, will decrease by 3.5% from FY2025, much of that is attributed to the decline of federal grant funding. Excluding grant funds, spending is actually up 2.7%.
The [Financial Future Task Force](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) report laid out 89 revenue and efficiency options for consideration by the Mayor and City Council, supplemented by additional work by consulting firm EY. While a handful of these options made it into the Mayor's budget proposal, such as controlling overtime costs and modernizing fleet and procurement management, many ideas were left off the table. Ideas to generate sustainable revenue to match cost inflation, such as indexing taxes and fees to inflation and recouping costs through fees commensurate with the cost of service delivery, warrant further consideration. The proposed budget also barely scrapes the surface of possible efficiencies. EY conducted an in-depth [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf) at the call of the Mayor's Office of Management and Budget, identifying 100 opportunities for cost savings. As City Council pursues budget deliberations in the coming weeks, it should work with the administration to implement these efficiency recommendations, as well as consider revenue options that align with good budgeting principles.
##### Key Takeaways:
- As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as those produced in the Chicago Financial Future Task Force's report and EY's financial and strategic reform options report.
- The final budget should not rely on one-time fixes or poor financial practices and instead should rely on recurring revenues and sustainable savings or cuts.
- The City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies in order to reduce future borrowing costs.
#### Relationship with Chicago Public Schools
During and following the passage of the Chicago Public Schools' (CPS or the 'District') FY2026 budget over the summer, there was a question over how much TIF surplus funding the City of Chicago would declare and whether it would be enough to cover CPS' projection. The proposed TIF surplus of $1 billion provides CPS with $552 million\*—more than enough to cover the $379 million revenue assumption.
With CPS receiving TIF funding in excess of its projection, observers have reopened the possibility of a $175 million reimbursement from CPS to the City for the Municipal Employees Annuity and Benefit Fund (MEABF). For many years, the City has met a mandatory legal obligation to cover this payment, which applies to non-teacher CPS employees. Amid a surge in federal pandemic funding, Mayor Lightfoot negotiated an intergovernmental agreement with CPS to secure payment reimbursements beginning in 2021, which continued and grew through 2023. However, CPS did not provide the City with the reimbursement in FY2024 or FY2025 as the District dealt with its own budget crisis. The City's FY2025 budget assumed continued reimbursement for this payment, totaling $175 million. CPS' ultimate refusal to reimburse the City amid its own budget deficit set off a lengthy debate that resulted in a year-end budget deficit for the City. The City's FY2026 budget proposal does not rely on reimbursement from CPS.
However, the size of the projected TIF surplus in FY2026 would provide CPS with an extra $140 million. The CPS budget indicated that the District would make the $175 million MEABF payment contingent on additional revenue beyond budgeted assumptions in the form of additional FY2026 TIF surplus revenue, other local resources, or additional state revenue. Whether CPS reimburses the City is a decision that should depend on the financial state of the District and the Board's assessment of its stability through the remainder of the 2026 fiscal year.
Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators. Ideally, CPS would take on its share of pension costs related to the MEABF, but should also be given authority to establish a revenue source sufficient to cover the cost of the payment.
Regardless of whether CPS makes this pension payment, the size of this year's TIF sweep is unsustainable. The City and CPS should both anticipate weaning off this revenue source, as it is likely to decline as more TIF districts close in the coming years.
##### Key Takeaways:
- The question of whether the City should continue to cover the full MEABF payment warrants negotiation and fixing through cooperative dialogue between CPS, the City, and Springfield. However, absent a change in State law, it remains the City that is still legally [required](https://civicfed.org/blog/how-chicago-public-schools-pensions-work-explainer) to cover this cost.
- The City and CPS should work with the State of Illinois to resolve the legal and financial entanglements between the two governments, and if legal responsibility is assigned to CPS to pay the employer contributions for its MEABF-covered employees, the District should be afforded commensurate, dedicated revenue authority to cover the obligation.
- Until the entanglement issue is legally reset, the City should not assume reimbursement, nor should CPS, which itself is in a fiscally precarious situation, make any such payment.
#### Conclusion
In a budget that could have marked the beginning of a more responsible era of fiscal stewardship, the FY2026 proposed budget avoids making necessary, difficult decisions. Although technically balanced, this budget is heavily reliant on one-time revenues, reduces supplemental pension funding, and all but ensures a similar conversation will be taking place next year.
This budget proposal also leaves out several options for right-sizing the City's finances—many of which were included in the reports commissioned by the Mayor's Office of Management and Budget. As City Council works to finalize the budget in the coming weeks, alders should engage with the Mayor's administration and consider every measure necessary to begin to correct Chicago's course. The Civic Federation looks forward to working with all stakeholders to achieve a responsible final budget plan.
_\*The total TIF amount allocated to the Chicago Public Schools is based on best estimates from the City of Chicago budget proposal. This was most recently updated as of 10/30/2025._
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Source Name [74]: Mayor's Head Tax Plan Tweaked, But 2026 Budget Still Faces Uphill Battle Ahead Of Vote Full URL: https://blockclubchicago.org/2025/11/14/mayors-head-tax-plan-tweaked-but-2026-budget-still-faces-uphill-battle-ahead-of-vote/ Scraped Date/Time: 2025-11-22 22:53:50
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Mary Richardson-Lowry, City of Chicago's Corporation Counsel, and Mayor Branden Johnson sit during a City Council meeting on Nov. 14, 2025. Credit: Jeremy Battle/Block Club Chicago
CITY HALL — Mayor Brandon Johnson and his budget team have amended the details of a proposed corporate head tax and other revenue ideas in the 2026 city budget as they push for a final vote on the spending plan, which could come next week.
Johnson last month introduced [a $16.6 billion budget proposal](https://blockclubchicago.org/2025/10/16/mayor-revives-head-tax-adds-social-media-fee-to-avoid-property-tax-hike-under-proposed-2026-budget/) that avoids property tax hikes and instead relies on the head tax, a social media tax, a hiring freeze, an expanded rideshare surcharge zone and other measures.
The $21 per person corporate head tax has emerged as a sticking point in budget negotiations. Progressive groups and some City Council members argue it's an opportunity to force rich corporations to support vital public safety programs, but it has drawn opposition from Gov. JB Pritzker and business groups who have labeled it a job killer.
Chicago previously had a $4 per person head tax that was eliminated over a decade ago by then-Mayor Rahm Emanuel.
Johnson's initial plan called for Chicago companies with more than 100 employees to pay a $21 per person per month tax. That threshold has now been lifted to 200 people, according to budget materials shared with the City Council on Thursday.
The tax is projected to bring in $82 million annually, instead of $100 million under the original plan. Those dollars would go toward a community safety fund that would pay for violence intervention workers, summer jobs for teenagers and other anti-violence initiatives.
It's not clear, however, if the change has swayed enough alderpeople to back Johnson's spending plan. The administration is pushing for budget votes next week, and may introduce the necessary ordinances to the budget and finance committees on Monday. If passed in committee, they could face a final vote on Thursday.
South Side Ald. David Moore (17th) said he's generally supportive of a head tax but is still talking to restaurant owners and franchisees of chains like McDonald's in the city to see how a 200-employee threshold would play out.
He's not yet at a "yes" or "no" vote, but said a final budget is "almost there."
"I'm strongly in favor of the head tax and the rich being taxed. Trust me, they can afford it. Don't let nobody tell you they can't," Moore said Friday. "I just want to make sure that these businesses, at least the majority of them that impact the communities that I represent, are OK."
Other alderpeople remain firmly against the head tax and are urging the mayor and his team to slow down the process and not push for a vote yet.
"This city really needs jobs and housing, and my concern is the head tax disincentivizes the thing we're trying to incentivize," Ald. Bill Conway (34th) said.
Chinatown and Bridgeport Ald. Nicole Lee (11th) is also calling on Johnson to pump the brakes. She continues to have concerns about the head tax proposal, especially after speaking to restaurant owners as well as a produce company in her ward which has 202 employees — just over the proposed 200-employee threshold, she said.
"The conversation was, ultimately, 'What do I do? Do I lay off three people? What if I pick up six more restaurants? … Do I have to move out to the suburbs?'" Lee said. "These are real things facing real people and those are jobs in my community."
Like many other members of the council's Progressive Caucus, Humboldt Park Ald. Jessie Fuentes (26th) is in favor of the head tax. The alternatives would be raising property taxes, [reinstating the grocery tax](https://blockclubchicago.org/2025/06/04/chicagos-grocery-tax-was-slated-to-end-in-2026-now-mayor-wants-to-keep-it-going/) or cutting city staff and services, she said.
"There's no cuts that you're going to make that doesn't hurt services in the city of Chicago," Fuentes said. "Or, we can look at the corporate head tax and say businesses can be partners in this moment to help us build the city that we all want to live in."
The mayor's budget team has made other changes to the budget, including boosting a proposed increase to the city's [personal property lease tax](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/personal_propertyleasetransactiontax.html) an extra percentage point, up to 15 percent.
Notably, the latest proposal that emerged this week also [restores funding for gender-based violence services](https://www.wbez.org/politics/2025/11/10/brandon-johnson-domestic-violence-programs-funding-2026-budget) as well as the library collections budget, which was slated for a 50 percent cut.
Other sources of revenue in the budget come from expanding a rideshare surcharge zone and raising the boat mooring tax at Chicago's marinas, although nonprofits will be exempt from that increase. The budget also relies on an estimated "record" TIF surplus of $1 billion, roughly half of which will go to Chicago Public Schools.
Johnson on Friday defended the head tax proposal as a way to "challenge the corporations of the ultra rich" and insisted the budget approval process has not been rushed.
"We literally have been in conversations for months. The City Council's had a month to review the current proposal as it is," he told reporters. But "if there are some progressive revenue ideas that have not been brought before us, there's still time."
Budget chair Ald. Jason Ervin (28th) echoed that point earlier in the day.
"Without cuts, I don't know what the answer is," Ervin said. "Where's the balancing of the equation? And no one has put forth something that balances the equation."
Still, Conway on Friday said he's skeptical the current budget proposal has the support to pass.
"I would say it's unlikely a vote that passes would happen next week," Conway said.
Source Name [75]: Proposed Head Tax, Social Media Tax, and Cloud Tax Increases Would Hurt Chicago Full URL: https://taxfoundation.org/blog/chicago-head-tax-social-media-tax-cloud-tax/ Scraped Date/Time: 2025-11-22 22:58:48
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Chicago Mayor Brandon Johnson (D) recently unveiled his [2026 budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf), which relies on a new business [head tax](https://taxfoundation.org/taxedu/glossary/head-tax/) A head tax, also known as a poll tax or capitation, is a flat or uniform tax levied equally on every taxpayer. Unlike an income tax, it is a fixed amount and not based on how much one earns, nor does it change based on taxpayers' circumstances or actions., a new [tax](https://taxfoundation.org/taxedu/glossary/tax/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. on social media companies, a "cloud tax" increase, and [other tax increases](https://www.illinoispolicy.org/johnsons-protecting-chicago-budget-proposes-nearly-500m-in-tax-hikes/). The proposed head tax would create numerous unintended consequences and put a damper on employment in the Windy City, making Chicago less attractive for business investment. The social media tax would be the first of its kind in the US, punitively targeting social media companies simply based on their industry. Meanwhile, increasing the personal property lease transaction tax rate on cloud services would increase expenses for businesses and consumers alike. These proposed new and increased taxes represent a sharp departure from the [principles of sound tax policy](https://taxfoundation.org/taxedu/principles/) and would make Chicago even more of an uncompetitive outlier regionally and nationally.
## Business Head Tax Would Hurt Employment
<span style="color: #0066cc; font-weight: bold;">The proposed business head tax, known as the Community Safety Surcharge (CSS), would be levied at a rate of $21 per employee per month ($252 per employee per year) on employers with 100 or more full-time employees who perform at least half of their work in Chicago. An employer with 100 qualifying employees would see their local tax liability increase by $25,200 per year, on top of all the other local, state, and federal taxes owed. A company with 1,000 affected employees would face a $252,000 annual local tax increase.</span> [75]
The old adage, "whatever you tax, you get less of," rings true here. Taxing businesses based on the number of people they employ in Chicago would lead to negative employment outcomes in the city, including more layoffs, lower wages, fewer job opportunities, and the further shifting of business investment outside city limits.
Smaller- to mid-sized employers near the 100-employee threshold would have an incentive to keep their total headcount below 100 to avoid triggering tax liability, since employers with 100 qualifying employees would be taxed on all 100 employees, while those with 99 or fewer employees would not be liable for the head tax at all. This means the marginal cost to employers of hiring their 100th employee would be $25,200 per year, while businesses just over that threshold could be incentivized to downsize their workforce to avoid the tax.
One unintended consequence is that many employers would modify their business decisions to minimize head tax liability or to avoid the tax altogether. Instead of hiring additional full-time employees who work in Chicago most or all of the time, some employers would increase reliance on artificial intelligence, shift more individuals from full-time to part-time employment (especially in retail and food services sectors), increase reliance on remote employees who live outside Chicago (especially in professional services sectors), or a combination of these alternatives.
The CSS would therefore be highly distortionary, influencing businesses to make decisions for tax reasons that otherwise might not make the most sense. Furthermore, if employment activity shifts outside city limits in response to the tax, other local revenue sources, including sales and excise taxes, could be expected to take a hit. To the extent certain employers would be unable to avoid the tax, the increased tax burden would ultimately get passed along to workers in the form of lower wages, consumers in the form of higher prices, and shareholders in the form of lower returns on investment. It is likely that much of the cost would be absorbed by businesses in the short term, but that the cost would shift to labor in the longer term, in the form of slower growth in wages.
A head tax is not a novel proposal in Chicago; a similar tax has been levied and repealed once before. The [Employer's Expense Tax](https://law.justia.com/cases/illinois/supreme-court/1974/46540-6.html) was collected starting in 1974 at a rate of $3 per employee per month for employers with 15 or more employees. In 1995, the rate increased to $4 per employee per month, and the tax was limited to businesses with 50 or more FTEs who performed at least half of their work in Chicago during the quarter, with employees excluded from the headcount if their earnings did not exceed $900 per quarter. In 2011, the tax was no longer collected on employees making less than [$4,300 per quarter](https://www.civicfed.org/sites/default/files/SelectedConsumerTaxes_2014.pdf), reducing the impact on employers of part-time, hourly workers. Ultimately, [Mayor Rahm Emanuel](https://www.cbsnews.com/chicago/news/emanuel-moves-to-phase-out-job-killer-head-tax/) spearheaded a plan to repeal the tax, calling it a ["job killer,"](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2011/november_2011/mayor_emanuel_applaudscitycouncilforendingheadtaxforchicagobusin.html) and the tax was [phased out](https://www.chicagotribune.com/2011/11/02/city-council-votes-to-eliminate-head-tax-2/) in 2014.
Reviving this "job killing" tax now, at a much higher rate, would be yet another economic blow to Chicago, a city that has already suffered from the mass exodus of [individuals](https://taxfoundation.org/data/all/state/taxes-affect-state-migration-trends-2024/) and the loss of many [notable](https://www.equipmentworld.com/business/article/15668910/caterpillar-expanding-texas-headquarters) [legacy employers](https://www.bloomberg.com/news/articles/2025-02-05/citadel-to-leave-namesake-chicago-tower-as-employees-relocate?utm_source=chatgpt.com). Governor JB Pritzker (D) has [spoken out against](https://www.youtube.com/shorts/x4MsYg4a30o) the proposal, saying, "It penalizes the very thing that we want" and "makes it very hard to attract companies from outside of Chicago." Instead, the governor cited growing the economy as a better way to generate more revenue, an idea that, if adhered to, would yield dividends for both the city of Chicago and the state of [Illinois](https://taxfoundation.org/location/illinois/).
## Social Media Tax Would Penalize Innovation
Mayor Johnson also proposed creating a [new tax on social media](https://taxfoundation.org/research/all/state/state-digital-taxes/) companies, known as the "Social Media Amusement & Responsibility Tax" (SMART). This tax would be imposed at a rate of 50 cents per active social media user over 100,000 in Chicago. This tax could easily increase some companies' local tax liability by millions of dollars per year.
Currently, Chicago levies an amusement tax at a rate of 9 percent on the admission fees consumers pay to attend certain theatrical, musical, and cultural performances. A separate rate of 10.25 percent is imposed on audio and video streaming services and online gaming.
The existing tax, while collected by businesses, is paid directly by consumers when they purchase a taxable form of entertainment. The social media tax, however, would be paid by social media companies directly rather than by end users, although much of the tax burden would ultimately get passed along to customers who take out ads on social media platforms, as well as social media companies' employees and shareholders.
The mayor has [proposed](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) using revenue from the SMART to finance "free mental health clinics throughout Chicago," as well as other mental health services, citing the "growing body of research on the negative mental health impacts of social media use." As such, this would be a highly aggressive "sin tax" that attempts to raise revenue for a broad range of mental health services from one "unfavored" industry. Like certain other sin taxes, the proposed SMART ignores two key facts: (1) there are countless factors and activities that negatively affect mental health, so treating social media companies like the sole contributor to negative mental health outcomes would be misguided, and (2) many people consider social media and related technological advancements a net _positive_ for society when used with discretion. Therefore, shifting the entire burden of new mental health spending in the city to social media companies would be unduly punitive and would ignore the many upsides associated with widespread access to social media in Chicago and elsewhere.
The tax would also be incredibly difficult to implement and would raise questions of fair apportionment. Most social media accounts do not require the user to provide a physical address, so Chicago would have to rely on social media access from Chicago IPs. This could involve the tax being paid on behalf of many people who are only passing through Chicago.
## "Cloud Tax" Increase Would Raise Costs for Businesses and Individuals
The mayor's budget also proposes increasing the so-called "cloud tax" from 11 to 14 percent to raise roughly [$333 million](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit) in new revenue. Currently, Chicago imposes its personal property lease transaction tax on the lease, rental, or use of computer software and cloud infrastructure. As such, this tax is paid by businesses and individual taxpayers who purchase paid subscriptions to various cloud and software services, including AI subscription services. This tax therefore makes it more expensive for a [wide range of companies](https://www.bloomberg.com/news/articles/2024-12-09/cloud-computing-tax-threatens-chicago-s-silicon-valley-ambitions) to do business in Chicago, while also making such subscriptions even more expensive for individual consumers.
## Big Picture
The head tax, social media tax, and "cloud tax" increase proposed in Mayor Johnson's budget are economically harmful and structurally unsound. A head tax would negatively affect employment in Chicago, while an additional layer of taxes on social media companies would be highly nonneutral, penalizing innovation. An increase in the "cloud tax" would make using cloud and software services more expensive for businesses and individuals alike.
If either of the proposed new taxes is authorized, there is no guarantee the tax rates will remain unchanged over time. Once new revenue streams are created, those taxes are often prime targets to accommodate future spending increases, as demonstrated by the proposed increase to the cloud tax.
Instead of imposing harmful new taxes and tax increases that would further exacerbate Chicago's struggles to attract and retain individuals and employers, policymakers should consider how tax policies that promote, rather than discourage, investment and innovation would help unlock sustainable economic and revenue growth for many years to come.
Source Name [76]: Finance Committee rejects Johnson's $600M tax package Full URL: https://www.wbez.org/city-hall/2025/11/17/brandon-johnson-city-hall-finance-committee-rejects-600m-tax-package-corporate-head-tax Scraped Date/Time: 2025-11-22 22:58:48
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Mayor Brandon Johnson answers question from the press at City Hall, Wednesday, Aug. 2, 2023. \| Anthony Vazquez/Sun-Times
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# Finance Committee rejects Johnson's $600M tax package
## Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Nov 17, 2025, 4:07pm EST
Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
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Mayor Brandon Johnson's already strained relationship with the City Council sunk to a new low on Monday when the Finance Committee rejected his nearly $600 million plan to, as he put it, "challenge the ultra-rich and corporations to pay their fair share."
The vote was 25-10. The defeat came only after a motion to postpone the vote failed by an 18-18 tie vote.
"Can we just get this over with? This is a joke. They're calling people out there right now to delay this," said Ald. Matt O'Shea (19th).
For Johnson, it was a repeat of last year's [50-0 City Council vote rejecting his proposed $300 million property tax increase](https://chicago.suntimes.com/city-hall/2024/11/14/chicago-property-tax-vote-city-council-brandon-johnson).
"The City Council will \[now\] drive the budget conversation —similar to last year," said Ald. Marty Quinn (13th), who represents the Southwest Side and is one of the mayor's most outspoken critics.
Ald. Ray Lopez (15th), another one of the mayor's most ardent critics, said Monday's developments are "extremely embarrassing" to Johnson, adding, "Once again, he has lost control over the budget process."
Johnson responded with trademark defiance to the latest declaration of independence from an already emboldened City Council.
"The corporate \[head\] tax is in this budget. It will stay in this budget. Is that clear enough?" he said.
The mayor argued that the only alternative to the head tax is a property tax increase, an increased garbage collection fee, a local version of the one percent grocery tax eliminated by the state and police and fire cuts — or a combination of them.
He said he would veto a budget with any one of those elements. Thirty-four votes would be needed to override a mayoral veto.
The die for Monday's humiliating defeat was cast last week, when Finance Chair Pat Dowell (3rd), a member of Johnson's handpicked leadership team, rejected the mayor's offer to impose a $21 a month per-employee head tax on companies with 200 or more employees and declared her opposition to the corporate head tax "at any level."
Dowell's outright rejection of Johnson's compromise in favor of a 15% increase in the tax on lease rental or use of computer software and cloud infrastructure forced the mayor back to the bargaining table to make even more concessions in addition to the changes he has already made.
On Monday, it was clear that those weekend negotiations had failed — so much so that Johnson returned to his original proposal to impose the corporate head tax on companies with 100 or more employees with an $18 million fund for small businesses that hired in underserved communities.
Early on, Dowell tried to recess the Finance Committee until Dec. 2. Her motion to recess was tabled by a vote of 24-7.
After a break, Budget Director Annette Guzman and Chief Financial Officer Jill Jaworski appeared before the Finance Committee to explain the revenue ordinance along with the mayor's plan to borrow $1.8 billion.
The borrowing includes $1.3 billion for capital projects, $283 million for settlements and judgments tied to allegations of police wrongdoing and $166 million to defray the cost of retroactive pay raises for Chicago firefighters and paramedics. The controversial plan to borrow to pay for day-to-day operations will cost Chicago taxpayers $50 million in interest costs over the life of those bonds.
Monday's defeat sends the budget negotiations back to square one.
Johnson can try to save face politically by portraying opponents as champions of the wealthy and opponents of working people. However, he's also lost control of a budget process that Chicago mayors have long dictated.
Johnson had hoped to put his budget to bed by Thanksgiving to avoid a repeat of last year's budget stalemate [that ended in a 27-23 vote the week before Christmas](https://chicago.suntimes.com/mayor-brandon-johnson-2025-budget-city-council-vote) — and only after the City Council unanimously rejected the mayor's proposed $300 million property tax increase and refused to raise property taxes by any amount.
Instead, political indigestion could be on the mayor's Thanksgiving menu.
He didn't have the votes no matter how he tried to spin it.
And it's not clear at this point how he plans to get to the finish line.
Other than scrapping the head tax altogether or making the legally shaky decision to exempt restaurants and bars, it's not clear what changes Johnson can make to get to 26 votes, or 25 votes, if the mayor is willing to cast the tie-breaker.
"I don't mean to sound cantankerous, but the question is what can these aldermen do? At some point, they have to meet me half way," Johnson said, arguing that he has already done his job.
The mayor argued that those in the City Council who are clamoring for budget cuts over tax increases are "not being honest and sincere about where those cuts" would be coming from. It's the corporate fund with the "vast majority" earmarked for community safety, he said.
"I don't believe the people of Chicago want us laying off police officers at a time in which we're collaborating with community violence intervention work, we're investing in young people. Everyone says this is the No. 1 issue until they have to make a hard decision. Well, guess what? We were all elected to make hard decisions. That's what we're calling for in this moment," he said.
It was just a year ago that Johnson proposed a $300 million property tax increase only to have the City Council unanimously reject the increase and refuse to raise property taxes by any amount. More recently, the mayor and his budget team have pushed for the City Council to restore the 1% grocery tax increase that would generate $80 million in annual revenue.
But the mayor emphatically denied that his own prior support for those increases undercuts his budget message now.
"It's the right time to shift now. And that's what happens in politics. We actually respond to what people say. Isn't that what politicians should do?" Johnson said.
"I've never said that I'm perfect. God knows I'm not. What I'm trying to do is make right in imperfect situations. I'm not asking you to congratulate me. I'm just saying that we've made a shift because we have other options…The options are clear: We're gonna protect working people and middle-class families in this city by investing in education, youth employment and community safety, or we're going to place the burden on working people. And I'm saying we don't have to do that because the ultra-rich and these large corporations—they can do more."
South Side David Moore (17th) said he's willing to go along with the head tax, only if a way can be found to mitigate the impact on "McDonald's operators and any other small restaurants."
"I would like to have further conversation to make sure that's not happening. Hopefully, we can get there," Moore said.
A clearly exasperated Budget Chair Jason Ervin (28th) resurrected his favorite budget cliché: "Everybody wants to go to heaven, but nobody wants to die."
Source Name [77]: Which Cuts Didn't Make the Cut - Efficiency Opportunities for Chicago's FY2026 Budget Full URL: https://civicfed.org/blog/which-cuts-didnt-make-cut-efficiency-opportunities-chicagos-fy2026-budget Scraped Date/Time: 2025-11-22 22:58:48
<span style="color: #0066cc; font-weight: bold;"># Which Cuts Didn't Make the Cut - Efficiency Opportunities for Chicago's FY2026 Budget</span> [77]
November 07, 2025
###### **by Daniel Vesecky**
_**Note:** This summary was prepared in advance of the November 10, 2025, hearing to serve as an easy reference for City Council members, media, advocates, and Chicago residents._
With the City of Chicago (Chicago or the 'City') facing a nearly [$1.2 billion deficit](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Forecast%20Book.pdf) heading into the 2026 fiscal year, potential spending reductions are and should be a top priority for stakeholders in the budget process.
In May 2025, the City commissioned the consulting group EY – formerly known as Ernst & Young – to create a [report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf) on possible efficiencies the City could implement in future budgets. The City released that report (the EY "report") on October 15, 2025, after the administration issued its proposed FY2026 budget. In addition, in the spring of this year, the Mayor issued an [executive order](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/april/Mayor-Johnson-Signs-Budget-Review-Executive-Order.html), creating a [working group,](https://chicagofinancialfuture.org/) called the Chicago Financial Future Task Force (CFFTF), composed of business, finance, civic, policy, and labor organizations and experts, to provide recommendations on cost-saving measures and potential revenues. EY was assigned to support the CFFTF efforts and was principally responsible for generating the resulting report that the group issued on September 15, 2025. The EY report is more extensive than the Financial Future Task Force's report, identifying a broader range of efficiency options and estimated cost savings. Only a few CFFTF recommendations are not included in the full EY study and are not discussed here, as the CFFTF report provides few details on their potential savings.
In aggregate, the two reports present hundreds of millions of potential efficiencies and savings that the City might immediately implement. Many require few to no layoffs or service reductions. Others require additional input from operating departments and the development of implementation plans.
The City's decision to hold back the release of the EY report has hindered the City Council's ability to analyze and pose questions regarding the potential efficiencies during the budget hearings conducted to date. This piece aims to help City Council members use the EY report to its fullest potential in advance of a Council hearing scheduled for November 10 on the report itself.
Below, we summarize some of the biggest items on the list.
### Fleet Services
The EY report found startling inefficiencies in the City's [vehicle fleet](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=15). The average City vehicle was driven only 7,000 miles per year, less than a third of the rate of vehicle usage in Chicago's peer cities. The City owns one vehicle for every 17 full-time equivalent (FTE) positions, far in excess of the industry equivalent of one per 65 FTE. The report contained recommendations for establishing metrics for fleet utilization, optimizing maintenance of City vehicles, and accelerating resale of old vehicles. Although some of the reforms recommended by EY will take time to implement, the report identified several that are immediately doable, including improving the City's warranty recovery capabilities, optimizing the Department of Fleet and Facility Management's operating model, implementing multi-shift and seasonal flex labor, analyzing mechanic labor distribution, and accelerating the vehicle disposition process. The report estimated between $16 million and $31 million in cost savings from optimizing the City's vehicle fleet management.
The proposed budget only seeks to generate $3 million in savings by accelerating the sale of [end-of-life vehicles](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23).
### Real Estate
Chicago [owns and leases](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=25) over 500 properties and over 10,000 vacant parcels of land. EY found that between the City's ten largest office buildings, the amount of workspace exceeds the number of employees by 33%, indicating substantial room for downsizing. In addition to notable one-time revenue, the City could garner operational and maintenance savings by selling three or more of these large buildings.
The report also points out that the City makes far less on licenses for businesses on the Riverwalk than peer cities do for comparable high-traffic locations. The City earned $2.5 million in license fees from riverwalk businesses in 2024, and aligning this policy with peers could generate an estimated $13 million over ten years.
Finally, the report recommends that the City accelerate its efforts to sell industrial buildings and land parcels in neighborhoods with high levels of development. These sales would generate significant one-time revenue for the City and would have the added impact of increasing property tax revenue in the long term, as private holders of the land would be required to pay taxes, whereas the City is not.
Overall, the report identifies $157-$202 million in real estate savings over the course of ten years, with approximately $30 million generated in the first year. The [proposed budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23) aims to generate $12 million in savings by accelerating vacant land sales and exiting two office building leases.
### Fees and Fines
The EY report itemized a variety of [fees and fines](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=34) across many City departments and compared them to benchmark fees in peer cities. The total potential revenue from raising existing fees and fines varies widely based on which fees are raised. Some of the largest revenue options included storage, towing, driveway permits, business licenses, and canopy permits, all of which are below peer averages and currently generate above $4 million each in annual revenue. The report also raises the idea of drastically increasing the vehicle sticker tax, which currently generates $119 million per year and is higher than most peer cities. However, that revenue only covers one-third of road maintenance expenses, and raising the fee would help to offset these costs. Raising the Vehicle Sticker Tax alone could generate over $100 million in revenue. In addition, the report projects $20-$74 million in annual revenue through increases to other fees and fines.
The EY report excludes a handful of additional fees identified by the [Financial Future](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf#page=51) task force, including an increase in the garbage fee, which could raise nearly $300 million if matched to service delivery costs. The CFFTF working group report also recommends indexing most fees and fines to inflation so that the City Council does not regularly have to raise dozens of fees that no longer cover the cost of providing services or fines that have fallen behind peer averages.
The 2026 proposed budget seeks to raise only one fee – the [vacant building mortgage renewal fee](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=22). The proposal argues that this will disincentivize landlords who hold long-term vacant properties and will incentivize development. The fee is projected to raise an additional $400,000 in2026.
### Employee Benefits
Chicago's [employee benefits](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=42) expenses are far higher than those of its peer cities, Cook County, and the State of Illinois. EY identified $80-$103 million in savings the City could realize from moving itself to align its benefit structure with its peers. The City could save $33 million by increasing employee medical contributions, and $10 million by raising copays and other out-of-pocket costs for employees. The City could also save $10 million by instituting a formal return-to-work program, recouping costs from employees who take extended leaves of absence.
In addition, the City could realize significant savings through more efficient healthcare plan design and negotiations with Pharmacy Benefit Managers (PBMs). The report estimates $15-$24 million in annual savings from refining PBM contracts, commissioning a claims and fee integrity study, refining carrier networks, and expanding the City's use of Centers of Excellence for cancer care.
Many of these proposals will require negotiation with organized labor. The proposed budget contains none of these ideas, and the Mayor's Office has shown no inclination to open negotiations with local public unions.
### Procurement
EY found a wide variety of [stunning inefficiencies](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=47) in Chicago's procurement systems. The City's procurement is highly decentralized, with 49% of total spending not managed by the Department of Procurement Services (DPS). This leads to frequent duplication of contracts across departments and a large amount of non-contract spending, which increases costs and risks. Additionally, the City concentrates 80% of its spending with only 182 vendors, while the remaining 20% is handled by a massive roster of 5,312 vendors. This misallocation of resources leads the City to miss opportunities for cheaper bulk purchasing and often leads to small contracts with unfavorable payment terms. Additionally, decentralized procurement prevents the City from leveraging its power as a large purchaser to negotiate better deals with vendors. EY also found that DPS did not provide sufficiently detailed policies to prevent fraud, waste, or abuse, and that DPS and the Department of Finance (DOF) have unclear roles in vendor assessment and management.
Because of these findings, the report recommends implementing Category Management (CM), a strategic approach to procurement that would centralize spending, planning, forecasting, vendor management, performance management, and other strategic roles with DPS. Category Management would eliminate the duplication issue and allow DPS to fully manage all procurement spending, leveraging the City's size to secure the most advantageous contracts. EY estimates $55-$111 million in savings based on the 2024 budget, although the report cautions that a complete shift to CM will likely take three to five years.
Although the proposed budget does not mention procurement reform, a budget presentation provided by the Office of the Mayor indicates that the City will aim to save $10 million through procurement modernization in FY2026. However, no further details are available.
### Organizational Analysis
The [organizational structure](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=55) of Chicago's bureaucracy is top-heavy and redundant. Many back-office functions, such as payroll and HR, are spread across each department instead of being centralized within a single administrative body, leading to inefficiencies and duplication of effort. Recruitment and onboarding processes are prolonged, causing service delays and loss of high-talent potential recruits. Additionally, Chicago has thousands of vacant positions, many of which the EY report deemed non-critical. Consolidating overlapping divisions, labor pools, and back-office support is estimated to save $67-$157 million annually. Streamlining hiring could generate $25 million in revenue by quickly filling revenue-generating positions.
Additionally, many departments are poorly structured, with unusually high numbers of managerial positions, with some departments averaging as few as three direct reports per manager, rather than the leading practice of six to eight. A handful of departments, such as DOF, have a high number of layers, leading to a distance between strategic objectives and implementation. EY projects $37 million in savings from optimizing managerial spans of control.
The proposed budget does not include any implementation of the organizational recommendations outlined in the report. Instead, it saves $50 million by implementing a [hiring freeze](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23) and promises to conduct an organizational analysis in 2026, with the goal of generating savings in 2027. It is worth noting that although this $50 million is billed as an efficiency, it is not a structural saving. Chicago has leaned on hiring freezes over several of the last budget cycles. Each freeze reduces the City's ability to fill vacant positions and attract top talent, and although freezes provide short-term budget patches, they can result in many positions going unfilled for years. This creates inefficiency in government operations, potentially leading to higher costs in future years.
### Service Optimization
EY identified significant inefficiencies in the structure of Chicago's [public safety apparatus](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=71). Though many of the reforms needed would take multiple years to implement, there are options for up to $41 million in first-year savings and over $1.4 billion in savings over ten years.
First and foremost, the report recommended civilianizing sworn positions at the Chicago Fire Department (CFD) and the Chicago Police Department (CPD). Both departments have significantly lower civilianization rates than their peers, resulting in an environment where sworn officers are assigned to desk jobs that non-officers could perform. Meanwhile, slow hiring creates understaffing problems for deployed officers, leading to overspending on overtime. Together, the two departments could save approximately $7.5 million in the first year of civilianization and over $150 million over ten years. Additional savings of $84 million over ten years could be generated by replacing overtime CPD officers on traffic management and parking enforcement duty with Office of Emergency Management and Communications (OEMC) employees.
The report also recommends implementing new fees for CFD and CPD responses to certain situations, including false alarms, inspections, and hazmat usage. It also recommends raising existing fees for DUIs, pyrotechnics, and sprinkler review to cover the cost of service delivery. Although many of these fees may not be implemented immediately, they could raise a total of over $200 million over ten years.
Restructuring the fire department could yield $650 million in savings over the next ten years. This would require reducing the minimum manning requirements for fire engines from 5 to 4, in line with many peer cities, as well as converting some of the City's 80 advanced life support ambulances to basic life support. Reducing manning requirements would require negotiation with the firefighters' union, which refused pressure for this reform during its last contract negotiations, which ended recently.
Restructuring the police department could generate over $100 million in savings over ten years. This would include disbanding the CPD mounted division and implementing an early warning system to detect problematic officers, thereby reducing future settlement costs.
The report identified a grab-bag of smaller savings opportunities as well, including utilizing chatbots for the City's 311 call center, diverting 911 calls to telehealth, adding part-time 911 dispatchers to reduce overtime, adding cameras to CFD and CPD vehicles to increase accountability, and accelerating hiring of timekeepers through the Office of Public Safety Administration. Helpfully, the report provides a one-page [tear sheet](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf#page=76) for each proposed reform.
The proposed 2026 budget commits to proceeding with [phase II of civilianization](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf#page=23) within CPD, but does not provide projected savings from civilianization in 2026. The budget projects $100 million in civilianization savings over ten years. The budget also aims to implement overtime controls on CPD, capping overtime expenditures at $200 million and requiring approval from the City Council to allow CPD to spend past that cap. None of the other public safety service optimization proposals advanced by EY are included in the budget.
[**Download this summary report**](https://civicfed.org/sites/default/files/2025-11/FY2026%20Efficiencies%20Report%20with%20Chart_0.pdf)
[**Download the efficiency options chart**](https://civicfed.org/sites/default/files/2025-11/Efficiencies%20Chart%202026_1.pdf)
Source Name [78]: Newswire: Chicago alders vote against corporate head tax Full URL: https://www.citybureau.org/newswire/2025/11/19/newswire-chicago-alders-vote-against-corporate-head-tax Scraped Date/Time: 2025-11-22 22:58:48
<span style="color: #0066cc; font-weight: bold;">Newswire: Chicago alders vote against corporate head tax — City Bureau</span> [78]
# Newswire: Chicago alders vote against corporate head tax
November 19, 2025
_by_ [City Bureau](https://www.citybureau.org/newswire?author=572aaa95d210b8f3ebfcaab5)
_Welcome to Newswire — your weekly guide to Chicago government, civic action and what action we can take to make our city great, featuring public meeting coverage by City Bureau's Documenters._
* * *
## **Quote/Term of the Week**
## **Head tax** / _noun_
A tax that imposes the same fixed amount on every individual in a class or group.
_Ex: Mayor Brandon Johnson proposed a head tax on local corporations in order to establish revenue for a new Community Safety Fund._
* * *
## **Back to the \[budget\] drawing board**
**On Monday, the City Council's finance committee overwhelmingly** [**rejected Mayor Brandon Johnson's**](https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/) **revenue plan,** striking down a key proponent of his 2026 budget proposal .
**Committee members voted 25-10 against the plan, which generated controversy because of the controversial Community Safety surcharge, also referred to as the "corporate head tax."** The proposed tax [would have charged $21 per employee each month to companies](https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/) with 100 or more full-time employees who work 50% of their time in Chicago.
Critics of the head tax said that it will drive away much-needed business from Chicago. Gov. J.B. Pritzker also spoke out against it. Supporters disagree, saying the tax helps ensure corporations pay their fair share and provide funding for vital services. Chicago's last head tax for businesses was [phased out in 2014](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2011/november_2011/mayor_emanuel_applaudscitycouncilforendingheadtaxforchicagobusin.html).
The failed vote could throw a wrench into the mayor's strategy to boost funding for social services even as the city's [Department of Family and Support Services faces major cuts](https://www.citybureau.org/newswire/2025/11/05/newswirehow-will-city-budget-cuts-affect-domestic-violence-survivors) next year.
**City leaders estimated the tax would garner $100 million annually, which would establish a Community Safety Fund.**
[**New to this year's budget**](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) **, the fund is a part of the mayor's plan to prioritize dollars for social services, health care and housing**. According to Budget Director Annette Guzman, that would include investments for specific services such as violence reduction and intervention programs, domestic and gender-based violence services, youth employment, victim support programs and trauma-informed trainings for various departments.
[Nearly one-quarter of the funding](https://www.citybureau.org/newswire/2025/11/05/newswirehow-will-city-budget-cuts-affect-domestic-violence-survivors) for GBV next year — about $3.5 million — was to come from the new Community Safety Fund. **Now that the plan to generate money for that fund has been scuttled,** it's not clear how else city officials will come up with those dollars for domestic and gender-based violence prevention.
**Ald. Nicole Lee (11th Ward),** [**who has been very vocal**](https://www.citybureau.org/newswire/2025/11/05/newswirehow-will-city-budget-cuts-affect-domestic-violence-survivors) **about the importance of funding GBV and domestic violence support services, also criticized the head tax.** Lee believes that while the tax won't necessarily drive out the pre-existing businesses in Chicago, it will stifle growth **. "** Chicago needs to think more about, how do we grow our way out of the situation that we're in, versus the taxes," she said.
- _Asynchronous Evening Coverage: 2026 Chicago Budget Hearing: Independent Offices & Regulatory Agencies_ [_by Katie Busch_](https://chicago.documenters.org/assignments/remote-5pm-end-asynchronous-evening-coverage-2026-chicago-budget-hearing-independent-offices-regulatory-agencies-17438/)
### **What you can do:**
**What do you think about the corporate head tax? How should the city generate more money for key services?** Click [here](https://chicago.councilmatic.org/council-members/) to find your ward and contact your alder.
**Follow along with Chicago Documenters this #BudgetSzn🤑.** We're covering every budget meeting leading up to City Council finalizing the spending plan at the end of the year. Follow our work at [docs.org](https://chicago.documenters.org/reporting/), [Twitter.com](https://x.com/CHIdocumenters) and [Bluesky](https://bsky.app/profile/chidocumenters.bsky.social).
## **CTA backs off the cliff**
**The Chicago Transit Authority has finally been rescued from its fiscal cliff**, thanks to a [$1.5 billion funding package](https://blockclubchicago.org/2025/10/31/cta-saved-from-massive-cuts-as-state-lawmakers-pass-1-5-billion-funding-bill-for-local-transit/) passed by state lawmakers in October that will avoid massive service cuts and layoffs at CTA, Metra and Pace. The legislation also brings the three major transit agencies under a new governing system, the Northern Illinois Transit Authority, [and eliminates the Regional Transit Authority](https://blockclubchicago.org/2025/10/31/cta-saved-from-massive-cuts-as-state-lawmakers-pass-1-5-billion-funding-bill-for-local-transit/).
**The 2026 CTA budget now is absent of fare hikes, service cuts and layoffs, and will include plans for expanding service lines.** Among the services the CTA plans to bring with its new funding is 24-hour Orange Line service to Midway Airport and [free fixed-route](https://www.rtachicago.org/blog/2025/10/09/ada-paratransit-certified-riders-can-now-ride-free-on-fixed-route-cta-metra-and-pace-service) rides for paratransit riders.
The free fixed-route rides are meant to offset changes to paratransit access authorized earlier this year. The [ADA Paratransit 2025 Funding Amendment](https://www.rtachicago.org/uploads/files/meeting-materials/Board-Meetings/2025/August/7b_ADA_Paratransit_2025_Funding_Amendment_August.pdf) established a monthly cap on the Rideshare Access Program and Taxi Access Program, which covers part of the cost for rideshares for ADA-eligible riders.
**Back in August,** [**we reported that**](https://www.citybureau.org/newswire/2025/8/27/newswire-chicagoans-with-disabilities-speak-out-against-transit-cuts) **Chicagoans with disabilities turned out in force to urge RTA to not go forward with the cuts reducing the maximum number of rides from eight per day to 30 per month.**
"A 30-ride limit, while it may seem like a minor adjustment on a spreadsheet, would be a devastating blow for people who rely on this service," said Larry Dean, economic justice organizer for Access Living. "It would force many people in the disability community to make impossible choices: Do I go to work or see my doctor? Do I attend my class or visit my family for the holidays?
**Despite the bailout, there is an expected budget gap in 2027** due to certain funds running out including $256.9 million America Rescue Plan and $72 million one-time allocation from the Regional Transit Authority received earlier this year to delay the fiscal cliff.
- _Chicago Transit Authority: Committee Meetings and Regular Board Meeting_ [_by Leslie Williamson and Aidan Kim_](https://chicago.documenters.org/assignments/in-person-or-remote-chicago-transit-authority-committee-meetings-and-regular-board-meeting-17443/)
### **What you can do:**
**Catch up on the headlines:**
- CTA OKs Budget With No Cuts or Fare Hikes; Major Service Boosts Planned When New Public Funding Arrives \| [WTTW](https://news.wttw.com/2025/11/12/cta-oks-budget-no-cuts-or-fare-hikes-major-service-boosts-planned-when-new-public)
- We haven't saved transit yet: What comes after the fiscal cliff \| [Streetsblog Chicago](https://chi.streetsblog.org/2025/11/10/we-havent-saved-transit-yet-what-comes-after-the-fiscal-cliff)
- What caused Chicago's transit funding crisis—and what could fix it? \| [UChicago News](https://news.uchicago.edu/story/what-caused-chicagos-transit-funding-crisis-and-what-could-fix-it)
* * *
_A version of this story was first published in the November 19, 2025 issue of the Newswire, an email newsletter that is your weekly guide to Chicago government, civic action and what we can do to make our city great. You can_ [_sign up for the weekly newsletter here_](https://www.citybureau.org/newsletter) _._
_Have thoughts on what you'd like to see in this feature? Email Civic Editor Dawn Rhodes at_ [dawn@citybureau.org](mailto:dawn@citybureau.org?subject=Newswire%20feedback) _._
Source Name [79]: Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal Full URL: https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/ Scraped Date/Time: 2025-11-22 22:58:48
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# Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal
##### By [Corli Jay](https://thetriibe.com/author/corlijay/ "Posts by Corli Jay")
Published on November 17, 2025
#### Mayor Brandon Johnson addresses the 2026 budget proposal at a city council meeting on October 16, 2025. Photo by Ash Lane for The TRiiBE®
In a committee vote on Mayor Brandon Johnson's FY 2026 $16.6 billion [budget proposal](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/), the Chicago City Council Finance Committee decided Monday not to advance the proposed revenue options for a full City Council vote. A point of contention is Johnson's proposed corporate head tax, a monthly $21-per-employee fee on large businesses that would generate a "Community Safety Fund" for violence prevention, mental health services and youth programs.
[The 35-member committee](https://www.chicago.gov/city/en/sites/committee-on-finance/home/committee-members.html) voted 10-25 against advancing the proposal. Ald. Pat Dowell (3rd Ward) is the Johnson-appointed chair of the committee with Ald. Bill Conway (34th Ward) as the vice chair.
Borrowing plans, among other items, were also included in the revenue options up for committee vote. Aldermanic Progressive Caucus member Ald. Andre Vasquez (40th Ward) has positioned himself against the proposal due to concerns about a borrowing plan to cover police misconduct spending, according to [_Block Club Chicago_](https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/), but says he supports the corporate head tax.
Ald. Bill Conway (34th Ward) speaks with the press after the city council public safety committee meeting on April 30, 2025. Photo by Ash Lane for The TRiiBE®
Originally proposed for companies with 100 or more employees, Johnson's administration [amended the head tax proposal last week](https://news.wttw.com/2025/11/13/mayor-brandon-johnson-reduces-corporate-tax-hike-proposal-crucial-votes-loom) to include those with over 200 workers. He has since gone back to its original 100-employee proposal and is expected to generate [$100 million in funding](https://thetriibe.com/2025/11/emanuel-killed-it-johnson-wants-it-back-chicagos-corporate-head-tax-debate-is-about-more-than-money/). Johnson's head tax proposal heeds the call of the grassroots organizers who elected him to tax the city's richest and wealthiest corporations.
At a post-meeting press conference on Monday, Johnson encouraged Chicagoans to call their alderperson to tell them they don't want a property tax increase. Johnson said the corporate head tax is a solution to avoid a property tax increase.
"I actually think that these communities should call their alders," Johnson said to reporters. "Call their alders and tell them that we don't want our property taxes increased."
A [report](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf) released by the Cook County Treasurer's Office showed that property taxes in Chicago increased 11.6% while taxes on business properties went up just 0.9%. According to the analysis, the burden on homeowners was in part due to a decrease in property values in the Loop, with homeowners on the South and West sides facing a larger increase than the rest of the city.
Residents have been on the receiving end of mass text campaigns from opposing political action groups, such as One Future Illinois, that frame the corporate head tax as a job killer, and proponents such as Chicagoans Against Trump Cuts, that frame the tax as making big corporations pay their fair share.
Mass campaign text messages sent to residents from One Future Illinois NFP. Screenshot.
Mass campaign text messages sent to residents from Chicagoans Against Trump Cuts. Screenshot.
"What they're saying is, at least so far, these individuals are more interested in protecting the corporations, the largest corporations in our city, than protecting working people," Johnson said.
Some of the alders who stood behind Johnson during the press conference include Ald. William Hall (6th Ward), Ald. Byron Sigcho-Lopez (25th Ward), Ald. Leni Manaa-Hoppenworth (48th Ward), Chris Taliaferro (29th Ward), Ald. Jessie Fuentes (26th Ward), Ald. Jason Ervin (28th Ward), and Ald. Rossana Rodriguez Sanchez ( 33rdWard).
Some of the opposing alders held a separate press conference after the vote. Those in attendance included Ald. Gilbert Villegas (36th Ward), Ald. Brendan Reilly (42 Ward), Ald. Anthony Beale (9th Ward), and Ald. Monique Scott (24th Ward).
Johnson is urging City Council members to bring more suggestions to fill the $1.15 budget gap.
"The cost of living is going to increase because of the budget that the President of the United States has put forward. People are paying more for everything, and we, as a City Council and as city government, have an opportunity to provide that relief. That's what this budget ultimately is doing," Johnson told reporters after the committee vote.
Johnson said he would veto a budget that includes a property tax increase and called for a recess until the first week of December to allow alderpeople more time to come up with alternatives to the head tax.
He added that he would also veto a budget that includes a grocery tax and a garbage fee increase.
"I will veto any budget that includes a property tax increase," Johnson said. "Working-class Chicagoans can simply just not afford a property tax increase."
Parts of Johnson's FY 2026 budget proposal are a call from community organizers with the People's Unity Platform (PUP), who are pushing for more progressive forms of taxation. They rallied behind the proposal through their [Babies Before Billionaires](https://thetriibe.com/2025/10/as-trump-cuts-vital-services-chicago-organizers-push-city-council-to-pass-a-progressive-city-budget-for-fy-2026/) campaign over the summer.
Breanna Champion, an organizer with the Chicago Black Voter Project, called the finance committee's vote "disheartening and dangerous." She said the fact that majority-Black neighborhoods are seeing their property taxes go up shows that businesses should be taxed. She said alders should support the head tax, which is called the Community Safety Surcharge in Johnson's budget."One of the major reasons why these businesses say they are leaving \[Chicago\] is not because of the corporate head tax, because we don't even have the corporate head tax in effect," Champion said. "The reason why they say they're leaving is because the city isn't safe for them to do business. And that's exactly what the Community Safety Surcharge is trying to remedy."
Alderpeople who oppose the tax point to its possible impact on small businesses — despite only employers with 100 or more employees — and the restaurant industry, stating that it could lead to layoffs.
Ald. Red Burnett has told _The TRiiBE_ that he is open to conversations about how to make the head tax "make sense" for all industries. His 27th Ward expands from disinvested neighborhoods like Garfield Park to bustling enclaves like the West Loop.
Ald. Desmon Yancy initially called Johnson's budget "progressive," but has since retracted his support of the proposed head tax. His 5th Ward includes well-off areas near the University of Chicago and the surrounding Black neighborhood of South Shore, which has historically had the highest eviction rates in the city.
Ald. David Moore (17th Ward) has stated worries about the tax impacting McDonald's franchisees, but does not reject the idea of the head tax altogether.
The Chicago Teachers Union released a statement after today's vote. Although the statement addresses all alders on the committee who voted "no," the union specifically called out Yancy and Conway for putting the interests of millionaires over "a supermajority of Chicagoans and 90% of Black and Latine Chicagoans" who support taxing large corporations.
"At a time when families in Roseland, Beverly, and Humboldt Park are struggling to keep up with rent and groceries, these alders are siding with the corporations who fight DEI and who are turning the tax breaks they're getting from the President into donations to his White House ballroom," the CTU statement reads. "Mayor Johnson's proposal is the only one on the table that delivers for schools, parks, libraries, and making us safer and he found a way to make the ultra-wealthy corporations pay for it."
In response to concerns for the tax's impact on local business owners, Johnson said they're considering reimbursements and establishing a new grant program for some small and medium-sized businesses.
Mayor Brandon Johnson holds press conference on Nov. 17, 2025. Screenshot
"Our updated proposal will return to the original threshold of only taxing companies with more than 100 employees, but we would use those additional funds to set up a community business grant program to support small and medium-sized businesses that are operating in socially and economically disadvantaged areas, as well as important tourism and Investment zones and areas with food scarcity," Johnson said.
Some City Council members have called for more efficiencies and cuts in the FY26 budget. During today's finance committee meeting, Johnson's Budget Director Annette Guzman said any additional cuts would come from the public safety portion of the budget, which includes the Chicago Police Department.
The proposed budget for CPD totals $2.1 billion for 2026, a 0.8% increase from last year. Johnson said he would not support any city layoffs in the FY26 budget.
Champion said that the committee's vote doesn't prioritize Chicagoans generally and Black residents in particular.
"I feel like what their vote shows is that they care more about corporations than they do people," Champion said. "Specifically, as it relates to corporations' ability to stay in the city, but not Black folks who are actually being pushed out."
Source Name [80]: Mayor does budget about-face on funding for domestic violence programs Full URL: https://www.wbez.org/city-hall/2025/11/14/chicago-mayor-brandon-johnson-does-about-face-on-funding-for-domestic-violence-programs-budget Scraped Date/Time: 2025-11-22 23:07:10
<span style="color: #0066cc; font-weight: bold;"># Mayor does budget about-face on funding for domestic violence programs</span> [80]
## Mayor Brandon Johnson restored a $9 million in cut domestic violence funding in a compromise to get his 2026 budget passed by the City Council. Domestic violence critics praised his "renewed commitment" to confronting gender-based violence.
By [Mariah Woelfel](https://www.wbez.org/author/mariah-woelfel)
Nov 14, 2025, 5:50pm EST
Opponents of domestic violence are applauding a move Friday by Chicago Mayor Brandon Johnson to reverse course on what they said would have been devastating budget cuts included in his 2026 spending plan.
Johnson, who is in the throes of an intense budget season as he aims to close a nearly $1.2 billion gap, is restoring funding in a package of several other [concessions](https://chicago.suntimes.com/city-hall/2025/11/13/mayor-brandon-johnson-concessions-proposed-2026-budget-corporate-head-tax-cloud-computing-city-council) aimed at appeasing his City Council critics.
Johnson's initial budget plan would have allowed money to fight [domestic violence](https://chicago.suntimes.com/city-hall/2025/11/10/chicago-cook-county-task-force-domestic-violence-victims-barriers) to plummet 43%, as federal funding dries up and available revenue from a surcharge on home-share rentals dwindles.
Johnson's spokesperson confirmed Friday the mayor will draw $9 million in additional funding from the city's discretionary budget, known as the corporate fund, to make up the difference.
That would hold funding for domestic violence at $21 million, on par with 2025, after Johnson had initially earmarked only $12 million for services next year. About $4.5 million of the overall funding still relies on the passage of a controversial corporate head tax, which Johnson is also tweaking as part of his compromise plan.
In a letter written to Johnson Friday, the city's mayoral-appointed gender-based violence task force — which had previously slammed the mayor for allowing funds to drop — had a 180-degree change of tune.
"We are writing to express our sincere gratitude for your administration's renewed commitment to fully funding gender-based violence services at 2025 levels in 2026," the letter reads. "As the budget process continues, we urge the Chicago City Council to similarly pledge to fully fund gender-based violence services."
The funding restoration came after WBEZ [reported](https://chicago.suntimes.com/city-hall/2025/11/10/brandon-johnson-domestic-violence-programs-funding-2026-budget) on the sharp criticism and existential concerns from domestic violence organizations, which sounded the alarm the reduction was proposed as domestic violence continues to be one of the only violent crime categories on the rise in Chicago amid a precipitous drop elsewhere.
While homicides overall have fallen 29% this year to last, domestic homicides have climbed by 23%, as of Nov. 14, according to police data.
The programs the city funds are run by a network of nonprofit organizations. Chicago Public Schools prevention education teaches children how to identify things like "unwanted touch." Another program helps pay for hotel stays for victims in an immediate crisis. Others offer counseling and advocacy services, or legal help. A "survivor fund" doles out one-time payments of $1,000 to victims in need.
Johnson's spokesperson said the boost in funding is made possible by another tenet in his new budget compromise: a plan to boost the city's tax on cloud storage, in part to make Johnson's [corporate head tax](https://chicago.suntimes.com/city-hall/2025/11/06/mayor-brandon-johnson-corporate-head-tax-defense-2026-proposed-budget) more palatable.
Additional cloud storage revenue will allow Johnson to restore domestic violence funding and change the corporate head tax to affect companies with 200-plus employees, instead of companies with 100 or more.
"This investment is going to go toward ensuring that survivors and victims of domestic and gender-based violence have the support and the resources that they need," Johnson said at a news conference Friday in response to a question about the head tax's opponents.
The initial head tax was quickly slammed by many businesses and some Council members, even those who simultaneously called on Johnson to restore domestic violence funding. It remains to be seen whether the change will sway enough Council members.
Johnson is maintaining the funding at a time when domestic violence organizations face significant federal funding cuts, too, on top of limited local resources.
Source Name [81]: Chicago Public Schools could get half a billion dollars from city's 2026 budget Full URL: https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/ Scraped Date/Time: 2025-11-22 23:07:10
<span style="color: #0066cc; font-weight: bold;"># Chicago's 2026 city budget proposal includes $552 million for CPS</span> [81]
By
[Becky Vevea](https://www.chalkbeat.org/authors/becky-vevea)
| October 16, 2025, 4:00pm EDT
Chicago Mayor Brandon Johnson's 2026 budget proposal for the city includes a $1 billion TIF surplus, half of which would go to Chicago Public Schools. (Laura McDermott for Chalkbeat)
Chicago Mayor Brandon Johnson proposed a$16.6 billion city budget Thursday that allocates $552.4 million to Chicago Public Schools, significantly more than the $379 million the school board anticipated when it passed [its own $10.2 billion budget](https://www.chalkbeat.org/chicago/2025/08/29/cps-budget-does-not-include-pension-payment-loan-and-more-debt/) in late August.
The additional money would allow CPS to [avoid midyear cuts](https://www.chalkbeat.org/chicago/2025/08/12/chicago-public-schools-to-propose-budget-plan-without-pension-payment/) and fill gaps created by the [Trump administration canceling millions in magnet school grants](https://www.chalkbeat.org/chicago/2025/09/24/cps-loses-magnet-school-money-over-dispute-with-trump-administration-over-dei-initiatives/). It could also allow the school board to approve [a pension reimbursement payment to the city](https://www.chalkbeat.org/chicago/2025/03/12/city-hall-wantsschool-staff-pension-payment-from-cps/), as outlined in the school district's budget plan, but the city budget overview documents say that is not assumed in its 2026 plan.
"These funds will ensure that we are protecting our young people from the Trump administration's attempts to dismantle and privatize our public education system, that we are protecting special education teachers, restoring funding for our Black Student Success Plan, and making sure our lowest-paid workers receive their pensions," Johnson said in a speech to the City Council Thursday.
The city's 2026 budget, which will need to be approved by at least 26 of 50 aldermen on the City Council before the end of the calendar year, declares a surplus of funds from special taxing districts, known as TIFs, aimed at spurring development in blighted areas.
Before the meeting, Johnson outlined highlights of his budget alongside supporters and allies, including school board members Michilla Blaise, a mayoral appointee, and Jitu Brown an elected member who is an ally of the mayor, both of whom represent the city's west side, and Chicago Teachers Union president Stacy Davis Gates.
He said this year's budget was "written long before I took office" and represents the work of "generations of organizers," drawing on [his own background and experience as a CTU organizer](https://www.chalkbeat.org/chicago/2023/3/14/23640368/chicago-mayor-election-runoff-public-schools-brandon-johnson-teachers-union-paul-vallas/) before he became mayor.
"Back then, it was about trying to protect and save one school even if it took a hunger strike," Johnson said. "Now, this budget is about saving our entire education system."
Blaise spoke in support of the budget and said a coalition of board members who voted down CPS' spending plan in August because it was "balanced on paper, but not reality" pushed the mayor's administration to deliver more money for CPS.
"This commitment prevents any midyear cuts and allows us to maintain stability in our classrooms," Blaise said.
She also applauded the mayor for declaring a record TIF surplus to help CPS fill an $8 million hole created by the Trump administration's decision to cut some magnet school grants over the district's commitment to improve Black student achievement and protect the rights of LGBTQ students.
"This agreement is essentially Trump-proofing our budget," Blaise said.
There are [more than 100 TIF districts](https://igchicago.org/information-portal/data-dashboards/chicago-tif-districts-map-fund-balances/) across Chicago collecting more than $1 billion in property tax revenue each year. Any amount of money not committed to development projects in those areas can be declared as "surplus" by the mayor and City Council. By law, CPS gets 52% of any TIF surplus and the city gets 24% with the remaining sent to other taxing bodies.
Johnson's budget proposal does not rely on CPS making a pension reimbursement payment to the city, but school board members may still decide to do so. The district's $10.2 billion budget included a statement that if additional revenue came through, the school board would consider reimbursing the city to cover a portion of the pensions of non-teaching staff covered by the city plan.
That pension reimbursement has been a source of conflict between the school board and city hall in recent years. Faced with ballooning payments and given that about half of the fund's beneficiaries are CPS employees or retirees, former Mayor Lori Lightfoot's administration implemented an [intergovernmental agreement](https://projects.chalkbeat.org/2025/uploads/2020_IGA_CPS-City_MEABF.pdf) with her appointed school board in 2020 to have CPS reimburse the city for an increasing portion of the required annual payment.
The cost-sharing irked the Chicago Teachers Union at the time, which lambasted Lightfoot for burdening the school system with the city's financial obligations. But when CTU organizer and former teacher Johnson became mayor, he continued to push CPS for the reimbursement.
The Board of Education has not made a pension reimbursement payment to the city since early 2024 when it [sent $175 million to cover part of the cost of the 2023 payment](https://projects.chalkbeat.org/2025/uploads/2023_IGA_CPS-City_MEABF.pdf). Blaise told Chalkbeat Wednesday the school board may discuss a new intergovernmental agreement at its next meeting on Oct. 23.
Blaise said approving such an agreement would help alleviate concerns from alderpeople who want to "see something in writing" about how CPS will use the additional TIF surplus dollars.
In addition to the record TIF surplus, the Chicago city budget includes $7 million for increasing the pay of more than 3,000 early childhood workers at 86 programs run through the city's Department of Family and Support Services and additional dollars for summer youth employment programs.
Johnson's budget also includes a new, first-of-its-kind tax on social media companies. He noted the link between social media use and higher rates of depression, anxiety, and mental illness among young people, especially. "Just like we've taxed other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way," he said.
The tax would charge social media companies 50 cents per active user over 100,000 in Chicago and is estimated to generate $31 million to support mental health services, Johnson's office said.
_Reema Amin contributed reporting._
_Becky Vevea is the bureau chief for Chalkbeat Chicago. Contact Becky at_ [_bvevea@chalkbeat.org_](mailto:bvevea@chalkbeat.org) _._
Source Name [82]: Understanding the Components of CPS' FY2026 Projected Structural Deficit Full URL: https://civicfed.org/blog/understanding-components-cps-fy2026-projected-structural-deficit Scraped Date/Time: 2025-11-22 23:07:10
<span style="color: #0066cc; font-weight: bold;"># Understanding the Components of CPS' FY2026 Projected Structural Deficit</span> [82]
June 16, 2025
_This report is part of a three-part educational series on what's at stake for CPS in FY2026 and beyond._ [_Click here to view the one-page summary of these reports_](https://civicfed.org/sites/default/files/2025-06/CPS%20Suite%20One-Pager%20FINAL.pdf) _._
###### **by Daniel Vesecky**
The Chicago Public Schools District (CPS or the 'District') and the Chicago Teacher's Union (CTU or the 'Union') recently reached a [collective bargaining agreement](https://www.chicagotribune.com/2025/03/31/chicago-teachers-union-signs-contract/) after almost a year of negotiations. The new costs of the contract will add to an already large and growing structural deficit that CPS faces as the July 1 start of the 2026 fiscal year (school year 2025-2026) draws near.
As the CPS Board of Education approaches its FY2026 budget [approval deadline](https://www.wbez.org/education/2025/06/04/cps-considers-delaying-some-ctu-contract-wins-as-it-faces-budget-deficit-prompting-lawsuit-threat#:~:text=The%20school%20district's%20fiscal%20year,until%20the%20end%20of%20August.) of August 29, it faces a variety of unresolved [challenges](https://civicfed.org/FinancialLandscapeCPSFY2025). Despite declining enrollment over the past several years, the District has increased staffing and kept building usage constant, leading to [significant underutilization](https://www.civicfed.org/blog/chicago-public-schools-building-underutilization). It [also faces](https://www.civicfed.org/FinancialLandscapeCPSFY2025) large underfunded pension liabilities, high debt paired with a junk credit rating, and a lack of meaningful cash reserves. Combined with the costs of the new collective bargaining agreement and the spend-down of the District's remaining federal COVID-19 relief funding, these financial challenges have come together to create the large structural budget deficit that CPS now faces.
The District's estimated projected budget gap for FY2026 of $529 million hinges on several assumptions that are far from certain and in some respects doubtful. The CPS estimate assumes that: (1) the District will receive the same level of TIF surplus funds from the City of Chicago that it received in this year FY2025—a record-breaking $300 million; (2) CPS will not reimburse the City of Chicago for a portion of the municipal employees' pension fund (more than half of whose covered members are non-teacher CPS employees); (3) the District will not lose any federal funding; and (4) market conditions will allow the District to refinance outstanding debt to save $100 million in interest costs. Further, the [school-level budgets](https://www.chalkbeat.org/chicago/2025/05/14/cps-school-principals-to-get-2026-budgets/) that CPS introduced to principals in May 2025 also assume that the District will receive an _additional_ $300 million in unused Tax Increment Financing (TIF) surplus funds from the City of Chicago, on top of the $300 million already assumed. This assumption, which has no precedent, would decrease the deficit from $529 million to $229 million.
These factors all beg the question: are CPS' budget assumptions realistic? Given the above overly optimistic assumptions, the deficit could easily run significantly higher than $529 million. The fact that TIF sweeps are not a guaranteed source of revenue and that the size of sweeps vary from year to year means that the starting structural budget deficit for FY2026 is really $829 million—$300 million above the stated $529 million. Any changes to the other assumptions would knock the deficit up even higher. Finding long-term, structural solutions to the District's current financial challenges will be imperative number one for the Board of Education as it works to adopt a balanced budget for the upcoming fiscal year.
The District has very few readily available options for generating new revenue and may be forced to cut spending if it is unable to arrive at a balanced budget plan. This report will unpack what is in the new teachers' contract, what the District's current deficit looks like, and what the CPS' options are as it begins its FY2026 budgeting process.
## The Teachers' Contract
The Chicago Teachers Union secured a number of changes in the new contract approved in April 2025, including pay increases and more prep time. What follows are the highlights of the agreement, which runs (retroactively) from July 1, 2024 through June 30, 2028.
Based on a memo from CPS leadership to the Chicago Board of Education, when costs for all the contract provisions are summed, the District expects additional costs of $123 million in the current FY2025 budget, with substantial jumps to $324.5 million in FY2026 and $472.2 million in FY2027. The final year of the contract, FY2028, is expected to cost $636 million. All told, the changes in the agreement are expected to incur costs of $1.56 billion for CPS over the four-year period of the contract.
### Salary Increases
The costliest issue in contract negotiations was pay increases for CTU members. The Union initially requested pay increases of up to 9% annually to compensate for increases in the cost of living. Eventually, the contract settled for a 4% cost-of-living adjustment (COLA) for the first year of the contract, followed by 4-5% increases depending on inflation in future years. However, tenured teachers will get COLA increases of up to 7.5% in the first year of the contract and up to 8.5% in future years, depending on their years of service. COLAs and other pay increases included in the contract, such as special bumps for long-serving teachers, are estimated to increase average teacher salaries from approximately [$86,000](https://www.illinoisreportcard.com/district.aspx?source=teachers&source2=teachersalary&Districtid=15016299025) to over $100,000 by the end of the contract. These salary and benefit costs combined are expected to cost $122.2 million in FY2025, and total $1.28 billion over the life of the contract, which runs through FY2028.
### New Hires
CPS has hired about 7,000 new teachers and staff members since 2020, funded primarily through the influx of temporary [federal COVID funding](https://civicfed.org/sites/default/files/2025-01/Civic%20Federation%20-%20Financial%20Landscape%20Analysis%20Report%20of%20CPS%20FY2025%20FINAL.pdf#page=15), though many of the additions were required under the preceding collective bargaining agreement. The new contract commits CPS to hiring an estimated 800-900 additional [staff members](https://www.cps.edu/media/community-updates/2025/april/agreement/) over the next four years. According to CPS, most of these hires will serve students with disabilities, English learners, and other high-need students. The contract also reduces the student-teacher ratio for case managers of disabled students and English Language Program Teachers, thus requiring the District to hire more of each role. Finally, the contract calls for the District to hire an additional 30 librarians each year and assign at least one nurse and one social worker to each school by the end of the contract. CPS expects that the new staffing will cost a total of $135.7 million through FY2028.
### Increased Prep Time
[Prep time](https://www.chalkbeat.org/chicago/2025/04/01/ctu-reaches-contract-deal-with-cps/) for elementary and middle school teachers was a major issue of contention during negotiations. CPS was unwilling to sacrifice instruction time to add to prep time, while CTU demanded up to an additional 30 minutes of daily prep time. Under the previous contract, elementary and middle school teachers already got 330 minutes of prep time a week – an hour a day, plus two additional 15-minute periods weekly. Even prior to the new contract, this amount significantly outpaced the average prep time afforded teachers in most peer jurisdictions nationally. Under the new contract, prep time will increase to 350 minutes. The change was made by removing the two 15-minute floating periods and replacing them with an additional 10 minutes a day. This will not reduce instructional time, but different schools will see the increased time implemented in different ways, with some schools extending recess to comply with a [state law](https://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=102-0357) requiring a minimum of 30 minutes of play time in all elementary schools and others extending specialty classes such as art and music to give homeroom teachers more time to prepare. Several professional development days that were previously directed by principals will also now be teacher-directed, with the goal of creating more focused prep time on these days.
### Reduced Maximum Class Sizes
Although CTU won lower minimum class sizes in its [2019 contract](https://www.civicfed.org/civic-federation/blog/chicago-public-schools-amends-fy2020-budget-based-contract-agreements-reached), there were limited mechanisms for enforcement. The new contract establishes class size minimums that are lower than the previous contract, dedicates $40 million to supporting the lower sizes, and requires that any class that exceeds the minimums automatically have a teaching assistant assigned to it. The new class size limits are:
- 25 students in kindergarten, down from a limit of 28
- 28 students in grades 1-3, the same as in the previous contract
- 30 students in grades 4-8, down from 31
- 29-31 students in grades 9-12
Changes in class size are expected to cost $5 million per year starting in the 2026 fiscal year, for a total of $15 million throughout the life of the contract.
### Changes in Evaluations
Currently, all CPS teachers go through an evaluation cycle every two years. CTU pushed to elongate that cycle to three years in recent negotiations. While the District will still require most teachers—all those rated "proficient" in their evaluations—to continue undergoing evaluations every two years, the Union won some exemptions. Teachers who are currently rated as "excellent" and who retain that rating on their next evaluation will only be required to be evaluated every three years going forward. The same will be true for "proficient" teachers who have 19 or more years of experience.
### Other Clauses
The contract contains a variety of other agreements, including:
- 50 additional sustainable schools, which partner with community organizations to provide wraparound services.
- Additional funding for athletic staff and programs.
- Network-based fine arts positions to serve schools without art teachers.
These additional costs are estimated to total $121.3 million through FY2028.
## The Budget Deficit
CPS faces an [estimated deficit](https://www.chalkbeat.org/chicago/2025/04/25/cps-faces-529-million-budget-deficit/) of $529 million in FY2026, which is likely to grow in future years as the significantly backloaded costs of the teacher's contract come to fruition. The District's budget deficit is structural, meaning revenues are regularly insufficient to meet rising expenditures, resulting in the District needing to use non-recurring sources of revenue to plug budget holes.
The current estimate of $529 million, produced by the District itself, makes several assumptions:
1. CPS will not pay for the controversial Municipal Employees' pension fund reimbursement to the City.
2. The federal government will not cut any of CPS' current funding.
3. The District will be able to restructure some of its debt favorably to achieve budgetary savings.
If any of these assumptions prove incorrect, the projected deficit, already large, could balloon further.
### Potential Costs
In addition to existing operational costs and the new costs added by the contract, CPS faces several potential risks, such as additional costs or loss of revenue, that are not accounted for in existing projections and would further raise next year's deficit.
##### MEABF Repayment
Non-teacher employees of CPS receive pensions through the Municipal Employees' Annuity and Benefit Fund (MEABF), which was established by the City of Chicago to cover certain city and sister agency employees. Although the MEABF provides pensions to both employees of the City and of other local governments, the City is statutorily obligated to cover all of the pension fund contributions. This arrangement was unchanged until 2020, when the District began reimbursing the City for a portion of the cost accrued by its employees. This stopped in FY2024 when CPS declined to make the $175 million reimbursement. The District's FY2026 budget assumes that it again will not reimburse the City for MEABF costs. However, this decision depends on the Chicago Board of Education, half of which was appointed by Mayor Brandon Johnson, who is publicly in favor of the reimbursement. It remains unclear whether the District will ultimately choose to compensate the City for MEABF costs in FY2026, but if it chooses to do so, this would add about $175 million to the existing deficit.
The issue of how to handle this reimbursement remains unresolved between the City and CPS and is a significant piece of the disentanglement work to be effectuated before CPS governance becomes completely separate from the city in January 2027. You can read more about the District's pension funds at the Civic Federation's recent [pension explainer.](https://civicfed.org/blog/how-chicago-public-schools-pensions-work-explainer)
##### Federal Funding Cuts
CPS' current deficit projections do not assume any substantial changes in federal funding. The District receives nearly $1 billion in [federal funding](https://www.cps.edu/globalassets/cps-pages/about-cps/finance/budget/budget-2025/docs/fy2025-budget-book-final-approved-1.1.pdf#page=34) annually. Approximately $494 million – about half of CPS' federal funding – is dedicated to programs under the Every Student Succeeds Act (ESSA). These funds are intended to help schools establish programs for low-income, neglected, and struggling students. Another $110 million supports the District's implementation of the Individuals with Disabilities Education Act (IDEA), which funds special education programs. Approximately $211 million is dedicated to child nutrition programs, predominantly dedicated to providing free school lunches and breakfasts to students. Finally, the District receives $100 million in Medicaid reimbursements for medical care provided to students.
Although none of this funding has yet been reduced or cut, the current federal administration has indicated an interest in [reducing](https://www.ed.gov/about/news/press-release/us-department-of-education-initiates-reduction-force) federal support for local school districts and for [Medicaid](https://www.civicfed.org/blog/medicaid-illinois-what-federal-cuts-medicaid-funding-could-mean-illinoisans) and has singled out CPS for [investigation](https://www.chalkbeat.org/chicago/2025/04/29/trump-administration-investigates-cps-black-student-success-plan/). If federal funding is cut, CPS will be forced to either eliminate the programs supported by that funding or redirect its existing revenue to cover the budget holes, thereby enlarging its deficit.
##### Debt Restructuring Uncertainty
The FY2026 projected deficit includes the assumption that CPS will be able to save $100 million through bond refinancing. If market conditions are optimal, it may be possible for the District to refinance existing high-interest bonds and replace them with bonds that carry lower interest rates, thus saving CPS money on interest payments. Successful bond refinancing carries no economic downsides for the District, as long as the repayment schedule remains the same, and purely results in savings due to lower interest rates.
Debt restructuring is a good way for the District to achieve financial savings, but only when it is done truly for financial benefit rather than delaying debt repayments (a tactic known as "scoop and toss"). However, the projected savings from restructuring debt depend on favorable market conditions for refinancing. Such conditions are never a given and are made less likely by recent market fluctuations and widespread uncertainty. In addition to stock market fluctuations, municipal bond markets have recently seen sharp increases in bond yields, meaning that interest rates for municipal bonds are rising. This makes it less likely that CPS would be able to successfully refinance under current market conditions, especially given the District's junk-status credit ratings. If CPS is unable to refinance its debt this year, the $100 million in projected savings would instead be added on top of the projected $529 million deficit. Further complicating the outlook are recent national bond market volatility and weakness, unfamiliar yield curves, and the recent "negative outlook" issued by Fitch Ratings for the City of Chicago, with which CPS is still financially and legally intertwined. These factors further dampen the likelihood that CPS will achieve the refinancing savings it has assumed in budget projections.
##### Charter School Costs
In addition to the assumptions above, a recent decision by the Chicago Board of Education related to charter schools could increase expenses. In February, the Board [voted](https://www.chalkbeat.org/chicago/2025/02/28/school-board-votes-to-save-5-acero-charter-schools/) to keep open five of the seven Acero charter schools slated for closure next year. In order to do this, the District will need to [spend](https://www.cbsnews.com/chicago/news/chicago-school-board-acero-charter-schools-bailout-vote/) approximately $3 million next year, and an additional $21-$28 million to convert them into District schools. The ultimate cost of the conversion may fluctuate depending on how many schools the District decides to convert, but the final bill will likely be above $20 million. The current deficit projection does not account for these costs.
### Potential Revenues
The District does not have many revenue options to reduce the deficit. Its three main revenue sources—property taxes, state funding, and federal funding—are either largely tied to formulas, such as the State's evidence-based funding (EBF) formula, or are limited in annual growth. The only certain method CPS has of increasing its revenue is raising its property tax levy to the statutory limit, a move that is already assumed in the deficit projections. Of the remaining revenue options CPS has, some are more politically or logistically feasible than others. Some revenue sources, like asking the State of Illinois for additional funding, are unlikely given the state's own fiscal challenges and certainly will not happen in time to plug the FY2026 deficit. However, these sources are still worth examining, as the District is likely to face increasing structural deficits for the next several years.
##### Property Tax Revenue
CPS primarily raises its own revenue (as opposed to revenue received through state and federal funding) through property taxes. The District routinely raises its property tax extensions to the maximum amount allowed by the [PTELL law](https://www.civicfed.org/civic-federation/blog/what-ptell-referendum-and-how-does-it-work-0), which limits property tax increases to the lesser of 5% or the rate of inflation, although there are numerous exceptions. The District's projected deficit assumes that CPS will raise the maximum allowable property tax levy again in FY2026 and capture additional revenue from new or improved property value and expiring TIF districts. These sources are projected to generate a combined increase of $230.8 million in property tax revenue in FY2026, which is already factored into CPS' projected deficit. In order to raise additional property tax revenue, the District would need to initiate a referendum to raise the tax extension higher than the limit. Due to the amount of time organizing a referendum would take, this solution may not be able to plug the budget gap in FY2026, but it could prove important in stemming future deficits.
CPS also benefits from an additional special property tax levy whose revenue stream is dedicated to paying part of its [pension obligations](https://civicfed.org/blog/how-chicago-public-schools-pensions-work-explainer). This pension levy is not subject to the tax caps under PTELL and instead is applied using a flat rate.
As a longer-term option, CPS might pursue instituting an additional tax levy similar to the property tax levy for teacher pensions. For example, it could levy a tax specifically for the purposes of paying pension obligations to the MEABF, servicing debt, or covering maintenance costs. However, it would need authorization from the state legislature to do this.
##### Additional City Funding
As an immediate way to alleviate pressure on CPS, the City of Chicago could agree to suspend its pursuit of the reimbursements from CPS to the City for the MEABF pension fund payment in FY2026. However, this would increase the more than $1 billion projected budget deficit in the City of Chicago's own FY2026 budget.
One major way the City of Chicago has provided direct funding to CPS in recent years is through Tax Increment Financing (TIF) surplus funds. TIF surpluses are non-obligated funds held by the City's TIF districts, which are supposed to be used to support economic development, that the City annually might direct for transfer to the City of Chicago and its sister agencies. The size of TIF surpluses varies year-to-year, and is distributed pro rata among the taxing bodies in proportion to their property tax levies. CPS gets approximately 55% of any declared surplus. TIF surplus is considered a one-time revenue source because it is neither guaranteed nor reliably the same amount from year to year.
CPS is urging the City to provide added assistance by releasing a massively larger TIF surplus in FY2026. CPS for the past year has been stating the FY2026 budget deficit projection of $529 million. That figure assumes that CPS will get approximately $300 million in TIF surplus revenue—the same level it received from the City in FY2025. What that means however, is because TIF surpluses are non-guaranteed revenue, the district's actual projected starting deficit is $829 million. CPS is assuming that the City will declare a minimum total TIF surplus equal to the record surplus the City of Chicago declared in FY2025—about $570 million. In addition to that amount, CPS' preliminary budgets released to schools this spring assume the City will distribute an additional $300 million in TIF surplus funds to CPS—$600 million total, or double the prior year's record amount. Based on this assumption, CPS estimates a reduction in the deficit to [only $229 million](https://www.chalkbeat.org/chicago/2025/05/14/cps-school-principals-to-get-2026-budgets/). However, the uncertainty of the size of TIF surplus makes this estimate highly unreliable and unrealistic given the enormous jump it is assuming. Moreover, the size of any surplus funds sweep is decided entirely by the City, not CPS, and that contingency depends on how much unobligated money is held in TIF accounts. TIF surpluses are also not announced until the fall, which means that CPS will have to pass a budget before knowing how much TIF surplus funding it will receive. Not receiving the additional $300 million would balloon the current deficit projection by that amount.
##### Additional State Funding
The State of Illinois provides funding to all Illinois school districts based on an [evidence-based funding](https://civicfed.org/sites/default/files/2025-01/Civic%20Federation%20-%20Financial%20Landscape%20Analysis%20Report%20of%20CPS%20FY2025%20FINAL.pdf#page=14) (EBF) formula. The EBF formula, instituted in 2017, was transformative for CPS. It made State contributions regular and predictable and provided CPS with a large inflow of funding. The State also now covers 35% of [CPS' annual contribution to the Chicago Teachers' Pension Fund](https://civicfed.org/blog/how-chicago-public-schools-pensions-work-explainer). Although CPS is requesting additional support from the State, Illinois is facing its own [budget challenges](https://www.civicfed.org/blog/illinois-proposed-fy2026-budget-overview) this year, making it highly unlikely that it will be willing to provide CPS with additional funding. However, there are several areas in which the State could provide more support to the District, if it chose to do so.
First, the State could pick up a larger share of the District's pension payments. Currently, the State of Illinois only covers approximately 35% of annual pension costs for CPS, as opposed to 97% of pension costs for all other school districts in the State. This obligates CPS to expend hundreds of millions of dollars annually on pension funding. CPS has a property tax levy dedicated specifically to pension funding which covers most of the CPS employer contribution. However, when this levy is not enough to cover the full contribution, which is usually the case, the District has to pull pension funding from its general operating funds. If the State were to cover a larger share of the pension costs, this would free the District to shift that money to operational spending, offsetting the deficit. The most likely path for the State to provide additional pension support would be to consolidate the Chicago Teachers' Pension Fund (CTPF) with the rest of the State's Teachers' Retirement System (TRS). Past conversations about consolidation have been complicated by two things – the spread between the funding levels of the two systems and the willingness of CPS or the CTU to turn over management of the CTPF fund to the State as part of any consolidation or leveling of state subsidization. However, today both funds are at similarly funded ratios and therefore the funding spread is no longer as much of an impediment. The second impediment may require extensive negotiation.
Second, another source of possible state funding is additional funding to through the evidence-based funding formula, a solution urged at various junctures by the CTU, the City, and CPS. The EBF's goal is for every school in the State to be funded to [90% of adequacy](https://civicfed.org/sites/default/files/2025-01/Civic%20Federation%20-%20Financial%20Landscape%20Analysis%20Report%20of%20CPS%20FY2025%20FINAL.pdf#page=14) by FY2027, but CPS is currently only bunded at 80% of adequacy and the current schedule of EBF funding will not satisfy this goal until FY2034. However, this funding is distributed across Illinois, and state law prohibits special treatment for a single school district. So, to provide CPS with additional support through the EBF would require the State to provide matching levels of support to all school districts across Illinois. Kids First Chicago [estimates](https://kidsfirstchicago.org/publications/cps-revenue-options) that if the State were to add an additional $300 million of EBF funding, for example, only $43 million of that would flow to CPS.
Given the State's current budget concerns, it is unlikely that any type of additional state support will play a significant role in closing CPS' budget deficit in FY2026. However, the District should attempt to work with the State on future revenue support, as the District's deficit will continue to grow in the coming years.
##### Borrowing
One final measure has been made a topic of public debate during the now concluded bargaining round between the CTU and CPS; taking on additional debt to fund operating costs. Borrowing for operational costs is not fiscally responsible and is contrary to [fiscal best practices](https://www.gfoa.org/materials/debt-management-policy). In addition, CPS has a junk credit rating and municipal bond markets are currently faring poorly. These two factors combined means that any bonds issued by CPS to cover FY2026 operational costs would likely have extremely high interest rates, which would close the current budget deficit but create higher budget gaps in future years. Moreover, borrowing for operating costs would risk further lowering of CPS' junk status credit rating, with potential spiraling consequences that may begin to constrict its access to credit markets. As this was one of the conditions in the late 1970's that led to the institution of a [School Finance Authority in 1980](https://civicfed.org/blog/brief-history-chicago-school-finance-authority), the Civic Federation strongly recommends that CPS not take on additional debt to close the FY2026 budget gap.
### Cutting Costs
Even if all the District's favorable assumptions prove correct and it is able to find some additional streams of revenue, it is unlikely that CPS will be fully able to eliminate the $529 million deficit in FY2026. Therefore, to balance the budget, the District will likely have to institute spending cuts, the scale of which will depend on the ultimate size of the deficit.
About half of the District's $10 billion budget is not discretionary spending. This includes spending on pension obligations, debt service, charter school tuition, and spending restricted through grant funding. Due to legal obligations and restricted funding sources, this spending cannot be cut or redirected. That leaves about $5.3 billion from which to make spending reductions. If, for example, the District were to be faced with the $529 million deficit it projects, then it would have to cut discretionary spending by approximately 10%. According to CPS projections, this would involve cutting at least $200 million in direct school funding, $250 million for district-wide school support such as maintenance and technology, and $20 million in central office administrative cuts. The blow to direct school funding would likely be felt immediately, with major cuts to discretionary funding within the budgets of individual schools and larger class sizes, which would lead to layoffs projected to reach above 1,600. Reductions to support and administration, in contrast, could have effects that are felt over time, as deferred maintenance and lower administrative capacity lead to inefficiencies. If Board commitments, federal cuts, or other circumstances increase the deficit above the $529 projection, these cuts could become even deeper and would have a severe impact on the quality of education provided by the District.
### Conclusion
There is no simple solution to the problems facing CPS. As previously stated, the District's deficit is structural, meaning that the annual budgets regularly do not have enough revenue to match rising expenses, resulting in the use of one-time revenue sources such as federal COVID funding and TIF sweeps. While the District achieves technically balanced budgets, they rely on non-recurring revenue sources and fail to find long-term solutions. The size of the structural gap will only increase in future years due to the new teacher's collective bargaining agreement.
Any fix to CPS' structural deficit will require structural solutions. This will mean right-sizing District operations to align costs with stable and sustainable recurring revenues. Among other options, the District could continue to decline to cover MEABF payments, work with the already cash-strapped State of Illinois to provide additional funding support, or hold a referendum to raise property taxes, which the District is already highly reliant on. The District could also consider cutting costs and rightsizing areas of spending that do not align with its current [enrollment numbers](https://www.civicfed.org/blog/chicago-public-schools-building-underutilization), which have been falling for years. None of these solutions are optimal, and each one will negatively impact some stakeholder groups. However, working to solve the deficit immediately will provide CPS with a much higher chance of success than continuing to kick the can down the road. Failing to address the structural deficit now could force the District to enact massive spending cuts, or to take out short-term debt which would be highly expensive, result in lower credit ratings, and restrict future spending due to high debt obligations. The Board of Education must act now to stave off the mounting threat of future financial collapse.
_This research was supported in part by the_ [_Joyce Foundation_](https://www.joycefdn.org/) _. The Civic Federation is a nonpartisan, independent research organization, and the views expressed in this report do not necessarily reflect those of the Joyce Foundation_._
Source Name [83]: In a precarious moment for the arts, Chicago's cultural department could see funding decline Full URL: https://www.wbez.org/city-hall/2025/11/05/chicago-dcase-cultural-affairs-budget-clinee-hedspeth-kenya-merritt-grants-arts Scraped Date/Time: 2025-11-22 23:12:27
<span style="color: #0066cc; font-weight: bold;"># In a precarious moment for the arts, Chicago's cultural department could see funding decline</span> [83]
## Mayor Brandon Johnson's proposed budget decreases the department by 15%. DCASE is under new leadership after the previous commissioner resigned.
By Courtney Kueppers
November 5, 2025
In a rocky era for arts groups, funding for Chicago's cultural affairs department would decrease under Mayor Brandon Johnson's proposed budget for next year.
At a City Hall budget hearing Tuesday night, Department of Cultural Affairs and Special Events acting commissioner Kenya Merritt said the department — which produces some of the city's most popular Downtown events, like Taste of Chicago and Jazz Fest — is "entering a new chapter focused on collaboration and accountability."
Merritt, one of Johnson's deputy mayors, was tapped to lead the department after Johnson's hand-picked commissioner and longtime friend, Clinée Hedspeth, resigned last month. That departure capped a tumultuous tenure that included high staff turnover and allegations of bullying and sexual harassment, and came as the mayor prepared to terminate her, as first reported this week by NBC Chicago.
Closing out a full day of departmental budget hearings, DCASE's moment before City Council arrived at 8 p.m. and lasted just an hour. The number of aldermen in attendance had dwindled to eight.
Johnson's proposed budget allocates just north of $62 million for DCASE for next year. That's a 15% decrease from the nearly $73 million allocated in last year's budget. (According to this year's budget documents, the department's actual 2025 appropriation came in just above $72 million.)
DCASE's funding comes primarily from the city's special events and hotel tax, plus a mix of public and private grants. The funds from the special tax bucket remained steady this year, while forecasted grants are down more than 30%. That drop is, in part, due to a decline in remaining COVID-19 relief dollars.
The trimmed-down budget arrives in a moment when arts organizations face a tough financial outlook. The sector continues to attempt to rebound after the battering of the pandemic led to venue closures and audience declines. Plus, this year, the Trump administration has clawed back national grant dollars and changed rules that prevent some local organizations from qualifying for funds. The confluence has already resulted in some small local arts entities closing up shop.
At the hearing, Merritt faced questions from aldermen about what she will do to get the department back on track, after the "well has been poisoned by your predecessor," as Ald. Raymond Lopez of the 15th Ward put it, referring to Hedspeth. In response, Merritt praised the DCASE staff and said she is focused on "establishing communication norms" with staff, aldermen and the department's advisory council.
"Transformation isn't just about leadership," Merritt said at the hearing. "It's about culture, integrity and accountability, and that's why I'm here."
Aldermen also asked Merritt about increased safety at public events and how to generate more revenue from the city's film industry.
Merritt did not take questions from reporters following the hearing. In an emailed statement she said "DCASE is committed to continuing to bring dynamic programming for Chicagoans and visitors to enjoy year-round."
"We approached the development of a balanced budget with thoughtful consideration of preserving our cultural grants investment without reduction, which is increasingly important during a time of significant federal pullbacks," Merritt said in the statement. "We were tasked with identifying cost-saving measures and are confident that through innovative program development, enhanced fundraising efforts and partnerships, we will maintain a full schedule of events in 2026."
Given the overall financial landscape for the city, Arts Alliance Illinois Executive Director Claire Rice said that she is "cautiously optimistic" about the proposed DCASE budget.
"A modest cut in the overall budget feels like a reasonable win, given the incredible deficit the city is facing," Rice said, adding that she is encouraged by the department's continued investment through direct grants to arts and arts organizations.
Mayor Brandon Johnson's proposed budget includes a roughly 15% decrease for the city's cultural affairs department. Merritt said the department remains committed to producing "programming for Chicagoans and visitors to enjoy year-round."
Johnson told WBEZ in mid-October that the arts are a priority for his administration. Johnson also said he would appoint a permanent DCASE commissioner "soon." Johnson would not say if Merritt will permanently fill the role, instead saying that the next commissioner will be "someone that reflects my values and someone who understands the importance of the art community and what it means to remain a top global city for the entire world."
In a statement, Arts Alliance Illinois said the current arts funding ecosystem makes the funds generated via the city's special events and hotel tax all the more vital.
"Tourism and hotel-tax performance will be crucial to sustaining FY2026 grantmaking levels; any dip in travel or convention revenue could translate into mid-year adjustments," the statement reads. Last month, Choose Chicago reported a record-setting summer of tourism in Chicago, with hotel occupancy surpassing pre-COVID records.
The city's arts and culture scene has also been cited as a key driver in drawing people downtown and reinvigorating the economy of the Loop, which experienced an unprecedented drop in foot traffic during and following the pandemic. How to fill empty commercial space Downtown is an ongoing conversation among civic leaders.
_Courtney Kueppers is an arts and culture reporter at WBEZ._
Source Name [84]: Johnson pushes social media tax in budget plan Full URL: https://www.axios.com/local/chicago/2025/10/16/chicago-mayor-brandon-johnson-budget-social-media-tax Scraped Date/Time: 2025-11-22 23:32:46
# Johnson pushes social media tax in budget plan
By Monica Eng
October 16, 2025
<span style="color: #0066cc; font-weight: bold;">A social media tax, new yacht docking fees and a renewed employee surcharge lead the list of novel revenue sources Mayor Brandon Johnson is pushing in his 2026 budget to fill a $1.15 billion hole.</span> [84]
**The big picture:** The $16.6 billion budget proposal introduced Thursday morning delivers on Johnson's promise to lean into progressive revenue from the "ultra-wealthy" while, at least for now, avoiding hikes in property taxes, garbage fees and grocery taxes.
- The progressive caucus welcomed the proposal, but it's likely to face major pushback from the business community and more conservative alders, including Brian Hopkins, who called it "dead on arrival."
- Even some progressive alders say they're leaving the option for property tax hikes on the table.
**Zoom in:** Here are a few key parts of the budget proposal.
**Social media tax:** Johnson wants tech giants to cough up 50 cents per Chicago user after the first 100,000 to fund and insulate mental health services from federal funding cuts.
- "Despite the fact that it would be very popular, I suspect there's going to be significant legal issues with that one," said Ald. Bill Conway of this first-of-its-kind tax.
**Head tax:** Johnson has reframed this fee as a "community safety surcharge" that taxes businesses with more than 100 workers $21 per month per employee, more than five times what it was under Mayor Rahm Emanuel, who dissolved it in 2014.
- Even alders who support reviving the tax tell Axios they think the plan would need a haircut, "to maybe bring it down to $5 or $10," Ald. Scott Waguespack tells Axios.
- But Johnson ally Ald. William Hall called it a way to "Trump-proof" the budget.
**Massive TIF surplus:** Johnson announced that he'd draw $1 billion from unused money in special taxing districts, with half going to Chicago Public Schools to cover, among other things, the controversial pension repayment to the city that contributed to the firing of the school superintendent.
- Many alders, including Matt Martin, said they were surprised by the $1 billion figure but said, "If we don't expect we're going to use [TIF money] in this coming year, well, then some funds need to get repurposed to pay down debt."
**Yacht tax:** Johnson said he would raise the fees for mooring boats in Chicago, especially on non-city residents, in a move that he estimated could raise $4.1 million a year.
- "It's such a small amount of revenue that the value is purely symbolic. It's just simply to show that this mayor doesn't like capitalism," Hopkins said.
**Grocery tax:** While the mayor avoided reinstating the 1% grocery tax eliminated by the state this year, Waguespack predicts it could return in the final budget.
**What's more:** The plan also includes expanding Chicago's amusement tax to include online sports betting and raising cloud computing fees.
**The bottom line:** "There's a lot of homework to do," Ald. Andre Vasquez tells Axios, "but I'd say it's a good starting point for the discussion."
**What's next:** The mayor and City Council have until the end of the year to agree on a final budget.
Source Name [85]: Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal Full URL: https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/ Scraped Date/Time: 2025-11-22 23:43:52
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# Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal
##### By [Corli Jay](https://thetriibe.com/author/corlijay/ "Posts by Corli Jay")
Published on November 17, 2025
#### Mayor Brandon Johnson addresses the 2026 budget proposal at a city council meeting on October 16, 2025. Photo by Ash Lane for The TRiiBE®
In a committee vote on Mayor Brandon Johnson's FY 2026 $16.6 billion [budget proposal](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/), the Chicago City Council Finance Committee decided Monday not to advance the proposed revenue options for a full City Council vote. A point of contention is Johnson's proposed corporate head tax, a monthly $21-per-employee fee on large businesses that would generate a "Community Safety Fund" for violence prevention, mental health services and youth programs.
[The 35-member committee](https://www.chicago.gov/city/en/sites/committee-on-finance/home/committee-members.html) voted 10-25 against advancing the proposal. Ald. Pat Dowell (3rd Ward) is the Johnson-appointed chair of the committee with Ald. Bill Conway (34th Ward) as the vice chair.
Borrowing plans, among other items, were also included in the revenue options up for committee vote. Aldermanic Progressive Caucus member Ald. Andre Vasquez (40th Ward) has positioned himself against the proposal due to concerns about a borrowing plan to cover police misconduct spending, according to [_Block Club Chicago_](https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/), but says he supports the corporate head tax.
Ald. Bill Conway (34th Ward) speaks with the press after the city council public safety committee meeting on April 30, 2025. Photo by Ash Lane for The TRiiBE®
Originally proposed for companies with 100 or more employees, Johnson's administration [amended the head tax proposal last week](https://news.wttw.com/2025/11/13/mayor-brandon-johnson-reduces-corporate-tax-hike-proposal-crucial-votes-loom) to include those with over 200 workers. He has since gone back to its original 100-employee proposal and is expected to generate [$100 million in funding](https://thetriibe.com/2025/11/emanuel-killed-it-johnson-wants-it-back-chicagos-corporate-head-tax-debate-is-about-more-than-money/). Johnson's head tax proposal heeds the call of the grassroots organizers who elected him to tax the city's richest and wealthiest corporations.
At a post-meeting press conference on Monday, Johnson encouraged Chicagoans to call their alderperson to tell them they don't want a property tax increase. Johnson said the corporate head tax is a solution to avoid a property tax increase.
"I actually think that these communities should call their alders," Johnson said to reporters. "Call their alders and tell them that we don't want our property taxes increased."
A [report](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf) released by the Cook County Treasurer's Office showed that property taxes in Chicago increased 11.6% while taxes on business properties went up just 0.9%. According to the analysis, the burden on homeowners was in part due to a decrease in property values in the Loop, with homeowners on the South and West sides facing a larger increase than the rest of the city.
Residents have been on the receiving end of mass text campaigns from opposing political action groups, such as One Future Illinois, that frame the corporate head tax as a job killer, and proponents such as Chicagoans Against Trump Cuts, that frame the tax as making big corporations pay their fair share.
Mass campaign text messages sent to residents from One Future Illinois NFP. Screenshot.
Mass campaign text messages sent to residents from Chicagoans Against Trump Cuts. Screenshot.
"What they're saying is, at least so far, these individuals are more interested in protecting the corporations, the largest corporations in our city, than protecting working people," Johnson said.
Some of the alders who stood behind Johnson during the press conference include Ald. William Hall (6th Ward), Ald. Byron Sigcho-Lopez (25th Ward), Ald. Leni Manaa-Hoppenworth (48th Ward), Chris Taliaferro (29th Ward), Ald. Jessie Fuentes (26th Ward), Ald. Jason Ervin (28th Ward), and Ald. Rossana Rodriguez Sanchez ( 33rdWard).
Some of the opposing alders held a separate press conference after the vote. Those in attendance included Ald. Gilbert Villegas (36th Ward), Ald. Brendan Reilly (42 Ward), Ald. Anthony Beale (9th Ward), and Ald. Monique Scott (24th Ward).
Johnson is urging City Council members to bring more suggestions to fill the $1.15 budget gap.
"The cost of living is going to increase because of the budget that the President of the United States has put forward. People are paying more for everything, and we, as a City Council and as city government, have an opportunity to provide that relief. That's what this budget ultimately is doing," Johnson told reporters after the committee vote.
Johnson said he would veto a budget that includes a property tax increase and called for a recess until the first week of December to allow alderpeople more time to come up with alternatives to the head tax.
He added that he would also veto a budget that includes a grocery tax and a garbage fee increase.
"I will veto any budget that includes a property tax increase," Johnson said. "Working-class Chicagoans can simply just not afford a property tax increase."
Parts of Johnson's FY 2026 budget proposal are a call from community organizers with the People's Unity Platform (PUP), who are pushing for more progressive forms of taxation. They rallied behind the proposal through their [Babies Before Billionaires](https://thetriibe.com/2025/10/as-trump-cuts-vital-services-chicago-organizers-push-city-council-to-pass-a-progressive-city-budget-for-fy-2026/) campaign over the summer.
Breanna Champion, an organizer with the Chicago Black Voter Project, called the finance committee's vote "disheartening and dangerous." She said the fact that majority-Black neighborhoods are seeing their property taxes go up shows that businesses should be taxed. She said alders should support the head tax, which is called the Community Safety Surcharge in Johnson's budget."One of the major reasons why these businesses say they are leaving \[Chicago\] is not because of the corporate head tax, because we don't even have the corporate head tax in effect," Champion said. "The reason why they say they're leaving is because the city isn't safe for them to do business. And that's exactly what the Community Safety Surcharge is trying to remedy."
Alderpeople who oppose the tax point to its possible impact on small businesses — despite only employers with 100 or more employees — and the restaurant industry, stating that it could lead to layoffs.
Ald. Red Burnett has told _The TRiiBE_ that he is open to conversations about how to make the head tax "make sense" for all industries. His 27th Ward expands from disinvested neighborhoods like Garfield Park to bustling enclaves like the West Loop.
Ald. Desmon Yancy initially called Johnson's budget "progressive," but has since retracted his support of the proposed head tax. His 5th Ward includes well-off areas near the University of Chicago and the surrounding Black neighborhood of South Shore, which has historically had the highest eviction rates in the city.
Ald. David Moore (17th Ward) has stated worries about the tax impacting McDonald's franchisees, but does not reject the idea of the head tax altogether.
The Chicago Teachers Union released a statement after today's vote. Although the statement addresses all alders on the committee who voted "no," the union specifically called out Yancy and Conway for putting the interests of millionaires over "a supermajority of Chicagoans and 90% of Black and Latine Chicagoans" who support taxing large corporations.
"At a time when families in Roseland, Beverly, and Humboldt Park are struggling to keep up with rent and groceries, these alders are siding with the corporations who fight DEI and who are turning the tax breaks they're getting from the President into donations to his White House ballroom," the CTU statement reads. "Mayor Johnson's proposal is the only one on the table that delivers for schools, parks, libraries, and making us safer and he found a way to make the ultra-wealthy corporations pay for it."
In response to concerns for the tax's impact on local business owners, Johnson said they're considering reimbursements and establishing a new grant program for some small and medium-sized businesses.
Mayor Brandon Johnson holds press conference on Nov. 17, 2025. Screenshot
"Our updated proposal will return to the original threshold of only taxing companies with more than 100 employees, but we would use those additional funds to set up a community business grant program to support small and medium-sized businesses that are operating in socially and economically disadvantaged areas, as well as important tourism and Investment zones and areas with food scarcity," Johnson said.
Some City Council members have called for more efficiencies and cuts in the FY26 budget. During today's finance committee meeting, Johnson's Budget Director Annette Guzman said any additional cuts would come from the public safety portion of the budget, which includes the Chicago Police Department.
The proposed budget for CPD totals $2.1 billion for 2026, a 0.8% increase from last year. Johnson said he would not support any city layoffs in the FY26 budget.
Champion said that the committee's vote doesn't prioritize Chicagoans generally and Black residents in particular.
"I feel like what their vote shows is that they care more about corporations than they do people," Champion said. "Specifically, as it relates to corporations' ability to stay in the city, but not Black folks who are actually being pushed out."
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Source Name [86]: Mayor's Budget Rejected By Key City Committee Over Controversial Head Tax, Borrowing Plan Full URL: https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/ Scraped Date/Time: 2025-11-22 23:43:52
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Mayor Brandon Johnson arrives during a City Council meeting on Nov. 14, 2025. Credit: Colin Boyle/Block Club Chicago
CITY HALL — The City Council's finance committee on Monday voted against Mayor Brandon Johnson's latest 2026 budget proposal, throwing what some alderpeople have characterized as an already-strained negotiations process into further uncertainty.
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"This Budget Is A Disaster" — The Committee That Told The Mayor 'No'
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17:26
"This Budget Is A Disaster" — The Committee That Told The Mayor 'No'
After a few hours of debate over a proposed corporate head tax as well as borrowing plans and other issues, the finance committee voted decisively against the [budget's revenue ordinance](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/2c33d42a-7a70-4325-93a0-527c189577fa.pdf).
The final vote was 25 alderpeople against, 10 in support.
"This budget is a disaster," Ald. Gilbert Villegas (36th) said during a press conference after the vote alongside 14 of his colleagues who also opposed the mayor's spending plan. "Let's go back to the drawing board."
A major sticking point has been over the proposed corporate head tax, which progressive groups and some City Council members argue is an opportunity to force wealthy corporations to support public safety programs. But the idea has drawn opposition from Gov. JB Pritzker and business groups who have labeled it a job killer.
Johnson originally proposed that the $21 per person, per month tax should apply to companies with more than 100 employees in Chicago. Last week, the mayor's budget team [raised that threshold to 200 people](https://blockclubchicago.org/2025/11/14/mayors-head-tax-plan-tweaked-but-2026-budget-still-faces-uphill-battle-ahead-of-vote/) in a bid to win more support from the City Council.
On Monday, however, the threshold had returned to 100 employees, which would bring in $100 million annually for a dedicated community safety fund, according to a presentation by budget officials.
One major change embedded in the latest proposal is that $18 million of that fund would now go toward a grant program for smaller businesses impacted by the head tax if they meet certain criteria.
Still, the changes and last minute lobbying by the mayor's office over the weekend wasn't enough to win over skeptical alderpeople by Monday's finance committee meeting.
Finance chair Ald. Pat Dowell (3rd) began the meeting by attempting to recess it to Dec. 2, but committee members voted to deny that motion and force a debate and vote on the revenue ordinance.
Johnson, who held a press conference immediately after the committee vote, said he's calling for a "recess" until early December so alderpeople can propose additional revenue ideas. But the mayor stood by his head tax proposal, and said he would veto any budget with a property tax hike, a [grocery tax](https://blockclubchicago.org/2025/06/04/chicagos-grocery-tax-was-slated-to-end-in-2026-now-mayor-wants-to-keep-it-going/) or an increase in city garbage fees.
"We are asking the largest corporations in our city to pay a little bit more," Johnson said. "We stand behind the progressive revenue that we have put forward because this moment calls for those with means to put more skin in the game."
Annette Guzman, budget director, and Mayor Brandon Johnson answer questions after signing an executive order which launches a citywide review and budget working group amid Chicago's budget woes at City Hall on April 21, 2025. Credit: Colin Boyle/Block Club Chicago
Fifteen of the alderpeople who voted "no" — many of them longtime opponents of Johnson — said at the press conference a head tax would cause companies to move to the suburbs or out of state, or cause corporations to possibly lay people off. Chicago previously had a $4 per person head tax that was eliminated over a decade ago by then-Mayor Rahm Emanuel.
Several alderpeople also criticized the budget process and communication from the mayor's office.
"We cannot afford to rush into a decision and to not look at every possible angle," Ald. Nicole Lee (11th) said. "We owe it to the residents of the city of Chicago to make sure that we've looked for every efficiency possible under every couch cushion, for every penny before we come and look for other things."
Ald. Scott Waguespack (32nd) denied Johnson's frequent argument that alderpeople have not contributed revenue ideas as possible replacements for the head tax. He pointed to a handful of recommendations from a recent report commissioned by the city from accounting firm Ernst and Young, which he believes could bring in approximately $30-$60 million in efficiencies.
"I think a lot of our colleagues have been saying the same thing, 'here's another solution, here's another solution,'" Waguespack said. "Until they start accepting the fact that there are solutions on the table, we have to stand up and push back against this budget."
Asked about those ideas Monday afternoon, Johnson said his administration already plans to implement some of them this year or in the future, although he has concerns about others, such as reducing 311 call center hours.
"$30 to $60 million, I mean, that's not a significant shift, quite frankly, in the ultimate goal, which is not only to balance this budget, but to make sure that we are investing in community safety," Johnson said.
Ald. Feliz Cardona Jr. (31st), Ald. Peter Chico (10th), Ald. Anthony Beale (9th), Ald. Matthew O'Shea (19th) and Ald. Brendan Reilly (42nd) talk during a City Council meeting on Nov. 14, 2025. Credit: Colin Boyle/Block Club Chicago
Ald. Andre Vasquez (40th) also voted against the budget proposal on Monday. The North Side alderperson said his opposition was primarily over concerns with the budget's borrowing plans, which includes more than $280 million to cover police misconduct cases, [WTTW News reported](https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits).
In general, Vasquez said he's supportive of a corporate head tax.
"Those are very real concerns, and we want to make sure that whatever we do going forward doesn't settle that kind of debt and deficit on future generations," he said. "What we know is that the business community has to put some skin in the game."
Johnson's few yes votes on Monday came from allies like Ald. Anthony Quezada (35th), who during the hearing listed off information about Google's profits and [a recent donation the company made](https://www.bbc.com/news/articles/c891yxgj44ko) to President Donald Trump's new White House ballroom.
"They can pay a corporate head tax," he said.
Ervin, Johnson's budget chair who also voted yes, defended his support for the latest budget package by using his oft-cited quote about making hard decisions: "Everybody wants to get to heaven, but nobody wants to die."
"The question is, are we going to serve the residents of the city? Or are we going to serve folks Downtown? It's just that simple," Ervin added. "You're going to help Google out or are we going to help grandma? We going to help the stock market, or the supermarket?"
Ald. Jason Ervin (28th) during a City Council meeting on Nov. 14, 2025. Credit: Colin Boyle/Block Club Chicago
Monday's proceedings were often spirited and sometimes bizarre.
Before the vote, Ald. Timmy Knudsen (43rd) approached reporters to blast both the head tax and budget negotiations process. He said he had heard from other alderpeople and organized labor leaders that the mayor's office was incorrectly telling his colleagues he supports the head tax proposal — a "direct lie," Knudsen said.
"They're just trying to politick their way to a budget, and I think that is to the detriment of the Chicago people, and it's no surprise," he said. "This body does not trust them, and things like this are pretty direct evidence as to why."
Asked about Knudsen's claims later on Monday, Johnson said the Lincoln Park alderperson "was not being truthful."
And around 12:15 p.m. Monday, Ald. Raymond Lopez (15th) asked for a point of order to call out Johnson's senior aide Jason Lee, whom he alleged was lobbying Ald. Nick Sposato (38th) on the council floor, in contradiction with the body's rules.
Dowell cut him off and said "you don't know what he was saying."
Lee then quickly walked away but, before leaving the Council chamber, blew a two-handed kiss in Lopez' direction.
The City Council must legally pass a budget by the end of the year. Right now, it's not clear when that will happen, but Johnson said he remains open to negotiations.
"I get the storyline. People want the drama," he said. "The drama is the fact that we have people who are starving in our city, who don't even feel safe going to get groceries because they're afraid of what Donald Trump is doing. Let's stay focused here."
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Source Name [87]: Proposed Head Tax, Social Media Tax, and Cloud Tax Increases Would Hurt Chicago Full URL: https://taxfoundation.org/blog/chicago-head-tax-social-media-tax-cloud-tax/ Scraped Date/Time: 2025-11-22 23:43:52
Chicago Mayor Brandon Johnson (D) recently unveiled his [2026 budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf), which relies on a new business [head tax](https://taxfoundation.org/taxedu/glossary/head-tax/) A head tax, also known as a poll tax or capitation, is a flat or uniform tax levied equally on every taxpayer. Unlike an income tax, it is a fixed amount and not based on how much one earns, nor does it change based on taxpayers' circumstances or actions., a new [tax](https://taxfoundation.org/taxedu/glossary/tax/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. on social media companies, a "cloud tax" increase, and [other tax increases](https://www.illinoispolicy.org/johnsons-protecting-chicago-budget-proposes-nearly-500m-in-tax-hikes/). The proposed head tax would create numerous unintended consequences and put a damper on employment in the Windy City, making Chicago less attractive for business investment. The social media tax would be the first of its kind in the US, punitively targeting social media companies simply based on their industry. Meanwhile, increasing the personal property lease transaction tax rate on cloud services would increase expenses for businesses and consumers alike. These proposed new and increased taxes represent a sharp departure from the [principles of sound tax policy](https://taxfoundation.org/taxedu/principles/) and would make Chicago even more of an uncompetitive outlier regionally and nationally.
## Business Head Tax Would Hurt Employment
<span style="color: #0066cc; font-weight: bold;">The proposed business head tax, known as the Community Safety Surcharge (CSS), would be levied at a rate of $21 per employee per month ($252 per employee per year) on employers with 100 or more full-time employees who perform at least half of their work in Chicago. An employer with 100 qualifying employees would see their local tax liability increase by $25,200 per year, on top of all the other local, state, and federal taxes owed. A company with 1,000 affected employees would face a $252,000 annual local tax increase.</span> [87]
The old adage, "whatever you tax, you get less of," rings true here. Taxing businesses based on the number of people they employ in Chicago would lead to negative employment outcomes in the city, including more layoffs, lower wages, fewer job opportunities, and the further shifting of business investment outside city limits.
Smaller- to mid-sized employers near the 100-employee threshold would have an incentive to keep their total headcount below 100 to avoid triggering tax liability, since employers with 100 qualifying employees would be taxed on all 100 employees, while those with 99 or fewer employees would not be liable for the head tax at all. This means the marginal cost to employers of hiring their 100th employee would be $25,200 per year, while businesses just over that threshold could be incentivized to downsize their workforce to avoid the tax.
One unintended consequence is that many employers would modify their business decisions to minimize head tax liability or to avoid the tax altogether. Instead of hiring additional full-time employees who work in Chicago most or all of the time, some employers would increase reliance on artificial intelligence, shift more individuals from full-time to part-time employment (especially in retail and food services sectors), increase reliance on remote employees who live outside Chicago (especially in professional services sectors), or a combination of these alternatives.
The CSS would therefore be highly distortionary, influencing businesses to make decisions for tax reasons that otherwise might not make the most sense. Furthermore, if employment activity shifts outside city limits in response to the tax, other local revenue sources, including sales and excise taxes, could be expected to take a hit. To the extent certain employers would be unable to avoid the tax, the increased tax burden would ultimately get passed along to workers in the form of lower wages, consumers in the form of higher prices, and shareholders in the form of lower returns on investment. It is likely that much of the cost would be absorbed by businesses in the short term, but that the cost would shift to labor in the longer term, in the form of slower growth in wages.
A head tax is not a novel proposal in Chicago; a similar tax has been levied and repealed once before. The [Employer's Expense Tax](https://law.justia.com/cases/illinois/supreme-court/1974/46540-6.html) was collected starting in 1974 at a rate of $3 per employee per month for employers with 15 or more employees. In 1995, the rate increased to $4 per employee per month, and the tax was limited to businesses with 50 or more FTEs who performed at least half of their work in Chicago during the quarter, with employees excluded from the headcount if their earnings did not exceed $900 per quarter. In 2011, the tax was no longer collected on employees making less than [$4,300 per quarter](https://www.civicfed.org/sites/default/files/SelectedConsumerTaxes_2014.pdf), reducing the impact on employers of part-time, hourly workers. Ultimately, [Mayor Rahm Emanuel](https://www.cbsnews.com/chicago/news/emanuel-moves-to-phase-out-job-killer-head-tax/) spearheaded a plan to repeal the tax, calling it a ["job killer,"](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2011/november_2011/mayor_emanuel_applaudscitycouncilforendingheadtaxforchicagobusin.html) and the tax was [phased out](https://www.chicagotribune.com/2011/11/02/city-council-votes-to-eliminate-head-tax-2/) in 2014.
Reviving this "job killing" tax now, at a much higher rate, would be yet another economic blow to Chicago, a city that has already suffered from the mass exodus of [individuals](https://taxfoundation.org/data/all/state/taxes-affect-state-migration-trends-2024/) and the loss of many [notable](https://www.equipmentworld.com/business/article/15668910/caterpillar-expanding-texas-headquarters) [legacy employers](https://www.bloomberg.com/news/articles/2025-02-05/citadel-to-leave-namesake-chicago-tower-as-employees-relocate?utm_source=chatgpt.com). Governor JB Pritzker (D) has [spoken out against](https://www.youtube.com/shorts/x4MsYg4a30o) the proposal, saying, "It penalizes the very thing that we want" and "makes it very hard to attract companies from outside of Chicago." Instead, the governor cited growing the economy as a better way to generate more revenue, an idea that, if adhered to, would yield dividends for both the city of Chicago and the state of [Illinois](https://taxfoundation.org/location/illinois/).
## Social Media Tax Would Penalize Innovation
Mayor Johnson also proposed creating a [new tax on social media](https://taxfoundation.org/research/all/state/state-digital-taxes/) companies, known as the "Social Media Amusement & Responsibility Tax" (SMART). This tax would be imposed at a rate of 50 cents per active social media user over 100,000 in Chicago. This tax could easily increase some companies' local tax liability by millions of dollars per year.
Currently, Chicago levies an amusement tax at a rate of 9 percent on the admission fees consumers pay to attend certain theatrical, musical, and cultural performances. A separate rate of 10.25 percent is imposed on audio and video streaming services and online gaming.
The existing tax, while collected by businesses, is paid directly by consumers when they purchase a taxable form of entertainment. The social media tax, however, would be paid by social media companies directly rather than by end users, although much of the tax burden would ultimately get passed along to customers who take out ads on social media platforms, as well as social media companies' employees and shareholders.
The mayor has [proposed](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) using revenue from the SMART to finance "free mental health clinics throughout Chicago," as well as other mental health services, citing the "growing body of research on the negative mental health impacts of social media use." As such, this would be a highly aggressive "sin tax" that attempts to raise revenue for a broad range of mental health services from one "unfavored" industry. Like certain other sin taxes, the proposed SMART ignores two key facts: (1) there are countless factors and activities that negatively affect mental health, so treating social media companies like the sole contributor to negative mental health outcomes would be misguided, and (2) many people consider social media and related technological advancements a net _positive_ for society when used with discretion. Therefore, shifting the entire burden of new mental health spending in the city to social media companies would be unduly punitive and would ignore the many upsides associated with widespread access to social media in Chicago and elsewhere.
The tax would also be incredibly difficult to implement and would raise questions of fair apportionment. Most social media accounts do not require the user to provide a physical address, so Chicago would have to rely on social media access from Chicago IPs. This could involve the tax being paid on behalf of many people who are only passing through Chicago.
## "Cloud Tax" Increase Would Raise Costs for Businesses and Individuals
The mayor's budget also proposes increasing the so-called "cloud tax" from 11 to 14 percent to raise roughly [$333 million](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit) in new revenue. Currently, Chicago imposes its personal property lease transaction tax on the lease, rental, or use of computer software and cloud infrastructure. As such, this tax is paid by businesses and individual taxpayers who purchase paid subscriptions to various cloud and software services, including AI subscription services. This tax therefore makes it more expensive for a [wide range of companies](https://www.bloomberg.com/news/articles/2024-12-09/cloud-computing-tax-threatens-chicago-s-silicon-valley-ambitions) to do business in Chicago, while also making such subscriptions even more expensive for individual consumers.
## Big Picture
The head tax, social media tax, and "cloud tax" increase proposed in Mayor Johnson's budget are economically harmful and structurally unsound. A head tax would negatively affect employment in Chicago, while an additional layer of taxes on social media companies would be highly nonneutral, penalizing innovation. An increase in the "cloud tax" would make using cloud and software services more expensive for businesses and individuals alike.
If either of the proposed new taxes is authorized, there is no guarantee the tax rates will remain unchanged over time. Once new revenue streams are created, those taxes are often prime targets to accommodate future spending increases, as demonstrated by the proposed increase to the cloud tax.
Instead of imposing harmful new taxes and tax increases that would further exacerbate Chicago's struggles to attract and retain individuals and employers, policymakers should consider how tax policies that promote, rather than discourage, investment and innovation would help unlock sustainable economic and revenue growth for many years to come.
Source Name [88]: Why some alderpeople are pushing back on Johnson's budget proposal: borrowing, head tax and cuts to youth programs Full URL: https://thetriibe.com/2025/11/why-some-alderpeople-are-pushing-back-on-johnsons-budget-proposal-borrowing-head-tax-and-cuts-to-youth-programs/ Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;"># Why some alderpeople are pushing back on Johnson's budget proposal: borrowing, head tax and cuts to youth programs</span> [88]
##### By [Corli Jay](https://thetriibe.com/author/corlijay/ "Posts by Corli Jay")
Published on November 21, 2025
Since the City Council Finance Committee [voted against](https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/) Mayor Brandon Johnson's proposed budget recommendations, some Progressive Caucus members, as well as some Aldermanic Black Caucus members, have shared more concerns about it.
Though the head tax, referred to as the Community Safety Surcharge, has been a main point of contention in Johnson's [budget proposal](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/), some alderpeople say issues with transparency and clarity are also at the center of the budget fight.
"We should be taxing the rich," Ald. Andre Vasquez (40th Ward) told _The TRiiBE_.
"They should be paying their fair share. But the thing is, you can't slap a tax-the-rich bumper sticker on a hoopty and call it a Cadillac."
Vasquez, a Progressive Caucus member, is critical of Johnson's plans to borrow more than $280 million to pay for police misconduct expenses. He said borrowing leads to taxpayers owing high interest rates to corporate banks, and that while taxing rich corporations to make up the difference sounds good, it's not realistic.
"The issue is we can't tax enough to pay for that. So right now, it's not just $283 \\[million\\] for the police settlement. It's also $166 \\[million\\] for the fire department back pay," Vasquez said. "When we borrow, we're actually giving the big banks hundreds of millions of dollars in interest."
As a solution, Vasquez said he has repeatedly called for a Chicago Police Department audit, which he admits would not be feasible for this budget deadline: "What you could do in the management ordinance is make a real commitment with funds attributed to who's going to do it over the next year."
He also stated that while Johnson administration officials may have good reasons for proposed borrowing, they have not brought them to the council.
"We found out last week; they haven't even told us that they were borrowing for those settlements," Vasquez said. "Part of the challenge is that we're not even getting the communication or accountability in place right."
Vasquez has been the subject of political ads after the _Chicago Sun-Times_ [reported](https://chicago.suntimes.com/city-hall/2025/11/13/mayor-brandon-johnson-concessions-proposed-2026-budget-corporate-head-tax-cloud-computing-city-council) he is "still searching for head tax alternatives."
Vasquez told _The TRiiBE_ other suggestions he's made include raising the Personal Property Lease Transaction (PPLT) Tax and more cameras to enforce illegal parking in bike and bus lanes, andincreased garbage fees, which he maintains wouldn't impact low-income Chicagoans.
To ease the impact of higher fees, city officials indicated they could create exemptions and programs for seniors and people at different income levels, according to Vasquez.
"There are ways to model it, where you get revenue and not harm the people who are most vulnerable," he said. "All it requires is doing a little more homework, not just whatever gets presented, and being like, oh, either yes or no."
In a newsletter sent out on Tuesday, Ald. Monique Scott (24th Ward) said she voted against the budget proposal because it relies "heavily on unstable revenue sources," such as the head tax and Tax Increment Financing (TIF) surpluses. Scott also outlined concerns about transparency.
"I am also concerned about the lack of transparency and accountability in how funds are allocated," she wrote. "You deserve clear answers about where your tax dollars are going and how city departments are being held responsible for results. This budget does not provide that clarity."
Ald. Desmon Yancy (5th Ward), a Progressive Caucus member, shared similar sentiments about transparency in the Johnson administration. The proposal anticipates $100 million to be generated from the Community Safety Surcharge. Yancy said he doesn't know how the administration is getting that number.
"We could find ourselves in a position where we don't meet the projections, and that would be problematic if we're more in a budget deficit next year," Yancy said.
On transparency, Johnson told _The TRiiBE_ during a budget town hall at Curie High School on Tuesday that his administration has been in talks with council members since April, when they started the budget process. He indicated he is open to suggestions.
"There's nothing surreptitious about this budget," Johnson told _The TRiiBE._ "All of it is available. We've had community town halls all over the city of Chicago. So the idea that there is something surreptitious about our process, it's just not substantiated."
Asha Ransby Sporn, a longtime organizer who leads the Chicago Black Voter Project, said the movement began organizing around the budget early this year. Johnson [stood with labor and community organizers](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/) in October during a pep rally before unveiling his budget proposal.
"People are at Ward Nights all across the city," Ransby Sporn said. "There are town halls happening every week since the summer. The scale of engagement in this process is a testament to the fact that people started organizing around this budget in January, which is earlier than organizers usually try to start."
Informing city budget development is a [Chicago Budget Engagement Report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20City%20of%20Chicago%20Budget%20Engagement%20Report.pdf) released by the Great Cities Institute at the University of Illinois Chicago. The report reflects community engagement from various town halls across the city starting in June. Johnson has also reportedly announced an [online portal](https://abc7chicago.com/post/chicago-mayor-brandon-johnson-offers-city-council-members-online-portal-submit-budget-efficiency-ideas/18182132/?ex_cid=TA_WLS_TH&link_source=ta_thread_link&taid=691fa47a87ea5e0001e8369c&utm_campaign=trueAnthem:+Trending+Content&utm_medium=social&utm_source=threads.net) for alders to submit savings and efficiency ideas.
## QUESTIONS OVER PROGRESSIVE MESSAGING
Yancy previously shared with _The TRiiBE_ that he thought the budget was very progressive. But he has since raised concerns over various aspects of the proposal since having more time to dig deeper into it.
Through the Community Safety Surcharge, Johnson has touted that the funds would go toward free mental health clinics, youth programs and community violence intervention.
Yancy addressed concerns about proposed [youth mentoring program cuts](https://www.youth-guidance.org/bam-becoming-a-man/#:~:text=Youth%20Guidance's%20Becoming%20A%20Man,of%20the%20juvenile%20justice%20system.), such as Becoming A Man (BAM) and Working On Womanhood (WOW), which Yancy said would impact Hyde Park High School inside his ward.
"These are Black jobs," Yancy said of those employed through the program. "These are Black students who are going to be impacted by this. Yes, last month I said this is a very progressive budget; on the surface, it is. But when you get down into it, you see there's some impact that is going to be significant."
Michelle Alder-Morrison, CEO of Youth Guidance, which oversees BAM and WOW, said she was "totally shocked" when she learned of the proposed cuts.
"We have measurable outcomes serving so many different communities with the highest concentration of trauma exposure," Alder-Morrison said. "I honestly was like, there's a mistake here. This can't be intended. There's no way this is purposeful."
BAM and WOW funding comes from the Department of Family Support Services, whose unnamed spokesperson told the [_Chicago Sun-Times_](https://chicago.suntimes.com/city-hall/2025/11/20/mayor-brandon-johnson-corporate-head-tax-youth-program-cuts-become-a-man-working-on-womanhood) the cuts to group services came as a result of a survey from youth participants at town halls who prioritized one-on-one counseling.
"Part of what their response was, 'Well, we got feedback from a youth survey that young people really wanted one-on-one, counseling or one-on-one mentoring and out-of-school time,'" Adler-Morrison said. "I don't think it's representative of the need that's out there, nor the value that young people themselves have of BAM and WOW."
Yancy also expressed concerns over the "yacht tax" proposal in the budget, which raises the boat docking fee from 7% to 23.25%. Yancy said his constituents showed concerns over the "200% increase," which he referred to as "regressive" and a tax on working-class Black people.
"There's a very small subset of the population of people who own watercraft in the city, who actually own yachts. And this mayor has made a commitment to support working-class Black people. The people that I talk to in my harbors are retired teachers, retired police officers and retired city employees. Those are working-class Black people," Yancy said. "Those are the same people he represented as a union organizer, and I think those are the same people that are being let down by this misrepresentation around the tax."
Breanna Champion is an organizer with Chicago Black Voter Project and a member of the People's Unity Platform (PUP), which helped [generate ideas](https://thetriibe.com/2025/10/as-trump-cuts-vital-services-chicago-organizers-push-city-council-to-pass-a-progressive-city-budget-for-fy-2026/) for Johnson's budget. She said the Johnson administration has been very collaborative with community organizers.
"I feel like when it comes to tweaks being made," Champion said. "I have faith that as long as you know there is representation in making those tweaks that they'll happen and support those who need it the most."
## CONCERNS OVER HEAD TAX REMAIN
Seventeenth Ward Ald. David Moore's issue with Johnson's budget proposal is implementing the head tax and fear of harming the same people it's supposed to help. He cited the increase to Chicago's minimum wage, which he voted for, as an example of how smaller businesses face higher costs, leading to decisions such as laying off workers.
"So now we're doing another layer on there," Moore explained. "I'm OK with doing that other layer on there, if they can handle it, if they can absorb it. But if they can't absorb it, then they start laying off the very people that we're trying to get hired, and then those same people end up in a summer employment line."
Moore is in favor of changing the head tax to target companies with 200 employees and up. Right now, the proposal is for companies with 100 or more employees. Moore tipped his hat to Johnson's proposed reimbursement grant for smaller businesses, but said that suggestion came just two nights before Monday's City Council Finance Committee meeting and lacks collaborative will.
"Far as I know, until the other day, many of \\[business folks\\] were not invited to the table at the beginning. You have to find out where their pressure point is, and you got to talk to them," Moore said. "Now, most of them gonna lie because they don't ever want to give up nothing, but you at least have a sort of gauge of what they're willing to give up."
The idea that a head tax would force businesses to leave the city isn't backed up by [historical precedent](https://thetriibe.com/2025/11/emanuel-killed-it-johnson-wants-it-back-chicagos-corporate-head-tax-debate-is-about-more-than-money/), according to Annette Guzman, the city's budget director. Guzman explained that the removal of the head tax in 2014 led to higher property taxes and Chicagoans paying more for government services and corporations paying less.
"There are a lot of things that corporations will do to instill fear about what they will do to evade attacks. And they're doing that across the country," Guzman said. "You have corporations saying they're going to pull out of New York. They're not. They need our labor."
Zohran Mamdani's election as New York City mayor is part of a national wave of cities and states seeking ways to make the rich pay their fair share. In Colorado, there's a push for a wealth tax. Protect Colorado's Future, a coalition of liberal groups, submitted language for a ballot measure for a constitutional amendment that would raise the income tax rate for Coloradans making at least $500,000, according to [_Colorado Newsline_](https://coloradonewsline.com/briefs/graduated-income-tax-colorado-ballot/).
Ald. Red Burnett (27th Ward) posted a statement on his Instagram page saying he voted "yes" to the proposal because the alternative on the table was a 3-5% property tax increase. To mitigate the head tax burden on high-employee, low-margin businesses, like restaurants, Burnett said he introduced a $18 million grant proposal.
Jimmy Rothschild, a community organizer with the Jewish Council on Urban Affairs, which is also a member of PUP, said he believes the drama can be stopped with everyone working toward the goal of making sure everyday Chicagoans are not continually taxed or having services cut: "At the end of the day, we gotta tax the rich and feed the people."
**\\*\\*\\***
Here's a look at the roll call for the Chicago City Council Finance Committee's 10-25 vote rejecting Johnson's revenue-generating options, which include the head tax and borrowing money to cover police-misconduct spending. Ald. Jeanette Taylor (20th) was marked absent from the meeting.
The full list of "no" votes is:
- Pat Dowell (3rd), finance committee chair
- Bill Conway (34th), finance committee vice chair
- Brian Hopkins (2nd)
- Greg Mitchell (7th)
- Michelle Harris (8th)
- Anthony Beale (9th)
- Nicole Lee (11th)
- Marty Quinn (13th)
- Raymond Lopez (15th)
- David Moore (17th)
- Derrick Curtis (18th)
- Matt O'Shea (19th)
- Ronnie Mosley (21st)
- Monique Scott (24th)
- Felix Cardona (31st)
- Scott Waguespack (32nd)
- Gilbert Villegas (36th)
- Emma Mitts (37th)
- Nicholas Sposato (38th)
- Samantha Nugent (39th)
- Andre Vasquez (40th)
- Brendan Reilly (42nd)
- Timmy Knudsen (43rd)
- Matt Martin (47th)
- Debra Silverstein (50th)
The full list of "yes" votes is:
- Daniel La Spata (1st)
- William Hall (6th)
- Julia Ramirez (12th)
- Michael D. Rodriguez (22nd)
- Byron Sigcho-Lopez (25th)
- Red Burnett (27th)
- Jason Ervin (28th)
- Chris Taliaferro (29th)
- Rossana Rodríguez Sánchez (33rd)
- Anthony Quezada (35th)
Source Name [89]: Mayor's Head Tax Plan Tweaked, But 2026 Budget Still Faces Uphill Battle Ahead Of Vote Full URL: https://blockclubchicago.org/2025/11/14/mayors-head-tax-plan-tweaked-but-2026-budget-still-faces-uphill-battle-ahead-of-vote/ Scraped Date/Time: 2025-11-22 23:53:58
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson and his budget team have amended the details of a proposed corporate head tax and other revenue ideas in the 2026 city budget as they push for a final vote on the spending plan, which could come next week.</span> [89]
Johnson last month introduced a $16.6 billion budget proposal that avoids property tax hikes and instead relies on the head tax, a social media tax, a hiring freeze, an expanded rideshare surcharge zone and other measures.
The $21 per person corporate head tax has emerged as a sticking point in budget negotiations. Progressive groups and some City Council members argue it's an opportunity to force rich corporations to support vital public safety programs, but it has drawn opposition from Gov. JB Pritzker and business groups who have labeled it a job killer.
Chicago previously had a $4 per person head tax that was eliminated over a decade ago by then-Mayor Rahm Emanuel.
Johnson's initial plan called for Chicago companies with more than 100 employees to pay a $21 per person per month tax. That threshold has now been lifted to 200 people, according to budget materials shared with the City Council on Thursday.
The tax is projected to bring in $82 million annually, instead of $100 million under the original plan. Those dollars would go toward a community safety fund that would pay for violence intervention workers, summer jobs for teenagers and other anti-violence initiatives.
It's not clear, however, if the change has swayed enough alderpeople to back Johnson's spending plan. The administration is pushing for budget votes next week, and may introduce the necessary ordinances to the budget and finance committees on Monday. If passed in committee, they could face a final vote on Thursday.
South Side Ald. David Moore (17th) said he's generally supportive of a head tax but is still talking to restaurant owners and franchisees of chains like McDonald's in the city to see how a 200-employee threshold would play out.
He's not yet at a "yes" or "no" vote, but said a final budget is "almost there."
"I'm strongly in favor of the head tax and the rich being taxed. Trust me, they can afford it. Don't let nobody tell you they can't," Moore said Friday. "I just want to make sure that these businesses, at least the majority of them that impact the communities that I represent, are OK."
Other alderpeople remain firmly against the head tax and are urging the mayor and his team to slow down the process and not push for a vote yet.
"This city really needs jobs and housing, and my concern is the head tax disincentivizes the thing we're trying to incentivize," Ald. Bill Conway (34th) said.
Chinatown and Bridgeport Ald. Nicole Lee (11th) is also calling on Johnson to pump the brakes. She continues to have concerns about the head tax proposal, especially after speaking to restaurant owners as well as a produce company in her ward which has 202 employees — just over the proposed 200-employee threshold, she said.
"The conversation was, ultimately, 'What do I do? Do I lay off three people? What if I pick up six more restaurants? … Do I have to move out to the suburbs?'" Lee said. "These are real things facing real people and those are jobs in my community."
Like many other members of the council's Progressive Caucus, Humboldt Park Ald. Jessie Fuentes (26th) is in favor of the head tax. The alternatives would be raising property taxes, reinstating the grocery tax or cutting city staff and services, she said.
"There's no cuts that you're going to make that doesn't hurt services in the city of Chicago," Fuentes said. "Or, we can look at the corporate head tax and say businesses can be partners in this moment to help us build the city that we all want to live in."
The mayor's budget team has made other changes to the budget, including boosting a proposed increase to the city's personal property lease tax an extra percentage point, up to 15 percent.
Notably, the latest proposal that emerged this week also restores funding for gender-based violence services as well as the library collections budget, which was slated for a 50 percent cut.
Other sources of revenue in the budget come from expanding a rideshare surcharge zone and raising the boat mooring tax at Chicago's marinas, although nonprofits will be exempt from that increase. The budget also relies on an estimated "record" TIF surplus of $1 billion, roughly half of which will go to Chicago Public Schools.
Johnson on Friday defended the head tax proposal as a way to "challenge the corporations of the ultra rich" and insisted the budget approval process has not been rushed.
"We literally have been in conversations for months. The City Council's had a month to review the current proposal as it is," he told reporters. But "if there are some progressive revenue ideas that have not been brought before us, there's still time."
Budget chair Ald. Jason Ervin (28th) echoed that point earlier in the day.
"Without cuts, I don't know what the answer is," Ervin said. "Where's the balancing of the equation? And no one has put forth something that balances the equation."
Still, Conway on Friday said he's skeptical the current budget proposal has the support to pass.
"I would say it's unlikely a vote that passes would happen next week," Conway said.
Source Name [90]: Chicago's FY2026 Proposed Budget: A Stumbling Start Full URL: https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start Scraped Date/Time: 2025-11-22 23:53:58
<span style="color: #0066cc; font-weight: bold;">The introduction of Chicago Mayor Brandon Johnson's proposed FY2026 budget on October 16 provides Chicagoans with insight into how this administration proposes to address a $1.2 billion budget deficit and what they aim to prioritize in the coming year. Excluding grant funds, the proposed budget is 2.7% higher than the previous year, despite a significant deficit necessitating unprecedented revenue</span> [90] measures. The budget proposes closing the deficit by substantially increasing the cloud computing tax, levying a head tax on large corporations, reducing the City's pension contributions, and utilizing other one-time fixes, including declaring yet another record-breaking Tax Increment Finance district surplus.
In a recent piece, the Civic Federation outlined the key fiscal issues facing Chicago in advance of the FY2026 budget release—noting the unprecedented position the City finds itself in and calling for a focus on long-term solutions and structural improvements to the budget. Unfortunately, the proposed budget is a transactional proposal that technically balances the budget with short-term fixes but fails to make the difficult decisions needed at the moment. Instead, the proposed budget continues a status quo widely understood as unsustainable and unacceptable, using some of the same disreputable bad practices of the past. The proposal balances the budget not through shared sacrifice between stakeholders, but with tax increases targeted at businesses, one-time revenue influxes, and borrowing to pay for operating costs. It largely ignores the work done by the Mayor's own Financial Future Task Force, as well as supplemental work conducted by the City's retained consultants, EY, to identify opportunities for savings and efficiencies.
Budget proponents are justifying the proposed revenue increases by arguing that the City needs to compensate for federal funding cuts by the Trump administration. But that narrative isn't supported by the facts. While the federal government has tried to rescind a variety of Chicago's grants, the City has parried those attempted cuts by challenging them in court. Although grants that have not yet been awarded may be at risk in future years, a first blush look reveals only $30-$40 million of existing federal grant funding to be on hold. The City has seen a significant decrease in overall federal funding, but this is due largely to the expiration of temporary American Rescue Plan Act (ARPA) funding from the pandemic era, which the City itself has been projecting and socializing for years, well before the present Administration in Washington won office.
The Mayor's proposal is the opening gambit in what will be a longer process that requires deep and meaningful engagement by City Council to reach a budget that identifies long-term, sustainable solutions for the City's financial struggles.
Key Takeaways:
- Closing the budget gap: The proposed budget closes the projected FY2026 budget gap through new and increasing taxes on business, sending the wrong message to the business community at a time when the City desperately needs jobs and economic growth. Several proposed options are one-time in nature and revert to bad past practices, such as borrowing for operational costs. These actions signal that the City has not taken seriously the need to address the long-standing structural budget deficit, which could trigger future downgrades by rating agencies.
- Expenditure Drivers: Overall expenditures will decrease in FY2026 only when including grant funds. The core budget actually proposes a year-over-year increase of 2.7%. This is driven primarily by increases in salaries and employee healthcare costs.
- Addressing the Structural Deficit: In order to reduce future borrowing costs, the City should focus on making sustainable structural reforms sufficient to elicit a favorable response from credit rating agencies.
- Relationship with Chicago Public Schools (CPS): The record-high TIF surplus of $1 billion provides a $552 million windfall to CPS. This amount more than covers the school district's assumptions in its own FY2026 budget and leaves open the question of whether CPS will use the remaining TIF funds to reimburse the City for a portion of the annual contribution to the Municipal Employees' Pension Fund (MEABF). Whether CPS reimburses Chicago for these pension costs should be decided based on the District's financial situation mid-year. Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators, ideally with CPS taking on its portion of the MEABF pension liability, but with a funding source sufficient to cover the cost.
- What the Civic Federation hopes to see: As City Council works toward a final budget, it should consider additional revenue and efficiency options not incorporated into the FY2026 budget proposal, such as what was produced in the Chicago Financial Future Task Force's report and EY's financial and strategic reform options report. The final budget should not rely on one-time fixes or poor financial practices, but instead rely on recurring revenues and sustainable savings or cuts.
How the City Proposes Closing the FY2026 Budget Deficit
The City of Chicago (Chicago or the 'City') estimates a $1.19 billion budget gap in 2026. This is the largest budget gap in the City's history—rivaled only by the budget gap in 2021 during the COVID-19 pandemic before the federal government came through with funding relief for state and local governments through the American Rescue Plan Act (ARPA). With no remaining ARPA funds, the question of how the City will balance the budget is critical.
The Mayor proposes closing the $1.19 billion deficit through nearly $800 million in revenue increases and approximately $400 million in purported savings and efficiencies. The plan relies on revenue solutions that would deter business, along with several actions that are one-time in nature, and neither will address the City's structural problems, and could even trigger a rating downgrade.
Revenue Proposals:
The proposed revenue solutions rely heavily on taxing businesses—primarily through an increase to the personal property lease transaction tax from 11% to 14%, which is estimated to generate $333.2 million, and the reinstallation of a per-employee head tax at a rate of $21 per month per employee for businesses with more than 100 employees, which is estimated to generate $100 million. Both of these proposals would make Chicago an outlier compared to other U.S. cities and arguably send the wrong message to the business community, which already pays other high taxes through income and property taxes. The head tax, in particular, has been met with opposition from the business community and Governor Pritzker.
Although not included in this year's revenue estimates, the City also plans to implement a first-in-the-nation tax on social media companies applied through the existing amusement tax. The legality of this tax is highly questionable and will likely need to be resolved through the courts. Other proposals include a new online sports betting tax, an adjustment to the existing Ground Transportation tax on ridesharing, an increase to the boat mooring tax, and a new hemp tax. Together, the revenue proposals are expected to generate $433.2 million.
Another $157.6 million would be generated through the City declaring a record-high tax increment financing (TIF) surplus of $1 billion, of which approximately $232.6 million would go to the City's Corporate Fund. While sweeping TIF surplus funds has become common practice with increasingly lucrative payouts in recent years, increases in this revenue source are not sustainable at the current pace. TIF is also a revenue source that is not intended to fund general government operations but rather to fund economic development in blighted areas. The record FY2026 TIF surplus declaration indicates that the City is increasing its reliance on a revenue source that is projected to decrease in future years.
The City also plans to generate $166 million in bond financing by taking out short-term debt to cover operating costs, a move that will increase debt service costs in future years and is likely to attract negative attention from credit rating agencies. Borrowing for general operations, such as paying employee salaries, goes against best practice and would be a repeat of past mistakes that got the City into its current financial straits. The proposed budget justifies these moves by framing the debt as paying for retroactive salary increases for firefighters, as well as an unusually large amount of costs incurred by settlements of legal cases against the City, mostly involving police misconduct. The retroactive salary payments would be funded over three years, whereas the settlement payments would be funded over five. Borrowing for operating costs like salaries and settlements is precisely the sort of disfavored practice that is in part responsible for the fiscal straits we are in, and that the recent past Administration had phased out.
Spending and Efficiency Proposals:
It is especially disappointing that this budget did not do the hard work of identifying real and lasting efficiencies. Rather than working to identify long-term cuts to programs or positions, the budget relies on efficiencies that are one-time in nature and will only leave the City in a similar or worse position in 2027.
The proposal calls for a little over $200 million in operational efficiencies and personnel savings, including a hiring freeze to save $50 million and smaller initiatives to improve procurement processes, modernize fleet management, recover the cost of special events, and consolidate real estate. While a hiring freeze is a reasonable way to tamp down spending, it is not a structural solution unless the positions are cut. They are not in any meaningful measure. Noticeably absent from the budget proposal is any mention of furloughs or unpaid days off. To generate structural savings from personnel would require work to determine which positions are needed and a request for labor unions to make a shared sacrifice.
Another key cost-saving measure identified is a $117.8 million reduction in the City's supplemental pension payment to the four Chicago pension funds. The City began making supplemental pension contributions beyond the amount required by state law in 2023, as a strategy to stop mounting growth in unfunded liabilities. This has helped prevent unfunded liabilities from growing faster than contributions, reduced future pension costs, and resulted in rating upgrades from credit rating agencies. Cutting the advance pension payment in half this year could be looked at unfavorably by the rating agencies and lower the City's credit rating. It is also a risky move given that a recent state pension sweetener bill increased benefits for Chicago police and firefighters, adding to the City's unfunded liabilities and required pension contributions beginning in 2027.
Drivers of Spending Increases
The FY2026 budget proposal decreases from the prior year by 3.5% across all funds, including grants, due to the wind-down of federal COVID-19 grant funds. But when excluding grant funds, the budget, totaling $12.7 billion, actually increases by $330.4 million, or 2.7%, from FY2025.
There are several drivers of budget growth between the adopted FY2025 and proposed FY2026 budgets. Chief among them is employee benefits, which grew by 42%, or $319.4 million. Another major source of growth is public safety. The City's overall public safety budget grew by $267.6 million from 2025 to 2026. $143.3 million in growth is attributable to an 8% increase in the Chicago Police Department's budget, reflecting increased salary costs and higher estimates of overtime for 2026, but not a significant increase in staffing. The other significant surge in public safety spending is within the Chicago Fire Department, which will see a $124.3 million increase in spending, or 20%. This increase is due to the ratification of a collective bargaining agreement for firefighters, which stalled in negotiations for several years and will now require the City to provide back pay for retroactive raises. The City also expects significant increases in infrastructure services spending—a 7% increase of $121.9 million. The Department of Water Management and Department of Aviation will see 8% and 11% increases, respectively, while the Department of Transportation and Department of Streets and Sanitation see little change to their budgets.
The increases in FY2026 spending are partially offset by a reduction in the City's pension contributions. In 2025, the City contributed $2.91 billion to its pension funds, but in 2026, it plans to contribute only $2.76 billion. This reduction is due to the City's decision to cut in half its advance pension payment.
While personnel costs overall are increasing in FY2026 due to increasing salaries and healthcare benefits, the total number of personnel is proposed to decline by 446 from FY2025. These eliminated positions are not due to layoffs, but rather the closing of vacant positions. The City has a total of 4,022 vacant positions. The departments with the largest proposed position reductions are the Chicago Department of Public Health (CDPH) (282), the Department of Transportation (95), the Department of Streets and Sanitation (52), and the Chicago Public Library (69). Preliminary review suggests that a significant percentage of the CDPH reductions may be COVID/ARPA-specific grant-funded positions. Moreover, these departments' expenditure levels will remain roughly constant between FY2025 and FY2026. The budget proposes personnel growth in some departments, including the Department of Aviation due to the O'Hare Airport Expansion program (53 positions) and the Department of Environment (65 positions).
Addressing the Structural Deficit
For decades, the City's expenditures have outpaced growth in revenues, leading to annual budget gaps in almost every year in recent memory. This is what is referred to as a "structural deficit." In the past, City leaders have made poor financial decisions to close these budget gaps, such as borrowing to pay for operating expenses, refinancing debt to push off costs to the future ("scoop and toss"), spending down rainy day reserves, and failing to raise ongoing revenues commensurate with spending increases. This year's FY2026 budget proposal reverts to the same kinds of mistakes made by City leadership in the past, which have contributed to the financial situation the City finds itself in today.
In a series of credit downgrades following the passage of last year's budget, rating agencies made it clear that the City needed to address its structural budget deficit and reduce the reliance on one-time revenues to fund ongoing expenses to avoid the risk of further downgrades. Unfortunately, many of the agencies' concerns remain unaddressed. Pensions and debt service payments still account for approximately 40% of the operating budget, and recent pension enhancements for police officers and firefighters threaten to bring two of the City's funds into insolvency.
Sustainable solutions to the City's decades-long structural budget deficit must involve a combination of efficiencies and revenues. However, the budget proposal does not make a meaningful effort to address spending. While the budget across all funds, including grants, will decrease by 3.5% from FY2025, much of that is attributed to the decline of federal grant funding. Excluding grant funds, spending is actually up 2.7%.
The Financial Future Task Force report laid out 89 revenue and efficiency options for consideration by the Mayor and City Council, supplemented by additional work by consulting firm EY. While a handful of these options made it into the Mayor's budget proposal, such as controlling overtime costs and modernizing fleet and procurement management, many ideas were left off the table. Ideas to generate sustainable revenue to match cost inflation, such as indexing taxes and fees to inflation and recouping costs through fees commensurate with the cost of service delivery, warrant further consideration. The proposed budget also barely scrapes the surface of possible efficiencies. EY conducted an in-depth report at the call of the Mayor's Office of Management and Budget, identifying 100 opportunities for cost savings. As City Council pursues budget deliberations in the coming weeks, it should work with the administration to implement these efficiency recommendations, as well as consider revenue options that align with good budgeting principles.
Relationship with Chicago Public Schools
During and following the passage of the Chicago Public Schools' (CPS or the 'District') FY2026 budget over the summer, there was a question over how much TIF surplus funding the City of Chicago would declare and whether it would be enough to cover CPS' projection. The proposed TIF surplus of $1 billion provides CPS with $552 million—more than enough to cover the $379 million revenue assumption.
With CPS receiving TIF funding in excess of its projection, observers have reopened the possibility of a $175 million reimbursement from CPS to the City for the Municipal Employees Annuity and Benefit Fund (MEABF). For many years, the City has met a mandatory legal obligation to cover this payment, which applies to non-teacher CPS employees. Amid a surge in federal pandemic funding, Mayor Lightfoot negotiated an intergovernmental agreement with CPS to secure payment reimbursements beginning in 2021, which continued and grew through 2023. However, CPS did not provide the City with the reimbursement in FY2024 or FY2025 as the District dealt with its own budget crisis. The City's FY2025 budget assumed continued reimbursement for this payment, totaling $175 million. CPS' ultimate refusal to reimburse the City amid its own budget deficit set off a lengthy debate that resulted in a year-end budget deficit for the City. The City's FY2026 budget proposal does not rely on reimbursement from CPS.
However, the size of the projected TIF surplus in FY2026 would provide CPS with an extra $140 million. The CPS budget indicated that the District would make the $175 million MEABF payment contingent on additional revenue beyond budgeted assumptions in the form of additional FY2026 TIF surplus revenue, other local resources, or additional state revenue. Whether CPS reimburses the City is a decision that should depend on the financial state of the District and the Board's assessment of its stability through the remainder of the 2026 fiscal year.
Fully resolving the financial entanglements between the City and CPS will require continued engagement with State legislators. Ideally, CPS would take on its share of pension costs related to the MEABF, but should also be given authority to establish a revenue source sufficient to cover the cost of the payment.
Regardless of whether CPS makes this pension payment, the size of this year's TIF sweep is unsustainable. The City and CPS should both anticipate weaning off this revenue source, as it is likely to decline as more TIF districts close in the coming years.
Conclusion
In a budget that could have marked the beginning of a more responsible era of fiscal stewardship, the FY2026 proposed budget avoids making necessary, difficult decisions. Although technically balanced, this budget is heavily reliant on one-time revenues, reduces supplemental pension funding, and all but ensures a similar conversation will be taking place next year.
This budget proposal also leaves out several options for right-sizing the City's finances—many of which were included in the reports commissioned by the Mayor's Office of Management and Budget. As City Council works to finalize the budget in the coming weeks, alders should engage with the Mayor's administration and consider every measure necessary to begin to correct Chicago's course. The Civic Federation looks forward to working with all stakeholders to achieve a responsible final budget plan.
Source Name [91]: Mayor Johnson's $16.6B budget would revive corporate head tax, tax social media companies Full URL: https://www.wbez.org/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit Scraped Date/Time: 2025-11-22 23:53:58
Mayor Brandon Johnson Thursday delivered on his promise to "challenge the ultra-rich" <span style="color: #0066cc; font-weight: bold;">and make corporations pay their fair share, proposing a $16.6 billion budget for 2026 that includes $586.6 million in progressive tax and fee revenues and a record $1 billion tax increment financing surplus to rescue the city and Chicago Public Schools.</span> [91]
The tax-heavy budget, which aims to erase a $1.15 billion shortfall, would hit Chicago businesses hard. It includes a revived and dramatically expanded employee head tax, a second consecutive increase in the tax on cloud computing, a first-of-its-kind social media tax and a broadening of the city's amusement tax to include online sports betting.
In his budget address to the City Council, Johnson said Chicago is the 10th-wealthiest city in the world, with 127,000 millionaires and 24 billionaires — while 1 in 4 Chicagoans under the age of 18 are mired in poverty.
"Our budget proposal asks large corporations and the ultra-wealthy to chip in more so that working families are not burdened with higher property taxes or grocery taxes or garbage fees," Johnson said. "This intense and growing wealth inequity is not sustainable for our city."
The old $4 per month per employee head tax, applied to companies with more than 50 workers, rankled businesses and ultimately was phased out by Mayor Rahm Emanuel in 2014.
The tax would be rebranded as a "community safety surcharge" and revived at a rate more than five times higher than it was — as if it had been retained and raised each year to match the rate of inflation. But the new $21 per month per employee fee would only apply to companies with more than 100 workers. That's about 3% of Chicago companies.
The expanded tax would raise $100 million in annual revenue, though business leaders say it could stifle hiring, discourage corporate expansion and trigger a business exodus from Chicago.
"It's not a job killer. It's a job creator. The top priority that businesses have expressed over and over again is to ensure that our city is safe," Johnson told reporters during a budget briefing this week. "We're talking about 3% of companies who will be asked to put more skin in the game; 97% of businesses won't be impacted by this."
That's not the only tax that targets the business community.
Johnson hopes to generate a $333 million annual windfall by raising the tax on cloud computing from 11% to 14%. That's a 27.2% increase on the heels of last year's 22% increase in that tax.
Chicagoland Chamber of Commerce President Jack Lavin said the proposed 14% cloud computing tax would be the "highest in the nation," and a "job-crushing sibling to the head tax."
"Business and labor want to see cranes in the air. We want to see people employed," Lavin said. "These taxes are a penalty for hiring people. These are quick fixes that are going to kill jobs."
In an apparent attempt to counter any kind of lobbying campaign against the business taxes, Johnson is promising to isolate revenue from the head tax and the cloud computing tax into a segregated "community safety fund."
The money would be used to bankroll all community safety programs. That includes what the mayor's office calls the largest investment ever on community violence intervention, 30,000 summer jobs, expanded recreational programs for youth and programs that confront the perennial problems of gender-based violence and first responder wellness that has resulted in a wave of suicides by Chicago police officers.
The new tax on social media companies was billed as the first of its kind in the nation.
It would generate $31 million, with revenue isolated in a so-called "protecting care fund" that would be used to expand the number and quality of so-called "care teams" that replace police officers in responding to mental health emergencies. The money would also be used to reopen more mental health clinics or expand the hours of the handful of city clinics that Johnson has already reopened.
Both special funds would help brace and insulate Chicago's social programs from the impact of federal funding cuts imposed or threatened by President Donald Trump.
The tax on social media companies like Meta, TikTok, Instagram, X and Reddit would be applied at a rate of 50 cents per user in Chicago after the first 100,000 users. The political rationale for the tax is simple: Johnson told the Council that social media companies that have been allowed to "collect our data and sell it for profit" have implemented "more and more aggressive strategies to get Chicagoans addicted to their apps.
"We've seen significantly higher trends in depression, anxiety and mental illness — especially in our young people," the mayor said in his budget address. "Just like we tax other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way."
Lesser tax increases would impact large boats moored at Chicago harbors [$4.1 million] and hemp products [$10 million]. A congestion tax on users of ride-hailing companies would move from a flat fee to a percentage applied to an expanded Downtown zone — a measure that would generate about $65.4 million.
Johnson campaigned on a promise to impose $800 million in new and higher taxes on businesses and wealthy Chicagoans to help bankroll $1 billion in "investments on people."
But until now, he has made no progress on that front, in part because ideas like a corporate income tax and an expanded sales tax on professional services can only be approved by the Illinois General Assembly.
Johnson managed to get his proposal to raise the transfer tax on high-end real estate transactions before Chicago voters. But the mayor's signature "Bring Chicago Home" referendum was resoundingly defeated after a multimillion-dollar lobbying campaign by Chicago real estate and business interests.
Another multimillion-dollar lobbying campaign is expected to be mounted this time by business leaders continuing their behind-the-scenes search for a mayoral challenger to Johnson.
But senior mayoral adviser Jason Lee said the dramatically expanded head tax and the higher cloud computing tax can be easily justified — even at a time when the job market and office vacancies remain stuck in the mud.
Lee pointed to the state's decision to divert "hundreds of millions of dollars" in corporate tax revenues away from Chicago and other local governments, and to use that money for Illinois' own "pressing needs."
"If that number hadn't gone away, there wouldn't be a need for additional corporate taxes in the city of Chicago," Lee said.
Last year, Johnson declared a record $570 million TIF surplus. This year's version would be twice as large — enough to allow the Chicago Public Schools to reimburse the city for about $140 million of a long-disputed $175 million pension payment for nonteaching school employees that prompted Johnson's appointed school board to resign en masse and triggered the firing of former Chicago Public Schools CEO Pedro Martinez.
TIF surpluses are nonrecurring revenues. Johnson's decision to use such one-time revenues to balance his first two budgets have prompted Wall Street rating agencies to reduce the city's bond rating that determines the interest rate that Chicago must pay to borrow money to fund its operations and infrastructure projects.
The mayor's decision to declare a $1 billion surplus could trigger further bond rating reductions. So could his decision to borrow and repay over three years the $185 million needed to cover retroactive pay raises for Chicago firefighters and dramatically reduce — to $120 million — the city's annual "pension advance" over and above the state-mandated actuarial payment. That's less than half of last year's pension advance.
Lee argued that the mayor's hands were tied by the partially elected school board's decision to approve a budget that counted on the city to deliver a large TIF surplus.
"It probably was ill-advised to bank on that. But they did," Lee said. "And now, we're just faced with the reality that if they don't get that money, then there can be even more negative consequences to the classroom and students — and that's something none of us want when public education is also under attack and facing the loss of grants and other intimidations from the [Trump] administration," Lee said.
Southwest Side Ald. Matt O'Shea (19th), a member of Johnson's City Council leadership team, declared the mayor's budget "dead on arrival," predicting that business, labor and their Council allies would unite in opposition.
But Johnson's progressive allies lauded the spending plan. Ald. Maria Hadden (49th) said the Progressive Caucus she co-chairs has been "pushing for progressive revenue for some time" with no results so far from state lawmakers.
"We don't want to reduce services. We don't want to increase property taxes and direct costs to constituents in that way, and we don't want to cut services and lay people off," Hadden said. "So revenue is the solution."
At $16.1 billion, Johnson's proposed budget is down 3.2% from last year. It includes $200 million in spending "efficiencies" that include $50 million from a "targeted hiring freeze" that exempts revenue-generating and public safety positions.
The budget does not eliminate any of the nearly 1,000 police vacancies, but it does include a cap on police overtime beyond $200 million. Chicago Police Supt. Larry Snelling "believes he can live with," that doubling of police overtime from last year, according to Budget Director Annette Guzman.
Overtime spending that exceeds the cap would have to be approved by the Council.
The mayor is counting on only $44 million in casino-related revenue, in part because Bally's temporary casino at Medinah Temple has underperformed and because he is not expecting Bally's to complete construction of its permanent casino in River West until late next year.
Source Name [92]: Mayor Johnson sees budget hole deepen, and takes political hit, after Chicago school board's defiance Full URL: https://www.wbez.org/government-politics/2025/09/02/mayor-brandon-johnson-budget-forecast-shortfall-chicago-school-board-pension-loan-vote Scraped Date/Time: 2025-11-23 05:39:49
clockCST_
[<span style="color: #0066cc; font-weight: bold;">](https://www.chicagopublicmedia.org/)</span> [92]
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Chicago Public Schools CEO Macquline King and Mayor Brandon Johnson attend a news conference earlier this year. The Chicago Board of Education dealt Johnson a harsh political blow Thursday, passing a budget that did not include reimbursement to the city for a $175 million pension payment.
Anthony Vazquez/Sun-Times
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[Government & Politics](https://www.wbez.org/government-politics) [Education](https://www.wbez.org/education)
# Mayor Johnson sees budget hole deepen, and takes political hit, after Chicago school board's defiance
## The 12-to-8 rebuke by a partially elected Board of Education controlled by a majority of the mayor's appointees will force Chicago to end 2025 with a $146 million shortfall.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
Updated
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Sept 2, 2025, 12:36pm EST
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Chicago will end the year in the red for the second straight year after [Mayor Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) suffered a devastating blow from the city's school board, which [this week balked at](https://chicago.suntimes.com/chicago-school-board/2025/08/28/cps-board-denies-johnsons-preferred-budget-rejects-pension-payment-and-loan) authorizing a short-term, high-interest loan to reimburse the city for a $175 million pension payment for non-teaching school employees.
The continued defiance by a partially elected Chicago Board of Education still controlled by Johnson's own appointees will force the city to end 2025 with a $146 million shortfall and make what the mayor called the "hard choices" needed to erase a nearly $1.2 billion budget gap in 2026.
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"They passed a budget that didn't have cuts to the classroom — or as far as what we can tell. That's the most important thing here," Johnson said during a virtual budget briefing Friday.
"My job and my responsibility … is to make sure that the city's budget is balanced — that it's moving toward again building a more equitable society. My mission has not changed. We're going to build a safe, affordable city by making investments in people."
Chicago Public Schools needs a record $379 million tax-increment financing surplus just to keep cuts out of the classroom — even without making the pension payment. That's $79 million more than last year's record amount.
But CPS is not going to get it.
Although the precise number will not be known until the city's capital plan is finalized, Budget Director Annette Guzman said the 2026 TIF surplus is "anticipated to go down" to reduce city borrowing costs for infrastructure projects.
Ald. Jason Ervin (28th), chair of the City Council's Budget Committee, also advised CPS not to hold its breath for a record windfall from City Hall.
"If the surplus doesn't reach that $700 some-odd million level to support $379 million going to CPS, then CPS may have to make some difficult decisions," Ervin said. "When you surplus TIF dollars, you are essentially delaying or not doing things that you said you were going to do" in "areas that have economic needs."
The budget the school board passed does commit CPS to making the pension payment, provided it receives additional funding from the city or state. Still, the board's 12-to-8 vote embarrassed Johnson — and it increased his 2026 budget hole to $1.2 billion.
That includes $200 million for four years' worth of retroactive pay for 4,800 firefighters and paramedics now poised to ratify a new six-year contract that included no major union concessions.
The city's shortfall could have been worse, if not for higher-than-expected city revenues and mid-year budget cuts, including not filling hundreds of vacant city jobs. Johnson made no attempt to sugarcoat the "hard truths" and tough choices ahead.
Reiterating his oft-repeated call for "progressive revenue," Johnson said the "ultra-rich and our large corporations have to do more."
If the Illinois General Assembly refuses to support progressive revenue sources to help Chicago dig out of its massive budget hole, Johnson confirmed what senior mayoral adviser [Jason Lee told the Sun-Times](https://chicago.suntimes.com/fran-spielman-show/2025/08/07/jason-lee-mayor-brandon-johnson-top-aide-home-rule-authority-springfield-progressive-revenue) nearly a month ago — the mayor will seek a dramatic expansion of the city's home-rule authority to allow the city to help itself.
That might allow Chicago to tax professional services, high-end property transactions or impose a corporate income tax.
"There are progressive means in which we can generate revenue that we don't have the ability to do because of the way the law is structured," Johnson said. "If the state of Illinois is not necessarily interested in some of those ideas at the state level, we're certainly ready and prepared to explore them at the city level."
Two of the most likely possibilities currently within the city's control are an increase in the $9.50-a-month garbage collection fee that has been frozen since its 2015 inception, and restoring the automatic escalator imposed by former Mayor Lori Lightfoot that would lock in annual property tax increases at the rate of inflation.
The City Council is also facing an Oct. 1 deadline to reinstate the 1% grocery tax eliminated by the state or risk taking an $80 million hit.
"We may be painting ourselves back into the same corner that happened in the '90s and the early 2000s under the Daley administration by forgoing revenue that's necessary to make government operate," said Ervin, who favors the automatic escalator. "There definitely need to be some efficiencies. ... But I do not believe we can cut our way to $1 billion in cuts without seeing significant impacts on services."
A working group co-chaired by veteran businessman Jim Reynolds and Chicago Urban League President Karen Freeman-Wilson is expected to deliver its preliminary cost-cutting and revenue-raising ideas to the mayor in mid-September.
The three-year financial forecast, which serves as the city's preliminary budget, also paints a bleak picture for future years.
The "base outlook" projects a shortfall of $1.225 billion in 2028. The "negative outlook" includes a $2.031 billion deficit.
Even the rosiest outlook forecasts a $716.4 million shortfall in three years.
All three scenarios count on the city continuing to make an advance pension payment over and above the state mandated contribution of $2.8 billion in 2026. The city anticipates making a $260 million advance pension payment next year.
After keeping his campaign promise to hold the line on property taxes in his first budget, precariously balanced with one-time revenues, Johnson proposed a $300 million property tax increase for 2025.
Many Chicago homeowners felt betrayed. Their City Council representatives responded by unanimously rejecting the mayor's proposal and refusing to approve a politically unpopular property tax increase of any size. That forced Johnson to cobble together a package of $165.5 million in other fines and fees.
In the debate that preceded the 27 to 23 vote, allies and critics alike admonished Johnson for a series of budget missteps that created a deep distrust between the mayor and a Council determined to flex its muscle.
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[](https://chicago.suntimes.com/authors/fran-spielman)
#### [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
Chicago Sun-Times City Hall reporter
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"In The Loop" host Sasha-Ann Simons pressed Johnson on the city's concerns in WBEZ's monthly call-in hour.
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Mayor Brandon Johnson restored a $9 million in cut domestic violence funding in a compromise to get his 2026 budget passed by the City Council. Domestic violence critics praised his "renewed commitment" to confronting gender-based violence.
Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
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Mayor Brandon Johnson restored a $9 million in cut domestic violence funding in a compromise to get his 2026 budget passed by the City Council. Domestic violence critics praised his "renewed commitment" to confronting gender-based violence.
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Source Name [93]: In financial maneuver, Mayor Brandon Johnson proposes millions for Chicago Public Schools Full URL: https://www.wbez.org/education/2025/10/15/mayor-brandon-johnson-chicago-public-schools-tifs Scraped Date/Time: 2025-11-23 05:39:59
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson's budget proposal includes a gift for Chicago Public Schools: He is recommending that the city take an unprecedented amount out of special taxing districts so CPS can cover its costs and send some cash back to the city to help it end the year in the black.</span> [93]
With the school district facing funding cuts from President Donald Trump's administration, Johnson was compelled to try to find as much money as possible for the school district, according to a source in the mayor's office.
Johnson will unveil the city's budget Thursday and, at that time, it will become clear how much he will pull out of the special taxing districts, called TIFs. But sources say it will provide CPS the $379 million it counted on in its budget, plus $8 million that the federal government recently stripped from CPS.
It will also provide some of the $175 million the city needs from the school district to cover a controversial municipal pension payment.
The school district's budget counted on $379 million from these special taxing districts called TIFs, even though it was not guaranteed that the city would provide this revenue.
The school district's official budget, approved by the school board in August, commits to handing over any money above the $379 million to the city to help cover a pension payment. The board will need to approve an intergovernmental agreement at the Oct. 23 board meeting to make that happen.
Sources close to the board say that they expect CPS to get more than $500 million. Because this is one-time funding, they say that they plan to turn their attention to the state to get more sustainable long-term funding.
The city budget will still need to be approved and some City Council members could still object to so much money being taken from these special taxing districts. Those funds are supposed to be set aside for economic development projects in their wards. But a majority of City Council members signed a letter saying they supported giving CPS the TIF surplus, even without a guarantee that the city would get help with the municipal pension payment.
The school district is still facing financial pressures. The school board approved a budget that included $50 million in unspecified cuts to central office and operations. Those cuts have yet to be announced and, as the school year moves on, finding those savings will be more difficult.
Also, the federal government recently announced that it was not going to give CPS $8 million that it was expecting from a grant this year. While that is a relatively small amount, it could be the start of more grants being withheld.
This looks to finally end a long drawn out saga between Johnson and the school district — one that tested Johnson's power and led to the resignation of the entire school board and then the firing of former CEO Pedro Martinez.
The controversy started with Johnson's sort of surprising demand when he first came to office that CPS help cover the $175 million cost of the municipal pension payment. CPS employees are the majority of pensioners, but until 2021, the city made the entire payment. As an organizer for the Chicago Teachers Union, Johnson criticized former Mayor Lori Lightfoot for shifting the cost to CPS.
Lightfoot was the first to suggest that money she was pulling out of these special taxing districts should be used to cover the pension payment.
Tax increment financing is a funding tool that uses property taxes to spur development in specific geographic areas around the city. The mayor can pull unspent or unobligated money out of TIFs and turn it back over to the taxing bodies. CPS gets 52% of that cash; while the city gets 24%.
Deciding how much to surplus is the purview of the mayor's office, but he needs to negotiate with City Council members, who often want the money for projects in their wards.
But even as Johnson was surplusing record amounts, Martinez and the school board balked at making the pension payment. Eventually, Johnson's first appointed school board resigned and the second one fired Martinez. CPS did not make the pension payment last year.
The same scenario arose this year, with the city budget counting on the $175 million for the municipal pension payment.
This time, the interim CEO Macquline King and the partly appointed, partly elected school board members said they would pay it, but it was "contingent upon additional revenue."
The day after the Chicago Board of Education approved the district's budget, the mayor's budget officials said they expected to surplus less than they had the year before — an amount that would result in CPS being short millions of dollars. But in the last months, sources say the mayor insisted that CPS get as much money as possible to ward off the federal funding cuts.
Source Name [94]: Why some alderpeople are pushing back on Johnson's budget proposal: borrowing, head tax and cuts to youth programs Full URL: https://thetriibe.com/2025/11/why-some-alderpeople-are-pushing-back-on-johnsons-budget-proposal-borrowing-head-tax-and-cuts-to-youth-programs/ Scraped Date/Time: 2025-11-23 05:48:21
<span style="color: #0066cc; font-weight: bold;">Since the City Council Finance Committee voted against Mayor Brandon Johnson's proposed budget recommendations, some Progressive Caucus members, as well as some Aldermanic Black Caucus members, have shared more concerns about it.</span> [94]
Though the head tax, referred to as the Community Safety Surcharge, has been a main point of contention in Johnson's budget proposal, some alderpeople say issues with transparency and clarity are also at the center of the budget fight.
"We should be taxing the rich," Ald. Andre Vasquez (40th Ward) told The TRiiBE.
"They should be paying their fair share. But the thing is, you can't slap a tax-the-rich bumper sticker on a hoopty and call it a Cadillac."
Vasquez, a Progressive Caucus member, is critical of Johnson's plans to borrow more than $280 million to pay for police misconduct expenses. He said borrowing leads to taxpayers owing high interest rates to corporate banks, and that while taxing rich corporations to make up the difference sounds good, it's not realistic.
"The issue is we can't tax enough to pay for that. So right now, it's not just $283 [million] for the police settlement. It's also $166 [million] for the fire department back pay," Vasquez said. "When we borrow, we're actually giving the big banks hundreds of millions of dollars in interest."
As a solution, Vasquez said he has repeatedly called for a Chicago Police Department audit, which he admits would not be feasible for this budget deadline: "What you could do in the management ordinance is make a real commitment with funds attributed to who's going to do it over the next year."
He also stated that while Johnson administration officials may have good reasons for proposed borrowing, they have not brought them to the council.
"We found out last week; they haven't even told us that they were borrowing for those settlements," Vasquez said. "Part of the challenge is that we're not even getting the communication or accountability in place right."
Vasquez has been the subject of political ads after the Chicago Sun-Times reported he is "still searching for head tax alternatives."
Vasquez told The TRiiBE other suggestions he's made include raising the Personal Property Lease Transaction (PPLT) Tax and more cameras to enforce illegal parking in bike and bus lanes, and increased garbage fees, which he maintains wouldn't impact low-income Chicagoans.
To ease the impact of higher fees, city officials indicated they could create exemptions and programs for seniors and people at different income levels, according to Vasquez.
"There are ways to model it, where you get revenue and not harm the people who are most vulnerable," he said. "All it requires is doing a little more homework, not just whatever gets presented, and being like, oh, either yes or no."
In a newsletter sent out on Tuesday, Ald. Monique Scott (24th Ward) said she voted against the budget proposal because it relies "heavily on unstable revenue sources," such as the head tax and Tax Increment Financing (TIF) surpluses. Scott also outlined concerns about transparency.
"I am also concerned about the lack of transparency and accountability in how funds are allocated," she wrote. "You deserve clear answers about where your tax dollars are going and how city departments are being held responsible for results. This budget does not provide that clarity."
Ald. Desmon Yancy (5th Ward), a Progressive Caucus member, shared similar sentiments about transparency in the Johnson administration. The proposal anticipates $100 million to be generated from the Community Safety Surcharge. Yancy said he doesn't know how the administration is getting that number.
"We could find ourselves in a position where we don't meet the projections, and that would be problematic if we're more in a budget deficit next year," Yancy said.
On transparency, Johnson told The TRiiBE during a budget town hall at Curie High School on Tuesday that his administration has been in talks with council members since April, when they started the budget process. He indicated he is open to suggestions.
"There's nothing surreptitious about this budget," Johnson told The TRiiBE. "All of it is available. We've had community town halls all over the city of Chicago. So the idea that there is something surreptitious about our process, it's just not substantiated."
Asha Ransby Sporn, a longtime organizer who leads the Chicago Black Voter Project, said the movement began organizing around the budget early this year. Johnson stood with labor and community organizers in October during a pep rally before unveiling his budget proposal.
"People are at Ward Nights all across the city," Ransby Sporn said. "There are town halls happening every week since the summer. The scale of engagement in this process is a testament to the fact that people started organizing around this budget in January, which is earlier than organizers usually try to start."
Yancy previously shared with The TRiiBE that he thought the budget was very progressive. But he has since raised concerns over various aspects of the proposal since having more time to dig deeper into it.
Through the Community Safety Surcharge, Johnson has touted that the funds would go toward free mental health clinics, youth programs and community violence intervention.
Yancy addressed concerns about proposed youth mentoring program cuts, such as Becoming A Man (BAM) and Working On Womanhood (WOW), which Yancy said would impact Hyde Park High School inside his ward.
"These are Black jobs," Yancy said of those employed through the program. "These are Black students who are going to be impacted by this. Yes, last month I said this is a very progressive budget; on the surface, it is. But when you get down into it, you see there's some impact that is going to be significant."
Michelle Alder-Morrison, CEO of Youth Guidance, which oversees BAM and WOW, said she was "totally shocked" when she learned of the proposed cuts.
"We have measurable outcomes serving so many different communities with the highest concentration of trauma exposure," Alder-Morrison said. "I honestly was like, there's a mistake here. This can't be intended. There's no way this is purposeful."
BAM and WOW funding comes from the Department of Family Support Services, whose unnamed spokesperson told the Chicago Sun-Times the cuts to group services came as a result of a survey from youth participants at town halls who prioritized one-on-one counseling.
"Part of what their response was, 'Well, we got feedback from a youth survey that young people really wanted one-on-one, counseling or one-on-one mentoring and out-of-school time,'" Adler-Morrison said. "I don't think it's representative of the need that's out there, nor the value that young people themselves have of BAM and WOW."
Yancy also expressed concerns over the "yacht tax" proposal in the budget, which raises the boat docking fee from 7% to 23.25%. Yancy said his constituents showed concerns over the "200% increase," which he referred to as "regressive" and a tax on working-class Black people.
"There's a very small subset of the population of people who own watercraft in the city, who actually own yachts. And this mayor has made a commitment to support working-class Black people. The people that I talk to in my harbors are retired teachers, retired police officers and retired city employees. Those are working-class Black people," Yancy said. "Those are the same people he represented as a union organizer, and I think those are the same people that are being let down by this misrepresentation around the tax."
Seventeenth Ward Ald. David Moore's issue with Johnson's budget proposal is implementing the head tax and fear of harming the same people it's supposed to help. He cited the increase to Chicago's minimum wage, which he voted for, as an example of how smaller businesses face higher costs, leading to decisions such as laying off workers.
"So now we're doing another layer on there," Moore explained. "I'm OK with doing that other layer on there, if they can handle it, if they can absorb it. But if they can't absorb it, then they start laying off the very people that we're trying to get hired, and then those same people end up in a summer employment line."
Moore is in favor of changing the head tax to target companies with 200 employees and up. Right now, the proposal is for companies with 100 or more employees. Moore tipped his hat to Johnson's proposed reimbursement grant for smaller businesses, but said that suggestion came just two nights before Monday's City Council Finance Committee meeting and lacks collaborative will.
"Far as I know, until the other day, many of [business folks] were not invited to the table at the beginning. You have to find out where their pressure point is, and you got to talk to them," Moore said. "Now, most of them gonna lie because they don't ever want to give up nothing, but you at least have a sort of gauge of what they're willing to give up."
The idea that a head tax would force businesses to leave the city isn't backed up by historical precedent, according to Annette Guzman, the city's budget director. Guzman explained that the removal of the head tax in 2014 led to higher property taxes and Chicagoans paying more for government services and corporations paying less.
"There are a lot of things that corporations will do to instill fear about what they will do to evade attacks. And they're doing that across the country," Guzman said. "You have corporations saying they're going to pull out of New York. They're not. They need our labor."
Ald. Red Burnett (27th Ward) posted a statement on his Instagram page saying he voted "yes" to the proposal because the alternative on the table was a 3-5% property tax increase. To mitigate the head tax burden on high-employee, low-margin businesses, like restaurants, Burnett said he introduced a $18 million grant proposal.
Jimmy Rothschild, a community organizer with the Jewish Council on Urban Affairs, which is also a member of PUP, said he believes the drama can be stopped with everyone working toward the goal of making sure everyday Chicagoans are not continually taxed or having services cut: "At the end of the day, we gotta tax the rich and feed the people."
Source Name [95]: CTA gets $74M from Metra, Pace to delay 40% service cuts next year Full URL: https://www.wbez.org/transportation/2025/08/22/cta-metra-pace-budget-cliff-chicago-public-transportation-covid-ridership Scraped Date/Time: 2025-11-23 06:37:54
<span style="color: #0066cc; font-weight: bold;">The Chicago Transit Authority is receiving $74 million from its sister agencies to stave off service cuts by two to three months next year to buy time for state legislators to pass a funding bill and plug a multimillion dollar budget hole.</span> [95]
The Regional Transportation Authority's board of directors voted unanimously Thursday to reallocate funds from Metra, Pace and the RTA to the CTA's 2026 budget.
The temporary measure will delay the potential 40% cuts to CTA's service by two or three months, Kevin Bueso, RTA's chief financial officer, told the board. The CTA is expected to run out of federal COVID-19 grants in the first quarter of 2026, ahead of Metra and Pace, he said.
Board member J.D. Ross said the transfer of funds will show legislators that transit agencies are working together while Springfield struggles to pass a funding bill. The RTA has asked the state to plug an estimated $700 million combined budget deficit in 2026 for the CTA, Metra and Pace. But the RTA has asked the state to increase funding by $1.5 billion to improve service.
The Illinois Senate passed a spending bill in May, potentially boosting funding to $1.5 billion a year, but the bill was never taken up in the House. The bill would replace the RTA with a more powerful Northern Illinois Transit Agency. Lawmakers have said they continue to negotiate on a final bill and expect to vote on it in the fall veto session.
Bueso said transit agencies still face a deficit next year, but are faring slightly better after a new law extended the sales tax to online transactions. The RTA, which benefits from that tax, is seeing around $12 million a month in extra funding, he said.
But the pressure is still on state lawmakers to prop up the transit agencies that have not regained ridership lost during the coronavirus pandemic. Without more funding from the state, the RTA has warned that transit agencies will raise fares and cut service.
RTA board member Dennis Mondero, representing Chicago, warned that cuts should be avoided at all costs so agencies don't suffer a "death spiral" of customers who never return.
"Our region may never recover if we have a 40% reduction across the board," Mondero said. "That's why we're tying to buy the time so our leaders in Springfield can come up with a sensible solution."
Source Name [96]: CTA Saved From Massive Cuts As State Lawmakers Pass $1.5 Billion Funding Bill For Local Transit Full URL: https://blockclubchicago.org/2025/10/31/cta-saved-from-massive-cuts-as-state-lawmakers-pass-1-5-billion-funding-bill-for-local-transit/ Scraped Date/Time: 2025-11-23 06:38:02
<span style="color: #0066cc; font-weight: bold;">State lawmakers passed a $1.5 billion funding package early Friday to avoid massive service cuts and layoffs at the CTA, Metra and Pace.</span> [96]
The Regional Transportation Authority — which oversees the three transit agencies — had been staring down a $202 million budget gap in 2026. The funding bill fills that gap — and makes changes to how the transit agencies are overseen, including eliminating the RTA.
"This funding means that there will be no layoffs or service cuts," acting CTA President Nora Leerhsen said in a statement. "With these funds, we will expand our bus and rail service, invest in new technologies, and implement new strategies to support our riders and employees."
This bill, dubbed the Northern Illinois Transit Authority Act, is expected to provide $860 million per year to support public transportation operation by redirecting the state's sales tax revenue on motor fuel purchases, according to Capitol News Illinois. It's also expected to divert another $200 million to public transit via the interest collected through the state's road fund, which is often used for road construction projects.
The bill would also make drivers of passenger vehicles on northern Illinois' toll roads pay 45 cents more per toll.
An earlier version of the bill was quickly shot down by Gov. JB Pritzker for proposing a statewide entertainment tax and taxing billionaires on unrealized gains.
But Pritzker applauded the passage of the bill Friday, saying, "Illinoisans deserve a world-class transportation system that connects communities across regions."
State Rep. Eva-Dina Delgado, the bill's sponsor, said the bill's passage provides for sustainable funding that will make the region's transit system safer and more reliable.
"With this bill, we are saying no to kicking the can down the road and bringing an end to an era of patchwork solutions and bureaucratic dysfunction," Delgado said in a statement. "This bill puts transit riders first, pairing real investment in the system with significant governance reform so that we can build for the future with oversight we can trust."
The bill will replace the RTA with the Northern Illinois Transit Authority, which will oversee regional transit systems and be granted more power to set universal fares, services standards and schedules so the "region operates on a one-network, one-timeable, one-ticket model for transit users."
The Northern Illinois Transit Authority board of directors would have 20 members. Five will be appointed by the mayor of Chicago, five by the governor, five from the Cook County Board president and one from each of the five collar counties.
The bill also restructures the seven-member Chicago Transit Board, reducing the number of people the governor and mayor can appoint. Under the bill, Chicago's mayor will appoint three members, the governor will appoint two members and the Cook County Board president will now appoint two members. Currently, the mayor appoints four members to the board and the governor appoints three.
Last week, transit workers and labor leaders warned if state lawmakers didn't act soon it would cause the elimination of 1,700 positions at the CTA and trigger a 22 percent reduction in services.
"This investment in our public transportation is going to protect people's jobs," Mayor Brandon Johnson told WGN on Friday. "It's going to make sure that we are fully funding a system that quite frankly has been underfunded for a very long time."
Source Name [97]: Finance Committee rejects Johnson's $600M tax package Full URL: https://www.wbez.org/city-hall/2025/11/17/brandon-johnson-city-hall-finance-committee-rejects-600m-tax-package-corporate-head-tax Scraped Date/Time: 2025-11-23 05:41:05
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[<span style="color: #0066cc; font-weight: bold;">](https://www.chicagopublicmedia.org/)</span> [97]
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Mayor Brandon Johnson answers question from the press at City Hall, Wednesday, Aug. 2, 2023. \| Anthony Vazquez/Sun-Times
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# Finance Committee rejects Johnson's $600M tax package
## Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Nov 17, 2025, 4:07pm EST
Monday's defeat sends the budget negotiations back to square one. For the second straight year, Brandon Johnson has lost control of a budget process that Chicago mayors have long dictated.
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Mayor Brandon Johnson's already strained relationship with the City Council sunk to a new low on Monday when the Finance Committee rejected his nearly $600 million plan to, as he put it, "challenge the ultra-rich and corporations to pay their fair share."
The vote was 25-10. The defeat came only after a motion to postpone the vote failed by an 18-18 tie vote.
"Can we just get this over with? This is a joke. They're calling people out there right now to delay this," said Ald. Matt O'Shea (19th).
For Johnson, it was a repeat of last year's [50-0 City Council vote rejecting his proposed $300 million property tax increase](https://chicago.suntimes.com/city-hall/2024/11/14/chicago-property-tax-vote-city-council-brandon-johnson).
"The City Council will \[now\] drive the budget conversation —similar to last year," said Ald. Marty Quinn (13th), who represents the Southwest Side and is one of the mayor's most outspoken critics.
Ald. Ray Lopez (15th), another one of the mayor's most ardent critics, said Monday's developments are "extremely embarrassing" to Johnson, adding, "Once again, he has lost control over the budget process."
Johnson responded with trademark defiance to the latest declaration of independence from an already emboldened City Council.
"The corporate \[head\] tax is in this budget. It will stay in this budget. Is that clear enough?" he said.
The mayor argued that the only alternative to the head tax is a property tax increase, an increased garbage collection fee, a local version of the one percent grocery tax eliminated by the state and police and fire cuts — or a combination of them.
He said he would veto a budget with any one of those elements. Thirty-four votes would be needed to override a mayoral veto.
The die for Monday's humiliating defeat was cast last week, when Finance Chair Pat Dowell (3rd), a member of Johnson's handpicked leadership team, rejected the mayor's offer to impose a $21 a month per-employee head tax on companies with 200 or more employees and declared her opposition to the corporate head tax "at any level."
Dowell's outright rejection of Johnson's compromise in favor of a 15% increase in the tax on lease rental or use of computer software and cloud infrastructure forced the mayor back to the bargaining table to make even more concessions in addition to the changes he has already made.
On Monday, it was clear that those weekend negotiations had failed — so much so that Johnson returned to his original proposal to impose the corporate head tax on companies with 100 or more employees with an $18 million fund for small businesses that hired in underserved communities.
Early on, Dowell tried to recess the Finance Committee until Dec. 2. Her motion to recess was tabled by a vote of 24-7.
After a break, Budget Director Annette Guzman and Chief Financial Officer Jill Jaworski appeared before the Finance Committee to explain the revenue ordinance along with the mayor's plan to borrow $1.8 billion.
The borrowing includes $1.3 billion for capital projects, $283 million for settlements and judgments tied to allegations of police wrongdoing and $166 million to defray the cost of retroactive pay raises for Chicago firefighters and paramedics. The controversial plan to borrow to pay for day-to-day operations will cost Chicago taxpayers $50 million in interest costs over the life of those bonds.
Monday's defeat sends the budget negotiations back to square one.
Johnson can try to save face politically by portraying opponents as champions of the wealthy and opponents of working people. However, he's also lost control of a budget process that Chicago mayors have long dictated.
Johnson had hoped to put his budget to bed by Thanksgiving to avoid a repeat of last year's budget stalemate [that ended in a 27-23 vote the week before Christmas](https://chicago.suntimes.com/mayor-brandon-johnson-2025-budget-city-council-vote) — and only after the City Council unanimously rejected the mayor's proposed $300 million property tax increase and refused to raise property taxes by any amount.
Instead, political indigestion could be on the mayor's Thanksgiving menu.
He didn't have the votes no matter how he tried to spin it.
And it's not clear at this point how he plans to get to the finish line.
Other than scrapping the head tax altogether or making the legally shaky decision to exempt restaurants and bars, it's not clear what changes Johnson can make to get to 26 votes, or 25 votes, if the mayor is willing to cast the tie-breaker.
"I don't mean to sound cantankerous, but the question is what can these aldermen do? At some point, they have to meet me half way," Johnson said, arguing that he has already done his job.
The mayor argued that those in the City Council who are clamoring for budget cuts over tax increases are "not being honest and sincere about where those cuts" would be coming from. It's the corporate fund with the "vast majority" earmarked for community safety, he said.
"I don't believe the people of Chicago want us laying off police officers at a time in which we're collaborating with community violence intervention work, we're investing in young people. Everyone says this is the No. 1 issue until they have to make a hard decision. Well, guess what? We were all elected to make hard decisions. That's what we're calling for in this moment," he said.
It was just a year ago that Johnson proposed a $300 million property tax increase only to have the City Council unanimously reject the increase and refuse to raise property taxes by any amount. More recently, the mayor and his budget team have pushed for the City Council to restore the 1% grocery tax increase that would generate $80 million in annual revenue.
But the mayor emphatically denied that his own prior support for those increases undercuts his budget message now.
"It's the right time to shift now. And that's what happens in politics. We actually respond to what people say. Isn't that what politicians should do?" Johnson said.
"I've never said that I'm perfect. God knows I'm not. What I'm trying to do is make right in imperfect situations. I'm not asking you to congratulate me. I'm just saying that we've made a shift because we have other options…The options are clear: We're gonna protect working people and middle-class families in this city by investing in education, youth employment and community safety, or we're going to place the burden on working people. And I'm saying we don't have to do that because the ultra-rich and these large corporations—they can do more."
South Side David Moore (17th) said he's willing to go along with the head tax, only if a way can be found to mitigate the impact on "McDonald's operators and any other small restaurants."
"I would like to have further conversation to make sure that's not happening. Hopefully, we can get there," Moore said.
A clearly exasperated Budget Chair Jason Ervin (28th) resurrected his favorite budget cliché: "Everybody wants to go to heaven, but nobody wants to die."
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#### [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
Chicago Sun-Times City Hall reporter
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In the 20,000 pages of documents released by a congressional committee, convicted sex offender Jeffrey Epstein and Thomas Pritzker connect by email at least 20 times. In one exchange, Epstein writes Pritzker, "nice to see you, please come more often."
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[Digital driver's licenses, IDs available to Illinois residents starting Wednesday](https://www.wbez.org/springfield/2025/11/18/digital-drivers-license-id-illinois)
The Illinois General Assembly passed a law last year allowing for people to carry their IDs on their cellphones.
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[Mayor does budget about-face on funding for domestic violence programs](https://www.wbez.org/city-hall/2025/11/14/chicago-mayor-brandon-johnson-does-about-face-on-funding-for-domestic-violence-programs-budget)
Mayor Brandon Johnson restored a $9 million in cut domestic violence funding in a compromise to get his 2026 budget passed by the City Council. Domestic violence critics praised his "renewed commitment" to confronting gender-based violence.
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Source Name [98]: Newswire: Chicago alders vote against corporate head tax Full URL: https://www.citybureau.org/newswire/2025/11/19/newswire-chicago-alders-vote-against-corporate-head-tax Scraped Date/Time: 2025-11-23 05:41:10
<span style="color: #0066cc; font-weight: bold;">Newswire: Chicago alders vote against corporate head tax — City Bureau</span> [98]
# Newswire: Chicago alders vote against corporate head tax
November 19, 2025
_by_ [City Bureau](https://www.citybureau.org/newswire?author=572aaa95d210b8f3ebfcaab5)
_Welcome to Newswire — your weekly guide to Chicago government, civic action and what action we can take to make our city great, featuring public meeting coverage by City Bureau's Documenters._
* * *
## **Quote/Term of the Week**
## **Head tax** / _noun_
A tax that imposes the same fixed amount on every individual in a class or group.
_Ex: Mayor Brandon Johnson proposed a head tax on local corporations in order to establish revenue for a new Community Safety Fund._
* * *
## **Back to the \[budget\] drawing board**
**On Monday, the City Council's finance committee overwhelmingly** [**rejected Mayor Brandon Johnson's**](https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/) **revenue plan,** striking down a key proponent of his 2026 budget proposal .
**Committee members voted 25-10 against the plan, which generated controversy because of the controversial Community Safety surcharge, also referred to as the "corporate head tax."** The proposed tax [would have charged $21 per employee each month to companies](https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/) with 100 or more full-time employees who work 50% of their time in Chicago.
Critics of the head tax said that it will drive away much-needed business from Chicago. Gov. J.B. Pritzker also spoke out against it. Supporters disagree, saying the tax helps ensure corporations pay their fair share and provide funding for vital services. Chicago's last head tax for businesses was [phased out in 2014](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2011/november_2011/mayor_emanuel_applaudscitycouncilforendingheadtaxforchicagobusin.html).
The failed vote could throw a wrench into the mayor's strategy to boost funding for social services even as the city's [Department of Family and Support Services faces major cuts](https://www.citybureau.org/newswire/2025/11/05/newswirehow-will-city-budget-cuts-affect-domestic-violence-survivors) next year.
**City leaders estimated the tax would garner $100 million annually, which would establish a Community Safety Fund.**
[**New to this year's budget**](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) **, the fund is a part of the mayor's plan to prioritize dollars for social services, health care and housing**. According to Budget Director Annette Guzman, that would include investments for specific services such as violence reduction and intervention programs, domestic and gender-based violence services, youth employment, victim support programs and trauma-informed trainings for various departments.
[Nearly one-quarter of the funding](https://www.citybureau.org/newswire/2025/11/05/newswirehow-will-city-budget-cuts-affect-domestic-violence-survivors) for GBV next year — about $3.5 million — was to come from the new Community Safety Fund. **Now that the plan to generate money for that fund has been scuttled,** it's not clear how else city officials will come up with those dollars for domestic and gender-based violence prevention.
**Ald. Nicole Lee (11th Ward),** [**who has been very vocal**](https://www.citybureau.org/newswire/2025/11/05/newswirehow-will-city-budget-cuts-affect-domestic-violence-survivors) **about the importance of funding GBV and domestic violence support services, also criticized the head tax.** Lee believes that while the tax won't necessarily drive out the pre-existing businesses in Chicago, it will stifle growth **. "** Chicago needs to think more about, how do we grow our way out of the situation that we're in, versus the taxes," she said.
- _Asynchronous Evening Coverage: 2026 Chicago Budget Hearing: Independent Offices & Regulatory Agencies_ [_by Katie Busch_](https://chicago.documenters.org/assignments/remote-5pm-end-asynchronous-evening-coverage-2026-chicago-budget-hearing-independent-offices-regulatory-agencies-17438/)
### **What you can do:**
**What do you think about the corporate head tax? How should the city generate more money for key services?** Click [here](https://chicago.councilmatic.org/council-members/) to find your ward and contact your alder.
**Follow along with Chicago Documenters this #BudgetSzn🤑.** We're covering every budget meeting leading up to City Council finalizing the spending plan at the end of the year. Follow our work at [docs.org](https://chicago.documenters.org/reporting/), [Twitter.com](https://x.com/CHIdocumenters) and [Bluesky](https://bsky.app/profile/chidocumenters.bsky.social).
## **CTA backs off the cliff**
**The Chicago Transit Authority has finally been rescued from its fiscal cliff**, thanks to a [$1.5 billion funding package](https://blockclubchicago.org/2025/10/31/cta-saved-from-massive-cuts-as-state-lawmakers-pass-1-5-billion-funding-bill-for-local-transit/) passed by state lawmakers in October that will avoid massive service cuts and layoffs at CTA, Metra and Pace. The legislation also brings the three major transit agencies under a new governing system, the Northern Illinois Transit Authority, [and eliminates the Regional Transit Authority](https://blockclubchicago.org/2025/10/31/cta-saved-from-massive-cuts-as-state-lawmakers-pass-1-5-billion-funding-bill-for-local-transit/).
**The 2026 CTA budget now is absent of fare hikes, service cuts and layoffs, and will include plans for expanding service lines.** Among the services the CTA plans to bring with its new funding is 24-hour Orange Line service to Midway Airport and [free fixed-route](https://www.rtachicago.org/blog/2025/10/09/ada-paratransit-certified-riders-can-now-ride-free-on-fixed-route-cta-metra-and-pace-service) rides for paratransit riders.
The free fixed-route rides are meant to offset changes to paratransit access authorized earlier this year. The [ADA Paratransit 2025 Funding Amendment](https://www.rtachicago.org/uploads/files/meeting-materials/Board-Meetings/2025/August/7b_ADA_Paratransit_2025_Funding_Amendment_August.pdf) established a monthly cap on the Rideshare Access Program and Taxi Access Program, which covers part of the cost for rideshares for ADA-eligible riders.
**Back in August,** [**we reported that**](https://www.citybureau.org/newswire/2025/8/27/newswire-chicagoans-with-disabilities-speak-out-against-transit-cuts) **Chicagoans with disabilities turned out in force to urge RTA to not go forward with the cuts reducing the maximum number of rides from eight per day to 30 per month.**
"A 30-ride limit, while it may seem like a minor adjustment on a spreadsheet, would be a devastating blow for people who rely on this service," said Larry Dean, economic justice organizer for Access Living. "It would force many people in the disability community to make impossible choices: Do I go to work or see my doctor? Do I attend my class or visit my family for the holidays?
**Despite the bailout, there is an expected budget gap in 2027** due to certain funds running out including $256.9 million America Rescue Plan and $72 million one-time allocation from the Regional Transit Authority received earlier this year to delay the fiscal cliff.
- _Chicago Transit Authority: Committee Meetings and Regular Board Meeting_ [_by Leslie Williamson and Aidan Kim_](https://chicago.documenters.org/assignments/in-person-or-remote-chicago-transit-authority-committee-meetings-and-regular-board-meeting-17443/)
### **What you can do:**
**Catch up on the headlines:**
- CTA OKs Budget With No Cuts or Fare Hikes; Major Service Boosts Planned When New Public Funding Arrives \| [WTTW](https://news.wttw.com/2025/11/12/cta-oks-budget-no-cuts-or-fare-hikes-major-service-boosts-planned-when-new-public)
- We haven't saved transit yet: What comes after the fiscal cliff \| [Streetsblog Chicago](https://chi.streetsblog.org/2025/11/10/we-havent-saved-transit-yet-what-comes-after-the-fiscal-cliff)
- What caused Chicago's transit funding crisis—and what could fix it? \| [UChicago News](https://news.uchicago.edu/story/what-caused-chicagos-transit-funding-crisis-and-what-could-fix-it)
* * *
_A version of this story was first published in the November 19, 2025 issue of the Newswire, an email newsletter that is your weekly guide to Chicago government, civic action and what we can do to make our city great. You can_ [_sign up for the weekly newsletter here_](https://www.citybureau.org/newsletter) _._
_Have thoughts on what you'd like to see in this feature? Email Civic Editor Dawn Rhodes at_ [dawn@citybureau.org](mailto:dawn@citybureau.org?subject=Newswire%20feedback) _._
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Source Name [99]: Proposed Head Tax, Social Media Tax, and Cloud Tax Increases Would Hurt Chicago Full URL: https://taxfoundation.org/blog/chicago-head-tax-social-media-tax-cloud-tax/ Scraped Date/Time: 2025-11-23 05:41:15
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Chicago Mayor Brandon Johnson (D) recently unveiled his [2026 budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf), which relies on a new business [head tax](https://taxfoundation.org/taxedu/glossary/head-tax/) A head tax, also known as a poll tax or capitation, is a flat or uniform tax levied equally on every taxpayer. Unlike an income tax, it is a fixed amount and not based on how much one earns, nor does it change based on taxpayers' circumstances or actions., a new [tax](https://taxfoundation.org/taxedu/glossary/tax/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. on social media companies, a "cloud tax" increase, and [other tax increases](https://www.illinoispolicy.org/johnsons-protecting-chicago-budget-proposes-nearly-500m-in-tax-hikes/). The proposed head tax would create numerous unintended consequences and put a damper on employment in the Windy City, making Chicago less attractive for business investment. The social media tax would be the first of its kind in the US, punitively targeting social media companies simply based on their industry. Meanwhile, increasing the personal property lease transaction tax rate on cloud services would increase expenses for businesses and consumers alike. These proposed new and increased taxes represent a sharp departure from the [principles of sound tax policy](https://taxfoundation.org/taxedu/principles/) and would make Chicago even more of an uncompetitive outlier regionally and nationally.
## Business Head Tax Would Hurt Employment
<span style="color: #0066cc; font-weight: bold;">The proposed business head tax, known as the Community Safety Surcharge (CSS), would be levied at a rate of $21 per employee per month ($252 per employee per year) on employers with 100 or more full-time employees who perform at least half of their work in Chicago. An employer with 100 qualifying employees would see their local tax liability increase by $25,200 per year, on top of all the other local, state, and federal taxes owed. A company with 1,000 affected employees would face a $252,000 annual local tax increase.</span> [99]
The old adage, "whatever you tax, you get less of," rings true here. Taxing businesses based on the number of people they employ in Chicago would lead to negative employment outcomes in the city, including more layoffs, lower wages, fewer job opportunities, and the further shifting of business investment outside city limits.
Smaller- to mid-sized employers near the 100-employee threshold would have an incentive to keep their total headcount below 100 to avoid triggering tax liability, since employers with 100 qualifying employees would be taxed on all 100 employees, while those with 99 or fewer employees would not be liable for the head tax at all. This means the marginal cost to employers of hiring their 100th employee would be $25,200 per year, while businesses just over that threshold could be incentivized to downsize their workforce to avoid the tax.
One unintended consequence is that many employers would modify their business decisions to minimize head tax liability or to avoid the tax altogether. Instead of hiring additional full-time employees who work in Chicago most or all of the time, some employers would increase reliance on artificial intelligence, shift more individuals from full-time to part-time employment (especially in retail and food services sectors), increase reliance on remote employees who live outside Chicago (especially in professional services sectors), or a combination of these alternatives.
The CSS would therefore be highly distortionary, influencing businesses to make decisions for tax reasons that otherwise might not make the most sense. Furthermore, if employment activity shifts outside city limits in response to the tax, other local revenue sources, including sales and excise taxes, could be expected to take a hit. To the extent certain employers would be unable to avoid the tax, the increased tax burden would ultimately get passed along to workers in the form of lower wages, consumers in the form of higher prices, and shareholders in the form of lower returns on investment. It is likely that much of the cost would be absorbed by businesses in the short term, but that the cost would shift to labor in the longer term, in the form of slower growth in wages.
A head tax is not a novel proposal in Chicago; a similar tax has been levied and repealed once before. The [Employer's Expense Tax](https://law.justia.com/cases/illinois/supreme-court/1974/46540-6.html) was collected starting in 1974 at a rate of $3 per employee per month for employers with 15 or more employees. In 1995, the rate increased to $4 per employee per month, and the tax was limited to businesses with 50 or more FTEs who performed at least half of their work in Chicago during the quarter, with employees excluded from the headcount if their earnings did not exceed $900 per quarter. In 2011, the tax was no longer collected on employees making less than [$4,300 per quarter](https://www.civicfed.org/sites/default/files/SelectedConsumerTaxes_2014.pdf), reducing the impact on employers of part-time, hourly workers. Ultimately, [Mayor Rahm Emanuel](https://www.cbsnews.com/chicago/news/emanuel-moves-to-phase-out-job-killer-head-tax/) spearheaded a plan to repeal the tax, calling it a ["job killer,"](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2011/november_2011/mayor_emanuel_applaudscitycouncilforendingheadtaxforchicagobusin.html) and the tax was [phased out](https://www.chicagotribune.com/2011/11/02/city-council-votes-to-eliminate-head-tax-2/) in 2014.
Reviving this "job killing" tax now, at a much higher rate, would be yet another economic blow to Chicago, a city that has already suffered from the mass exodus of [individuals](https://taxfoundation.org/data/all/state/taxes-affect-state-migration-trends-2024/) and the loss of many [notable](https://www.equipmentworld.com/business/article/15668910/caterpillar-expanding-texas-headquarters) [legacy employers](https://www.bloomberg.com/news/articles/2025-02-05/citadel-to-leave-namesake-chicago-tower-as-employees-relocate?utm_source=chatgpt.com). Governor JB Pritzker (D) has [spoken out against](https://www.youtube.com/shorts/x4MsYg4a30o) the proposal, saying, "It penalizes the very thing that we want" and "makes it very hard to attract companies from outside of Chicago." Instead, the governor cited growing the economy as a better way to generate more revenue, an idea that, if adhered to, would yield dividends for both the city of Chicago and the state of [Illinois](https://taxfoundation.org/location/illinois/).
## Social Media Tax Would Penalize Innovation
Mayor Johnson also proposed creating a [new tax on social media](https://taxfoundation.org/research/all/state/state-digital-taxes/) companies, known as the "Social Media Amusement & Responsibility Tax" (SMART). This tax would be imposed at a rate of 50 cents per active social media user over 100,000 in Chicago. This tax could easily increase some companies' local tax liability by millions of dollars per year.
Currently, Chicago levies an amusement tax at a rate of 9 percent on the admission fees consumers pay to attend certain theatrical, musical, and cultural performances. A separate rate of 10.25 percent is imposed on audio and video streaming services and online gaming.
The existing tax, while collected by businesses, is paid directly by consumers when they purchase a taxable form of entertainment. The social media tax, however, would be paid by social media companies directly rather than by end users, although much of the tax burden would ultimately get passed along to customers who take out ads on social media platforms, as well as social media companies' employees and shareholders.
The mayor has [proposed](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html) using revenue from the SMART to finance "free mental health clinics throughout Chicago," as well as other mental health services, citing the "growing body of research on the negative mental health impacts of social media use." As such, this would be a highly aggressive "sin tax" that attempts to raise revenue for a broad range of mental health services from one "unfavored" industry. Like certain other sin taxes, the proposed SMART ignores two key facts: (1) there are countless factors and activities that negatively affect mental health, so treating social media companies like the sole contributor to negative mental health outcomes would be misguided, and (2) many people consider social media and related technological advancements a net _positive_ for society when used with discretion. Therefore, shifting the entire burden of new mental health spending in the city to social media companies would be unduly punitive and would ignore the many upsides associated with widespread access to social media in Chicago and elsewhere.
The tax would also be incredibly difficult to implement and would raise questions of fair apportionment. Most social media accounts do not require the user to provide a physical address, so Chicago would have to rely on social media access from Chicago IPs. This could involve the tax being paid on behalf of many people who are only passing through Chicago.
## "Cloud Tax" Increase Would Raise Costs for Businesses and Individuals
The mayor's budget also proposes increasing the so-called "cloud tax" from 11 to 14 percent to raise roughly [$333 million](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit) in new revenue. Currently, Chicago imposes its personal property lease transaction tax on the lease, rental, or use of computer software and cloud infrastructure. As such, this tax is paid by businesses and individual taxpayers who purchase paid subscriptions to various cloud and software services, including AI subscription services. This tax therefore makes it more expensive for a [wide range of companies](https://www.bloomberg.com/news/articles/2024-12-09/cloud-computing-tax-threatens-chicago-s-silicon-valley-ambitions) to do business in Chicago, while also making such subscriptions even more expensive for individual consumers.
## Big Picture
The head tax, social media tax, and "cloud tax" increase proposed in Mayor Johnson's budget are economically harmful and structurally unsound. A head tax would negatively affect employment in Chicago, while an additional layer of taxes on social media companies would be highly nonneutral, penalizing innovation. An increase in the "cloud tax" would make using cloud and software services more expensive for businesses and individuals alike.
If either of the proposed new taxes is authorized, there is no guarantee the tax rates will remain unchanged over time. Once new revenue streams are created, those taxes are often prime targets to accommodate future spending increases, as demonstrated by the proposed increase to the cloud tax.
Instead of imposing harmful new taxes and tax increases that would further exacerbate Chicago's struggles to attract and retain individuals and employers, policymakers should consider how tax policies that promote, rather than discourage, investment and innovation would help unlock sustainable economic and revenue growth for many years to come.
## Stay informed on the tax policies impacting you.
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Source Name [100]: Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal Full URL: https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/ Scraped Date/Time: 2025-11-23 05:42:00
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# Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal
##### By [Corli Jay](https://thetriibe.com/author/corlijay/ "Posts by Corli Jay")
Published on November 17, 2025
#### Mayor Brandon Johnson addresses the 2026 budget proposal at a city council meeting on October 16, 2025. Photo by Ash Lane for The TRiiBE®
In a committee vote on Mayor Brandon Johnson's FY 2026 $16.6 billion [budget proposal](https://thetriibe.com/2025/10/mayor-brandon-johnson-thanks-generations-of-organizers-ahead-of-fy-2026-budget-address/), the Chicago City Council Finance Committee decided Monday not to advance the proposed revenue options for a full City Council vote. A point of contention is Johnson's proposed corporate head tax, a monthly $21-per-employee fee on large businesses that would generate a "Community Safety Fund" for violence prevention, mental health services and youth programs.
[The 35-member committee](https://www.chicago.gov/city/en/sites/committee-on-finance/home/committee-members.html) voted 10-25 against advancing the proposal. Ald. Pat Dowell (3rd Ward) is the Johnson-appointed chair of the committee with Ald. Bill Conway (34th Ward) as the vice chair.
Borrowing plans, among other items, were also included in the revenue options up for committee vote. Aldermanic Progressive Caucus member Ald. Andre Vasquez (40th Ward) has positioned himself against the proposal due to concerns about a borrowing plan to cover police misconduct spending, according to [_Block Club Chicago_](https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/), but says he supports the corporate head tax.
Ald. Bill Conway (34th Ward) speaks with the press after the city council public safety committee meeting on April 30, 2025. Photo by Ash Lane for The TRiiBE®
Originally proposed for companies with 100 or more employees, Johnson's administration [amended the head tax proposal last week](https://news.wttw.com/2025/11/13/mayor-brandon-johnson-reduces-corporate-tax-hike-proposal-crucial-votes-loom) to include those with over 200 workers. He has since gone back to its original 100-employee proposal and is expected to generate [$100 million in funding](https://thetriibe.com/2025/11/emanuel-killed-it-johnson-wants-it-back-chicagos-corporate-head-tax-debate-is-about-more-than-money/). Johnson's head tax proposal heeds the call of the grassroots organizers who elected him to tax the city's richest and wealthiest corporations.
At a post-meeting press conference on Monday, Johnson encouraged Chicagoans to call their alderperson to tell them they don't want a property tax increase. Johnson said the corporate head tax is a solution to avoid a property tax increase.
"I actually think that these communities should call their alders," Johnson said to reporters. "Call their alders and tell them that we don't want our property taxes increased."
A [report](https://www.cookcountytreasurer.com/pdfs/taxbillanalysisandstatistics/taxyear2024analysisenglishversion.pdf) released by the Cook County Treasurer's Office showed that property taxes in Chicago increased 11.6% while taxes on business properties went up just 0.9%. According to the analysis, the burden on homeowners was in part due to a decrease in property values in the Loop, with homeowners on the South and West sides facing a larger increase than the rest of the city.
Residents have been on the receiving end of mass text campaigns from opposing political action groups, such as One Future Illinois, that frame the corporate head tax as a job killer, and proponents such as Chicagoans Against Trump Cuts, that frame the tax as making big corporations pay their fair share.
Mass campaign text messages sent to residents from One Future Illinois NFP. Screenshot.
Mass campaign text messages sent to residents from Chicagoans Against Trump Cuts. Screenshot.
"What they're saying is, at least so far, these individuals are more interested in protecting the corporations, the largest corporations in our city, than protecting working people," Johnson said.
Some of the alders who stood behind Johnson during the press conference include Ald. William Hall (6th Ward), Ald. Byron Sigcho-Lopez (25th Ward), Ald. Leni Manaa-Hoppenworth (48th Ward), Chris Taliaferro (29th Ward), Ald. Jessie Fuentes (26th Ward), Ald. Jason Ervin (28th Ward), and Ald. Rossana Rodriguez Sanchez ( 33rdWard).
Some of the opposing alders held a separate press conference after the vote. Those in attendance included Ald. Gilbert Villegas (36th Ward), Ald. Brendan Reilly (42 Ward), Ald. Anthony Beale (9th Ward), and Ald. Monique Scott (24th Ward).
Johnson is urging City Council members to bring more suggestions to fill the $1.15 budget gap.
"The cost of living is going to increase because of the budget that the President of the United States has put forward. People are paying more for everything, and we, as a City Council and as city government, have an opportunity to provide that relief. That's what this budget ultimately is doing," Johnson told reporters after the committee vote.
Johnson said he would veto a budget that includes a property tax increase and called for a recess until the first week of December to allow alderpeople more time to come up with alternatives to the head tax.
He added that he would also veto a budget that includes a grocery tax and a garbage fee increase.
"I will veto any budget that includes a property tax increase," Johnson said. "Working-class Chicagoans can simply just not afford a property tax increase."
Parts of Johnson's FY 2026 budget proposal are a call from community organizers with the People's Unity Platform (PUP), who are pushing for more progressive forms of taxation. They rallied behind the proposal through their [Babies Before Billionaires](https://thetriibe.com/2025/10/as-trump-cuts-vital-services-chicago-organizers-push-city-council-to-pass-a-progressive-city-budget-for-fy-2026/) campaign over the summer.
Breanna Champion, an organizer with the Chicago Black Voter Project, called the finance committee's vote "disheartening and dangerous." She said the fact that majority-Black neighborhoods are seeing their property taxes go up shows that businesses should be taxed. She said alders should support the head tax, which is called the Community Safety Surcharge in Johnson's budget."One of the major reasons why these businesses say they are leaving \[Chicago\] is not because of the corporate head tax, because we don't even have the corporate head tax in effect," Champion said. "The reason why they say they're leaving is because the city isn't safe for them to do business. And that's exactly what the Community Safety Surcharge is trying to remedy."
Alderpeople who oppose the tax point to its possible impact on small businesses — despite only employers with 100 or more employees — and the restaurant industry, stating that it could lead to layoffs.
Ald. Red Burnett has told _The TRiiBE_ that he is open to conversations about how to make the head tax "make sense" for all industries. His 27th Ward expands from disinvested neighborhoods like Garfield Park to bustling enclaves like the West Loop.
Ald. Desmon Yancy initially called Johnson's budget "progressive," but has since retracted his support of the proposed head tax. His 5th Ward includes well-off areas near the University of Chicago and the surrounding Black neighborhood of South Shore, which has historically had the highest eviction rates in the city.
Ald. David Moore (17th Ward) has stated worries about the tax impacting McDonald's franchisees, but does not reject the idea of the head tax altogether.
The Chicago Teachers Union released a statement after today's vote. Although the statement addresses all alders on the committee who voted "no," the union specifically called out Yancy and Conway for putting the interests of millionaires over "a supermajority of Chicagoans and 90% of Black and Latine Chicagoans" who support taxing large corporations.
"At a time when families in Roseland, Beverly, and Humboldt Park are struggling to keep up with rent and groceries, these alders are siding with the corporations who fight DEI and who are turning the tax breaks they're getting from the President into donations to his White House ballroom," the CTU statement reads. "Mayor Johnson's proposal is the only one on the table that delivers for schools, parks, libraries, and making us safer and he found a way to make the ultra-wealthy corporations pay for it."
In response to concerns for the tax's impact on local business owners, Johnson said they're considering reimbursements and establishing a new grant program for some small and medium-sized businesses.
Mayor Brandon Johnson holds press conference on Nov. 17, 2025. Screenshot
"Our updated proposal will return to the original threshold of only taxing companies with more than 100 employees, but we would use those additional funds to set up a community business grant program to support small and medium-sized businesses that are operating in socially and economically disadvantaged areas, as well as important tourism and Investment zones and areas with food scarcity," Johnson said.
Some City Council members have called for more efficiencies and cuts in the FY26 budget. During today's finance committee meeting, Johnson's Budget Director Annette Guzman said any additional cuts would come from the public safety portion of the budget, which includes the Chicago Police Department.
The proposed budget for CPD totals $2.1 billion for 2026, a 0.8% increase from last year. Johnson said he would not support any city layoffs in the FY26 budget.
Champion said that the committee's vote doesn't prioritize Chicagoans generally and Black residents in particular.
"I feel like what their vote shows is that they care more about corporations than they do people," Champion said. "Specifically, as it relates to corporations' ability to stay in the city, but not Black folks who are actually being pushed out."
Source Name [101]: Chicago's 2026 city budget proposal includes $552 million for CPS Full URL: https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/ Scraped Date/Time: 2025-11-23 05:42:10
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<span style="color: #0066cc; font-weight: bold;"># Chicago's 2026 city budget proposal includes $552 million for CPS</span> [101]
By
[Becky Vevea](https://www.chalkbeat.org/authors/becky-vevea)
\| October 16, 2025, 4:00pm EDT
[Republish](https://www.chalkbeat.org/republish/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/)
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Chicago Mayor Brandon Johnson's 2026 budget proposal for the city includes a $1 billion TIF surplus, half of which would go to Chicago Public Schools. (Laura McDermott for Chalkbeat)
_Sign up for_ [_Chalkbeat Chicago's free daily newsletter_](https://ckbe.at/4fmTEo8 "https://ckbe.at/4fmTEo8") _to keep up with the latest news on Chicago Public Schools._
Chicago Mayor Brandon Johnson proposed a$16.6 billion city budget Thursday that allocates $552.4 million to Chicago Public Schools, significantly more than the $379 million the school board anticipated when it passed [its own $10.2 billion budget](https://www.chalkbeat.org/chicago/2025/08/29/cps-budget-does-not-include-pension-payment-loan-and-more-debt/) in late August.
The additional money would allow CPS to [avoid midyear cuts](https://www.chalkbeat.org/chicago/2025/08/12/chicago-public-schools-to-propose-budget-plan-without-pension-payment/) and fill gaps created by the [Trump administration canceling millions in magnet school grants](https://www.chalkbeat.org/chicago/2025/09/24/cps-loses-magnet-school-money-over-dispute-with-trump-administration-over-dei-initiatives/). It could also allow the school board to approve [a pension reimbursement payment to the city](https://www.chalkbeat.org/chicago/2025/03/12/city-hall-wantsschool-staff-pension-payment-from-cps/), as outlined in the school district's budget plan, but the city budget overview documents say that is not assumed in its 2026 plan.
"These funds will ensure that we are protecting our young people from the Trump administration's attempts to dismantle and privatize our public education system, that we are protecting special education teachers, restoring funding for our Black Student Success Plan, and making sure our lowest-paid workers receive their pensions," Johnson said in a speech to the City Council Thursday.
The city's 2026 budget, which will need to be approved by at least 26 of 50 aldermen on the City Council before the end of the calendar year, declares a surplus of funds from special taxing districts, known as TIFs, aimed at spurring development in blighted areas.
Before the meeting, Johnson outlined highlights of his budget alongside supporters and allies, including school board members Michilla Blaise, a mayoral appointee, and Jitu Brown an elected member who is an ally of the mayor, both of whom represent the city's west side, and Chicago Teachers Union president Stacy Davis Gates.
He said this year's budget was "written long before I took office" and represents the work of "generations of organizers," drawing on [his own background and experience as a CTU organizer](https://www.chalkbeat.org/chicago/2023/3/14/23640368/chicago-mayor-election-runoff-public-schools-brandon-johnson-teachers-union-paul-vallas/) before he became mayor.
"Back then, it was about trying to protect and save one school even if it took a hunger strike," Johnson said. "Now, this budget is about saving our entire education system."
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Blaise spoke in support of the budget and said a coalition of board members who voted down CPS' spending plan in August because it was "balanced on paper, but not reality" pushed the mayor's administration to deliver more money for CPS.
"This commitment prevents any midyear cuts and allows us to maintain stability in our classrooms," Blaise said.
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She also applauded the mayor for declaring a record TIF surplus to help CPS fill an $8 million hole created by the Trump administration's decision to cut some magnet school grants over the district's commitment to improve Black student achievement and protect the rights of LGBTQ students.
"This agreement is essentially Trump-proofing our budget," Blaise said.
There are [more than 100 TIF districts](https://igchicago.org/information-portal/data-dashboards/chicago-tif-districts-map-fund-balances/) across Chicago collecting more than $1 billion in property tax revenue each year. Any amount of money not committed to development projects in those areas can be declared as "surplus" by the mayor and City Council. By law, CPS gets 52% of any TIF surplus and the city gets 24% with the remaining sent to other taxing bodies.
Johnson's budget proposal does not rely on CPS making a pension reimbursement payment to the city, but school board members may still decide to do so. The district's $10.2 billion budget included a statement that if additional revenue came through, the school board would consider reimbursing the city to cover a portion of the pensions of non-teaching staff covered by the city plan.
That pension reimbursement has been a source of conflict between the school board and city hall in recent years. Faced with ballooning payments and given that about half of the fund's beneficiaries are CPS employees or retirees, former Mayor Lori Lightfoot's administration implemented an [intergovernmental agreement](https://projects.chalkbeat.org/2025/uploads/2020_IGA_CPS-City_MEABF.pdf) with her appointed school board in 2020 to have CPS reimburse the city for an increasing portion of the required annual payment.
The cost-sharing irked the Chicago Teachers Union at the time, which lambasted Lightfoot for burdening the school system with the city's financial obligations. But when CTU organizer and former teacher Johnson became mayor, he continued to push CPS for the reimbursement.
The Board of Education has not made a pension reimbursement payment to the city since early 2024 when it [sent $175 million to cover part of the cost of the 2023 payment](https://projects.chalkbeat.org/2025/uploads/2023_IGA_CPS-City_MEABF.pdf). Blaise told Chalkbeat Wednesday the school board may discuss a new intergovernmental agreement at its next meeting on Oct. 23.
Blaise said approving such an agreement would help alleviate concerns from alderpeople who want to "see something in writing" about how CPS will use the additional TIF surplus dollars.
In addition to the record TIF surplus, the Chicago city budget includes $7 million for increasing the pay of more than 3,000 early childhood workers at 86 programs run through the city's Department of Family and Support Services and additional dollars for summer youth employment programs.
Johnson's budget also includes a new, first-of-its-kind tax on social media companies. He noted the link between social media use and higher rates of depression, anxiety, and mental illness among young people, especially. "Just like we've taxed other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way," he said.
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The tax would charge social media companies 50 cents per active user over 100,000 in Chicago and is estimated to generate $31 million to support mental health services, Johnson's office said.
_Reema Amin contributed reporting._
_Becky Vevea is the bureau chief for Chalkbeat Chicago. Contact Becky at_ [_bvevea@chalkbeat.org_](mailto:bvevea@chalkbeat.org) _._
Source Name [102]: Johnson expected to revive head tax in 2026 budget plan Full URL: https://www.chicagobusiness.com/politics/brandon-johnson-revive-head-tax-2026-budget-plan Scraped Date/Time: 2025-11-22 22:09:42
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<span style="color: #0066cc; font-weight: bold;"># Johnson expected to revive head tax in 2026 budget plan</span> [102]
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[City Hall](https://chicago.suntimes.com/city-hall) [Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) [Chicago](https://chicago.suntimes.com/chicago)
# City to borrow $166M to cover back pay for firefighters, paramedics
## Pat Cleary, president of the Chicago Fire Fighters Union Local 2, expressed relief over Thursday's nearly unanimous City Council vote to ratify a six-year contract.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Oct 16, 2025, 4:58pm EST
Mayor Brandon Johnson's administration will borrow $166 million over three years to cover back pay for firefighters after the City Council approved a new firefighters contract Thursday.
Ashlee Rezin/Sun-Times
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Mayor Brandon Johnson's administration will borrow $166 million and repay that money over three years to bankroll four years in retroactive pay for [4,800 firefighters and paramedics whose contract](https://chicago.suntimes.com/city-hall/2025/10/07/city-council-committee-ratification-firefighter-contract) was ratified Thursday.
Pat Cleary, president of the Chicago Fire Fighters Union Local 2, was relieved by the nearly unanimous City Council vote to ratify the six-year contract.
But Cleary accused Johnson of slow-walking negotiations with Local 2 to avoid shelling out back pay.
"I don't like the process. They were stalling. They came unprepared. It's unprofessional the way they handled us. It showed that they did not appreciate us," Cleary said after the vote.
Asked what he believes Johnson's motivation was for "stalling," Cleary said, "To spend that money elsewhere."
Three alderpersons — Anthony Beale (9th), Marty Quinn (13th) and Matt O'Shea (19th) — accused Johnson of deceiving the City Council about the source of the retroactive pay before unilaterally authorizing a large loan that should only be approved by the City Council.
"You lied to us and told us the money was there, and now, it's not. So, now you want to borrow it? This is ridiculous," Beale said.
The mayor's budget director, Annette Guzman, said the money to cover firefighter back pay was, in fact, "in the budget for the last three years." But Chief Financial Officer Jill Jaworski said when health care costs skyrocketed by $118 million in just one year and City Hall's shortfall ballooned to $1.15 billion, there were "some difficult decisions" that had to be made.
"The one that we decided to finance were the ones that were extraordinary and one-time in nature, of which retros are," Jaworski said during a budget briefing this week.
The Johnson administration similarly plans a five-year loan to cover "extraordinary settlements" tied to allegations of police wrongdoing, including the $90 million "global settlement" that will put to rest 176 lawsuits tied to former Chicago Police Sgt. Ronald Watts, who was accused of framing hundreds of people on drug charges at the Chicago Housing Authority's Ida B. Wells housing complex.
On Thursday, the City Council approved two more settlements — for a combined $15.5 million — to compensate two families who lost relatives because of alleged mistakes made by first responders.
Senior mayoral adviser Jason Lee said Cleary's claim that the mayor stalled negotiations on a new firefighters contract to avoid paying the large expenditure for back pay was not accurate.
Lee said Johnson wanted to resolve the issue, but "the union famously said they wanted to wait until the end of the negotiations at CPS \[Chicago Public Schools\] before they get in their negotiations because they wanted to peg their wages to whatever the teachers got."
The retroactive pay must be delivered to firefighters and paramedics no later than Dec. 30.
The six-year contract includes none of the cost-cutting concessions that Johnson and his two predecessors talked about but never really pursued. It includes pay raises of up to 20%, depending on the rate of inflation, and a $2,500 cash bonus to match increases awarded to rank-and-file Chicago police officers.
Merit promotions that account for up to 16% of all promotions will be eliminated. From now on, vacancies "shall be filled in order of rank on eligibility lists," the agreement states. Promotional exams will now be required every four years with a mandate that the city provide copies of answer sheets to test takers after written exams "upon departure from test sites."
Paid parental leave of up to 12 weeks will be provided for all firefighters and paramedics, whether they are the "birthing or non-birthing parent."
Juneteenth will become a 14th paid holiday. And the contract will eliminate all references to affirmative action and what's known as Appendix "G" that established as a goal the hiring of 45% minorities and women at all ranks. Instead, the new contract refers to "equity" and commits the Chicago Fire Department to "actively advertise for recruits in socio-economically disadvantaged areas." The goal is the "elimination of obstacles unrelated to the job that hinder inclusion of communities historically under-represented" in the fire department.
Also Thursday, a letter from the mayor was read into the City Council record declaring Johnson's intention not to reappoint Inspector General Deborah Witzburg, thus launching the nationwide search for a new inspector general.
Witzburg, who has been [at loggerheads with the mayor's office](https://chicago.suntimes.com/city-hall/2025/10/15/city-inspector-general-deborah-witzburg-brandon-johnson-top-adviser-jason-lee-investigation) on a host of investigation-related issues, announced months ago that she would not seek another term.
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[City Hall](https://chicago.suntimes.com/city-hall) [Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) [Chicago](https://chicago.suntimes.com/chicago)
# Council members seek to query city consultants on cost-cutting ideas
## The city paid accounting giant Ernst & Young over $3 million to pinpoint as much as $1.4 billion in savings and revenue-generation options for Chicago to consider.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Nov 3, 2025, 4:54pm EST
Mayor Brandon Johnson presents his proposed 2026 budget during a City Council meeting Oct. 16.
Ashlee Rezin/Sun-Times
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Ten of the 27 City Council members who have [publicly declared opposition](https://chicago.suntimes.com/city-hall/2025/10/30/city-council-majority-declares-opposition-to-johnsons-head-tax) to Mayor [Brandon Johnson's](https://chicago.suntimes.com/brandon-johnson) proposed employee head tax are calling a special meeting for next week to grill a consultant paid $3.2 million to pinpoint cost-cutting and revenue-raising ideas that they contend the mayor chose to ignore.
If 26 members show up at the meeting Monday, they would have a quorum and get a chance to question representatives from EY, the global business consulting firm created by accounting giant Ernst & Young.
The EY report includes as much as $1.4 billion in savings and revenue-generation options for Chicago to consider.
It identified up to $103 million in potential savings that could come from modifying employee benefits, but that would require union concessions that Johnson has emphatically ruled out for fear of alienating the unions that helped put him in office. As much as $111 million would come from procurement reforms, and up to $257 million through organizational changes in city government.
"There's a lot in here that they've completely ignored," former Finance Committee Chair Scott Waguespack (32nd), who joined the call for the special meeting, told the Chicago Sun-Times.
Aviation Chair and 19th Ward Ald. Matt O'Shea said questioning of EY consultants could, at the very least, identify the $100 million in savings needed to eliminate Johnson's proposed $21 a month per-employee head tax.
"Everything needs to be on the table before we go back to taxpayers and hit 'em again … and this administration has refused to look at real efficiencies. That's why we want EY before us," O'Shea said.
Northwest Side Ald. Samantha Nugent (39th) said it is "incumbent on all of us to at least sit and listen to some experts who have really dug" through the city budget.
"Would this offset maybe the elimination of the head tax or help with an advanced pension payment, or perhaps prevent us from borrowing? I think all ... of my colleagues would want to dig to find efficiencies and resources so we could do those things," Nugent said.
Arguing that the already crowded schedule leaves no time for a special meeting Monday, the mayor's office arranged a Budget Committee hearing Friday to give alderpersons an opportunity to question EY consultants.
Ethics and Government Operations Chair and 47th Ward Ald. Matt Martin, who joined the call for a special meeting, said a hearing would be fine with him so long as it provides a "public opportunity" for alderpersons to grill EY on conclusions the firm reached and "compare those recommendations with what's in the mayor's budget."
Martin is particularly concerned about the mayor's decision to use "one-time tactics" to cover 40% of the $1.2 billion budget gap, cut the advanced pension payment in half and rely on tens of millions in new borrowing to bankroll large settlements and retroactive pay for Chicago firefighters.
"This invites a credit rating downgrade. And the CFO told us at our first budget hearing that would cost us between $410 million and $415 million in additional borrowing costs, which is ... hundreds of millions of dollars that aren't going toward pensions. They aren't going to mental health. They aren't going to public safety," Martin said. "We need to keep as much of that in our accounts as possible."
The Johnson administration commissioned a separate report that laid out a vast array of cost-cutting options. [That report was released in mid-September](https://chicago.suntimes.com/city-hall/2025/09/16/mayor-brandon-johnson-task-force-jim-reynolds-budget-shortfall-solutions) by the Chicago Financial Future Task Force, co-chaired by businessman Jim Reynolds and Chicago Urban League President Karen Freeman-Wilson.
Johnson later released EY's full report under pressure from alderpersons eager to compare the two reports to determine whether politically sensitive ideas had been edited out of the Reynolds/Freeman-Wilson version.
Mayoral press secretary Cassio Mendoza questioned whether the 10 alderpersons who joined the call for the special meeting have even read the EY report.
"If they look at it, they'll see that a lot of recommendations are in the budget. And we even briefed them on exactly which recommendations are in the budget and why," Mendoza said. "Once the EY people come in, they'll just explain it, and they'll be like, 'Oh, damn. I don't know why we made such a big thing about this.'"
Source Name [105]: Budget chair claims Mayor Johnson's corporate head tax isn't dead yet Full URL: https://chicago.suntimes.com/city-hall/2025/11/19/budget-chair-jason-ervin-mayor-brandon-johnson-corporate-head-tax-city-club Scraped Date/Time: 2025-11-23 05:58:48
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[City Hall](https://chicago.suntimes.com/city-hall) [Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) [Chicago](https://chicago.suntimes.com/chicago)
# Budget chair claims Mayor Johnson's corporate head tax isn't dead yet
## Ald. Jason Ervin (28th) told the City Club of Chicago Wednesday that Johnson could use his veto to thwart any budget proposal that eliminates his proposed head tax and replaces the $100 million in lost revenue with a property tax increase, higher garbage collection fees, and other alternate revenue sources.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Nov 19, 2025, 7:10pm EST
Ald. Jason Ervin (28th) speaks to reporters after Mayor Brandon Johnson presented the his proposed 2026 budget to City Council in October.
Ashlee Rezin/Sun-Times
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Mayor Brandon Johnson's [corporate head tax](https://chicago.suntimes.com/city-hall/2025/11/06/mayor-brandon-johnson-corporate-head-tax-defense-2026-proposed-budget) is not dead — even after being voted down by the City Council's Finance Committee — because his veto threat creates a threshold that cannot be overcome, a powerful mayoral ally said Wednesday.
Budget Committee Chair Jason Ervin (28th) pointed to Johnson's central argument in defense of his proposed $21 a month per-employee head tax on companies with 100 or more employees: The only alternatives to a head tax are a property tax increase, higher garbage collection fees, a local version of the 1% grocery tax eliminated by the state, or police and fire department cutbacks.
Johnson has promised to veto a budget with any one of those elements, knowing that 34 votes are needed to override a mayoral veto. During a luncheon Wednesday hosted by the City Club of Chicago, Ervin was asked whether the head tax was dead.
"I would say no because the mayor has indicated that he would veto anything that... also included a property tax increase or a garbage fee increase," Ervin said. "That brings the threshold required to pass something to a hyper level of 34 votes. And I can tell you there are at least 17 people who will stand against some of the items that are being brought to the table."
Joining Ervin on the City Club's budget panel were Ald. Jessie Fuentes (26th), a mayoral ally, and two of the City Council's more conservative members: Ald. Matt O'Shea (19th) and Samantha Nugent (39th). Ald. Brian Hopkins (2nd) introduced his colleagues.
When Nugent was asked whether the head tax was dead, she said, "I hope so… We don't want to see a budget passed that's going to kill jobs."
Even with an emboldened City Council that includes "different folks with different ideologies," Nugent agreed with Ervin that a budget compromise will be reached long before the Dec. 31 deadline.
But she said, "I won't be comfortable supporting a budget until we look internally and make more cuts… We have to look at ourselves as a city before we come out to you Chicagoans and taxpayers, and say we want more fees and fines and we want to pass measures that are going to encourage businesses to go elsewhere."
O'Shea agreed that even if the head tax [remains on life support,](https://chicago.suntimes.com/2025/11/17/finance-committee-rejects-johnsons-600m-tax-package) it needs to be dead and buried because it's a "job killer that stunts growth."
"We need to look more internally… and try to identify where there can be waste… It's a billion-dollar-plus hole. It's an almost $17 billion budget. Does anybody think 30 departments… can't identify more duplicity in departments, more efficiencies in departments and, dare I say it, more cuts on some level?" O'Shea said.
When Ervin asked, "What do you want to cut?" O'Shea was verbally armed and ready.
"I'm going to say something uncomfortable. Labor needs to be at the table," he said.
Chicago Federation of Labor President Bob Reiter did not return phone calls. But, he fired back on X with a posting that said, "Labor has been at the table in addition to being on the table." Reiter added, "Maybe we can start with Alderman O'Shea returning my phone call and text messages."
Johnson has ruled out layoffs and furlough days for fear of alienating the unions that helped put him in office. There is no evidence that the mayor has pursued increased employee contributions or reduced health care benefits, as recommended in the $3.2 million cost-cutting and revenue-generating road map provided by EY, formerly known as Ernst & Young.
Fuentes agreed that "shared sacrifice" is needed to solve the city's budget crisis.
But she pointed to the "shared sacrifice" that Black and Hispanic neighborhoods have already endured when 50 schools and half of the city's mental health clinics were closed, and hundreds of city employees were laid off.
Source Name [106]: Budget chair claims Mayor Johnson's corporate head tax isn't dead yet Full URL: https://chicago.suntimes.com/city-hall/2025/11/19/budget-chair-jason-ervin-mayor-brandon-johnson-corporate-head-tax-city-club Scraped Date/Time: 2025-11-23 05:58:48
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# Budget chair claims Mayor Johnson's corporate head tax isn't dead yet
## Ald. Jason Ervin (28th) told the City Club of Chicago Wednesday that Johnson could use his veto to thwart any budget proposal that eliminates his proposed head tax and replaces the $100 million in lost revenue with a property tax increase, higher garbage collection fees, and other alternate revenue sources.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Nov 19, 2025, 7:10pm EST
Ald. Jason Ervin (28th) speaks to reporters after Mayor Brandon Johnson presented the his proposed 2026 budget to City Council in October.
Ashlee Rezin/Sun-Times
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Mayor Brandon Johnson's [corporate head tax](https://chicago.suntimes.com/city-hall/2025/11/06/mayor-brandon-johnson-corporate-head-tax-defense-2026-proposed-budget) is not dead — even after being voted down by the City Council's Finance Committee — because his veto threat creates a threshold that cannot be overcome, a powerful mayoral ally said Wednesday.
Budget Committee Chair Jason Ervin (28th) pointed to Johnson's central argument in defense of his proposed $21 a month per-employee head tax on companies with 100 or more employees: The only alternatives to a head tax are a property tax increase, higher garbage collection fees, a local version of the 1% grocery tax eliminated by the state, or police and fire department cutbacks.
Johnson has promised to veto a budget with any one of those elements, knowing that 34 votes are needed to override a mayoral veto. During a luncheon Wednesday hosted by the City Club of Chicago, Ervin was asked whether the head tax was dead.
"I would say no because the mayor has indicated that he would veto anything that... also included a property tax increase or a garbage fee increase," Ervin said. "That brings the threshold required to pass something to a hyper level of 34 votes. And I can tell you there are at least 17 people who will stand against some of the items that are being brought to the table."
Joining Ervin on the City Club's budget panel were Ald. Jessie Fuentes (26th), a mayoral ally, and two of the City Council's more conservative members: Ald. Matt O'Shea (19th) and Samantha Nugent (39th). Ald. Brian Hopkins (2nd) introduced his colleagues.
When Nugent was asked whether the head tax was dead, she said, "I hope so… We don't want to see a budget passed that's going to kill jobs."
Even with an emboldened City Council that includes "different folks with different ideologies," Nugent agreed with Ervin that a budget compromise will be reached long before the Dec. 31 deadline.
But she said, "I won't be comfortable supporting a budget until we look internally and make more cuts… We have to look at ourselves as a city before we come out to you Chicagoans and taxpayers, and say we want more fees and fines and we want to pass measures that are going to encourage businesses to go elsewhere."
O'Shea agreed that even if the head tax [remains on life support,](https://chicago.suntimes.com/2025/11/17/finance-committee-rejects-johnsons-600m-tax-package) it needs to be dead and buried because it's a "job killer that stunts growth."
"We need to look more internally… and try to identify where there can be waste… It's a billion-dollar-plus hole. It's an almost $17 billion budget. Does anybody think 30 departments… can't identify more duplicity in departments, more efficiencies in departments and, dare I say it, more cuts on some level?" O'Shea said.
When Ervin asked, "What do you want to cut?" O'Shea was verbally armed and ready.
"I'm going to say something uncomfortable. Labor needs to be at the table," he said.
Chicago Federation of Labor President Bob Reiter did not return phone calls. But, he fired back on X with a posting that said, "Labor has been at the table in addition to being on the table." Reiter added, "Maybe we can start with Alderman O'Shea returning my phone call and text messages."
Johnson has ruled out layoffs and furlough days for fear of alienating the unions that helped put him in office. There is no evidence that the mayor has pursued increased employee contributions or reduced health care benefits, as recommended in the $3.2 million cost-cutting and revenue-generating road map provided by EY, formerly known as Ernst & Young.
Fuentes agreed that "shared sacrifice" is needed to solve the city's budget crisis.
But she pointed to the "shared sacrifice" that Black and Hispanic neighborhoods have already endured when 50 schools and half of the city's mental health clinics were closed, and hundreds of city employees were laid off.
Source Name [107]: Chicago alders grill mayor's budget team on report aiming to close $1B deficit Full URL: https://www.fox32chicago.com/news/city-council-budget-emergency-meeting Scraped Date/Time: 2025-11-23 05:58:48
barsbincheckedcloseclouddown-chevrondownexpandexternal-linkfast-forwardfog01101112131415161718192202122232425262728293303132333435363738394404142434445464756789closenafuture-twcicekeylayersleft-chevronlocationminus-thinminusfullMoonfirstQuarterlastQuarternewMoonwaningCrescentwaningGibbouswaxingCrescentwaxingGibbousnext-buttonpause-buttonpause-iconpause-twcplay-buttonplay-icon-engageplay-iconplay-twcplus-thinpluspoolprecipRainprecipMixprecipRainprecipSnowprev-buttonright-chevronsearchsettingsshowershrinkstar-emptystar-fullstop-buttonsunrisesunsettogglesup-chevronvolumewarningwind
#### [Chicago City Council holds emergency meeting on budget report](https://www.fox32chicago.com/video/1738531)
Members of the Chicago City Council held an emergency meeting on a report detailing how to close a $1.1 billion budget deficit.
#### The Brief
- Chicago alders grilled Mayor Johnson's budget team over a report aiming to close a $1 billion deficit.
- Alders questioned by the mayor didn't use more recommendations to cut spending in his 2026 budget proposal.
- The city paid an outside accounting firm $3 million to come up with the recommendations.
**CHICAGO** \- Members of the [Chicago City Council](https://www.fox32chicago.com/tag/organization/chicago-city-council) held an emergency meeting on Monday in which they grilled members of Mayor Brandon Johnson's budget team about a report outlining ways to close a more than $1 billion budget deficit.
What we know:
The city paid an outside accounting firm, Ernst & Young (EY), $3 million to make recommendations on how to save money in the city's massive $16.7 billion budget. The firm's report came up with as much as $1.4 billion in savings.
Several alders wanted to know why the mayor isn't incorporating the majority of the recommendations into his 2026 budget plan, which attempts to close the $1.1 billion gap.
On Monday, Johnson said, the report was just one of many considerations that he had to take in.
"I just hope that they spend the same amount of time in this EY report, also looking at how corporate interests are continuing to get away without having to pay their fair share in taxes," Johnson said. "I think all of it requires our attention at this time."
[The Ernst & Young report](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/Financial%20and%20Strategic%20Reform%20Options%20-%20City%20of%20Chicago.pdf) recommends things like consolidating city real estate and some of the fleet of city vehicles, consolidating the way the city doles out contracts, and then saving $100 million by having city employees pay more toward their health coverage.
But alders have complained that only about $80 million worth of these ideas and recommendations were included in [the mayor's budget proposal](https://www.fox32chicago.com/news/chicago-johnson-budget-2026), along with a proposed employee head tax, a social media tax, and other revenue generators.
[**RELATED: How Chicago Mayor Brandon Johnson plans to close a $1B budget deficit in 2026**](https://www.fox32chicago.com/news/chicago-johnson-budget-2026)
What they're saying:
Council members like Ald. Matt O'Shea (19th Ward) said it didn't sound like the majority of alders want to go along with the new taxes.
**"** We've been very clear we want to see more cuts. We want to see more efficiencies," O'Shea said. "We know we can't cut our way out of this, but before we talk about higher taxes, higher fees, we need to identify cuts and efficiencies, and this current proposal, the mayor's put forth, doesn't include enough."
Johnson's budget director defended why the administration didn't include more recommendations. She argued they included long-term solutions and the city couldn't see all the savings in a one-year budget cycle.
But several aldermen were not buying it and demanded more answers.
What's next:
The City Council has until the end of the year to approve a final 2026 budget.
#### The Source
- This story was reported by Fox 32's Paris Schutz.
[News](https://www.fox32chicago.com/tag/news) [Chicago City Council](https://www.fox32chicago.com/tag/organization/chicago-city-council) [Brandon Johnson](https://www.fox32chicago.com/tag/people/brandon-johnson)
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Source Name [108]: Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies Full URL: https://abc7chicago.com/post/mayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies/18140114/ Scraped Date/Time: 2025-11-23 05:58:48
- [budget](https://abc7chicago.com/tag/budget/)
<span style="color: #0066cc; font-weight: bold;"># Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies</span> [108]
Some alderpersons say a consultant's report deserves a good, hard look that should delay a budget vote set for next week.
By[Craig Wall](https://abc7chicago.com/about/newsteam/craig-wall)
Monday, November 10, 2025
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Some Chicago City Council members say an EY report deserves a good, hard look that should delay a vote on Chicago Mayor Brandon Johnson's budget.
CHICAGO (WLS) -- Mayor Brandon Johnson facing questions on Monday about why his budget proposal has seemingly ignored a taxpayer-funded report meant to help the city find millions of dollars in efficiencies.
On Monday, Chicago City Council members heard from the author of the report as the mayor and his team defended their plan.
### [ABC7 Chicago is now streaming 24/7. Click here to watch](https://abc7chicago.com/watch/live/11064984/)
The mayor's budget, which has already generated pushback from city council members, is now entering a new phase of scrutiny. Some alderpersons say a consultant's report deserves a good, hard look that should delay a budget vote set for next week.
Johnson refused to do any budget backpedaling despite a report by the professional services firm EY, formerly Ernst & Young, that suggests the city could find millions more in efficiencies in next year's budget.
"We put forth this investment that some had some trepidation around, which sure I did that, but we've already demonstrated that we're willing to implement the very ideas that came from this report," Johnson said.
But Joe Ferguson, the president of the Civic Federation, says the mayor is missing out on many more opportunities for saving money by not implementing more of the ideas contained in the 101-page report.
"He is not governing to all Chicagoans. He is governing more to the benefit of a subset of constituents, and he's doing so in a very ideologically-driven way," Ferguson said.
"I think there are concrete results, recommendations from the EY report, concrete recommendations that we as the council can say we want these implemented. You need to implement them, stop ignoring them, and help reduce the cost on taxpayers in your budget," said 32nd Ward Ald. Scott Waguespack.
On Monday, a representative from EY appeared before the budget committee to discuss the report and answer questions.
"EY's work was in no way an audit for a forensic analysis of the city's budget for finances," said EY Report Lead Author Adam Chepenick.
The mayor, meanwhile, continued to defend his corporate head tax proposal.
"Well, look, we still believe that the best way to balance our budget is challenging, larger corporations to pay their fair share. As I've said from the very beginning, my values, I protect," Johnson said.
The mayor's budget director dismissed critics and defended the city's proposed savings and efficiencies.
"There is a difference between someone looking at a report or making estimations on their own about what a savings is, and us actually doing the work," said Budget Director Annette Guzman.
Ald. Gil Villegas pushed the idea of implementing a city delivery fee to help balance the budget. The mayor says that would not be possible without first getting approval from Springfield.
[Report a correction or typo](https://abc7chicago.com/extras/reporttypo?url=https%3A%2F%2Fabc7chicago.com%2Fpost%2Fmayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies%2F18140114%2F)
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- [CHICAGO CITY COUNCIL](https://abc7chicago.com/tag/chicago-city-council/)
Source Name [109]: City Council calls special meeting to grill Ernst & Young over budget audit Full URL: https://www.chicagobusiness.com/politics/aldermen-press-ernst-young-johnsons-budget-audit Scraped Date/Time: 2025-11-23 05:58:48
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<span style="color: #0066cc; font-weight: bold;">[Politics](https://www.chicagobusiness.com/politics)</span> [109]
# City Council calls special meeting to grill Ernst & Young over budget audit
[](https://www.chicagobusiness.com/author/justin-laurence)
By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
Justin Laurence is a reporter for Crain's Chicago Business covering politics and policy from City Hall to Springfield. Prior to joining Crain's in 2022 he covered city politics, development and cannabis as a freelance reporter.
By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
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Source Name [110]: Chicago mayor releases long-awaited Ernst & Young report Full URL: https://www.bondbuyer.com/news/chicago-mayor-releases-long-awaited-ernst-young-report Scraped Date/Time: 2025-11-23 05:58:48
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# Chicago mayor releases long-awaited Ernst & Young report
By [Jennifer Shea](https://www.bondbuyer.com/author/jennifer-shea) October 24, 2025, 1:31 p.m. EDT 3 Min Read
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Chicago Mayor Brandon Johnson released a full Ernst & Young report to city council members after criticism for withholding it.
Bloomberg News
Chicago Mayor Brandon Johnson has released to City Council a report from the accounting firm Ernst & Young that his administration commissioned to offer solutions to the city's budget gap.
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The Johnson administration had previously told alderpeople it would not release the $3.185 million full report, but would release excerpts.
More than half the City Council had formally requested access to the full report, according to a letter sent to Johnson this summer from 27 alderpeople and Janice Oda-Gray of the City Council Office of Financial Analysis.
The report, a [copy of which was shared](https://arizent.brightspotcdn.com/ee/3d/2b0fe1d4436da11809eb01a88a14/ernst-and-young-financial-and-strategic-reform-options-chicago-october-2026.pdf) with The Bond Buyer, stresses that the city's budgetary imbalance reflects deep structural issues and underlines "the importance of adopting recurring solutions rather than relying on short-term measures."
Its release comes on the heels of [Johnson's 2026 budget](https://www.bondbuyer.com/news/chicago-mayors-2026-budget-would-cut-pension-funding) — which is replete with one-time measures — and ahead of what promises to be a difficult budget negotiation with City Council.
The city faces a structural budget gap of $1.15 billion in 2026, rising to $1.23 billion in 2028, according to its most [recent budget forecast](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Forecast%20Book.pdf).
Through a mix of efficiencies, revenue enhancements and budget and service delivery improvements, the Ernst & Young report identifies an estimated $530 million to $1.396 billion in total potential savings and revenue generation.
The report cautioned that none of its recommendations were both highly feasible and highly fiscally impactful; they were mostly one or the other.
For example, one of the biggest suggested savings, with a 10-year fiscal impact of $517.4 million, calls for the minimum manning on Chicago Fire Department engines and trucks to be cut to four from five.
That would require negotiations with the firefighters' union, which is unlikely to be receptive. The report classifies the proposal as low feasibility.
<span style="color: #0066cc; font-weight: bold;">Other significant but hard-to-achieve savings were suggested for the police and fire departments, including reassigning some work to non-sworn personnel and disbanding the mounted unit and selling off the horses. It said the 10-year fiscal impact of all its public safety service recommendations could top $1.4 billion.</span> [110]
The accounting firm said its analysis was benchmarked against more than 40 peer jurisdictions, including New York City, Los Angeles, Philadelphia and Houston. Its report groups Chicago's opportunities for savings into nine categories.
The firm's employee benefit analysis identified $80 million to $103 million in potential annual savings, mostly from health benefits changes.
Those recommendations include increasing the level of medical employee contributions, raising medical copays and other out-of-pocket costs to employees, enacting a formal return-to-work policy, and making a strategic settlement effort in the city's worker's compensation arrangement.
For real estate, report said the city could see a preliminary 10-year financial impact of $157 million to $202 million, $30 million of that potentially realized in the first year alone, the report said.
The ultimate savings would hinge on the city's ability to carry out significant office consolidation, land sales and policy reforms, the report said.
Chicago has over 21 million square feet of space from more than 500 owned and leased properties, plus 10,400 vacant parcels, the report said.
The total potential revenue opportunities from changes to Chicago's more than 240 fees and fines ranged from $20 million to $74 million annually.
The procurement analysis identified five problematic themes: duplication across departments; non-contract spend; supplier concentration; vendor tail; and non-Department of Procurement Services managed spend.
The firm urged the city to adopt the Category Management approach to procurement, which, it said, emphasizes strategic decision-making over the more traditional and transactional approach. That could save the city between $55 million to $110 million a year, Ernst & Young said.
For budgeting, the report suggested a shift away from traditional budgeting and toward performance-based budgeting.
The report also suggested savings in the way the city handles special events and manages its vehicle fleets.
[Jennifer Shea](https://www.bondbuyer.com/author/jennifer-shea)
Midwest reporter
For reprint and licensing requests for this article, [click here](https://info.wrightsmedia.com/arizent-licensing-and-reprints).
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Source Name [111]: Chicago's Mayor proposes a $21 per employee corporate head tax to close budget gap Full URL: https://taxnews.ey.com/news/2025-2124-chicagos-mayor-proposes-a-21-per-employee-corporate-head-tax-to-close-budget-gap Scraped Date/Time: 2025-11-23 05:58:48
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| [taxnews.ey.com](https://taxnews.ey.com/) [Print](https://taxnews.ey.com/news/2025-2124-chicagos-mayor-proposes-a-21-per-employee-corporate-head-tax-to-close-budget-gap#) Share: [](https://twitter.com/intent/tweet?url=https%3a%2f%2ftaxnews.ey.com%2fnews%2f2025-2124&source=webclient&text=Chicago%27s+Mayor+proposes+a+%2421+per+employee+corporate+head+tax+to+close+budget+gap) [](https://www.facebook.com/sharer.php?u=https%3a%2f%2ftaxnews.ey.com%2fnews%2f2025-2124) [](https://www.linkedin.com/cws/share?xd_origin_host=https%3a%2f%2ftaxnews.ey.com&original_referer=https%3a%2f%2ftaxnews.ey.com%2fnews%2f2025-2124&url=https%3a%2f%2ftaxnews.ey.com%2fnews%2f2025-2124&isFramed=false&token=&lang=en_US) [](https://taxnews.ey.com/news/2025-2124-chicagos-mayor-proposes-a-21-per-employee-corporate-head-tax-to-close-budget-gap# "Forward") |
| 21 October 2025
Chicago's Mayor proposes a $21 per employee corporate head tax to close budget gap
Chicago Mayor Brandon Johnson included in his FY2026 city budget proposal a "Community Safety Surcharge," <span style="color: #0066cc; font-weight: bold;"><span style="color: #0066cc; font-weight: bold;">which would be paid by corporations in the form of a $21 per employee head tax. Revenues would be used to support programs such as youth employment, violence intervention and mental health assistance for police. The proposal for an added corporate tax comes at a time when the city faces a $1.2 billion shortfall.</span> [111]</span> [111]
The head tax would apply to Chicago corporations that employ 100 or more full-time employees who perform 50% or more of their work within the city limits of Chicago. The rate, effective January 1, 2026, would be $21 per employee with annual increases thereafter of the lessor of the Consumer Price Index (CPI) or 5%. ( [_City of Chicago, 2026 Budget Overview, p. 190_](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf).)
The tax would produce an estimated revenue of $100 million in the first year and potentially more in future years due to the proposed automatic increases to the tax rate.
According to a statement from Mayor Johnson, "97% of businesses will not be impacted by this new fee … \[o\]ur mom and pop stores, our local restaurants, our small and medium-sized businesses will not pay a penny more in taxes." ( [_Mayor Brandon's Prepared Remarks, FY2026 Protecting Chicago Budget_](https://chicityclerk.s3.us-west-2.amazonaws.com/s3fs-public-1/Mayor%20Brandon%20Johnson%E2%80%99s%20Prepared%20Remarks_FY2026%20Budget%20Address.pdf) _._)
**Background**
In 1973, then Mayor Richard J. Daley successfully passed a $3 per employee head tax that applied to Chicago businesses of 15 or more employees.
In 2011, then Mayor Rob Emanuel was successful in phasing out the tax by 50% in 2012 and a complete elimination of the tax in 2014. Mayor Emanual stated that, "Eliminating the head tax is the right thing to do for businesses big and small and it's the right thing to do to secure Chicago's future." ( [Mayor Emanuel press release, November 2, 2011.](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2011/november_2011/mayor_emanuel_applaudscitycouncilforendingheadtaxforchicagobusin.html))
**What's next?**
Before voting on Mayor Johnson's proposed FY2026 budget, the City Council will conduct hearings, including at least one public hearing, in October. In November and December, additions or changes could be made to the proposed budget based on public comments gathered in October and other analysis. The City Council must approve a final balanced budget by December 31, 2025, and it is effective January 1, 2026. ( [_City of Chicago Office of Budget and Management_](https://www.chicago.gov/city/en/depts/obm/supp_info/budget-calendar.html).)
Developments in the FY 2026 budget approval process are available [here](https://www.chicago.gov/city/en/sites/committee-on-the-budget/home/budget-materials.html) **.**
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| **Contact Information** |
| For additional information concerning this Alert, please contact:<br>**Workforce Tax Services - Employment Tax Advisory Services**<br>- Kristie Lowery \| [kristie.lowery@ey.com](mailto:kristie.lowery@ey.com)<br>- Ken Hausser \| [kenneth.hausser@ey.com](mailto:kenneth.hausser@ey.com)<br>- Debera Salam \| [debera.salam@ey.com](mailto:debera.salam@ey.com) |
| _Published by NTD's Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor_ |
Document ID: [2025-2124](https://taxnews.ey.com/Knowledge/FederatedSearch.aspx?FetchID=2025-2124) |
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Source Name [112]: Chicago City Council Majority Objects to Mayor Reinstating Head Tax Full URL: https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/ Scraped Date/Time: 2025-11-23 05:58:48
[Home](https://www.cpapracticeadvisor.com/) > [Taxes](https://www.cpapracticeadvisor.com/section/taxes/)
[Taxes](https://www.cpapracticeadvisor.com/section/taxes/) \| November 3, 2025
# Chicago City Council Majority Objects to Mayor Reinstating Head Tax
The 28 aldermen said they were "gravely concerned" about what Mayor Brandon Johnson's pitch for a monthly $21-per-employee tax on larger companies would do for job growth and businesses leaving Chicago.
[](https://www.linkedin.com/sharing/share-offsite/?url=https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/)[](http://www.twitter.com/share?url=https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/)[](https://www.facebook.com/sharer/sharer.php?u=https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/)[](https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/#)
By Alice Yin and A.D. Quig
Chicago Tribune
(TNS)
Oct. 30 — A majority of aldermen signed onto a letter Thursday objecting to reinstating Chicago's head tax [and other components](https://www.chicagotribune.com/2025/10/21/chicago-budget-gov-jb-pritzker-opposes-head-tax/) of Mayor Brandon Johnson's 2026 budget plan.
The 28 aldermen said they were "gravely concerned" about what Johnson's [pitch](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/) for a monthly $21-per-employee tax on larger companies would do for job growth and companies leaving Chicago. The city's old head tax, phased out in 2014, was cast as the next frontier in the mayor's largely stalled tax-the-rich agenda, as he seeks to plug a $1.19 billion deficit in next year's budget.
"We ask your administration to model alternative budget scenarios that exclude this jobs tax," the letter said.
Other demands the aldermen laid out include asking the Johnson administration to look at more cuts as [identified by](https://www.chicagotribune.com/2025/09/16/mayor-brandon-johnsons-budget-group-announces-familiar-ideas-to-plug-gaping-hole/) Ernst & Young after the city hired the firm this spring to look under the city's hood to find more savings and efficiencies. The letter calls for representatives from the accounting firm to testify before the City Council's budget committee to explain why some recommendations were rejected.
Lastly, the council bloc said they were "very concerned" about further borrowing for operating expenses such as back pay for the new firefighters' contract, saying that "we believe such practices undermine long-term fiscal stability."
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[**Chicago Alderman Yells at Gov. JB Pritzker Over Opposition to Mayor's Head Tax Plan**](https://www.cpapracticeadvisor.com/2025/11/11/chicago-alderman-yells-at-gov-jb-pritzker-over-opposition-to-mayors-head-tax-plan/172934/ "Chicago Alderman Yells at Gov. JB Pritzker Over Opposition to Mayor's Head Tax Plan")
Johnson's team said the city would issue a new bond to make good on $185 million owed in back pay to Chicago firefighters, as well as a $90 million "global" <span style="color: #0066cc; font-weight: bold;">payment to resolve misconduct claims against former Chicago police Sgt. Ronald Watts, among other legal settlements. While that frees up dollars in this year's budget, it tacks on interest costs in future years—firefighter debt would be paid back over three years, city briefing documents said, and the settlements over five years.</span> [112]
The aldermen signing on were mostly mayoral opponents and moderates but also included Johnson's handpicked Finance Committee chair, Ald. Pat Dowell, and Ald. Desmon Yancy, a member of the Progressive Caucus, which is supposed to be Johnson's most ideologically aligned bloc.
Seven of the signees to Thursday's letter voted in favor of Johnson's last budget, which eked by in a 27-23 vote: Aldermen Dowell, Yancy, Gregory Mitchell, Stephanie Coleman, Nicholas Sposato, Emma Mitts and Michelle Harris.
A spokesperson for the mayor's office didn't immediately respond to a request for comment Thursday morning about the letter. But Ald. Matt O'Shea told the Tribune he could see Johnson staffers on the floor of City Council chambers attempting to pull aside some of the aldermen who joined him in signing the letter.
O'Shea, a mayoral critic, said a budget vote tentatively scheduled for mid-November spooked his colleagues into executing Thursday's rebuke.
"We're nowhere near ready for that," O'Shea said. "We do not have the information we need to vote on what is the largest budget gap in the history of our city. And it was evident the mayor's office thought that we're just going to move forward."
Ald. Nicole Lee, a moderate who signed the letter, said she too has "serious concerns" that a head tax could harm Chicago's growth.
Lee voted against this year's budget, and her vote for or against the 2026 package could prove pivotal. She said she also worries that even if the head tax were implemented, loopholes would allow businesses to dodge it, leaving the city with less money than expected.
"But that's not the only thing," Lee said. "That's $100 million. The minute you take something out, we've got to come back with something to put back in."
Johnson introduced a $16.6 billion budget proposal for next year that, besides reinstating the corporate head tax, scales back an extra pension payment and adds other taxes such as a new charge on social media tech giants. But it largely avoids layoffs and does not raise property taxes.
Other one-time tricks—a record $1 billion sweep of tax increment financing funds, refinancing old debt, borrowing money to pay for settlements and labor contracts and a continued hiring freeze—would help cover another significant chunk of the deficit.
The city's business community immediately tried to put a kibosh on Johnson's head tax proposal, rejecting the mayor's framing that it would be an investment in fighting crime. His team has projected $100 million would be raised, going into a so-called Community Safety Fund to partly support some programs that are losing COVID-19 stimulus funds this year.
Johnson's reaction? "Well, that sounds awfully unreasonable on the part of the business community, and their hard line against funding community safety … doesn't really reflect the values of the city of Chicago," he said during a Tuesday news conference.
The results of the initial $3.2 million contract with Ernst & Young were released after Johnson's budget speech, recommending roughly 100 pages worth of nitty-gritty changes to internal city operations that the firm said could generate between $530 million and $1.4 billion in cost savings or new revenue.
While some updates to fines and fees could happen immediately, the report noted bigger cost-cutting proposals would take years to pull off.
The biggest potential cost saver—optimizing the city's public safety departments—would take time and "require difficult decisions and complex implementation hurdles," the report noted, not to mention political barriers.
Among them: cutting the number of firefighters per engine truck from 5 to 4; civilianizing certain fire and police jobs, including cops that perform traffic and parking management; and reducing the hours of the city's 3-1-1 center from 24 down to 12 hours a day while introducing chatbots. Other tweaks to employee benefits and procurement could save another $200-$450 million.
The city is taking up a few recommendations already, like streamlining city operations and updating ordinances to recoup more money from event-holders for city assistance like road closures and CPD deployment. Ernst & Young recommended the city charge event-holders for estimated upfront costs, then charge a true-up to collect any remaining balance.
The city is also taking a closer look at two other recommendations: slimming its fleet of cars and real estate portfolio. The report noted Chicago's cost-per-mile for ownership, fuel and services is often higher than the industry and government average and that there are more cars per city worker in Chicago government, suggesting the fleet is too big.
The report also found the city's real estate portfolio might be underutilized and inefficient. The city could offload some of its office space—anywhere from 200,000 to 300,000 square feet—by encouraging more staff to work from home more often and earn millions from selling groups of city-owned vacant lots or city-owned properties in booming neighborhoods.
Among the costliest leases were a 50,000 square foot space at 231 S. LaSalle, which the city's inspector general negotiated directly. The space includes 213 seats, but there are only 121 staff, "significantly above standard benchmarks."
— _Chicago Tribune's Jake Sheridan contributed reporting._
**Photo caption:** Mayor Brandon Johnson delivers his budget address to the City Council on Oct. 16, 2025, at Chicago City Hall. (Brian Cassella/Chicago Tribune)
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©2025 Chicago Tribune. Visit [chicagotribune.com](https://www.chicagotribune.com/). Distributed by Tribune Content Agency LLC.
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Source Name [113]: Chicago alders reject mayor's budget proposal, head tax in committee Full URL: https://www.fox32chicago.com/news/alders-reject-johnson-budget-finance-co Scraped Date/Time: 2025-11-23 05:58:48
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#### [Chicago alders reject mayor's controversial corporate head tax](https://www.fox32chicago.com/video/1742306)
<span style="color: #0066cc; font-weight: bold;">The City Council's Finance Committee on Monday rejected Mayor Brandon Johnson's 2026 budget proposal, which included a controversial corporate head tax to help close a more than $1 billion projected deficit.</span> [113]
#### The Brief
<span style="color: #0066cc; font-weight: bold;">- The City Council Finance Committee soundly rejected Mayor Johnson's 2026 budget plan.
- His plan included several new and increased taxes, including a controversial corporate head tax.
- Many alders have argued that the city should focus first on cutting spending to help close a $1 billion budget deficit.</span> [113]
**CHICAGO** \- The [City Council's](https://www.fox32chicago.com/tag/organization/chicago-city-council) Finance Committee on Monday rejected Mayor Brandon Johnson's 2026 budget proposal, which included a controversial corporate head tax to help close a more than $1 billion projected deficit.
Johnson wanted the City Council to approve his budget plan this week, but many aldermen pushed back against his proposals for new taxes and instead advocated for more of a focus on cutting spending first.
What we know:
<span style="color: #0066cc; font-weight: bold;">The members of the Finance Committee voted down the corporate head tax by a convincing 25-10 vote.</span> [113]
It was part of a vote on the mayor's entire revenue package, which included, by Fox 32's count, more than 20 different taxes and fees going up. But the 25 alders made clear on Monday that they reject any tax hikes without more spending reductions.
"Ask them if they support raising property taxes in Englewood and North Lawndale," Johnson said during a press conference. "Ask them if they support collecting a grocery tax. Ask them that. If you ask me, guess what I'm gonna tell you. I'm gonna tell you 'no,' because I believe in being straight up with the City of Chicago. There are two options here: We challenge these big corporations and the ultra rich to put more skin in the game, or you ask people who are standing in line for bread, milk and food and clothing, ask them to put more skin in the game."
#### [Debate over Chicago's budget after alders reject new taxes \| The Chicago Report](https://www.fox32chicago.com/video/1742446)
<span style="color: #0066cc; font-weight: bold;">We hear from two Chicago City council members after the Finance Committee soundly rejected Mayor Brandon Johnson's proposed tax increases, including a new corporate head tax.</span> [113]
The vote came after furious last-minute budget changes, arm-twisting, and backroom meetings to try and change votes. But at the end of the day, the head tax went down.
The debate over taxes and spending also comes as homeowners in Chicago and Cook County are opening their property tax bills. Residential homeowners on the South and West Sides are seeing historic increases in their bills, partly due to a decline in commercial property values in the Loop, which means everyone else has to make up the difference.
But Johnson said it's further reason not to propose any city property tax increases in his budget.
Several alders on Monday though said they do have ideas on how to handle the budget deficit.
"I want to make perfectly clear that this committee right here is willing and able to stand and work with the mayor to come up with a balanced budget," said Ald. Anthony Beale (9th Ward). "The notion that we are not bringing ideas to the forefront is a farce. We are willing and able anytime, anywhere we will meet to help pass a responsible, balanced budget. We just want cuts and efficiencies."
Because of the disagreement on the budget, the mayor is calling a pause in voting on his budget plan, at least until the beginning of December.
The City Council must approve a 2026 budget by the end of this year.
#### The Source
- This story was reported by Fox 32's Paris Schutz, who attended Monday's City Council Finance Committee meeting.
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Source Name [114]: Key Council Committee Rejects Mayor's Budget Full URL: https://southsideweekly.com/key-council-committee-rejects-mayors-budget/ Scraped Date/Time: 2025-11-23 05:58:48
[Skip to content](https://southsideweekly.com/key-council-committee-rejects-mayors-budget/#main)
The City Council deliberates. Credit: Jim Daley
Alders pumped the brakes on Mayor Brandon Johnson's 2026 budget on Monday, as the City Council continued working through evolving measures including an unpopular corporate head tax.
<span style="color: #0066cc; font-weight: bold;">On Monday morning, the Council's Finance Committee rejected the mayor's budget by a vote of 25–10.</span> [114]
Last week, Finance Committee Chair Ald. Pat Dowell (3rd Ward) told reporters that a vote in her committee Monday on the budget was too early, the [_Tribune_](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) reported. Johnson's proposed $21 per employee per month head tax emerged as the major sticking point for Dowell and even the mayor's recent concession to tweak the head count from 100 employees to 200 did nothing to assuage her.
Other alders echoed Dowell's concerns about the head tax during Friday's City Council meeting. Downtown Ald. Bill Conway (34th Ward) called the head tax "a definite no" for him, adding that it would disincentivize business in Chicago. Conway opposed the tax regardless of the size of the company it would affect.
"One hundred, two hundred, because once you start that, I worry it's a slippery slope going down there," Conway said.
The mayor had few revenue options to turn to when he first introduced his budget this fall. Last year's 50-0 vote defeating the mayor's proposed $300 million property tax increase all but guarantees that Johnson will not revive the measure. The mayor's latest rhetoric, which uplifts the head tax as a challenge to "large corporations to put more skin in the game" while characterizing property taxes as balancing the budget "on working people," also indicates the move would be a non-starter.
Congress dealt yet another blow to the mayor's funding sources this week. [Federal legislation](https://blockclubchicago.org/2025/11/14/federal-bill-banning-intoxicating-hemp-a-death-sentence-for-many-chicago-businesses/) closed a loophole that previously allowed businesses to sell hemp products with small amounts of THC means taxing those products to generate revenue is no longer possible.
In a post-council press conference, the mayor countered alders' assertions that he was rushing the budget process, arguing that he began discussions in April.
"Now, here's what I've experienced so far: that there has not been one alternative that has been presented," Johnson said. "So I'm for more deliberation if we're actually debating over something, but to slow it down, just for the sake of slowing it down? It just doesn't make sense, right?"
Though Johnson has described the head tax as a way for large corporations to pay their fair share, 11th Ward Ald. Nicole Lee said she has heard concerns from smaller businesses. She noted that she's less worried about the tax's potential to force a mass exodus of businesses than the possibility that it could further stagnate Chicago's ability to grow.
"I'm talking about a produce company in my ward that has 202 employees. The conversation was, ultimately, 'What do I do? Do I lay off three people? What if I pick up six more restaurants? This is the math that I have to do. Do I have to move out to the suburbs?'" she said. "These are real things facing real people and those are jobs in my community."
The Johnson administration has yet to approach Ald. David Moore (17th Ward) to get to the 26 votes they'll need to pass the budget, he said Friday. Moore and Ald. Chris Taliaferro (29th Ward) were among those in the Black caucus who told the _Weekly_ during Friday's council meeting that they were still undecided about the head tax. Moore noted that the Johnson administration listened to his concerns about hurting franchises like McDonald's that employ young Chicagoans and increased the head count to 200.
"They're constantly talking. They're not putting the pressure on us that we need your vote," Moore said of the administration. "They're saying, 'Hey, what are your thoughts? You have any concerns about the budget? That's been the conversation with me."
Freshman 27th Ward Ald. Walter Redmond Burnet III has gone back and forth on the head tax. He initially opposed the head tax in a letter signed by a slim majority of the City Council, but later asked for his name to be removed. On Friday, Burnett told the _Weekly_ he was "still digesting" the mayor's proposed head tax.
"I need to protect my restaurants. That's my number-one priority," said Burnett, who represents the buzzy West Loop restaurant corridor. "But I understand the situation that we're in and trying to figure out how we find solutions for everybody."
Burnett could be open to a version of the head tax that affected companies with a larger number of employees, he said, emphasizing that he would not like to see another levy hitting the restaurant industry.
"They've been hit pretty dramatically," he said. "And I just want to make sure that that strong community I have stays there, because they're a multiplier effect."
Burnett added that he wasn't "completely opposed" to a bump in the city's garbage tax — an increase that budget experts like the Center for Tax and Budget Accountability's Ralph Matire support, but which the mayor's office has described as regressive — and is examining the legality of other potential taxes with the mayor's team.
Burnett III's predecessor, his father Walter Burnett, served as Johnson's vice mayor. The smooth-talking, veteran alderman worked as an affable liaison between the mayor and City Council. Whether the younger Burnett will take on a similar role as a Johnson ally or emerge as a gadfly is yet to be seen.
"There are a lot of values that I share with the mayor…. We need to invest in our West and South Sides," he said.
"That being said, my background is corporate. I come from finance at the highest levels, and I have a bit of that middle ground of understanding of where these two parties stand. What I see my role as, is understanding that I am a willing participant in working with the mayor's administration, but also being that olive branch to the business community to say that there's an opportunity to have your voices heard and figure out how we come up with solutions."
The next City Council meeting is scheduled for Tuesday morning.
✶ ✶ ✶ ✶
_Leigh Giangreco is a freelance reporter based in Chicago. You can follow her work on Twitter/X @LeighGiangreco and at [_leighgiangreco.com_](http://leighgiangreco.com/)._
## FURTHER READING
[](https://southsideweekly.com/johnsons-budget-fix-faces-stiff-headwinds/)
### [Johnson's Budget Fix Faces Stiff Headwinds](https://southsideweekly.com/johnsons-budget-fix-faces-stiff-headwinds/)
by[Leigh Giangreco](https://southsideweekly.com/author/leigh-giangreco/)November 4, 2025November 4, 2025
[](https://southsideweekly.com/chicago-police-blew-past-dnc-overtime-budget/)
### [Chicago Police Blew Past DNC Overtime Budget](https://southsideweekly.com/chicago-police-blew-past-dnc-overtime-budget/)
by[Max Blaisdell](https://southsideweekly.com/author/max-blaisdell/)July 25, 2025July 26, 2025
[](https://southsideweekly.com/after-intense-debate-city-council-passes-2025-budget/)
### [After Intense Debate, City Council Passes 2025 Budget](https://southsideweekly.com/after-intense-debate-city-council-passes-2025-budget/)
by[Tonia Hill](https://southsideweekly.com/author/tonia-hall/) and [Corli Jay](https://southsideweekly.com/author/corli-jay/)December 17, 2024December 19, 2024
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Source Name [115]: Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget Full URL: https://chicago.suntimes.com/city-hall/2025/10/21/brandon-johnson-2026-budget-chicago-record-tif-surplus Scraped Date/Time: 2025-11-23 05:58:48
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# Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget
## Mayoral allies and critics alike were united in their opposition to a TIF surplus that they fear could derail or, at the very least, delay indefinitely improvements to their local schools, parks and libraries as well as job-creating economic development projects.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
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Oct 21, 2025, 5:21pm EST
Mayor Brandon Johnson presented his proposed 2026 budget to the Chicago City Council meeting at City Hall last week.
Ashlee Rezin/Sun-Times
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Mayor Brandon Johnson was accused Tuesday of proposing a $1 billion tax increment financing surplus to bail out the Chicago Public Schools at the expense of neighborhood improvement projects, a move roundly condemned by City Council members.
The record TIF surplus that would provide $552.4 million to help bankroll a new teachers contract emerged as the key point of contention during the first day of Council hearings on [Johnson's proposed $16.6 billion budget.](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit)
Mayoral allies and critics alike were united in their opposition to a TIF surplus that they fear could derail or, at the very least, delay indefinitely improvements to their local schools, parks and libraries, as well as job-creating economic development projects.
Eighth Ward Ald. Michelle Harris, the Rules Committee chair and powerful member of Johnson's leadership team, said she cannot go along with such a "drastic sweep" of TIFs that serve as lifelines in predominantly Black neighborhoods like her own.
"You now say to communities like mine who don't have $40 million or $50 million in a TIF, that we can't do future projecting," Harris said. "If we sweep TIFs in communities like mine, then my future projects are just dead. ... Unintentionally or intentionally, we will lose projecting in communities of color. ... It scares me to death that these projects have the potential to be taken off the table."
Budget Director Annette Guzman insisted that top mayoral aides "did not delete a project or terminate a project" to achieve the $1 billion surplus, even though state law requires the city to "sweep anything that's not encumbered for a project."
Fully 83% of the city's 108 TIFs are seeing growth and increased revenue "year over year, and two districts are seeing flat growth," the budget director said. "We are not sweeping our entire fund balance."
Every year, the equalized assessed valuation within the city's 108 TIF districts "continues to grow above beyond what was there before," Guzman added. "Not only will you see a replenishment of your TIFs for... projects next year, but future projects."
Ald. Nicole Lee (11th) said she was shocked at the size of the surplus and found it particularly "off-putting" that local alderpersons whose TIFs are being depleted were not consulted.
"I have a field house … where we're waiting for the park district to contact an engineer and a designer to give us the cost. Now that TIF is going to be completely swept down to like a couple million bucks," Lee said.
Ald. Jason Ervin (28th), the Budget chair, joined the avalanche of opposition, noting that 70% of the TIF surplus is "coming out of socially economically disadvantaged areas" like his own West Side ward.
Ervin created yet another political headache for Johnson by demanding that CPS reimburse the city for a long-disputed, $175 million pension payment for nonteaching school employees that triggered the mass resignation of the mayor's appointed school board and the firing of Chicago Public Schools CEO Pedro Martinez.
The proposed 2026 budget does not count on the city receiving that money.
"This budget will not leave this committee without a signed intergovernmental agreement from the Chicago Public Schools related to their pension obligations previous and post to us. We must have that in order to move forward ... on this budget process," Ervin said. "Hopefully, somebody on their end is listening."
The $21 a month per-employee corporate head tax and 14% cloud computing tax that Johnson is counting on to generate $433.2 million in new revenue was not a focal point during the first day of budget hearings, though business leaders have denounced them as "job killers."
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(The Center Square) – Chicago Mayor Brandon Johnson's allies have launched a seven-figure campaign to support his 2026 budget proposal, but opponents say the mayor's tax plans will send the city into an economic death spiral and could bring about costly litigation.
The Chicago City Council met Tuesday but did not vote on a budget after the council's finance committee struck down the mayor's tax-laden revenue package on Monday.
Chicago Board of Education member Norma Rios Sierra, who joined the school board in January after she was appointed by the mayor, spoke during Tuesday's public comment period.
Rios Sierra threatened layoffs if aldermen did not approve Johnson's plan to divert $1 billion in tax-increment financing funds to Chicago Public Schools.
"If we do not get that TIF surplus, we're going to be sending a lot of pink slips for Christmas, and we're going to put it right back on you," Rios Sierra told the council.
Rios Sierra said the Chicago Teachers Union created a calculator so aldermen could see the impact their votes would have in their own wards.
Also Tuesday, Black Voters Matter Fund announced a seven-figure ad investment to support Johnson's spending plan.
BVM promised to "mobilize neighborhoods across Chicago, ensuring that the voices of Black, Brown, and working-class residents are front and center in the budget debate."
Alderman Brendan Reilly referred to the campaign when he told the finance committee Monday that anti-business tax policies were hurting the city.
"I can tell you there's no amount of money that's going to convince us that a head tax is good for Chicago," Reilly said.
The mayor's budget includes a $21-per-worker monthly tax on businesses with 100 employees or more.
Reilly said the city's commercial buildings have lost $400 million worth of value since their last assessment.
"Because of Cook County's broken property tax system, when commercial buildings are found to be less valuable, the rest of that burden falls on top of homeowners," Reilly said, adding that he and his colleagues have been hearing from very frustrated homeowners after they received their property tax bills last week. "If you want to accelerate our headfirst dive into an economic death spiral, pass this head tax. That is effectively what you are doing."
<span style="color: #0066cc; font-weight: bold;">While the head tax proposal has drawn the most vocal opposition, an internet freedom advocate says Chicago's proposed tax on social media might actually cost the city more than it brings in.</span> [116]
Johnson's Social Media Amusement Tax would impose a $0.50 monthly fee per active user on digital services with over 100,000 users operating in Chicago.
NetChoice Vice President of Government Relations Amy Bos said the tax would hit residents right in their wallets.
"Those platforms aren't just going to eat that cost, right? As we've seen in other business operations, they're going to pass that on," Bos told The Center Square, adding that Chicagoans would see new fees for services they used to receive for free. "Or they'll lose access to certain features, or some platforms might just pull out of Chicago entirely."
Bos said the tax would also incite privacy concerns, because platforms would start tracking where users live in order to figure out which users are operating in Chicago.
Citing the Permanent Internet Tax Freedom Act of 2016, Bos said Chicago's proposal might violate federal law by imposing a "discriminatory tax" on electronic commerce.
Bos said a U.S. District Court in Maryland struck down that state's digital advertising tax.
"We believe the issue is similar here. Chicago would be inviting similar costly litigation," Bos said.
Bos said the states of Minnesota and Washington backed off after proposing taxes on social media.
"They reversed course. We're hoping Chicago takes the same approach," Bos said.
Even if the tax survives legal challenges, Bos said there are a host of issues with it.
"This tax is going to get stuck in the court, costing the city money instead of raising it," Bos concluded.
Johnson's $16.6 billion spending plan also includes an increased cloud tax as well as new taxes on sports betting and boat mooring.
The city council's next meeting is scheduled for Dec. 10. The council is required by law to approve a budget by Dec. 31. If a budget is not passed by that date, some government programs might be interrupted and the city's bond rating could suffer.
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Source Name [117]: Battle over Chicago mayor's tax and budget proposals heats up, called an 'economic death spiral' Full URL: https://justthenews.com/nation/states/center-square/chicago-tax-proposals-draw-concern-over-legality-economic-death-spiral Scraped Date/Time: 2025-11-23 05:58:48
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<span style="color: #0066cc; font-weight: bold;"># Battle over Chicago mayor's tax and budget proposals heats up, called an 'economic death spiral'</span> [117]
Chicago Mayor Brandon Johnson's allies have launched a seven-figure campaign to support his 2026 budget proposal, but opponents say the mayor's tax plans will send the city into an economic death spiral.
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By Jim Talamonti | The Center Square
Published: November 18, 2025 11:12pm
- [Article](https://justthenews.com/nation/states/center-square/chicago-tax-proposals-draw-concern-over-legality-economic-death-spiral#article)
- [Dig Deeper](https://justthenews.com/nation/states/center-square/chicago-tax-proposals-draw-concern-over-legality-economic-death-spiral#dig-deeper)
(The Center Square) -
Chicago Mayor Brandon Johnson's allies have launched a seven-figure campaign to support his 2026 budget proposal, but opponents say the mayor's tax plans will send the city into an economic death spiral and could bring about costly litigation.
The Chicago City Council met Tuesday but did not vote on a budget after the council's finance committee struck down the mayor's tax-laden revenue package on Monday.
Chicago Board of Education member Norma Rios Sierra, who joined the school board in January after she was appointed by the mayor, spoke during Tuesday's public comment period.
Rios Sierra threatened layoffs if aldermen did not approve Johnson's plan to divert $1 billion in tax-increment financing funds to Chicago Public Schools.
"If we do not get that TIF surplus, we're going to be sending a lot of pink slips for Christmas, and we're going to put it right back on you," Rios Sierra told the council.
Rios Sierra said the Chicago Teachers Union created a calculator so that aldermen could see the impact their votes would have in their own wards.
Also, Tuesday, Black Voters Matter Fund announced a seven-figure ad investment to support Johnson's spending plan.
BVM promised to "mobilize neighborhoods across Chicago, ensuring that the voices of Black, Brown, and working-class residents are front and center in the budget debate."
Alderman Brendan Reilly referred to the campaign when he told the finance committee Monday that anti-business tax policies were hurting the city.
"I can tell you there's no amount of money that's going to convince us that a head tax is good for Chicago," Reilly said.
The mayor's budget includes a $21-per-worker monthly tax on businesses with 100 employees or more.
Reilly said the city's commercial buildings have lost $400 million worth of value since their last assessment.
"Because of Cook County's broken property tax system, when commercial buildings are found to be less valuable, the rest of that burden falls on top of homeowners," Reilly said, adding that he and his colleagues have been hearing from very frustrated homeowners after they received their property tax bills last week. "If you want to accelerate our headfirst dive into an economic death spiral, pass this head tax. That is effectively what you are doing."
While the head tax proposal has drawn the most vocal opposition, an internet freedom advocate says Chicago's proposed tax on social media might actually cost the city more than it brings in.
Johnson's Social Media Amusement Tax would impose a $0.50 monthly fee per active user on digital services with over 100,000 users operating in Chicago.
NetChoice Vice President of Government Relations Amy Bos said the tax would hit residents right in their wallets.
"Those platforms aren't just going to eat that cost, right? As we've seen in other business operations, they're going to pass that on," Bos told The Center Square, adding that Chicagoans would see new fees for services they used to receive for free. "Or they'll lose access to certain features, or some platforms might just pull out of Chicago entirely."
Bos said the tax would also incite privacy concerns, because platforms would start tracking where users live in order to figure out which users are operating in Chicago.
Citing the Permanent Internet Tax Freedom Act of 2016, Bos said Chicago's proposal might violate federal law by imposing a "discriminatory tax" on electronic commerce.
Bos said a U.S. District Court in Maryland struck down that state's digital advertising tax.
"We believe the issue is similar here. Chicago would be inviting similar costly litigation," Bos said.
Bos said the states of Minnesota and Washington backed off after proposing taxes on social media.
"They reversed course. We're hoping Chicago takes the same approach," Bos said.
Even if the tax survives legal challenges, Bos said there are a host of issues with it.
"This tax is going to get stuck in the court, costing the city money instead of raising it," Bos concluded.
Johnson's $16.6 billion spending plan also includes an increased cloud tax as well as new taxes on sports betting and boat mooring.
The city council's next meeting is scheduled for Dec. 10. The council is required by law to approve a budget by Dec. 31. If a budget is not passed by that date, some government programs might be interrupted and the city's bond rating could suffer.
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Source Name [118]: Mayor Brandon Johnson's Budget Dealt Blow After Failing in Committee, but What's in It? Full URL: https://ourculture.us/mayor-brandon-johnsons-budget-dealt-blow-after-failing-in-committee-but-whats-in-it/ Scraped Date/Time: 2025-11-23 05:58:48
# Mayor Brandon Johnson's Budget Dealt Blow After Failing in Committee, but What's in It?
The City Council's Finance Committee vote underscores divisions over head tax, cloud tax hikes, and citywide cost pressures
By [Mike Romain](https://ourculture.us/author/mike-romain/ "Posts by Mike Romain")
●
[Government](https://ourculture.us/news/government/)
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November 18, 2025
Mayor Brandon Johnson at Healing Temple Church in Austin on Nov. 15. | SHANEL ROMAIN
Mayor Brandon Johnson's flagship 2026 budget blueprint — branded " [Protecting Chicago](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html)" — was dealt a sharp rebuke on Nov. 17 when the Chicago City Council Committee on Finance voted 25-10 to reject the revenue package that underpins his $16.6 billion spending plan.
Johnson's proposal faced fierce opposition for its range of new taxes that largely focus on corporations. The tax proposals include reimplementing a corporate "head tax," a measure that was in place from 1973 to 2014, when it was phased out by former mayor Rahm Emanuel.
Johnson's tax would be $21 per employee per month on companies with more than 100 employees (projected at $100 million annually) and steep hikes to the "cloud tax" on software and digital services — all aimed at closing a projected $1.19 billion gap in next year's budget.
The Johnson administration projects $411 million in savings for 2026, including $101 million from personnel cuts and a hiring freeze on long-vacant positions — though police vacancies will remain, and overtime will be capped. Another $118 million would come from reducing the city's advanced pension payments. The budget also counts $112 million in "operational efficiencies," <span style="color: #0066cc; font-weight: bold;">such as trimming vendor contracts, selling vacant land, consolidating real estate assets, and streamlining departments.</span> [118]
Opponents in the Finance Committee signalled that the mayor over-reached, insisting the city must first identify spending cuts and efficiencies before layering on tax burdens. Ald. Brendan Reilly (42nd Ward) warned the head tax would "accelerate our head-first dive into an economic death spiral."
Johnson and supporters of the mayor's budget proposal, however, rejected that framing, casting the budget fight as one of values, CSB News [reported](https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/?utm_source=chatgpt.com).
"There's still only one clear choice here, for us, and that's to pass a budget that protects the interests of working people," Johnson said. "There are obviously some members of City Council that are more interested in protecting corporations. They have not provided an alternative proposal to my budget, and that's why we're going to extend the time so that they have the time to offer up something. There are not any magic third options between cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
A chart outlining Mayor Brandon Johnson's proposed taxes, designed to close a projected $1.19 billion gap in next year's budget. | THE CULTURE
During Monday's Finance Committee meeting, West Side Ald. Jason Ervin (28th), a supporter of the proposed budget, echoed the mayor's framing.
"At the end of the day, this comes down to a value question," Ervin said. "Everybody wants to get to heaven, but nobody wants to die. It's ever so true. It also goes back to a point in the book of Joshua, which says, 'Pick ye this day whom you will serve?' Are we going to serve residents of the city or folks Downtown? Are we going to help Google or grandma? The stock market or the supermarket?"
With the committee's rejection, the budget now returns to negotiations and faces a steeper path to passage. The vote marks a rare defeat for a mayor's budget revenue package in committee — a blow that underscores shifting power dynamics at City Hall and signals that Johnson will need to recalibrate if he hopes to secure the 26 votes needed in the full council.
## **What's Next**?
- Budget staff will return to the table with aldermen to explore revised options — deeper spending cuts, alternative revenue sources, or narrower tax increases.
- Time is tight: the city must adopt a full 2026 balanced budget by the end of the year. Delay risks increased borrowing, credit-rating pressure, and service uncertainty.
- If agreement stalls, the city could revert to a short-term stopgap budget or continue discussions into December, continuing the pattern of late-year budget drama.
##### Author
[Mike Romain](https://ourculture.us/author/mike-romain/)
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Source Name [119]: City of Chicago FY 2026 Budget Analysis Full URL: https://artsalliance.org/2025/10/city-of-chicago-fy-2026-budget-analysis/ Scraped Date/Time: 2025-11-23 05:58:48
[Skip to content](https://artsalliance.org/2025/10/city-of-chicago-fy-2026-budget-analysis/#content)
News
# City of Chicago FY 2026 Budget Analysis
- [October 21, 2025](https://artsalliance.org/2025/10/21/)
<span style="color: #0066cc; font-weight: bold;">On Thursday, October 16, 2025, Chicago Mayor Brandon Johnson proposed a $16.6 billion City budget for Fiscal Year 2026.</span> [119]
This year's budget reflects the continued unwinding of federal pandemic relief, coupled with slower revenue growth and persistent structural deficits across city departments. The creative sector—still recovering from years of volatility—will once again need to navigate a leaner fiscal environment that prioritizes essential services while attempting to sustain cultural investment.
**Context and Overview**
The Mayor's 2026 proposal is roughly $700 million smaller than the previous year's $17.3 billion budget, signaling both fiscal constraint and the sunset of one-time federal supports. Some of the reduction citywide is attributable to the drawdown of the Coronavirus Local Fiscal Recovery Fund (ARPA), which provided temporary revenue relief to departments like DCASE (Department of Cultural Affairs and Special Events).
For DCASE, that decline is significant: the department's share of this fund fell by 64%, resulting in an overall 13.96% decrease from 2025 revenues (from roughly $72 million to $61.9 million). These shifts mirror what many departments are experiencing as the City transitions from emergency recovery toward long-term fiscal normalization.
**Departmental Highlights**
Corresponding decreases can be seen across several DCASE line items, including:
- Programming: -$1.9 million
- Administration: -$4.7 million
- Marketing & Development: -$8.2 million
While it is not yet clear how these cuts may be felt (e.g. fewer special initiatives or reduced advertising capacity), the picture is not uniformly negative.
Notably, **appropriations for Cultural Grants and Resources increased to $15.9 million**, representing 0.096% of the City's total budget—a modest but meaningful signal that Mayor Johnson's administration intends to protect direct cultural investment even as discretionary funding tightens.
**DCASE Budget Sources**
| **DCASE Budget Sources** | FY 2025 | FY 2026<br>(Proposed) |
| --- | --- | --- |
| Special Events and Municipal Hotel Operators' Occupation Tax Fund | $44,292,225 | $43,667,597 |
| Other Grant Funds | $28,669,000 | $18,336,000 |
The hotel operators' tax fund—a key revenue stream tied to cultural tourism and conventions—remains relatively stable, a positive sign given [ongoing recovery in the visitor economy](https://www.wbez.org/economy/2025/10/15/chicago-loop-foot-traffic-post-pandemic-arts-culture-events). However, the steep drop in "Other Grant Funds"underscores the volatility of external funding and reinforces the need for a more resilient local funding structure for arts and culture.
**Proposed DCASE Budget Breakdown**
| **Proposed Budget Breakdown** | FY 2025 | FY 2026 (Proposed) |
| --- | --- | --- |
| Administration | $23,876,805 | $19,124,233 |
| Special Events | $3,500,000 | $3,500,000 |
| Operations | $13,733,091 | $13,861,331 |
| Programming | $8,353,664 | $6,374,782 |
| Cultural Grants and Resources | $12,612,120 | $15,984,894 |
| Marketing & Development | $9,613,980 | $1,390,298 |
| Chicago Film Office | $974,766 | $931,880 |
**Interpretation**
City leadership appears focused on consolidating operations and scaling back administrative costs while preserving the most visible, community-facing investments—notably the Cultural Grants programs that directly support Chicago's artists and organizations.
The increase in Cultural Grants & Resources, even amid an overall departmental decline, suggests that cultural funding continues to be viewed as a public good tied to economic recovery, neighborhood vitality, and quality of life. That said, decreased Programming, Administration, Marketing & Development resources may hinder DCASE's ability to cultivate, promote, and measure the impact of that work.
**What to Watch**
- **Final Council amendments** could further shift the DCASE balance, particularly if any number of negotiations absorb remaining discretionary funds.
- **Tourism and hotel-tax performance** will be crucial to sustaining FY2026 grantmaking levels; any dip in travel or convention revenue could translate into mid-year adjustments.
- **Grant program details** (CityArts, Individual Artist Grants, etc.) are not yet delineated in the public budget; the distribution of the $15.9 million allocation will determine how equitably resources reach artists and organizations across Chicago.
**Arts Alliance Perspective**
Arts Alliance Illinois remains cautiously optimistic. In a constrained fiscal climate, holding and even modestly increasing direct grants represents a win for the creative community. Still, the loss of ARPA dollars highlights the urgency of identifying dedicated, recurring revenue streams for the arts—whether through local levies, regional partnership funds, or new public-private compacts.
As always, the Alliance will continue monitoring the budget hearings, providing updates as new data emerges, and advocating for sustained, equitable investment in Chicago's creative sector. At the same time, we renew our call for more comprehensive expenditure data from past years. Public transparency about how arts funding is allocated and spent is a vital step toward building trust and accountability between the City and the cultural communities it serves.
As we review the proposed budget, several critical questions remain outstanding— questions we hope will be addressed during the DCASE budget hearing on Tuesday, November 4:
- Where will we see the impact of the $1.9 million reduction to programming and the multi-million dollar decreases in administration, marketing & development budgets?
- What is DCASE's current reserve balance, and what ongoing multi-year commitments are included in the FY26 plan?
- What is the full breakdown of grant funding sources and allocations—that is, where funds are coming from and where they are going?
We also continue to await responses from the Budget Committee to questions first raised in the FY25 Mid-Year Budget Hearing, including requests for clearer data on grant applications, awards, disbursements, and departmental revenue sources. Transparency on these points is key to understanding how public dollars are being distributed and to whom.
## **Take Action: Join Us in Advocating for the Arts**
[**Email your alderperson now.**](https://artsalliance.quorum.us/campaign/2026ChiBudget)
**The DCASE Budget Hearing will take place on the morning of Tuesday, November 4, at City Hall.** We're calling on artists, cultural workers, and community members to sign up for public testimony and share why public investment in the arts matters.
If you're interested in getting involved in our collective advocacy efforts, please email Bindu Poroori, Director of Community Organizing, at poroori@artsalliance.org. We'll connect you with fellow advocates and offer support in preparing a strong public comment that emphasizes our shared goals.
You can also join our Chicago [Organizing Space](https://artsalliance.org/advocacy/organizing-spaces/), which meets monthly to build collective strategy and power for the city's cultural sector. Our next meeting will be on Wednesday, November 13, where we'll debrief the DCASE hearing and plan ward-level organizing steps to ensure arts voices are represented throughout City Council. [Sign up for Organizing Spaces here.](https://artsalliance.tfaforms.net/36)
Want to stay informed? [Sign up for our newsletter](http://artsalliance.org/sign-up/).
[Donate](https://artsalliance.org/donate) [Donate](https://artsalliance.org/donate)
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Source Name [120]: Chicago Mayor Brandon Johnson's head tax plan defeated in council committee vote Full URL: https://www.union-bulletin.com/news/national/chicago-mayor-brandon-johnson-s-head-tax-plan-defeated-in-council-committee-vote/article_e66c4f5f-659a-5c03-b73e-2807846dc0e9.html Scraped Date/Time: 2025-11-22 22:38:02
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CHICAGO — Aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee vote, a historic display of rebellion against the freshman mayor who has been struggling to shore up support for his [controversial head tax](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/).
Johnson's handpicked Finance Committee chair, Ald. Pat Dowell, moved to recess a meeting instead of considering the revenue ordinance for the mayor's $16.6 billion budget, a sign that the mayor expected to lose. Last week, Dowell [said a Monday vote](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) would be "premature," but she would allow it if the mayor nonetheless wanted to proceed.
Mayoral foes Alds. Raymond Lopez and Anthony Beale tabled her recess motion on a 24-7 roll call. Johnson's budget chair, Ald. Jason Ervin, then faltered with a superseding motion to recess the meeting later that afternoon until Dec. 2, which resulted in a 18-18 tie.
The 25-10 vote shooting down the revenue package was a remarkable rebuke against the first-term chief executive who has steadily overseen more losses in City Council than his predecessors. But not in modern times has a mayor lost a budget vote, even in committee.
How aldermen navigate the waters after Monday's defiance could chart a new course in City Hall's power dynamics and prove consequential to Chicago's longstanding fiscal woes, but their stance against the mayor sends the process for a second straight year toward a critical end-of-year deadline.
Earlier Monday afternoon, top Johnson adviser Jason Lee clutched a paper with what appeared to be his vote predictions as he lobbied on-the-fence aldermen as they grilled mayor's budget and finance teams. A few moments later, Lopez interjected to accuse Lee of inappropriately lobbying on the City Council floor against rules. Lee quickly left the room, but turned back to aldermen and blew a two-handed kiss.
The mayor's path ahead for the head tax remains fraught. Any attempts to water down or kill his head tax could lose critical support from progressives. And there are still other council members who are against his plan to halve the advance pension payment and issue more borrowing.
The council must finalize the 2026 budget by the end of this year. Last year, the mayor took that timeline to the latest it's been pushed in decades but ultimately clinched 27 votes by mid-December. Johnson this time around has made his wishes to forge full steam ahead clear, including in a Friday afternoon news conference in which he argued to his legislative counterparts "to slow it down just for the sake of slowing it down, it just doesn't make sense."
The freshman mayor first pitched the surcharge, which his team projected to raise $100 million, when he unveiled his plan to close a $1.19 billion budget gap for next year. During his October address to City Council, he framed the proposal to bring back the head tax after its 2014 repeal as the city's best chance to stand up to President Donald Trump and tax the rich.
That argument has struggled to win over allies and opponents alike. Last week, Johnson's team started floating a modified version that would up the minimum company size from 100 to 200 employees, after complaints that small business owners would be swept up by the surcharge. The $100 million revenue estimate went down to $82 million, and that $18 million gap would be filled by bumping up the personal property lease tax to 15%.
That didn't do the trick, apparently. After Dowell herself told reporters last week she opposed the levy in any form, the mayor's team floated another version this weekend where the tax would again apply to companies with 100 employees, but the $18 million that would be restored from that tweak would go toward small businesses in mainly South and West Side wards, three sources said.
Those grants, framed as a reimbursement, would apply only in Socioeconomically Distressed Areas (SEDAs), sources said. The official revenue ordinance that Johnson submitted to be voted on Monday went with the 100-employee version of the head tax, and carved out $18 million for a "Community Business Grant Program."
Johnson's third budget cycle was expected to be his most difficult yet given the city's longstanding fiscal issues and the limited options he had to pull new levers for revenue. The City Council, growing into a new era of rebellion for multiple administrations now, has smelled blood in the water and criticized multiple aspects of his plan. But the mayor has countered that he has yet to see aldermen propose an alternate budget.
With his plan now stalled on Monday, it appears he and the council will have to go back to the drawing board to find a combination of cost-cutting and new revenue that can get to 26 out of 50 votes — or 25, if Johnson is willing to cast a tie breaker.
The road to that threshold has proven difficult for Johnson given that his most ideologically aligned bloc — the Progressive Caucus — is not sizable enough to get over that hump, and not all of those aldermen are won over by his head tax and the rest of his proposal. Thus, the mayor will need the Black Caucus on board, but some of those members are also hesitant on that tax and other components.
"Council has the budget. Council has the budget," Ervin told reporters on Friday.
Dowell, who has been caught between her role on the mayor's leadership team and her unequivocal disapproval of a major component of his revenue package, sided with her colleagues against her own motion to recess. But some who voted with Lopez and Beale — including progressive Ald. Daniel La Spata — might have done so because they wanted to allow at least a floor debate, not necessarily a vote, on Monday.
The mayor has framed the case for his head tax and 2026 budget as an existential fight against Trump, who remains unpopular in Chicago. Johnson and his allies have argued without the head tax, the only alternative is punishing "working people" via a property tax hike, which he's drawn a red line against for 2026 after failing to raise that levy in his previous budget fight.
Johnson's unsuccessful weekend push to quickly pass the budget had clearly left an impact among some aldermen: frayed trust.
Ald. Timmy Knudsen said the mayor's team spread "a complete lie" about him by telling other City Council members that the Lincoln Park alderman supported a head tax. "I have been a 'heck no' the whole time," he added.
Knudsen, 43rd, called the move a "grasping at straws" effort to "get a few cheap votes."
"This body does not trust them, and things like this are pretty direct evidence as to why," he said. "Instead of having those holistic negotiations, they are trying to sneak their budget through however they can."
While the head and lease taxes have dominated the budget's public debate, one of the largest gap-fillers is his planned $1 billion surplus of special tax increment financing districts.
Sweeping $1 billion from more than half of Chicago's existing TIFs would close $233 million of the city's own budget gap and provide a lifeline to Chicago Public Schools. The district and its school building fund would receive $572.6 million from the surplus, which CPS officials and the Chicago Teachers Union said would prevent harmful midyear cuts and allow the city to get paid back for a $175 million pension payment for non-teacher CPS employees. That payment is key to helping close the city's year-end 2025 deficit.
Johnson, who has historically criticized TIF for reinforcing the city's disinvestment in Black and brown communities, said the surplus would help defend against the impacts of Trump's education cuts on CPS.
Many aldermen bristled at Johnson's plans to skim that much money over concerns it would delay or halt future economic development projects in their wards. Johnson administration officials have said property tax revenue growth that fuels TIF funds' bottom lines has been strong enough that many coffers would be quickly refilled and that no budgeted projects would be canceled.
CTU leadership has been lobbying hard for aldermen not to back away from the record amount, creating a website with a calculator they say shows cuts to school budgets and jobs by ward if the City Council voted no altogether. It was an implicit message to parents: If your alderman opposes Johnson's budget, they support these cuts to your schools — though opponents disputed the one-to-one fiscal impact.
Meanwhile, a coalition of building trades — unions that represent carpenters, plumbers, laborers, engineers, iron workers, painters, and electrical workers — have urged that "no" vote, arguing such a large TIF surplus would starve their workers of construction jobs. TIF revenues largely fund building renovations, road work and other infrastructure projects.
Aldermen would be hard-pressed to vote against any TIF surplus because they would have to find gap-filling cuts or revenue elsewhere. The search for a head tax alternative has already been difficult.
Johnson's revenue ordinance contains dozens of smaller tax and fee hikes, including a social media amusement tax of $0.50 per active user per month over 100,000 users (netting an estimated $31 million); extending the 10.25% tax on in-person sports wagering to online bets ($26.2 million); expanding the current "congestion surcharge zone" on Uber and Lyft rides ($17 million); tripling the boat mooring tax from 7% to 23.25% ($3.3 million); and 22 other smallish revenue tweaks to fines and fees, bringing in less than $6 million each.
Johnson also plans to plug at least part of his deficit by borrowing. That includes $166 million to pay for retroactive payments for the recently-inked union contract with Chicago firefighters and $283.3 million for settlements and judgements, including the $90 million "global" settlement for alleged victims of former Chicago police Sgt. Ronald Watts. But while it helps plug the 2026 gap, borrowing for the contracts and settlements will cost roughly $50 million in the following years, finance officials estimated earlier this month.
Chief Financial Officer Jill Jaworski said Monday the costs were "extraordinary" and that the global settlement for Watts, which puts 176 pending suits to rest, would reduce the city's long-term liability. They will be paid back over five years, while the retroactive pay will be paid off over three, a shorter term than historic borrowing for settlements.
The city is also asking for permission to refinance up to $2 billion in old debt over the next three years for potential savings. Jaworski said approval of that extra bonding authority would allow the city to broaden a "very successful" refinancing already underway this week that could net an extra $35 million in savings on top of the $30 million they've already budgeted for.
* * *
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Source Name [121]: Mayor Johnson's record-setting $1 billion TIF surplus highlights issues Full URL: https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/ Scraped Date/Time: 2025-11-22 22:38:02
#### [Bryce Hill](https://www.illinoispolicy.org/author/bhill/)
Director of Fiscal and Economic Analysis
[](https://www.illinoispolicy.org/author/bhill/)
<span style="color: #0066cc; font-weight: bold;">[Budget + Tax](https://www.illinoispolicy.org/category/budget-tax/)</span> [121]
by [Bryce Hill](https://www.illinoispolicy.org/author/bhill/)
October 24, 2025
# Mayor Johnson's record-setting $1 billion TIF surplus highlights issues
Chicago Tax Increment Finance "surpluses" have increased more than ninefold in the past decade.
Chicago Mayor Brandon Johnson unveiled his plan to close Chicago's $1.15 billion budget shortfall for 2026 on October 16. Among the mayor's recommendations, were to declare a record-setting $1 billion "surplus" in the city's Tax Increment Financing districts balances.
The move, which is a one-time fund sweep, would result in an additional $232.6 million in additional revenue for the city and an even larger amount, estimated at $552.4 million for the Chicago Public Schools budget.
In the wake of the mayor's proposal many aldermen are [questioning](https://abc7chicago.com/post/what-are-tif-funds-experts-explain-tax-increment-financing-amid-chicago-public-schools-budget-crisis/15413919/) the decision, while others are highlighting the fundamental issues with Tax Increment Finance districts themselves. In the past decade, the amount of TIF dollars the city has declared as "surplus" has increased by nearly ninefold, rising from $113 million in 2016, to more than $1 billion for the 2026 fiscal year.
Chicago TIF "surpluses" now top $1 billion
### Chicago TIF "surpluses" now top $1 billion
Annual TIF surpluses by fiscal year 2016-2026, $ in millions
0200M400M600M800M$1B
$113M
$177M
$171M
$176M
$300M
$304M
$272M
$395M
$435M
$571M
$1B
Chart:**@illinoispolicy**Get the dataCreated with [Datawrapper](https://www.datawrapper.de/_/mB2M9)
While the city of Chicago has relied on fund sweeps from TIFs to balance the city budget for nearly two decades, the reliance on TIF surpluses has surged in recent years. The consistent "surpluses" suggest that either many TIF districts do not need a significant amount of revenue for redevelopment projects, or that the city is abusing TIF districts in order to create a piggybank of funds for the city, school district, and other units of local government to pillage for increased spending without having to directly ask taxpayers for more money.
Either scenario raises fundamental questions about Chicago's TIF system and perpetuates the structural budget issues driving Chicago's recurring budget deficits.
**What is a TIF district?**
Tax Increment Financing districts are partitioned areas within the city where additional tax revenues are supposed to be specifically dedicated to redevelopment within the district and separate from the city budget. TIF districts raise money primarily through the growth in property tax revenues within the community, which is then supposed to be used to spur economic development within the "blighted" areas of the city.
For the city to create a TIF district, officials must determine the area to be blighted, deteriorating, or in need of development but these definitions are very vague.That's what allows Chicago to implement TIF districts in the Loop and River North.
Once established, TIF districts "freeze" the equalized assessed value of property within the district for local taxing bodies, meaning that the growth in property tax revenues due to changes in property values all goes directly to the TIF district. However, it is important to note that TIFs do not hinder the ability of local governments to raise revenue, since local units of government set their property tax levies independently of the taxable value of property.
Instead, TIFs simply serve to drive up property taxes on everyone as the full value of their property is not considered in the property tax base, leading to higher tax rates applied by taxing bodies. Those within the TIF district don't get a break either, as they pay the same tax rate as those outside the district, their tax dollars just go to the TIF district rather than other taxing bodies.
TIF districts last for 23 years, with an option to extend their lifespan for an additional 12 years. Since their inception in 1984, 185 TIF districts have been created in Chicago, yielding more than [$5 billion](https://chicagopolicyreview.org/2023/04/13/redevelopment-for-who-how-tif-redistributes-public-funds-to-the-wealthy/#:~:text=Through%2520the%2520nineties%2520and%2520aughts%252C%2520the%2520use,in%2520subsidies%2520and%2520funding%2520nearly%2520700%2520projects.) in revenue. There are currently 124 active TIF districts across Chicago.
**How can TIF funds be in surplus?**
Per [state legislation](https://www.ilga.gov/Documents/legislation/ilcs/documents/006500050K11-74.4-3.htm), any money within a TIF fund that has not been pledged for specific projects can be considered surplus and is to be distributed to the overlying local taxing districts proportionately to their property tax levies. In Chicago, where roughly 55% of property taxes go to the Board of Education, that means that CPS will get 55% of any TIF surpluses, the city will receive about 27% and other units of government will get smaller, proportionate shares of the revenue.
This practice used to be much less common until Mayor Emanuel signed an [executive order](https://chicityclerk.s3.us-west-2.amazonaws.com/s3fs-public-1/reports/Executive%2520Order%25202013-3_0.pdf?VersionId=UHdgYC4vn9ZVSvErZXLc1BXDUP_v6122) formalizing the annual declaration of TIF surpluses in 2013.Now the city annually declares surplus funds as part of the city budget in three primary ways:
1. Downtown Freeze" TIFs are those in and around the Central Business District that have been reserved only for major infrastructure and targeted economic diversification projects. The full available balance in these TIFs is declared surplus each year.
2. TIFs being terminated or otherwise ending must have any balance after closing out projects returned as surplus.
3. For the remaining TIFs, surplus is declared in TIFs with a balance over $750,000. The city declares 25% of the balance over $750,000, progressing up to 100 percent of the balance over $2.5 million.
Because property tax rates are determined without considering the growth in property values within a TIF district, when property values grow rapidly within the district, so too do the tax collections of the TIF. This is what has happened in recent years to allow for record-breaking TIF surpluses annually, as the cost of redevelopment projects remains relatively flat, the boon in TIF collections can be used as surplus.
However, the surplus declaration process, in addition to the creation of TIF districts in general, offers the potential for abuse. The surplus funds declaration can provide some incentive for the city to delay projects within TIF districts to have additional resources available for the city budget.
While TIFs don't hinder local governments from raising revenue, they can offer taxing bodies an additional avenue for revenues if they carry a surplus. This is particularly important for areas subject to Illinois' Property Tax Extension Limitation Laws, where growth in property tax levies is capped.In tax-capped areas like Chicago, TIFs offer taxing bodies the ability to collect additional property taxes without an explicit property tax hike.
Whether Mayor Johnson's budget proposal is doing this or simply taking advantage of the rapid increases in property values spiking TIF balances is unclear. Still, the city is certainly benefitting from TIFs in ways that they were not intended to when the districts were created.
If TIFs are found to carry large surpluses, the funds should either develop plans to reinvest in the community as designed, or the districts should be dissolved and the money returned to taxpayers. However, it should be noted that when TIF districts expire or are terminated, local taxing bodies can capture all of the "unlocked" revenue into their property tax bases without being subject to PTELL, even though they have not limited the collection of property taxes for any taxing body.
Rather than utilizing large one-time fund sweeps to balance the budget, Johnson's budget strategy for Chicago should focus on [structural reform](https://www.illinoispolicy.org/reports/chicago-forward-2026-a-pro-growth-plan-to-end-city-budget-deficits/) that corrects years of financial mismanagement and fosters long-term economic growth. The city should also conduct regular reviews of TIF districts and their associated projects and a deadline system to prevent funding for anticipated projects from being withheld indefinitely, as previously [recommended](https://igchicago.org/wp-content/uploads/2023/11/UPDATED-OIG-Follow-up-to-TIF-Sunshine-and-Surplus-Audit.pdf) by the Office of the Inspector General.
##### Topics on this page
[Chicago](https://www.illinoispolicy.org/topic/chicago/) [Chicago Public Schools](https://www.illinoispolicy.org/topic/chicago-public-schools/) [Rahm Emanuel](https://www.illinoispolicy.org/topic/rahm-emanuel/) [Tax increment financing](https://www.illinoispolicy.org/topic/tax-increment-financing/) [Office of Inspector General](https://www.illinoispolicy.org/topic/office-of-inspector-general/)
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Source Name [122]: Chicago Mayor's $16.555B 2026 Budget Proposal Relies on Revived 'Head Tax' on Big Businesses, $1B TIF Surplus to Address $1.189B Projected Deficit Full URL: https://octus.com/resources/articles/chicago-budget-proposal-relies-on-revived-head-tax-on-big-businesses/ Scraped Date/Time: 2025-11-22 22:38:02
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**Reporting:** [John Marino](mailto:john.marino@octus.com)
_Relevant Documents:_
[Press Release](https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html)
[2026 Proposed Budget Overview](https://new.octus.com/data/documents/20251016/68f137738e03e.pdf)
Chicago Mayor Brandon Johnson unveiled a proposed $16.555 billion budget for 2026 that addresses a projected budget gap of more than $1 billion with a host of recommended tax increases, including a "head tax" of $21 per employee on businesses with 100 employees or more, which is projected to raise up to $100 million per year. City officials now estimate next year's budget gap at $1.189 billion, up from a previous estimate of [$1.150 billion.](https://app.octus.com/v3#/items/intel/3633?item_id=338503)
The proposed budget relies on the declaration of a $1 billion tax increment financing, or TIF, surplus, the largest in city history, which the mayor said would enable the city to make its largest investment ever in Chicago Public Schools, or CPS. The TIF surplus will provide an estimated $232.6 million for the city's corporate fund and $552.4 million for CPS. The mayor's spending plan also contemplates the use of $166 million of unspecified "financing" proceeds.
The spending proposal also reduces a planned advance pension payment, which would save $117.8 million, according to budget documents. During last year's budget process, city CFO Jill Jaworski [defended](https://app.octus.com/v3#/items/intel/3633?item_id=290537) the practice of making advance pension payments, which last year totaled $272 million. The payments aim to halt the growth of unfunded city pension liabilities and are a major factor supporting the city's credit rating, according to Jaworski. The proposed budget has a $2.76 billion pension appropriation for the city's four pension funds.
During a budget address before city council today, the mayor framed his spending plan, dubbed the "Protecting Chicago Budget," as a response to federal funding cuts by President Donald Trump's administration in areas such as healthcare, nutritional assistance, education, public safety and housing. For example, the mayor said the budget would not propose the continuance of a 1% grocery tax that would raise about $80 million because of Trump's cuts to the Supplemental Nutrition Assistance Program, even though Jaworski and city Budget Director Annette Guzman [emphasized the importance of the tax](https://app.octus.com/v3#/items/intel/3633?item_id=323910) for city finances earlier this year in urging lawmakers to approve an extension of the tax.
All told, Johnson is proposing $437.5 million of "revenue enhancements" through taxes and fees. The head tax, which is being called a "community safety surcharge," would rise automatically with inflation, according to the proposal. Chicago imposed a head tax from 1973 and 2014 of between $2 and $4 per month per taxable employee. While proponents say the tax helps defray costs of services needed by large-scale businesses, opponents say the tax is a "job killer" because it provides a direct disincentive to hiring employees, according to a Civic Federation [report](https://www.civicfed.org/civic-federation/blog/will-chicago-restore-head-tax).
Other proposed taxes include a social media amusement and responsibility tax, or SMART, which would levy a charge on social media companies of 50 cents per active user over 100,000 in Chicago and is expected to generate $31 million to fund mental health services. Other taxes aim to counter what Johnson calls the Trump administration's "massive tax cuts for large corporations and the ultra-rich" by targeting the wealthiest Chicagoans and the largest corporations in the city. These include a "yacht tax" that would increase the boat-mooring tax at city harbors to 23.25% from 7%, an increase in the city's vacant building fee, and taxes on "Big Tech" companies through an increase in the city's personal property lease tax, or PPLT, rate. The city said it also expects to raise $18.3 million through asset sales and special event cost recovery and indicated that improved revenue projections would add another $20.4 million
The mayor also says the administration would realize more than $200 million in cost savings, including $100.6 million through a hiring freeze and other personnel savings and $111.9 million in operational efficiencies. The city would also achieve $80.9 million of savings by shifting funding sources for certain appropriations, according to budget documents. Johnson said his spending plan does not contemplate layoffs.
The proposed 2026 budget for all funds totals $16.555 billion, comprising $12.7 billion in local funds and $3.8 billion in grant funds, which is 3.2% less than last year's budget, as shown below:
Officials said that the decrease in the overall budget reflects the expiration of one-time pandemic-era recovery grants and a reduction in pension payments, which are projected at $2.76 billion next year versus $2.906 billion this year. Debt service, however, is projected to increase to $552.1 million in 2026 from $539.7 million, according to the budget proposal.
Officials note that the corporate fund, which would increase by 4.7% under the proposed spending plan, and other local funds are increasing as a result of inflation and rising personnel costs. The 2026 spending plan also "advances strategic investments to protect residents while reducing reliance on one-time resources and replacing them with recurring, sustainable revenue sources," according to the budget documents.
Major funding sources for the $6.06 billion corporate fund in the proposed budget and how they compare to the current budget are outlined below:
This publication has been prepared by Octus, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient's use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the "Applicable Terms"). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2025 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.
Source Name [123]: Acquired: Over half a billion dollars for our schools Full URL: https://www.ctulocal1.org/posts/acquired-over-half-a-billion-dollars-for-our-schools/ Scraped Date/Time: 2025-11-22 22:38:02
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<span style="color: #0066cc; font-weight: bold;"># Acquired: Over half a billion dollars for our schools</span> [123]
By CTU Communications \| October 16, 2025 \| [\_News](https://www.ctulocal1.org/posts/category/news/)
File under: [CPS budget](https://www.ctulocal1.org/posts/tag/cps-budget/), [Mayor Brandon Johnson](https://www.ctulocal1.org/posts/tag/mayor-brandon-johnson/)
Today is a day of such significance, it deserves a longer email.
But **the TLDR is that Mayor Johnson is proposing a budget to Protect Chicago. In the proposal is a never-before historic release of TIF funds that will result in over half a billion dollars for our schools.** That's enough to fulfill the $379M already budgeted, secure Black Student Success regardless of Trump cuts, and kick in for the retirement of the backbone of our schools, the workers whose pensions are in the MEABF.
Now, we need to tell our Aldermen to vote yes.
**[Tell Your Alderperson "Vote Yes" on\\**\\\n**\\**\\\n**the Protect Chicago Budget.](https://www.ctulocal1.org/posts/alder-letters-budget-2025/)**
Today, Mayor Johnson put forward a local answer to the DOGE team at the White House and the DOGE caucus in council. Invest in our communities, protect our city from cuts, put working people first by making the tech corporations pay their fair share.
**With all of us pushing aldermen to vote yes and make sure the city does its part, it'll be up to Springfield to follow suit.** This is an incredible and unexpected move to stabilize our schools, but restoring the cuts and the full funding we need can only be done if the Governor and IL General Assembly act as boldly.
So today, we celebrate the difference of having a union man and a teacher as mayor instead of a privatizer, we commit to pushing city council to keep their promise to our schools, and we get ready to make sure the Governor and ILGA do the same.
## Now for the background…
One year ago, we were in the fight of our lives. A CEO who refused to prioritize our students. A $734 million deficit that threatened our schools. Donald Trump's burgeoning attacks on everything we've built.
Today, we're celebrating a historic budget that protects our city.
## Our Road
In December, the Board of Education voted for new CPS leadership. After eleven months of bargaining and working without a contract, in April, we won the most transformative contract in CTU history.
We won enforceable class sizes, doubled librarians and bilingual supports, and tripled sustainable community schools. We protected Black history, codified sanctuary school protections, and created LGBTQIA+ safe schools. This contract turned the page on decades of disinvestment in Black children and working families.
But by summer, the state's perpetual underfunding meant CPS reported a $734 million budget hole. In August, the Board passed a budget that kept schools open but included painful cuts: 480 custodial jobs, fewer crossing guards, fewer hot meals.
That budget relied on [a promise from a majority of aldermen](https://www.ctulocal1.org/wp-content/uploads/2025/08/Alder-Letter-0827.jpeg) to deliver a TIF surplus that the very next day [we were told wouldn't be happening](https://x.com/SSKedreporter/status/1961552391104237976). But spoiler: the Mayor is helping them keep their promise.
While we faced our local challenges, everything has heightened as Trump wages war on our city and our values. The madman attempted to eliminate the Department of Education, slashed SNAP benefits that feed our families, and cut staff charged with funding special education students across the country.
He unleashed federal agents to terrorize Chicago families and communities, and withheld funding for both the Black Student Success Program and trans student protections that our union fought for and won.
Mayor Johnson passed executive orders to protect the right to protest, stood with us at Funston Elementary, and now is promoting a Protect Chicago budget.
[**Tell your alder "Vote Yes"**](https://www.ctulocal1.org/posts/alder-letters-budget-2025/)
## Our Victory
While Trump destroys, Mayor Brandon Johnson delivers. The budget the mayor presented today includes a record TIF surplus of $520 million – more than half a billion dollars – for Chicago Public Schools. The mayor isn't placing more burden on working families, but taxing large corporations and Big Tech companies. There are no property tax increases on our households. This is the most historic TIF surplus in our city's history and together with other provisions in the Mayor's budget makes it possible to:
- Protect the Black Student Success Plan from Trump's assaults
- Add critical funding to special education to counter federal cuts
- Provide resources for social and emotional support and expand free mental health clinics and crisis response teams
- Ensure our lowest-paid workers receive their hard-earned retirement security
- Expand youth employment, peacekeeping in our communities, and early childhood education through a new $100 million community safety fund
- Fund the legal fights to challenge Trump's illegal withholding of resources and protect vulnerable communities from federal overreach
Today's historic investment is a victory, but it's not the finish line. It's what real leadership looks like. It's what's possible when you fight for working families instead of against them.
[**Tell your alder "Vote Yes"**](https://www.ctulocal1.org/posts/alder-letters-budget-2025/)
It's what we need our Governor and IL General Assembly to mirror at the state level. Chicago can only do so much while Illinois' tax system is upside down. We need our state government to fight Trump cuts with ending tax breaks for the ultra-wealthy and to protect Illinois with the promised but undelivered resources to our schools, transit, and public institutions.
## Our Lesson
Nearly 200 years ago, the Chicago City Council voted to refuse cooperation with fugitive slave patrols, and Chicagoans created liberty associations to keep each other free. A century ago, Pullman porters helped build this city into a Black metropolis. We have been knee deep in the legacy of Black Renaissance and resistance ever since. Today's budget, the budget to protect Chicago, is that legacy.
The mayor's budget brings half a billion dollars to fill the hole left by the $1.6 billion the state still owes Chicago Public Schools, and we cannot let Springfield off the hook.
Chicago doesn't need any more austerity. Our government – our people – have been starved enough. We need delivery on the promise of freedom and opportunity that brought generations to this city: good jobs, safe communities, and fully funded schools.
Mayor Johnson is showing us how a union mayor in a union town leads when working families are under attack. He's doing his part. And the reality is, there's only so much city government can do. That's why our next stop is Springfield. Governor JB Pritzker and the General Assembly must follow the example Chicago is setting.
## Our Future
Communities are under siege. Trump has declared war on our city and our values. But he's learning that Chicago is a city that protects its own. Chicago has always been a city that protects its own, and our union – our labor – is leading that fight.
We're fighting for every dollar our students are owed: nearly two billion from Springfield, the resources to counter Trump's cuts, and the investment our communities have been denied for generations. Today's budget and the election of the mayor who made it possible prove that we can win. We're continuing to fight for full funding, for sanctuary protections, and for the promise this city made to working families.
We stand at the crossroads, but Mayor Johnson is pointing the path forward today. Now, we march on the road to reconstruction for fully funded schools, fully protected communities, and as a union that will never, ever back down.
In Solidarity,
Your CTU Leadership Team
President Stacy Davis Gates
Vice President Jackson Potter
Recording Secretary Vicki Kurzydlo
Financial Secretary Dr. Diane Castro
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Source Name [124]: Chicago Mayor's Head Tax Plan Defeated in Council Committee Vote Full URL: https://www.cpapracticeadvisor.com/2025/11/17/chicago-mayors-head-tax-plan-defeated-in-council-committee-vote/173281/ Scraped Date/Time: 2025-11-22 22:38:02
<span style="color: #0066cc; font-weight: bold;">[Home](https://www.cpapracticeadvisor.com/) > [Taxes](https://www.cpapracticeadvisor.com/section/taxes/)</span> [124]
[Taxes](https://www.cpapracticeadvisor.com/section/taxes/) \| November 18, 2025
# Chicago Mayor's Head Tax Plan Defeated in Council Committee Vote
Chicago aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee vote, a historic display of rebellion against the freshman mayor who has been struggling to shore up support for his controversial head tax.
[](https://www.linkedin.com/sharing/share-offsite/?url=https://www.cpapracticeadvisor.com/2025/11/18/chicago-mayors-head-tax-plan-defeated-in-council-committee-vote/173281/)[](http://www.twitter.com/share?url=https://www.cpapracticeadvisor.com/2025/11/18/chicago-mayors-head-tax-plan-defeated-in-council-committee-vote/173281/)[](https://www.facebook.com/sharer/sharer.php?u=https://www.cpapracticeadvisor.com/2025/11/18/chicago-mayors-head-tax-plan-defeated-in-council-committee-vote/173281/)[](https://www.cpapracticeadvisor.com/2025/11/18/chicago-mayors-head-tax-plan-defeated-in-council-committee-vote/173281/#)
By Alice Yin, Jake Sheridan, and A.D. Quig
Chicago Tribune
(TNS)
Aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee vote, a historic display of rebellion against the freshman mayor who has been struggling to shore up support for his [controversial head tax](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/).
Johnson's handpicked Finance Committee chair, Ald. Pat Dowell, moved to recess a meeting instead of considering the revenue ordinance for the mayor's $16.6 billion budget, a sign that the mayor expected to lose. Last week, Dowell [said a Monday vote](https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/) would be "premature," but she would allow it if the mayor nonetheless wanted to proceed.
Mayoral foes Alds. Raymond Lopez and Anthony Beale tabled her recess motion on a 24-7 roll call. Johnson's budget chair, Ald. Jason Ervin, then faltered with a superseding motion to recess the meeting later that afternoon until Dec. 2, which resulted in a 18-18 tie.
The 25-10 vote shooting down the revenue package was a remarkable rebuke against the first-term chief executive who has steadily overseen more losses in City Council than his predecessors. But not in modern times has a mayor lost a budget vote, even in committee.
How aldermen navigate the waters after Monday's defiance could chart a new course in City Hall's power dynamics and prove consequential to Chicago's longstanding fiscal woes, but their stance against the mayor sends the process for a second straight year toward a critical end-of-year deadline.
Earlier Monday afternoon, top Johnson adviser Jason Lee clutched a paper with what appeared to be his vote predictions as he lobbied on-the-fence aldermen as they grilled mayor's budget and finance teams. A few moments later, Lopez interjected to accuse Lee of inappropriately lobbying on the City Council floor against rules. Lee quickly left the room, but turned back to aldermen and blew a two-handed kiss.
The mayor's path ahead for the head tax remains fraught. Any attempts to water down or kill his head tax could lose critical support from progressives. And there are still other council members who are against his plan to halve the advance pension payment and issue more borrowing.
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November 12, 2025
[**Chicago Mayor Floating Change to Head Tax Proposal, Sources Say**](https://www.cpapracticeadvisor.com/2025/11/12/chicago-mayor-floating-change-to-head-tax-proposal-sources-say/173008/ "Chicago Mayor Floating Change to Head Tax Proposal, Sources Say")
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[Taxes](https://www.cpapracticeadvisor.com/section/taxes/)
November 11, 2025
[**Chicago Alderman Yells at Gov. JB Pritzker Over Opposition to Mayor's Head Tax Plan**](https://www.cpapracticeadvisor.com/2025/11/11/chicago-alderman-yells-at-gov-jb-pritzker-over-opposition-to-mayors-head-tax-plan/172934/ "Chicago Alderman Yells at Gov. JB Pritzker Over Opposition to Mayor's Head Tax Plan")
[](https://www.cpapracticeadvisor.com/2025/11/10/high-stakes-for-chicago-mayor-brandon-johnsons-progressive-agenda-in-head-tax-push/172712/ "High Stakes for Chicago Mayor Brandon Johnson's Progressive Agenda in Head Tax Push")
[Taxes](https://www.cpapracticeadvisor.com/section/taxes/)
November 10, 2025
[**High Stakes for Chicago Mayor Brandon Johnson's Progressive Agenda in Head Tax Push**](https://www.cpapracticeadvisor.com/2025/11/10/high-stakes-for-chicago-mayor-brandon-johnsons-progressive-agenda-in-head-tax-push/172712/ "High Stakes for Chicago Mayor Brandon Johnson's Progressive Agenda in Head Tax Push")
[](https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/ "Chicago City Council Majority Objects to Mayor Reinstating Head Tax")
[Taxes](https://www.cpapracticeadvisor.com/section/taxes/)
November 3, 2025
[**Chicago City Council Majority Objects to Mayor Reinstating Head Tax**](https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/ "Chicago City Council Majority Objects to Mayor Reinstating Head Tax")
The council must finalize the 2026 budget by the end of this year. Last year, the mayor took that timeline to the latest it's been pushed in decades but ultimately clinched 27 votes by mid-December. Johnson this time around has made his wishes to forge full steam ahead clear, including in a Friday afternoon news conference in which he argued to his legislative counterparts "to slow it down just for the sake of slowing it down, it just doesn't make sense."
The freshman mayor first pitched the surcharge, which his team projected to raise $100 million, when he unveiled his plan to close a $1.19 billion budget gap for next year. During his October address to City Council, he framed the proposal to bring back the head tax after its 2014 repeal as the city's best chance to stand up to President Donald Trump and tax the rich.
That argument has struggled to win over allies and opponents alike. Last week, Johnson's team started floating a modified version that would up the minimum company size from 100 to 200 employees, after complaints that small business owners would be swept up by the surcharge. The $100 million revenue estimate went down to $82 million, and that $18 million gap would be filled by bumping up the personal property lease tax to 15%.
That didn't do the trick, apparently. After Dowell herself told reporters last week she opposed the levy in any form, the mayor's team floated another version this weekend where the tax would again apply to companies with 100 employees, but the $18 million that would be restored from that tweak would go toward small businesses in mainly South and West Side wards, three sources said.
Those grants, framed as a reimbursement, would apply only in Socioeconomically Distressed Areas (SEDAs), sources said. The official revenue ordinance that Johnson submitted to be voted on Monday went with the 100-employee version of the head tax, and carved out $18 million for a "Community Business Grant Program."
Johnson's third budget cycle was expected to be his most difficult yet given the city's longstanding fiscal issues and the limited options he had to pull new levers for revenue. The City Council, growing into a new era of rebellion for multiple administrations now, has smelled blood in the water and criticized multiple aspects of his plan. But the mayor has countered that he has yet to see aldermen propose an alternate budget.
With his plan now stalled on Monday, it appears he and the council will have to go back to the drawing board to find a combination of cost-cutting and new revenue that can get to 26 out of 50 votes—or 25, if Johnson is willing to cast a tie breaker.
The road to that threshold has proven difficult for Johnson given that his most ideologically aligned bloc—the Progressive Caucus—is not sizable enough to get over that hump, and not all of those aldermen are won over by his head tax and the rest of his proposal. Thus, the mayor will need the Black Caucus on board, but some of those members are also hesitant on that tax and other components.
"Council has the budget. Council has the budget," Ervin told reporters on Friday.
Dowell, who has been caught between her role on the mayor's leadership team and her unequivocal disapproval of a major component of his revenue package, sided with her colleagues against her own motion to recess. But some who voted with Lopez and Beale—including progressive Ald. Daniel La Spata—might have done so because they wanted to allow at least a floor debate, not necessarily a vote, on Monday.
The mayor has framed the case for his head tax and 2026 budget as an existential fight against Trump, who remains unpopular in Chicago. Johnson and his allies have argued without the head tax, the only alternative is punishing "working people" via a property tax hike, which he's drawn a red line against for 2026 after failing to raise that levy in his previous budget fight.
Johnson's unsuccessful weekend push to quickly pass the budget had clearly left an impact among some aldermen: frayed trust.
Ald. Timmy Knudsen said the mayor's team spread "a complete lie" about him by telling other City Council members that the Lincoln Park alderman supported a head tax. "I have been a 'heck no' the whole time," he added.
Knudsen, 43rd, called the move a "grasping at straws" effort to "get a few cheap votes."
"This body does not trust them, and things like this are pretty direct evidence as to why," he said. "Instead of having those holistic negotiations, they are trying to sneak their budget through however they can."
While the head and lease taxes have dominated the budget's public debate, one of the largest gap-fillers is his planned $1 billion surplus of special tax increment financing districts.
Sweeping $1 billion from more than half of Chicago's existing TIFs would close $233 million of the city's own budget gap and provide a lifeline to Chicago Public Schools. The district and its school building fund would receive $572.6 million from the surplus, which CPS officials and the Chicago Teachers Union said would prevent harmful midyear cuts and allow the city to get paid back for a $175 million pension payment for non-teacher CPS employees. That payment is key to helping close the city's year-end 2025 deficit.
Johnson, who has historically criticized TIF for reinforcing the city's disinvestment in Black and brown communities, said the surplus would help defend against the impacts of Trump's education cuts on CPS.
Many aldermen bristled at Johnson's plans to skim that much money over concerns it would delay or halt future economic development projects in their wards. Johnson administration officials have said property tax revenue growth that fuels TIF funds' bottom lines has been strong enough that many coffers would be quickly refilled and that no budgeted projects would be canceled.
CTU leadership has been lobbying hard for aldermen not to back away from the record amount, creating a website with a calculator they say shows cuts to school budgets and jobs by ward if the City Council voted no altogether. It was an implicit message to parents: If your alderman opposes Johnson's budget, they support these cuts to your schools—though opponents disputed the one-to-one fiscal impact.
Meanwhile, a coalition of building trades—unions that represent carpenters, plumbers, laborers, engineers, iron workers, painters, and electrical workers—have urged that "no" vote, arguing such a large TIF surplus would starve their workers of construction jobs. TIF revenues largely fund building renovations, road work and other infrastructure projects.
Aldermen would be hard-pressed to vote against any TIF surplus because they would have to find gap-filling cuts or revenue elsewhere. The search for a head tax alternative has already been difficult.
Johnson's revenue ordinance contains dozens of smaller tax and fee hikes, including a social media amusement tax of $0.50 per active user per month over 100,000 users (netting an estimated $31 million); extending the 10.25% tax on in-person sports wagering to online bets ($26.2 million); expanding the current "congestion surcharge zone" on Uber and Lyft rides ($17 million); tripling the boat mooring tax from 7% to 23.25% ($3.3 million); and 22 other smallish revenue tweaks to fines and fees, bringing in less than $6 million each.
Johnson also plans to plug at least part of his deficit by borrowing. That includes $166 million to pay for retroactive payments for the recently-inked union contract with Chicago firefighters and $283.3 million for settlements and judgements, including the $90 million "global" settlement for alleged victims of former Chicago police Sgt. Ronald Watts. But while it helps plug the 2026 gap, borrowing for the contracts and settlements will cost roughly $50 million in the following years, finance officials estimated earlier this month.
Chief Financial Officer Jill Jaworski said Monday the costs were "extraordinary" and that the global settlement for Watts, which puts 176 pending suits to rest, would reduce the city's long-term liability. They will be paid back over five years, while the retroactive pay will be paid off over three, a shorter term than historic borrowing for settlements.
The city is also asking for permission to refinance up to $2 billion in old debt over the next three years for potential savings. Jaworski said approval of that extra bonding authority would allow the city to broaden a "very successful" refinancing already underway this week that could net an extra $35 million in savings on top of the $30 million they've already budgeted for.
**Photo caption:** Chicago Mayor Brandon Johnson leads a City Council meeting on Nov. 14, 2025. Many people spoke about his proposed budget during the public comment portion of the meeting. (Terrence Antonio James/Chicago Tribune/TNS)
\\\\_\\\\_\\\\_\\_\\_\\_\\_\n\n©2025 Chicago Tribune. Visit [chicagotribune.com](https://www.chicagotribune.com/). Distributed by Tribune Content Agency LLC.
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Tags: [Brandon Johnson](https://www.cpapracticeadvisor.com/tag/brandon-johnson/), [Chicago](https://www.cpapracticeadvisor.com/tag/chicago/), [corporate head tax](https://www.cpapracticeadvisor.com/tag/corporate-head-tax/), [corporate tax](https://www.cpapracticeadvisor.com/tag/corporate-tax/), [corporate taxes](https://www.cpapracticeadvisor.com/tag/corporate-taxes/), [Taxes](https://www.cpapracticeadvisor.com/tag/taxes/)
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Source Name [125]: Johnson's "Protecting Chicago" budget proposes nearly $500M in tax hikes Full URL: https://www.illinoispolicy.org/johnsons-protecting-chicago-budget-proposes-nearly-500m-in-tax-hikes/ Scraped Date/Time: 2025-11-22 22:42:42
#### [Lauren Zuar](https://www.illinoispolicy.org/author/lzuar/)
[](https://www.illinoispolicy.org/author/lzuar/)
#### [Ravi Mishra](https://www.illinoispolicy.org/author/rmishra/)
[](https://www.illinoispolicy.org/author/rmishra/)
<span style="color: #0066cc; font-weight: bold;">[Budget + Tax](https://www.illinoispolicy.org/category/budget-tax/)</span> [125]
by [Lauren Zuar](https://www.illinoispolicy.org/author/lzuar/), [Ravi Mishra](https://www.illinoispolicy.org/author/rmishra/)
October 21, 2025
# Johnson's "Protecting Chicago" budget proposes nearly $500M in tax hikes
Chicago Mayor Brandon Johnson describes the 2026 budget as "Protecting Chicago," but his plan seems to do the opposite. Taxes on Artificial Intelligence, Uber rides and companies with 100+ employees are the biggest revenue sources.
Chicago Mayor Brandon Johnson unveiled his $16.6 billion budget for fiscal year 2026, covering a [$1.15 billion](https://news.wttw.com/2025/08/29/chicago-faces-115b-budget-shortfall-2026-146m-gap-2025-johnson) deficit with massive tax hikes, temporary spending adjustments and one-time revenue fixes.
While Johnson kept his promise not to raise property taxes and eliminated the [grocery tax](https://www.illinoispolicy.org/chicago-misses-grocery-tax-deadline-saving-shoppers-40m/), his plan targets the " [ultra rich](https://www.fox32chicago.com/news/chicago-johnson-tax-rich-budget)" through a spate of progressive tax measures. He calls it " [Protecting Chicago](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%2520Budget%2520Overview.pdf)."
2026 Chicago budget includes $500M in tax hikes
### 2026 Chicago budget includes $500M in tax hikes
Tax changes in 2026 proposed Chicago budget
| Tax changes | Revenue estimate |
| --- | --- |
| Increase in cloud tax | $333M |
| Community safety surcharge | $100M |
| Rideshare tax | $65M |
| Social media amusement and responsibility tax | $31M |
| Online sports betting tax | $26M |
| Hemp tax | $10M |
| Yacht tax | $4M |
| Vacant building fees | $400K |
| Grocery tax elimination | −$80M |
| Total changes | $490M |
| Savings | |
| Operational efficiencies | $112M |
| Personnel saving including hiring freezes | $101M |
| Lower advanced pension payment | $118M |
| Shifting costs | $81M |
| Total savings | $411M |
| Revenue sweeps | |
| TIF surplus | $158M |
Table with 2 columns and 18 rows. (column headers with buttons are sortable)
Table:**@Illinoispolicy**Source: [2026 proposed Chicago budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf)Get the dataCreated with [Datawrapper](https://www.datawrapper.de/_/k5cBw)
Instead of new taxes that risk driving away investment and making Chicago's already dire economic situation worse, Johnson should protect the city by curbing spending and making it easier for the economy – not the tax burden – to grow.
**Spending**
Even as total spending falls because of waning [federal grant](https://chicago.suntimes.com/donald-trump/2025/10/03/donald-trump-pause-funding-chicago-infrastructure-projects-red-line-extension) revenue, the city's corporate fund will expand to nearly $6.1 billion, [$270 million](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2025Budget/2025_Ordinance_Book_webVersion.pdf) higher than last year's budget.
Chicago corporate fund budget up 50% in five years
### Chicago corporate fund budget up 50% in five years
Chicago corporate fund budget, fiscal year 2021 to 2026
0.002.00B4.00B$6.00B
$4.04B
$4.90B
$5.44B
$5.71B
$5.79B
$6.06B
FY 2021 - 2025 based on final budgets, 2026 based on budget proposal
Chart:**@Illinoispolicy**Source: [Chicago 2026 proposed budget, Chicago budget ordinance 2021 - 2025](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf)Get the dataCreated with [Datawrapper](https://www.datawrapper.de/_/szfTZ)
Personnel expenditures supported by the corporate fund will increase by over 14% from last year, or $496.1 million. This surge is driven primarily by rising wages and healthcare costs.
**New and increased taxes and fees (total $570 million)**
_Increases the city's cloud tax ($333 million)_
Although it received heavy criticism from business leaders when it was raised [last year](https://www.illinoispolicy.org/chicago-mayor-gets-budget-without-his-300m-in-property-tax-hikes/#:~:text=The%2520largest%2520tax,among%2520major%2520cities.), Chicago's personal property lease transaction tax or " [cloud tax](https://www.illinoispolicy.org/chicago-starts-taxing-chatgpt-artificial-intelligence/#:~:text=Add%2520ChatGPT%2520to%2520the%2520list%2520of%2520things%2520Chicago%2520taxes%253A%2520As%2520of%2520Oct.%25201%252C%2520Chicago%25E2%2580%2599s%2520personal%2520property%2520lease%2520transaction%2520tax%2520slapped%2520a%25209%2525%2520tax%2520on%2520the%2520artificial%2520intelligence%2520platform.)" would become the [highest](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit#:~:text=highest%2520in%2520the%2520nation) in the nation in 2026, [increasing](https://chicityclerk.s3.us-west-2.amazonaws.com/s3fs-public-1/2026%2520Budget%2520Overview_0.pdf) from 11% to 14%. The nearly 27% hike will hit computer software and artificial intelligence platform services used by tech companies, such as Apple and Amazon.
This will undermine the governor's [ambition](https://www.bloomberg.com/news/articles/2024-12-09/cloud-computing-tax-threatens-chicago-s-silicon-valley-ambitions) to turn Illinois into a technology and quantum computing hub, and it will raise prices for thousands of small and up-and-coming businesses.
_Revives the corporate head tax as the "community safety surcharge" ($100 million)_
The budget [revives](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit) the corporate head tax under a new name: the "community safety surcharge." Once described as a " [job killer](https://www.illinoispolicy.org/chicago-mayor-recycles-failed-tax-idea-to-fix-1-12b-deficit/#:~:text=a%2520job%2520killer%2520that%2520puts%2520Chicago%2520at%2520a%2520disadvantage.%25E2%2580%259D) " by former Chicago Mayor Rahm Emanuel, this tax will [charge](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%2520Budget%2520Overview.pdf) any business with over 100 employees $21 a month per employee.
_Rideshare tax hike ($65 million)_
Johnson's plan for 2026 includes a tax increase on rideshare services by expanding the areas where Lyft and Uber riders must pay an additional congestion surcharge. The tax will also shift from a flat fee to a 10.25% tax rate. [Currents rates](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/ground_transportationtax.html) sit at between $1.13 to $5.00 depending on drop off location or time of day.
_Creates social media amusement and responsibility tax ($31 million)_
The proposal introduces a new sin tax on social media companies [dubbed](https://hoodline.com/2025/10/chicago-mayor-proposes-groundbreaking-social-media-tax-in-bold-2026-budget-to-combat-deficit-fund-mental-health-services/) the social media amusement and responsibility tax or SMART tax – a [first of its kind](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/) nationwide. Under the measure, companies with over 100,000 active users will pay 50 cents for each user beyond that threshold. Revenue from the tax will help [finance](https://www.nbcchicago.com/news/local/chicago-politics/what-is-a-social-media-tax-chicago-mayors-proposed-new-tax-explained/3839999/) the city's free mental health clinics and crisis response teams.
_Creates an online sports-betting tax ($26 million)_
Chicago would add a 10.25% tax to revenues for sports betting companies such as DraftKings and FanDuel.
_Hemp tax ($10 million)_
The city will add a $2 tax on hemp products, such as delta-8 and THCA.
_Yacht tax ($4 million)_
The boat mooring tax will triple from 7% to 23.25%.
_Vacant building fees ($400,000)_
To combat blight in the South and West sides of the city, Johnson's plan increases the mortgage renewal fees for vacant properties.
**Savings ($331 million)**
_Hiring freezes and personnel savings ($101 million)_
The city claims it will save $51 million from vague personnel savings and $50 million from a hiring freeze on long-standing vacant jobs across various departments. While police vacancies will remain, police overtime will be capped.
_Lower advanced pension payments ($118 million)_
Chicago already has the [worst-funded](https://www.illinoispolicy.org/chicago-pensions-carry-more-debt-than-44-states/) local pension systems in the nation. To mitigate this, the city has been making advanced payments into the system. While these payments have provided some marginal improvement, funding levels remain far below Chicago's 90% target. Johnson's 2026 budget plan will lower advanced pension payments, likely reversing recent progress and worsening the city's pension crisis.
_Other efficiency savings ($112 million)_
The city will allegedly save $112 million from other operational efficiencies, which include reducing vendor contract costs, selling vacant land, consolidating the city's real estate assets and organizational streamlining.
**One-time revenue**
The budget also relies on sweeping a record [$1 billion](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/) tax increment financing surplus, almost double last year's. While this could enable Chicago Public Schools to pay its disputed [$175 million](https://news.wttw.com/2025/08/28/cps-board-approves-district-budget-without-borrowing-cover-pension-payment#:~:text=The%2520spending%2520plan,cover%2520that%2520cost.) pension reimbursement, reliance on fund sweeps fail to resolve structural deficits and can [worsen](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit#:~:text=TIF%2520surpluses%2520are,and%2520infrastructure%2520projects.) on the city's already bottom-of-the barrel [bond ratings](https://chicago.suntimes.com/city-hall/2025/01/15/chicagos-bond-rating-dropped-bbb-borrowing-costs-2025-budget).
**Conclusion**
Instead of fund sweeps and settling political scores through "tax-the-rich" schemes, Johnson's budget strategy for Chicago should focus on [structural reform](https://www.illinoispolicy.org/reports/chicago-forward-2026-a-pro-growth-plan-to-end-city-budget-deficits/) that corrects years of financial mismanagement and fosters long-term economic growth.
Economic growth in the city has been [anemic](https://cgfa.ilga.gov/Upload/2025StateofILEconomicForecast.pdf) and inflation rates have remained [elevated](https://www.chicagofed.org/publications/chicago-fed-letter/2025/508), leading the cost of services to outpace revenue. Chicago's [unemployment](https://ycharts.com/indicators/chicago_il_unemployment_rate) rate still sits far ahead of the national average, and the city continues hemorrhaging residents and [businesses](https://www.foxbusiness.com/politics/chicagos-corporate-exodus-serves-backdrop-dnc). Johnson's proposed tax measures won't protect Chicagoans; they'll make matters worse.
Only by controlling spending, properly cutting departmental waste and creating an economic and tax environment that encourages investment and helps businesses grow, will the city achieve fiscal stability andprovide real opportunity for residents.
Source Name [126]: Here's a Look at the 2026 Chicago Budget Proposal Full URL: https://secretchicago.com/2026-chicago-budget-proposal-guide/ Scraped Date/Time: 2025-11-22 22:42:42
<span style="color: #0066cc; font-weight: bold;"></span> [126]
Photo/City of ChicagoSave
[13 Team-Bonding Activities In Chicago That Are Actually Worth It](https://secretchicago.com/activities-for-adults-chicago/)
[All The Things To Do In Chicago At Least Once In Your Life](https://secretchicago.com/things-to-do-chicago/)
Mayor Brandon Johnson presented the **2026 _Protecting Chicago Budget_ proposal** before city council on Thursday, outlining plans for increasing revenue while **avoiding a hotly contested property tax increase** in the new year.
The financial plan includes **new taxes targeting big tech and the wealthy,** as well as **reduced expenses for everyday Chicagoans.** Here's a comprehensive breakdown of the budget.
## Cost-cutting across city departments
Photo/Shutterstock
The 2026 budget includes structural reforms to increase efficiency across departments and **reduce taxpayer spending by as much as $200 million.**
Mayor Johnson's proposal aims to cut costs by **consolidating city assets and decreasing contract spending,** while avoiding mass layoffs of city workers. Here's what the budget proposes, according to a release:
- **Hiring freeze** across all city departments
- Consolidation of the City's real estate assets, including **office space and vacant land**
- **Reduced contracts with city vendors** amounting to $10 million in savings
- Reduction in **overtime expenses** for police officers
- Elimination of redundant **technology contracts** across all city departments
## Reduced taxes for everyday Chicagoans
Photo/Shutterstock
If approved, the 2026 budget could **deliver significant savings for the average Chicagoan** by way of ending the city's controversial grocery tax and other measures. Additionally, the budget avoids a property tax hike, marking a **diversion from budget-balancing tactics** put forth in recent years.
The 2026 proposal includes the following tax reductions:
- **No property tax increase**
- The **abolition of the Grocery Tax**
- Motor **vehicle lessor tax reduced** from $2.75 to $0.50 per rental period.
## New taxes for tech companies, yacht owners, and landlords
Photo/Shutterstock
Under the proposal, **corporations and wealthy Chicagoans** could pay **heftier taxes in 2026.** Proposed tax increases target tech corporations, landlords, and yacht owners:
- "Yacht Tax" to bring **boat-mooring fees at City harbors** in line with historical rates and city parking standards
- Increase in the **"Vacant Building Fee"** renewal fee to **incentivize development** and reduce urban blight
- Increase in the **PPLT tax rate** for big tech companies.
## Funding for infrastructure, childcare, and green initiatives
Photo/Shutterstock
Additionally, the budget includes continued financial commitments to city initiatives boosting **sustainable development, infrastructure, and resources for vulnerable Chicagoans.** Here's a few of the initiatives receiving renewed funding.
- **$5M increase** in funding for the Rapid Rehousing program which secures **affordable shelter options for unhoused Chicagoans**
- **$7M investment** into **"Childcare for All" initiative,** raising wages for thousands of local childcare professionals
- Millions in funding directed towards **infrastructure improvements for West Side residents** adversely impacted by flooding in 2023 and 2024
City Council now has until the end of the year to negotiate and ultimately vote on Mayor Johnson's proposed budget. **Council members must approve a budget by December 31, 2025.**
For a **full overview** of the 2026 _Protecting Chicago Budget,_ **click [here](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf).**
See also: [Chicago is Among the Top 10 Happiest Cities in the World According to a New Ranking](https://secretchicago.com/chicago-among-top-10-happiest-cities/)
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Source Name [127]: Task Force outlines $2.1 billion in options to tackle City budget deficit Full URL: https://chicagocrusader.com/task-force-outlines-2-1-billion-in-options-to-tackle-city-budget-deficit/ Scraped Date/Time: 2025-11-22 22:42:42
<span style="color: #0066cc; font-weight: bold;">- [Local News](https://chicagocrusader.com/category/uncategorized/)</span> [127]
# Task Force outlines $2.1 billion in options to tackle City budget deficit
- [September 22, 2025](https://chicagocrusader.com/2025/09/22/)
- [By\\
Sharon Fountain](https://chicagocrusader.com/author/sharon-fountain/)
Chicago is facing a financial reckoning of historic proportions. With a projected $1.1 billion shortfall in the city's main operating fund for fiscal year 2026, officials are staring down the largest budget gap in the city's history. The figure is not just an abstract number on paper. It represents a looming challenge that threatens to touch nearly every household and business in the city. Without significant changes, the shortfall could jeopardize everything from police and fire protection to street maintenance and public health programs. Recognizing the gravity of the crisis, city leaders turned to a new body of civic, business, and community leaders for solutions.
In August, Mayor Brandon Johnson convened the Chicago Financial Future Task Force (CFFTF), a group of 24 civic leaders drawn from business, labor, philanthropy, academia, and grassroots advocacy. The Task Force has already issued its first Interim Report, outlining nearly $2.1 billion in possible revenue and savings options. But behind the numbers are people — seasoned executives, union leaders, and community advocates who bring very different experiences and priorities to the table.
The Interim Report is the product of more than 20 meetings, public engagement sessions, and consultations with experts. It is meant to stabilize Chicago's finances in the short term while buying time for a more comprehensive Final Report, due in May 2026, that will address deeper, long-term issues such as pension reform, costly legal settlements, and structural changes in how the city raises and spends money.
Chairman & CEO of Loop Capital, Jim Reynolds, is the Co-Chair of the Task Force. He brings a clear-eyed financial perspective. "Chicago didn't develop a billion-dollar gap in a year, and we won't erase it in a week, but we can change the trajectory now. After decades in finance, I know the cost of inaction is higher than the cost of action. Our interim report lays out 89 concrete levers: efficiencies first, with targeted, fair revenues, so the City can close the FY2026 gap responsibly, protect core services, and rebuild confidence for residents, workers, and employers, said Reynolds."
Balancing that fiscal lens is Task Force Co-Chair Karen Freeman-Wilson. As President and CEO of the Chicago Urban League as well as a Harvard-trained lawyer, she has dedicated much of her career to public service. Wilson explains why a cross-section of independent minds was chosen.
"This group is independent by design: a broad civic coalition that doesn't have to agree on everything to agree on progress. As a former mayor and community advocate, I care about results people can feel. We focused on clear, workable steps for FY2026 that keep neighborhood services front and center and explain the trade-offs in plain language, so residents see how choices affect daily life."
Their perspectives underscore that solving the deficit requires not only financial rigor but also community trust — both of which are rooted in Chicago's long fiscal history. Understanding how the city ended up in such dire financial straits requires looking back over several decades of fiscal decisions. The city's Corporate Fund, which pays for the bulk of day-to-day services like police patrols, fire protection, garbage collection, and public health, has been structurally unbalanced for years. In layman's terms, the city has been spending more than it brings in, even during strong economic years. Rather than fixing the imbalance, past leaders often relied on short-term fixes, such as borrowing money or using one-time revenues, to cover gaps.
After the Great Recession in 2008, revenues slowed while the costs of pensions, employee benefits, and debt obligations continued to climb. By 2011, state aid had stagnated, local taxes were lagging behind expenses, and pension funding requirements had soared. In 2015, the state introduced a tiered pension system that temporarily slowed the growth of obligations but did not eliminate the underlying problem.
The COVID-19 pandemic temporarily masked the crisis. Billions of dollars in federal relief from the CARES Act and the American Rescue Plan Act allowed Chicago to balance its books and maintain essential services at a time when the economy was stalled. But those federal dollars were temporary, and by 2025 most of them were exhausted. The fundamental imbalance returned, now worsened by the city's need to make full pension contributions and pay down debt. Today, Chicago's four pension systems collectively hold nearly $36 billion in unfunded liabilities. Pension expenses alone in 2025 accounted for nearly $1 billion of the Corporate Fund, and debt service obligations further squeezed the city's flexibility.
This mounting imbalance did not go unnoticed by outside observers. In January 2025, S&P Global Ratings downgraded Chicago's general obligation bonds to BBB with a stable outlook, just a few notches above junk status. That means investors see Chicago as a riskier borrower, forcing the city to pay higher interest rates on money it borrows. Over time, higher borrowing costs drain even more money from the budget, creating a vicious cycle.
In this context, the projected $1.1 billion deficit for 2026 is best understood not as an isolated spike, but as the inevitable result of compounding pressures. For residents, the practical implication is clear: without decisive action, the city may have no choice but to cut services, raise taxes, or both.
To address those pressures, the Task Force grouped its 89 recommendations into three broad categories. The first is operational efficiencies, aimed at saving money by improving how the city functions. These include proposals to freeze hiring for non-critical positions, extend the current reduction in overtime spending, streamline the city's notoriously slow hiring process, and negotiate flexible furlough days with employees. Taken together, efficiency measures could save between $372 million and $455 million. Other examples include consolidating technology contracts, reforming workers' compensation, and disposing of surplus vehicles more quickly to avoid maintenance costs.
Yet efficiencies alone cannot close the gap, which is why the Task Force also identified substantial revenue-generating options. Here, the Task Force identified 39 ideas projected to yield between $630 million and $1.65 billion. They range from modest fee increases to broader tax policy shifts. For example, the city could reinstate a "head tax" on large employers, a levy of $2 to $5 per worker, which was repealed in 2013 after business groups argued it discouraged job growth. Another proposal would require major nonprofit institutions like hospitals and universities to make voluntary payments in lieu of property taxes, a practice used in other cities. Smaller changes include raising fees for building permits, food and liquor licenses, and special events—some of which have not been adjusted for inflation in over two decades.
Other revenue options would more directly affect residents. The report suggests increasing the tax on bottled water and plastic checkout bags, maintaining the 1 percent grocery tax set to expire, and reinstating the practice of raising property taxes annually in line with inflation, a move that could generate $56 million in 2026 alone. Ride-hailing surcharges, currently applied downtown and at airports, could be extended to other congested neighborhoods, and fines for false fire or burglar alarms could also increase.
Beyond efficiencies and revenue, a smaller set of proposals looked at structural changes in how the city allocates its budget. This third category includes five additional proposals, such as outcome-based budgeting, which would tie city spending more closely to measurable results rather than tradition or politics.
Even as property tax revenues weaken, another set of long-term challenges comes from decisions made years ago to privatize city assets. The Interim Report warns that this trend directly affects the city's primary revenue source:
"Declines in downtown commercial property values, particularly office buildings, have a direct impact on property tax revenues. As assessments are adjusted downward to reflect market conditions, the city and other taxing bodies collect less. This erosion of the downtown tax base is a major fiscal vulnerability, since commercial properties historically have shouldered a disproportionate share of the overall property tax burden."
The report's authors noted that while property taxes remain central to Chicago's revenue system, falling downtown values could create ripple effects, shifting more of the burden onto homeowners and neighborhood businesses. For residents who have long felt that large landlords were given a pass, the acknowledgment is striking: it confirms that weakening downtown assessments are starving city coffers at the very moment new revenues are needed most.
Adding to the city's difficulties are the long-term privatization deals – like parking meters, the Skyway, and other asset leases – struck by previous administrations. These arrangements gave the city large upfront cash infusions but at the cost of forfeiting revenue streams that could have provided stability for decades. The Interim Report is blunt about their consequences:
"Contracts such as the parking meter lease are binding agreements with long horizons. Renegotiation is extremely difficult, and outright cancellation would expose the city to significant legal and financial penalties. These deals limit the city's flexibility for decades and underscore the importance of avoiding similar arrangements in the future."
In plain terms, Chicago sold off parts of its financial future to cover short-term needs. While those contracts cannot realistically be undone, their legacy is a city that enters this budget season with fewer options and diminished flexibility. When combined with declining downtown tax collections, pension obligations, and higher borrowing costs, it helps explain why the current deficit is the largest in Chicago's history.
Still, no single issue weighs more heavily on the city's finances than pensions. The city is responsible for four main funds: Police, Fire, Municipal employees, and Laborers. Police and fire pensions represent the largest share of the unfunded liabilities because of higher benefits, earlier retirement ages, and survivor benefits. In FY2025, police and fire pensions together accounted for more than half of the city's required pension contribution.
The crisis stems from two main causes. First, for decades city leaders failed to make the required contributions, instead diverting money to cover other expenses. This chronic underfunding allowed the unfunded liability to balloon into the tens of billions. Second, benefit structures, especially for police and fire, allow retirement at relatively young ages with full benefits, a practice that is costly over time. Add to this the fact that the Illinois Constitution includes a pension protection clause, which prevents reductions in benefits for current workers and retirees, and the city has little room to maneuver.
There are also quirks that have added to the burden. Some public officials in the past were able to qualify for pensions after just one term in office, and others collected multiple pensions by working in different government roles. These practices have been curbed for employees hired after 2011, who face later retirement ages and lower benefits, but older workers remain in the system and continue to drive costs.
Adding to the confusion is a common misconception about teachers' pensions, which are in fact funded separately from the city budget. The Chicago Teachers' Pension Fund belongs to Chicago Public Schools, which is a separate unit of government with its own budget. That pension system is funded primarily through CPS revenues and local property taxes. By contrast, the City of Chicago is responsible for four other funds—Police, Fire, Municipal, and Laborers—which together account for more than $36 billion in unfunded liabilities. These are the pensions driving the city's current budget deficit. In other words, teachers' pensions are a major challenge for the school district, but they are not part of the $1.1 billion hole in the city's Corporate Fund. The confusion arises because taxpayers ultimately support both, but they flow through different budgets.
What sets this Task Force apart from previous efforts, members argue, is the breadth of perspectives involved. The 24 volunteers represent labor unions, business leaders, community organizations, policy think tanks, and philanthropy. They include figures like Ronald DeNard of United Way of Metro Chicago, who has overseen financial turnarounds at multiple public agencies, and Andrea Sáenz of the Chicago Community Trust, who brings experience in philanthropy and education. Their varied expertise is meant to ensure that the proposals balance fiscal impact with fairness, particularly for vulnerable communities.
But even with broad representation, implementing many of these ideas will require tough negotiations and, in some cases, legislative action. Roughly 90 percent of city employees are represented by collective bargaining agreements, meaning any proposal involving furloughs, benefit changes, or reassignments must be negotiated with unions. In addition, some proposals would require changes to city ordinances or even state law, particularly those involving taxes or pensions.
The report is careful to note areas of dissent among members. Some argued that hiring freezes could backfire by driving up overtime costs or straining already short-staffed departments. Others questioned whether furloughs could harm employee morale. Still, by including these disagreements in the report, the Task Force sought to demonstrate transparency and provide city leaders with a realistic picture of the trade-offs involved.
For residents, these policy debates translate into real-world effects on fees, taxes, and city services. The intention, according to Task Force leaders, is to preserve essential services while restoring fiscal stability. The next few months will be critical as Mayor Johnson and the City Council weigh which of the proposals to adopt. The mayor will present his 2026 budget proposal this fall, and hearings will determine how much of the Task Force's menu makes its way into law.
The release of the Interim Report is only the beginning of the process. By May 2026, the Task Force plans to deliver a Final Report that will take on more entrenched problems like unfunded pensions and the growing costs of legal settlements against the city. That report will also include input from a new community engagement subgroup to ensure residents' voices are part of the conversation.
The co-chairs stress that what happens next will determine whether Chicago seizes the moment for reform or slips deeper into crisis. For now, the message from the Task Force is one of urgency and possibility. "Together, we can transform this fiscal crisis into a catalyst for lasting change," Freeman-Wilson and Reynolds wrote in their joint statement. "By acting now, we can reinforce Chicago's financial foundation, protect the services residents rely on, and build a future that is resilient, equitable, and prosperous for all 77 communities."
Chicago's fiscal problems have been decades in the making, but city leaders now face a narrow window to act before the imbalance grows even worse. Whether residents experience higher taxes, new fees, or leaner government operations depends on the choices made in the months ahead. What is clear is that the era of quick fixes is over. Without long-term solutions, the city's future competitiveness—and the quality of life for its residents—hangs in the balance.
Readers can visit the **Chicago Crusader** website for links to the full Chicago Financial Future Task Force Interim Report, Task Force member bios, and a Frequently Asked Questions section.
The Task Force has also released a YouTube video, "Understanding Chicago's Budget: A Family Friendly Guide," to help residents better understand how the budget works.
The **Crusader** will continue to provide ongoing coverage of the Task Force and the City as recommendations are debated and implemented.
[Latest News](https://chicagocrusader.com/task-force-outlines-2-1-billion-in-options-to-tackle-city-budget-deficit/)
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Source Name [128]: Mayor Brandon Johnson blames past administrations after rating agency's negative budget outlook Full URL: https://www.yahoo.com/news/articles/mayor-brandon-johnson-blames-past-194600255.html Scraped Date/Time: 2025-11-22 22:42:42
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<span style="color: #0066cc; font-weight: bold;"></span> [128]
Mayor Brandon Johnson defended his [2026 budget proposal](https://www.chicagotribune.com/2025/10/16/mayor-brandon-johnson-head-tax-2026-budget-ultra-rich/) Thursday following a rating agency lowering its outlook on the city this week, which signaled a potential future credit downgrade to one notch above junk status.
And he addressed budget cuts he wants to make in 2026 at Chicago libraries, which have drawn criticism.
Speaking to reporters at City Hall, the mayor responded to S&P Global Ratings dropping Chicago from stable to negative the previous day by arguing his $16.6 billion spending plan for next year is in fact "very sound" despite scaling back an advance pension payment. S&P [knocked](https://www.chicagotribune.com/2025/01/14/chicago-credit-downgrade-johnson-2025-budget/) Chicago down to two notches about junk status in January following the mayor's 2025 budget.
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"I know that there have been questions around pensions, and when the executive order was put into place under the previous administration, it was set up to provide an additional advance payment based upon an assigned balance," Johnson said, referring to former Mayor Lori Lightfoot's directive on her way out of office. "Well, we no longer have that. However, we still were able to, even in these very difficult, tumultuous times, still put forth an advanced payment while not cutting services."
On her way out the door in 2023, Lightfoot [signed](https://www.chicagotribune.com/politics/ct-chicago-budget-mayor-brandon-johnson-20230730-g4p24i7kareqva5kzd3fxhnnkq-story.html) an executive order requiring the city to establish a "pension advance fund" using budget surpluses to help the pension funds tread water, [telling](https://www.chicagotribune.com/politics/ct-lightfoot-budget-deficit-johnson-2024-20230418-cnie24maqzfobjkvi2if4eznn4-story.html) Johnson not to "screw it up."
But Johnson's plan more than halves the city's planned advance pension payment next year, from $271.8 million to $120.2 million. Though Lightfoot's executive order does not legally bind Johnson today, his own finance team has insisted on making the extra payments because that would save billions down the line.
The move also won praise from ratings agencies such as S&P, which help determine how much taxpayers owe in interest costs when Chicago borrows money.
However, Lightfoot was only able to earmark past extra pension payments thanks to American Rescue Plan Act dollars that padded the rest of the budget. Chicago's "unassigned" fund balance, a flexible pot of money the city can draw from in emergencies, was zeroed out in 2024.
That balance has not dipped that low even during the depths of the 2008 recession, when it held just $226,000, according to the city's annual financial reports.
Johnson on Thursday insisted that his budget plan provides a structural fix to the city's long-standing fiscal issues where past administrations have failed. Though he didn't offer specifics, Johnson said that "for a very long time, we have embraced this mediocre, I think, approach toward how we solve these challenges."
He repeated that his proposal provides 65% structural remedies to the deficit, though his Budget Director Annette Guzman has said the ratio is in fact 60-40, down from the 2025 budget's makeup of 68-32.
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"Well, look, whether it's 60% or 65%, the point is, it is overwhelmingly a structurally sound budget. That's the most important thing," Johnson said before spinning the question to why aldermen should support his $21-per-employee tax on corporations. "If you've never been in a position to have to choose whether or not you're going to have lunch for your children or rent, then you may not ever fully understand the impetus behind this budget."
However, the mayor's budget plan assumes the passage of his head tax — far from guaranteed — and still does not fulfill the entire supplement payment. Instead, the $100 million in projected revenue would go toward replacing expiring ARPA funding for community violence intervention programs and other public safety initiatives, which the mayor said is a worthy price to pay for the "ultra-rich."
Should S&P make good on its warning about another Chicago downgrade following the 2026 budget vote, it would be the first time that rating agency has placed the city one notch above junk rating in at least 20 years. Another agency, Fitch Ratings, downgraded the city in 2016 to one notch above junk status, where it remained until 2022.
Also on Thursday, the mayor addressed pressure he's getting from his progressive allies and one of the city's biggest labor organizations to restore cuts he wants to make next year to the public library system.
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Under Johnson's 2026 plan, 89 vacant positions at the Chicago Public Library and 50% of the collections fund used to buy books would be slashed. The American Federation of State, County and Municipal Employees (AFSCME) Local 1215, which represents front-line library workers, held a City Hall news conference Tuesday condemning the moves.
"We need alders to not just say they support libraries, but to stand up and vote for the revenue needed to fund us," library clerk Fernando Contreras said Tuesday. "Now more than ever, we can't continue to accept cuts of programs and services our residents rely on. I can't tell you how many people have come to my branch to print out their immigration forms or materials for work."
Johnson, for his part, responded two days later by nodding to the record $1 billion sweep of tax increment financing funds, some of which would go to the libraries.
"In this budget, there are no layoffs, there are no furloughs, there's no reduction of services or hours," the mayor said, sidestepping the question on whether he'd restore the CPL cuts. "We're going to continue to find ways in which we can address all of the needs. But I want to make this absolutely clear that I put forth a budget that ensures that there's no reduction, no loss of jobs and furloughs, no reduction of hours, even Sundays, to ensure that people continue to have access to our libraries."
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Source Name [129]: CPD to slow hiring, pause academy training next summer to cut costs, superintendent says Full URL: https://chicago.suntimes.com/city-hall/2025/11/05/chicago-police-hiring-slowdown-larry-snelling-brandon-johnson-budget Scraped Date/Time: 2025-11-22 22:45:45
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Sunday, November 23, 2025
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Chicago will slow police hiring to roughly 50 recruits per month — and put no classes through the training academy again next summer — to generate the $91 million in "turnover" savings needed to help erase the city's $1.2 billion budget shortfall, police officials told City Council members Wednesday.
Two months ago, Chicago Police Supt. [Larry Snelling vowed to resist](https://chicago.suntimes.com/city-hall/2025/09/17/cpd-larry-snelling-city-hall-budget-shortfall-police-vacancies) any attempt to eliminate 984 police vacancies — even after [Mayor Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) ordered all of his department heads to cut 3% to 5% from their 2025 budgets.
Instead, Snelling said he would meet the cost-cutting mandate by holding open those 984 police positions, but budgeting less money for those vacancies he knew the city would not be able to fill.
On Wednesday, Snelling told the Council's Budget Committee that the $2.1 billion that Johnson's 2026 budget allocates for the Chicago Police Department would do just that. It includes no "reductions in sworn staffing," nor would any vacancies be eliminated.
But Ryan Fitzsimons, deputy director for oversight coordination, said police hiring will be "staggered" throughout the year.
"We will be pausing some of our recruit classes over the summer, which we did this year, to allow us to better allocate resources out into the field and also tamp down those overtime expenses," Fitzsimons said.
If police hiring needs to slow down, Snelling said the "best time for that to happen was during the summer."
"We have less recruits in the academy during the summer. That's when we have most of our [special] events. We have sworn officers working in the academy. Those people we could use now to go out to some of these events. It reduces overtime," the superintendent said.
When Far Southwest Side Ald. Matt O'Shea (19th) said the police department will "never get back to the numbers of manpower that we had five years ago," Snelling agreed.
"This is why it's important to work smarter. You're 100% right. Technology is the key," Snelling said, pointing to helicopter pursuits that have allowed his officers to "solve a crime and immediately take people into custody."
Southwest Side Ald. Marty Quinn (13th) said he has "concerns about pausing police hiring for three months" at a time when the Chicago Lawn District is struggling to serve the second-largest geographic area in Chicago with a "dangerously low" 249 officers, the fewest number of officers per capita in a city police district.
He's hoping that a long-awaited workforce allocation study expected to be completed early next year will give him the political ammunition he needs to justify a new station with $6 million in state funding already secured for it.
"I look forward to that deployment analysis because I think it's gonna tell a story. ... I know you know that, sir. And I know that your hands are tied. But what's happening in the 8th District is dangerous," Quinn told Snelling.
For years, the city has allocated $100 million for police overtime, only to blow through it — to the tune of $282.8 million in 2023 and $238 million last year.
Johnson's budget caps police overtime at $200 million and requires Council approval for spending that exceeds the cap.
"You won't be coming back to us every month?" asked Finance Chair Ald. Pat Dowell (3rd).
"Oh, no ma'am. I hope to stay within the budget," Snelling replied. "If anything comes up that drives us over, we'll be ready to talk about that. But right now I'm confident we're going to work within the confines of that budget."
Large reductions already achieved support Snelling's assertion.
Through Sept. 30, Chicago police officers have wracked up just over 2 million overtime hours. That's down from 2.7 million overtime hours in 2023, and 2.3 million hours last year.
Overtime dashboards have helped command staff keep track of overtime spending and ride herd over their chiefs during monthly crime statistics meetings, Fitzsimons said.
In its own analysis of the police budget, the Community Commission for Public Safety and Accountability questioned Johnson's decision to use the so-called Community Safety Fund bankrolled by a proposed, $21 a month per-employee head tax to support the 31 full-time employees assigned to the police department's Professional Counseling Division.
With more than half the Council opposed to either the tax itself or the size of it, the police department will "need another way to pay" for professional counseling that's critical to maintaining officer wellness, the commission said.
The civilian oversight panel questioned how a "net loss of nine budgeted positions" in the police department's training division would impact the department's slow march toward compliance with the consent decree outlining the terms of federal court oversight of the police department.
Source Name [130]: 2026 Preliminary Budget Overview Full URL: https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/ Scraped Date/Time: 2025-11-22 22:45:45
[Skip to content](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#main)
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson released his proposed 2026 budget for the City of Chicago on Thursday, Oct. 16. As in previous years, BGA Policy will release a series of department-specific budget snapshots ahead of the departmental budget hearings in City Council.</span> [130]
The following is a preliminary summary of the overall budget and some of its major highlights.
[Sign up for our Budget Snapshots newsletter to receive detailed analyses of individual department budgets in advance of the departmental hearings in City Council!](https://www.bettergov.org/city-of-chicago-2026-budget-snapshots/)
## Table of Contents
- [Highlights](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-highlights)
- [Revenue Highlights](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-revenue-highlights)
- [Appropriations Highlights](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-appropriations-highlights)
- [Positions and Vacancies Highlights](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-positions-and-vacancies-highlights)
- [Mandatory Budget Floors](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-mandatory-budget-floors)
- [Revenues](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-revenues)
- [Appropriations](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-appropriations)
- [Overall Appropriations & Year-to-Year Budget Growth](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-overall-appropriations-amp-year-to-year-budget-growth)
- [Appropriation Sources](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-appropriation-sources)
- [Departmental Appropriations and Year-to-Year Budget Growth](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-departmental-appropriations-and-year-to-year-budget-growth)
- [Local Fund Budgeted vs. Actual Spend](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-local-fund-budgeted-vs-actual-spend)
- [Positions](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-positions)
- [Overall Positions & Year-to-Year Growth](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-overall-positions-amp-year-to-year-growth)
- [Departmental Positions and Year-to-Year Growth](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-departmental-positions-and-year-to-year-growth)
- [Vacancies](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-vacancies)
- [Mandatory Budget Floors](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-mandatory-budget-floors-0)
- [COPA Budget Floor](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-copa-budget-floor)
- [CCPSA Budget Floor](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-ccpsa-budget-floor)
- [OIG Budget Floor](https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/#h-oig-budget-floor)
**Budget Snapshot:**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $18,842,061,980 | $18,350,767,715 | -$491,294,265 | -2.6% | 8.3% | 4.4% |
| Positions & FTEs | 36,203 | 35,760 | -443 | -1.2% | -0.1% | NA |
## Highlights
### Revenue Highlights
- The budget as presented is not balanced by estimated revenues in its local funds, with $169.3 million more appropriated from local funds than estimated in revenue. (This does not mean the budget as a whole is not balanced, only that appropriations from local funds are not matched by estimated revenues into local funds.)
- Estimated local revenues are up $832.9 million from the previous year's estimates, a 6.2% bump driven primarily by increases in estimated corporate fund and airport funds revenues, as well as a new $100 million "Community Safety Fund" drawn from a revived corporate head tax.
- Roughly half of the city's estimated revenues come from five major sources: rates and charges, the property tax levy, lease of personal property (the "cloud tax"), water rates, and the corporate fund pension allocation. The lease of personal property category saw the largest increase, with cloud service tax hikes expected to bring in an additional $334 million, up 40.8% from the previous year.
### Appropriations Highlights
- Appropriations overall are down -2.6% from the budget as passed in 2025, the first year-over-year appropriations decline since 2023.
- The Chicago Police Department continues to be the largest city department by far, accounting for 20.5% of all departmental appropriations and 31.5% of all local fund departmental appropriations, and 38.6% of all budgeted positions/FTEs.
- CPD was also the only department to go consistently over budget in non-grant funds in the past three years for which complete data is available, 2022-2024.
- The proposed $2 billion CPD budget for 2026 falls $151.3 million short of CPD's actual and encumbered spend from 2024, the most recent year for which complete actuals/encumbrances are available.
- The Department of Water Management, Department of Aviation, and Department of Environment saw the largest proposed budget increases, while the Chicago Department of Public Health, Department of Family and Support Services, and Chicago Department of Transportation saw the largest proposed cuts.
### Positions and Vacancies Highlights
- Budgeted positions and FTEs are down -1.2%, the second year in a row of declining budgeted city workforce.
- As of the most recently available vacancies data at the end of September 2025, 11.6% of budgeted positions were vacant, with 7.3% of positions vacant since February 2025, the first month for which detailed vacancies data is available.
- The Chicago Department of Public Health, Chicago Public Library, and Department of Streets and Sanitation were among the departments with the largest reductions in force for the second year running, continuing an ongoing reduction in force at those departments.
- The Department of Environment saw a substantial proposed overhaul and expansion in this year's budget recommendations, growing from $2.4 million in appropriations to $52.4 million and from 14 budgeted positions to 79.
### Mandatory Budget Floors
- As in previous years, departmental appropriations for the three city departments with mandatory funding minimums (OIG, COPA, and CCPSA) are not on their own sufficient to meet the minimum budget floors. Instead, the city's budget office counts an additional estimated "fringe" cost of pension and benefits towards the mandatory minimums (but does not include fringe in the CPD appropriations used as the basis for calculating the COPA and CCSPA floors).
[Full article continues with detailed sections on Revenues, Appropriations, Positions, and Mandatory Budget Floors...]
Source Name [131]: Finance panel rejects Johnson's revenue plan for 2026 budget Full URL: https://www.chicagobusiness.com/politics/finance-panel-rejects-johnsons-revenue-plan-2026-budget Scraped Date/Time: 2025-11-22 22:45:45
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<span style="color: #0066cc; font-weight: bold;">[Politics](https://www.chicagobusiness.com/politics)</span> [131]
# Johnson's head tax push collapses as Finance Committee votes down revenue plan
[](https://www.chicagobusiness.com/author/justin-laurence)
By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
Justin Laurence is a reporter for Crain's Chicago Business covering politics and policy from City Hall to Springfield. Prior to joining Crain's in 2022 he covered city politics, development and cannabis as a freelance reporter.
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November 17, 2025 01:20 PM
Mayor Brandon Johnson's $16.6 billion 2026 budget was dealt a significant blow today when the Finance Committee voted down the revenue ordinance supporting the plan.
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By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
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Source Name [132]: Johnson threatens vetoes as budget standoff deepens Full URL: https://www.chicagobusiness.com/politics/johnson-threatens-vetoes-budget-standoff-deepens Scraped Date/Time: 2025-11-22 22:45:45
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# Johnson vows vetoes as budget talks enter high-stakes standoff
[](https://www.chicagobusiness.com/author/justin-laurence)
By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
Justin Laurence is a reporter for Crain's Chicago Business covering politics and policy from City Hall to Springfield. Prior to joining Crain's in 2022 he covered city politics, development and cannabis as a freelance reporter.
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November 18, 2025 06:18 PM
Opponents of Mayor Brandon Johnson's $16.6 billion 2026 budget rejected his proposed revenue package this week, but the message that the plan is in need of an overhaul fell largely on deaf ears.
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By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
Justin Laurence is a reporter for Crain's Chicago Business covering politics and policy from City Hall to Springfield. Prior to joining Crain's in 2022 he covered city politics, development and cannabis as a freelance reporter.
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[News,](https://www.chicagobusiness.com/topic/news) <span style="color: #0066cc; font-weight: bold;">[Politics](https://www.chicagobusiness.com/politics)</span> [132]
Source Name [133]: Chicago Public Library – BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 22:53:50
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<span style="color: #0066cc; font-weight: bold;"></span> [133]
## Table of contents
- [Departmental Highlights](https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/#h-departmental-highlights)
- [Historical Context](https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/#h-historical-context)
- [Staffing](https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/#h-staffing)
- [Appropriations](https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/#h-appropriations)
- [Largest Appropriations](https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/#h-largest-appropriations)
- [Change from Previous Year](https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/#h-change-from-previous-year)
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $122,105,043 | $107,229,310 | -$14,875,733 | -12.2% | 4.6% | 1.4% |
| Positions & FTEs | 1102 | 1033 | -69 | -6.3% | -0.2% | NA |
- The public library draws on its own property dedicated Library Fund for the bulk of its revenue, along with state grants and (new this year) $2 million in federal grant funding. The Library Fund is mostly funded with the library's property tax levy (technically now handled as a transfer from the Corporate Fund, repaid with the library's share of property taxes from the county). In recent years, TIF surpluses have provided an increasing share of the Library Fund revenue, up to 13.6% in the current proposal.
- The proposed 2026 budget would be a second year of steep staffing declines for CPL. Last year's budget cut 50 positions/FTEs from the department, with a further 69 positions/FTEs cut (-6.3%) in the 2026 recommendations. Combined, the two years would represent a 10.3% decline from the department's high water mark of 1152 budgeted positions in 2023 and 2024.
- A net -26 Librarian positions/FTEs across various titles have been eliminated, along with -15 Library Page, -9 Library Associate, and -8 Head Library Clerk positions/FTEs. All were titles/categories that saw cuts in the previous year's budget as well.
- Leadership positions underwent a more complicated shuffle, with nine positions added at a new Assistant Library Director title and six at a new Library Director title, replacing a net 15 positions across the Library Division Chief, District Chief, Regional Library Director, and Central Library Director titles.
- CPL's appropriation for library books and materials has been halved in this year's proposal, down from $10 million to $5 million. In the most recent year for which full-year actuals are available the department expended its full $10 million appropriation almost exactly, spending 99.2% of budgeted funds.
- CPL's only appropriation increase was an additional $2.5 million for salaries and wages on payroll, up 3.2%.
## Historical Context
Rahm Emanuel made significant cuts to the public library staff in his first budget (2012), from which the department's budget and headcount slowly increased over time, with a large number of new positions added under Lori Lightfoot.
From 2011-2025, CPL's total appropriations increased by an average annual rate of 4.6%, or 1.4% adjusted for inflation, compared to a citywide average rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, CPL spent on average 91.7% of its locally funded budget, compared to the citywide average 86.4% local fund spend. Within local funds, it was one of the most budget-accurate departments across all three years.
From 2011-2025, CPL budgeted headcount decreased at an average annual rate of -0.2%, very close to the citywide average of -0.1% in the same time period. Recent years have seen steeper declines, with 50 positions eliminated from the 2025 budget, and a further 69 positions cut (-6.3%) in the 2026 recommendations. Combined, the two years would represent a 10.3% decline from the department's high water mark of 1152 budgeted positions in 2023 and 2024.
From February through September of 2025, the months for which the city released full-time position vacancy data, CPL averaged an 8.3% vacancy rate, compared to the citywide average of 11.2%.
52 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data:
## Staffing
A net -26 Librarian positions across various titles have been eliminated, along with -15 Library Page, -9 Library Associate, and -8 Head Library Clerk positions/FTEs.
Leadership positions underwent a more complicated shuffle, with nine positions added at a new Assistant Library Director title and six at a new Library Director title, replacing a net 15 positions across the Library Division Chief, District Chief, Regional Library Director, and Central Library Director titles.
## Appropriations
CPL is 80.9% locally-funded in this year's budget proposal, up from the previous year's 72.7% due to a decline in state grant funds.
The public library draws on its own property dedicated Library Fund for the bulk of its revenue, along with state grants and (new this year) $2 million in federal grant funding.
The Library Fund is mostly funded with the library's property tax levy. (Budget documents refer to this as "proceeds from debt" or "series B" bonds, a leftover from when the library system would use short-term bonds to cover the gap between the start of the year and the actual receipt of property tax revenues from the country. To reduce debt costs this is now handled as a transfer from the Corporate Fund, which is then repaid with the library's share of property taxes from the county).
In recent years, TIF surpluses have provided an increasing share of the Library Fund revenue, up to 13.6% in the current proposal.
| | | | | | |
| --- | --- | --- | --- | --- | --- |
| Fund | 2025 Budgeted | 2026 Proposed | Net Change from 2025 | Percent Change from 2025 | Percent of 2026 Recommended Funds |
| Library Fund | $88,824,855 | $86,757,310 | -$2,067,545 | -2.3% | 80.9% |
| State Grant Fund | $33,280,188 | $18,472,000 | -$14,808,188 | -44.5% | 17.2% |
| Federal Grant Fund | $0 | $2,000,000 | $2,000,000 | New Fund | 1.9% |
### Largest Appropriations
As with most departments, personnel costs make up the bulk of CPL's appropriations, with salaries and wages on payroll by far the largest expense category.
Despite a substantial reduction from the previous year, the "reserve balance" appropriation, indicating grant funds not intended to be spent during the budget year, remained CPL's second-largest appropriation in the 2026 proposal.
Library books and materials remained the third-largest appropriation, despite being halved from the previous year.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, CPL spent 94.8% of its locally-funded budget, including more than 99% of its appropriation for library books and materials, which has been halved in the 2026 proposal.
### Change from Previous Year
CPL's appropriation for library books and materials (which the department nearly exactly expended in the most recent year for which full-year actuals are available, spending 99.2% of budgeted funds) has been halved in this year's proposal, down from $10 million to $5 million.
Grant funds held in reserve balance have likewise been halved, down $12.2 million.
CPL's only appropriation increase was an additional $2.5 million for salaries and wages on payroll, up 3.2%.
Source Name [134]: Calls For 'Belt-Tightening' in Chicago Budget Face Hurdles Amid Few Options for Pain-Free Cuts Full URL: https://illinoisanswers.org/2025/10/15/tightening-chicago-budget-faces-hurdles-amid-few-options-for-pain-free-cuts/ Scraped Date/Time: 2025-11-22 22:53:50
[Skip to content](https://illinoisanswers.org/2025/10/15/tightening-chicago-budget-faces-hurdles-amid-few-options-for-pain-free-cuts/#main)
Chicago Mayor Brandon Johnson, shown in a 2023 file photo, faces a $1.2 billion budget gap. (Credit: Victor Hilitski/For Illinois Answers Project
Facing a nearly $1.2 billion budget gap, budgetmakers in Mayor Brandon Johnson's administration have been dogged by a question: Why can't the city cut its spending bloat before it taxes residents to close the gap?
Chicago's budget was about $10.7 billion in 2019, the year before the COVID-19 pandemic scrambled the city's economy and its government. Within six years, combined spending rocketed to $17.3 billion — thanks in part to an unprecedented burst of funding the city received through the 2021 American Rescue Plan Act (ARPA) — outpacing the rate of inflation.
"The message to the mayor and his team has been very simple: if you want us to consider new revenue streams … you need to show some good faith to the taxpayer that you're going to tighten the belt," Ald. Brendan Reilly (42nd) said in an interview Tuesday. "And this argument that you can't tighten your belt anymore when the city budget has ballooned during this administration and the previous doesn't pass the smell test."
Specifically, Reilly said, Johnson needs to "let go of program expansion and hiring that was done with federal bailout ARPA money that's no longer available."
But trimming city spending faces at least as many logistical and political hurdles as any push to hike taxes, according to an Illinois Answers Project review of annual spending appropriations and interviews with analysts, researchers and both current and former city finance officials.
City leaders and their critics both struggle to identify permanent employee positions or other recurring expenses that were set in motion by the Chicago Recovery Plan, the city's roadmap for its spending of ARPA dollars, and that now look ripe for cuts. The vast majority of the federal money replaced lost revenue during the pandemic or paid for grants and contracts that have already expired.
Most of the city's $17 billion budget is made up of special funds city leaders have little control over, and that city taxpayers don't pay into.
By far the largest driver of growth in the city's Corporate Fund — its central operating budget that relies on local taxes for revenue — has been a steady, legally mandated ramp-up of annual payments into the city's ailing pension systems.
Also feeding the city's pernicious spending growth is a tangle of union-negotiated contracts that mandate regular pay hikes for city employees, with police receiving some of the most generous steps thanks to a 2023 bargaining agreement.
In the meantime, by one key metric, city government has shrunk. Chicago has more than 500 fewer employees on its payroll in 2025 than it did in 2019.
It all leaves city leaders with little wiggle room for cuts, unless they're prepared to hamper core city services or fundamentally remake sectors of city government — including the police and fire departments, according to Justin Marlowe, a professor at the University of Chicago's Harris School of Public Policy who leads the school's Center for Municipal Finance.
"You don't have a lot of room to maneuver, even if there was a commitment to finding all sorts of efficiencies and rolling back spending," Marlowe said. "You can't do that, short of a very different political context than the one that we live in."
Source Name [135]: Mayor Johnson resolves contract with firefighters union, without major concessions Full URL: https://chicago.suntimes.com/city-hall/2025/08/12/brandon-johnson-chicago-firefighters-contract-agreement Scraped Date/Time: 2025-11-22 22:53:50
clockCST\_
[<span style="color: #0066cc; font-weight: bold;">](https://www.chicagopublicmedia.org/)</span> [135]
[](https://chicago.suntimes.com/)
[](https://www.wbez.org/)
[Everyone deserves trustworthy local reporting. You help make that happen.](https://chicago.suntimes.com/become-a-member?utm_medium=onsite&utm_source=sitewide-banner&tpcc=FY26-SitewideBanner-Onsite)
The Hardest-Working Paper in America \|
Sunday, November 23, 2025
[](https://chicago.suntimes.com/)
Under pressure from a mediator and without major concessions, Mayor Brandon Johnson has reached a tentative agreement with Chicago Fire Fighters Union Local 2 to break the stalemate that has forced 4,800 firefighters and paramedics to [wait four years for a new contract —](https://chicago.suntimes.com/city-hall/2025/05/09/brandon-johnson-chicago-fire-department-overhaul-contract-talks) and the pay raise that comes with it.
Johnson declared an end to the marathon stalemate without revealing any specifics.
Pat Cleary, president of Chicago Fire Fighters Union Local 2, described the six-year contract as "status-quo" with no major concessions on either side.
Pay raises included in the six-year agreement — up to 20% depending on the rate of inflation — are identical to those awarded to Chicago police officers in the contract that Johnson extended and sweetened.
Local 2 was demanding 20 more ambulances, along with paramedics to staff them. Johnson wanted to reshape the Chicago Fire Department to handle emergency medical assistance demands that make up two-thirds of all calls for service.
But there will be no increase in the 80 ambulances on the streets of Chicago, and no change to the minimum staffing requirement that mandates five employees on every piece of fire apparatus.
Nor does the tentative agreement increase the 35 daily "variances" that allow the city to operate with just four employees on an engine or truck.
"We have worked hard to get this deal done. There are still some steps that have to be taken in order for this to be finalized," the mayor said, referring to ratification votes by rank-and-file firefighters and the City Council. "Since taking office, we've landed dozens and dozens of contracts. This one was important to me, and I'm glad that we are moving forward."
Johnson refused to put a price tag on the cost of retroactive pay for firefighters and paramedics. He would only say that his administration budgeted for back pay and that "there are some other elements within the tentative agreement that, I believe, places us in a stronger position to build a safe and affordable big city."
Cleary was nearly as tight-lipped, saying he didn't want to "sabotage" an agreement that has not yet been "signed and inked."
"My membership has not approved it, and the City Council has not approved. So until those steps are done, this is not done. We're still in the process. Nothing's completed yet," Cleary told the Chicago Sun-Times. "I don't want to ruin what's going on. I don't want to sabotage it. I want it to be signed. Then I'll be happy."
Without the mediator, Cleary said the stalemate would have continued, culminating in binding arbitration that would have been risky for both sides.
Source Name [136]: Chicago mayor's 2026 budget would dial back pension funding Full URL: https://www.bondbuyer.com/news/chicago-mayors-2026-budget-would-cut-pension-funding Scraped Date/Time: 2025-11-22 22:53:50
<span style="color: #0066cc; font-weight: bold;">Chicago Mayor Brandon Johnson's proposed $16.6 billion 2026 budget would reduce the supplemental pension contributions that had lifted the city's credit stature.</span> [136]
The budget, released Thursday, calls for new revenues, but avoids the property tax hikes that fell flat with City Council last year.
[The mayor's budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf) would cut the advance pension payment to $120.2 million from the originally planned $238 million. The supplemental pension payment policy [has earned the city plaudits](https://www.bondbuyer.com/news/chicago-sends-promised-supplemental-payment-to-pension-funds) from credit rating agencies.
"I think bond investors are always looking at the pension situation," said Howard Cure, partner and director of municipal bond research at Evercore Wealth Management. "It was bad when the state put through legislation [to increase the pension liability for the city](https://www.bondbuyer.com/news/new-pensions-law-puts-chicago-in-a-bind). That and the idea of scaling back an advance pension payment is concerning."
The advanced pension payments are above what is required by state law, but the contribution levels required under state law are part of the reason the city's pensions [are so deeply underfunded](https://www.bondbuyer.com/news/chicago-targets-pension-funding-with-help-from-improved-revenues).
New revenue sources proposed in the budget include an employee head tax, which the Johnson administration has labeled the "community safety surcharge," and new taxes on social media, online sports betting and hemp products.
It would declare the largest tax increment financing surplus in the city's history, and use short-term borrowing to fund police misconduct settlement payments and retroactive firefighter pay increases.
Johnson said his administration is "reducing the cost of administering government" without slashing services, through real estate consolidation, improved fleet management, streamlined administrative functions and special event cost recovery.
Rating agencies said they are waiting to see how the budget debate plays out in City Council, but signaled some concerns.
"Reducing the pension payment is credit negative because it results in contributions that are insufficient to curb growth in the reported unfunded liability," David Levett, vice president and senior credit officer at Moody's Ratings, said by email.
Moody's rates Chicago general obligation bonds Baa3 with a stable outlook after a [revision from positive](https://www.bondbuyer.com/news/moodys-revises-chicagos-outlook-to-stable) in September.
KBRA views the budget's one-time revenue sources less favorably than recurring revenues, said Linda Vanderperre, managing director at the rating agency.
Those one-time sources include roughly $500 million of proposed TIF surplus beyond the typical annual TIF surplus, a proposed bond refunding, the proceeds from the sale or lease of city-owned land, and borrowing for settlements.
On the flip side, she said, the employee head tax would be a credit positive.
"While the proposed $21 per month head tax on companies with over 100 employees may face opposition from the business community, we view the administration's efforts to identify potential solutions to the structural deficit favorably, including the formation in April of [The Chicago Financial Future Task Force](https://www.bondbuyer.com/news/taxes-and-cuts-advised-in-chicago-finance-task-force-report)," Vanderperre said by email.
On balance, the mayor's proposed budget would likely be credit neutral if passed in its current form, she said. KBRA rates Chicago GOs A-minus after [a one-notch downgrade](https://www.bondbuyer.com/news/kbra-downgrades-chicagos-go-bonds-to-a-minus) in January, with a negative outlook.
Municipal Market Analytics said in a Monday report that the mayor's budget may pressure the city's ratings.
"As a bellwether for credit spreads, investors will want to take note of budget-related widening; if that happens, more cheapening by other story credits could be imminent," MMA said. "The proposal does a good job articulating the administration's values… but falls short on sustainably financing them."
MMA pointed to the absence of an increase in property taxes "that would provide a stable, recurring revenue source."
Alderpeople have some questions about the mayor's budget, said Ward 32 Alderman Scott Waguespack.
"Definitely the credit impact is a concern," he said. That includes from the line of credit the Johnson administration wants to take out — a $100 million line of credit with an interest rate possibly upwards of 9%, he said.
The borrowing for police misconduct settlements is another concern.
"That's a step backward from what we had (done) in the past," Waguespack said. "(The) Emanuel and Lightfoot (administrations) took police misconduct settlements off the books… and they're going right back to that."
He also criticized the concept behind the new social media tax.
"The social media companies are challenging all of those (taxes)," he said, noting that such taxes have typically been struck down. "Even some of the liberal judges have said (it raises) a pretty serious First Amendment issue… It's not a slam dunk like they're saying."
If the tax is rejected by City Council or struck down by a court, it could leave a gaping hole in the budget, forcing the mayor to turn to a property tax hike as a potential gap closer, he said.
Source Name [137]: Chicago Police Department – BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/11/04/chicago-police-department-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 22:53:50
[Skip to content](https://www.bettergov.org/2025/11/04/chicago-police-department-bga-policy-2026-budget-snapshot/#main)
<span style="color: #0066cc; font-weight: bold;"></span> [137]
The Chicago Police Department is by far the largest city department, in terms of both headcount and budgeted appropriations.
CPD positions make up 38.6% of the city's total budgeted headcount in the 2026 budget proposal. The next-largest department, the Chicago Fire Department, is roughly one-third the size of CPD, with all other departments considerably smaller.
CPD appropriations make up 20.5% of all departmental budgets in the 2026 proposal. Looking at non-grant funds only, CPD makes up 31.4% of locally-funded departmental appropriations, and 50.5% of corporate funded departmental appropriations.
Over the past three complete budget years for which local fund actuals/encumbrances data is available, CPD was the only city department to consistently exceed its budget, by increasing amounts each year. CPD's 2024 non-grant overspend of $188.1 million was on its own larger than the total non-grant budgets of 32 of the city's 39 departments.
The bulk of the overspend in 2022 came from legal settlements and judgments, while in 2023 and 2024 overspend was driven by both personnel services and court settlements.
As a [2022 BGA Policy analysis](https://www.bettergov.org/2022/11/07/budget-analysis-city-of-chicago-legal-judgment-and-settlement-spending/) highlighted, CPD has gone over its budget for legal settlements every year since at least 2011 with the exception of 2020, when courts were closed for much of the year due to the COVID-19 pandemic. The city council has already authorized CPD-related settlements exceeding the 2025 budget as well, with two months still remaining in the year, but the 2026 proposal does not change the CPD settlements appropriation from the same level it has been at since 2020.
Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible. However, a separate CPD overtime dataset and dashboard maintained by the Office of Inspector General showed overtime earnings well in excess of budget for CPD in 2023 ($324.4 million) and 2024 ($270.5 million), meaning that overtime likely made up the majority of the personnel services overspend.
From Feb-Sept 2025, the months for which the city has published monthly vacancies data, 742 of CPD's budgeted full-time positions were persistent vacancies (meaning that the same title/division/section/subsection combination was vacant for all eight months of available data).
Persistent vacancies at CPD from Feb-Sept 2025 included all three of the department's standalone, single-title divisions: the Urban Areas Security Initiative, violence against women/domestic violence protection, and response to domestic violence, sexual assault and stalking programs.
Apart from the single-position special divisions, the DoJ-funded Community Oriented Policing Services hiring program and Office of Constitutional Policing and Reform had the highest rate of persistent vacancies, 37.3% and 23.6% respectively.
Persistent vacancy rates at Patrol Services, the department's largest division, were very low, with only 1.6% of budgeted full-time positions unfilled from Feb-Sept 2025.
The titles with the most persistent vacancies were Police Officer, Police Officer Assigned as Detective, Training Officer, and Police Officer – Field Training Officer.
Budgeted positions overall remained very consistent with the previous year, with a net -14 positions primarily driven by changes in the Office of Constitutional Policing and Reform.
21 Training Officer positions have been eliminated from the Office of Constitutional Policing and Reform, the largest change within a single title in the proposed CPD budget.
The department is also down a net six Sergeant positions and four of the department's five Coordinator of Research and Evaluation positions.
Eleven new Assistant Director positions have been budgeted within the Office of Constitutional Policing and Reform, as well as six Police Officer Assigned as SWAT positions within the Bureau of Counter-Terrorism (the only Police Officer title to see a change in budgeted positions.)
CPD's overtime budget for 2026 is nearly double that of the previous year, up $101.1 million in the largest single-category increase. Most of the remainder of the department's budget growth comes from salaries and wages and medical expenses outside of workman's compensation, with relatively small increases in other categories.
The department saw a -$5 million (-27.7%) decrease in outside contract spending from the professional and technical services appropriation account, as well as a -$2 million (-55.4%) decrease in police vehicle appropriations.
Source Name [138]: Mayor Johnson's record-setting $1 billion TIF surplus highlights issues Full URL: https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/ Scraped Date/Time: 2025-11-22 22:53:50
#### [Bryce Hill](https://www.illinoispolicy.org/author/bhill/)
Director of Fiscal and Economic Analysis
<span style="color: #0066cc; font-weight: bold;">[Budget + Tax](https://www.illinoispolicy.org/category/budget-tax/)</span> [138]
by [Bryce Hill](https://www.illinoispolicy.org/author/bhill/)
October 24, 2025
# Mayor Johnson's record-setting $1 billion TIF surplus highlights issues
Chicago Tax Increment Finance "surpluses" have increased more than ninefold in the past decade.
Chicago Mayor Brandon Johnson unveiled his plan to close Chicago's $1.15 billion budget shortfall for 2026 on October 16. Among the mayor's recommendations, were to declare a record-setting $1 billion "surplus" in the city's Tax Increment Financing districts balances.
The move, which is a one-time fund sweep, would result in an additional $232.6 million in additional revenue for the city and an even larger amount, estimated at $552.4 million for the Chicago Public Schools budget.
In the wake of the mayor's proposal many aldermen are [questioning](https://abc7chicago.com/post/what-are-tif-funds-experts-explain-tax-increment-financing-amid-chicago-public-schools-budget-crisis/15413919/) the decision, while others are highlighting the fundamental issues with Tax Increment Finance districts themselves. In the past decade, the amount of TIF dollars the city has declared as "surplus" has increased by nearly ninefold, rising from $113 million in 2016, to more than $1 billion for the 2026 fiscal year.
While the city of Chicago has relied on fund sweeps from TIFs to balance the city budget for nearly two decades, the reliance on TIF surpluses has surged in recent years. The consistent "surpluses" suggest that either many TIF districts do not need a significant amount of revenue for redevelopment projects, or that the city is abusing TIF districts in order to create a piggybank of funds for the city, school district, and other units of local government to pillage for increased spending without having to directly ask taxpayers for more money.
Either scenario raises fundamental questions about Chicago's TIF system and perpetuates the structural budget issues driving Chicago's recurring budget deficits.
**What is a TIF district?**
Tax Increment Financing districts are partitioned areas within the city where additional tax revenues are supposed to be specifically dedicated to redevelopment within the district and separate from the city budget. TIF districts raise money primarily through the growth in property tax revenues within the community, which is then supposed to be used to spur economic development within the "blighted" areas of the city.
For the city to create a TIF district, officials must determine the area to be blighted, deteriorating, or in need of development but these definitions are very vague.That's what allows Chicago to implement TIF districts in the Loop and River North.
Once established, TIF districts "freeze" the equalized assessed value of property within the district for local taxing bodies, meaning that the growth in property tax revenues due to changes in property values all goes directly to the TIF district. However, it is important to note that TIFs do not hinder the ability of local governments to raise revenue, since local units of government set their property tax levies independently of the taxable value of property.
Instead, TIFs simply serve to drive up property taxes on everyone as the full value of their property is not considered in the property tax base, leading to higher tax rates applied by taxing bodies. Those within the TIF district don't get a break either, as they pay the same tax rate as those outside the district, their tax dollars just go to the TIF district rather than other taxing bodies.
TIF districts last for 23 years, with an option to extend their lifespan for an additional 12 years. Since their inception in 1984, 185 TIF districts have been created in Chicago, yielding more than [$5 billion](https://chicagopolicyreview.org/2023/04/13/redevelopment-for-who-how-tif-redistributes-public-funds-to-the-wealthy/#:~:text=Through%2520the%2520nineties%2520and%2520aughts%252C%2520the%2520use,in%2520subsidies%2520and%2520funding%2520nearly%20700%2520projects.) in revenue. There are currently 124 active TIF districts across Chicago.
**How can TIF funds be in surplus?**
Per [state legislation](https://www.ilga.gov/Documents/legislation/ilcs/documents/006500050K11-74.4-3.htm), any money within a TIF fund that has not been pledged for specific projects can be considered surplus and is to be distributed to the overlying local taxing districts proportionately to their property tax levies. In Chicago, where roughly 55% of property taxes go to the Board of Education, that means that CPS will get 55% of any TIF surpluses, the city will receive about 27% and other units of government will get smaller, proportionate shares of the revenue.
This practice used to be much less common until Mayor Emanuel signed an [executive order](https://chicityclerk.s3.us-west-2.amazonaws.com/s3fs-public-1/reports/Executive%2520Order%25202013-3_0.pdf?VersionId=UHdgYC4vn9ZVSvErZXLc1BXDUP_v6122) formalizing the annual declaration of TIF surpluses in 2013.Now the city annually declares surplus funds as part of the city budget in three primary ways:
1. Downtown Freeze" TIFs are those in and around the Central Business District that have been reserved only for major infrastructure and targeted economic diversification projects. The full available balance in these TIFs is declared surplus each year.
2. TIFs being terminated or otherwise ending must have any balance after closing out projects returned as surplus.
3. For the remaining TIFs, surplus is declared in TIFs with a balance over $750,000. The city declares 25% of the balance over $750,000, progressing up to 100 percent of the balance over $2.5 million.
Because property tax rates are determined without considering the growth in property values within a TIF district, when property values grow rapidly within the district, so too do the tax collections of the TIF. This is what has happened in recent years to allow for record-breaking TIF surpluses annually, as the cost of redevelopment projects remains relatively flat, the boon in TIF collections can be used as surplus.
However, the surplus declaration process, in addition to the creation of TIF districts in general, offers the potential for abuse. The surplus funds declaration can provide some incentive for the city to delay projects within TIF districts to have additional resources available for the city budget.
While TIFs don't hinder local governments from raising revenue, they can offer taxing bodies an additional avenue for revenues if they carry a surplus. This is particularly important for areas subject to Illinois' Property Tax Extension Limitation Laws, where growth in property tax levies is capped.In tax-capped areas like Chicago, TIFs offer taxing bodies the ability to collect additional property taxes without an explicit property tax hike.
Whether Mayor Johnson's budget proposal is doing this or simply taking advantage of the rapid increases in property values spiking TIF balances is unclear. Still, the city is certainly benefitting from TIFs in ways that they were not intended to when the districts were created.
If TIFs are found to carry large surpluses, the funds should either develop plans to reinvest in the community as designed, or the districts should be dissolved and the money returned to taxpayers. However, it should be noted that when TIF districts expire or are terminated, local taxing bodies can capture all of the "unlocked" revenue into their property tax bases without being subject to PTELL, even though they have not limited the collection of property taxes for any taxing body.
Rather than utilizing large one-time fund sweeps to balance the budget, Johnson's budget strategy for Chicago should focus on [structural reform](https://www.illinoispolicy.org/reports/chicago-forward-2026-a-pro-growth-plan-to-end-city-budget-deficits/) that corrects years of financial mismanagement and fosters long-term economic growth. The city should also conduct regular reviews of TIF districts and their associated projects and a deadline system to prevent funding for anticipated projects from being withheld indefinitely, as previously [recommended](https://igchicago.org/wp-content/uploads/2023/11/UPDATED-OIG-Follow-up-to-TIF-Sunshine-and-Surplus-Audit.pdf) by the Office of the Inspector General.
Source Name [139]: Chicago Mayor Proposes City Tax On Sports Betting Revenue Full URL: https://www.ingame.com/chicago-sports-betting-tax-proposal/ Scraped Date/Time: 2025-11-22 23:04:11
[News](https://www.ingame.com/category/news/)
3 min
<span style="color: #0066cc; font-weight: bold;"># Chicago Mayor Proposes City Tax On Sports Betting Revenue</span> [139]
City is looking for its cut of betting taxes, proposing a 10.25% rate on revenue from city-based wagers
[](https://www.ingame.com/author/chrisaltruda/)
**by [Chris Altruda](https://www.ingame.com/author/chrisaltruda/)**
Last updated: October 17, 2025
Chicago Mayor Brandon Johnson is proposing a [10.25% tax on adjusted gross sports betting revenue](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf) generated in the city for his 2026 budget, which would bring top operators in Illinois to a combined rate above 50% when including the maximum state levy.
Johnson's $16.6 billion budget, which would take effect Jan. 1 if passed as is, has multiple ways of closing a $1.15 billion deficit the city faces. The sports betting tax proposal, which projects to generate $26 million in revenue, was one not recommended by the city's budget task force in its interim report released in late August when it came to gaming in the city. The group suggested a [per wager surcharge for online, city-based wagers](https://cdn.prod.website-files.com/68bb0c7a3993328cb1f875a6/68c9742e20efecbd01ee5692_CFFTF_Interim%20Report_2025.pdf) of either 25 or 50 cents that was projected to raise between $8.5 million and $17 million.
A per wager surcharge took effect at the state level [July 1 at the start of the new fiscal year](https://www.ingame.com/illinois-governor-signs-sportsbook-tax/) after Illinois Gov. JB Pritzker signed his budget into law. The state's 10 mobile sportsbooks are paying 25 cents for each wager for the first 20 million accepted and then 50 cents above that threshold.
It raised more than $10 million in revenue in [July](https://www.ingame.com/illinois-july-2025-sportsbook-revenue/) and [August](https://www.ingame.com/illinois-sportsbooks-august-2025-revenue/), but that figure is expected to increase notably when September's sports betting statistics are released as industry leaders FanDuel and DraftKings all but certainly eclipsed 20 million wagers for the fiscal year during the month to begin paying the 50-cent surcharge.
It was the second straight year Illinois lawmakers radically altered their revenue collection methods for sports betting. Pritzker's budget for Fiscal Year 2025 changed the tax rate from a base 15% on adjusted gross revenue (AGR) to a progressive one ranging from 20% to 40% based on revenue thresholds over the course of a fiscal year. The state saw an increase of [$261.9 million in tax revenue](https://www.ingame.com/illinois-sportsbooks-june-2025-revenue/) from the new rates compared to FY 2024.
## Could a horse trade be in the making?
There is no guarantee that the tax will be included in Johnson's final budget approved by the City Council, but the fact there was no mention of an [ordinance passed at the committee level to introduce video gaming terminals (VGTs) in the city](https://www.casinoreports.com/chicago-video-gaming-terminals/) on a limited basis means there is something aldermen can trade if they feel the sports betting tax will gain no traction.
Johnson is opposed to allowing VGTs in the city, which would also risk Bally's foregoing a $4 million annual payment to the city as part of the Host Community Agreement for bringing a casino to the River West neighborhood. Johnson's budget projects $44 million in tax revenue from Bally's, which is expected to open its permanent venue in late September.
Bally's temporary casino in nearby River North at Medinah Temple has underwhelmed in relation to meeting city revenue projections since opening in September 2023. Johnson's budgets projected $35 million in tax receipts for both 2024 and 2025; Bally's generated $16.1 million in 2024 and has produced $11.4 million through September this year.
The sports betting tax would also further enrage industry operators that have been asked in consecutive years to pay a significantly higher amount of taxes than the original 15% signed into law when sports wagering was legalized by Pritzker in 2019 as part of a massive gaming expansion in the state that included six new casino licenses.
The $26 million in projected revenue from the city tax implies $255.6 million in sports betting AGR is generated in Chicago, the third-largest market in the United States. That is 40.4% of the $632.5 million in operator AGR winnings reported in Cook County for the 2024 calendar year.
Year-to-date revenue this year, however, is up 23.6% through the first eight months of 2025 to $488.9 million. If that pace holds, Cook County AGR would total $781.9 million for the year. Using the same 40.4% representation for Chicago, the city projects to generate $315.9 million in AGR. The 10.25% city tax would result in $32.4 million in receipts.
Mobile operators at the minimum pay a 20% state tax, a 2% tax on revenue generated in Cook County, and a 25-cent per wager surcharge. Adding the proposed Chicago city tax would create a 32.5% minimum rate on city-placed wagers before the surcharge. Most operators, though, advance at least one tax rate higher to 25% over the course of the fiscal year since the first revenue threshold is $30 million AGR.
In the case of FanDuel and DraftKings, however, the titans would spend a good portion of the year paying a combined 52.5% in taxes for city-based bets after clearing $200 million in fiscal year AGR before tacking on the per wager surcharges. [Previous projections with the surcharge put the effective tax rate](https://www.ingame.com/illinois-new-wagers-sports-betting-tax/) on the two operators above 51% for the fiscal year; the city tax would put it above 60%.
Source Name [140]: Chicago budget plan proposes 10.25% local tax on sports betting Full URL: https://sbcamericas.com/2025/10/17/chicago-budget-local-tax-sports-betting/ Scraped Date/Time: 2025-11-22 23:04:11
A budget proposal released by **Chicago** Mayor **Brandon Johnson** seeks a local tax on sports wagering, adding to a slew of recent tax changes on gambling in the Land of Lincoln.
Johnson presented the **Protecting Chicago Budget** [plan](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf) for FY2026, establishing a framework to protect investments, foster economic opportunity and provide fiscal stability.
The budget is aimed at closing a $1.15 billion budget gap without increasing property taxes in Chicago. Instead, the budget takes measures, like levying a local tax on online sports wagers, to generate additional revenue to support the city's government and people.
"To make Chicago more affordable for working families, the Protecting Chicago Budget advances a fair and balanced revenue strategy—one where everyone contributes in line with their capacity," said Johnson. "Based on our citywide Budget Engagement Survey results, residents prioritized new revenues from a community safety surcharge, online sports Wagering, and increased vacant building fees."
Johnson's budget proposes applying a 10.25% tax rate on adjusted gaming receipts reported by licensed operators in Chicago. As of October 2025, **Illinois** is home to 10 online sports betting operators with more than half of the group tied to retail partners.
Chicago is considering a local tax on sports wagering after **City Council** members [discussed](https://sbcamericas.com/2025/07/28/chicago-council-local-betting-tax/) the matter earlier this year. Several City Council members called for a local tax on sports betting to generate additional revenue and to have Chicago directly benefit from the growing popularity of wagering. The discussion of a local sports betting tax sparked action by Johnson, leading the mayor and his office to collect data on a potential local tax.
## Pathway to imposing a local tax in Chicago
Johnson's budget proposal requires state departments to [submit](https://www.chicago.gov/city/en/depts/obm/supp_info/budget-process.html) budget requests to the **Office of Budget & Management** (OBM). Once the requests are received, the OBM is responsible for publishing a budget forecast. Johnson is then required to submit budget recommendations to the City Council with the **Committee on the Budget & Government Operations** holding a hearing with council members on the matter. Council members are then allowed to either deny or approve the budget for its implementation.
A budget needs 26 votes from council members to pass with 50 elected alderpersons.
## Chicago task force recommended betting tax
Johnson's new budget plan proposes a local tax after the **Chicago Financial Future Task** Force provided a series of [recommendations](https://sbcamericas.com/2025/09/25/task-force-local-tax-online-bet-chicago/) to address the city's projected budget gap.
The task force published its **Options for Chicago's Financial Future** report, which proposed implementing a local 50-cent tax on all online wagers placed in the Windy City.
The task force projected the per-wager tax to generate up to $17 million in additional revenue with roughly 98% of all sports betting in Chicago taking place online. The estimate assumes that at least 20% of all online sports bets in Illinois are placed in Chicagoland.
The projection also considers a 10% loss rate due to bettors avoiding the local tax.
## Johnson's budget would add to tax changes in Illinois
Johnson is calling for a local tax on sports betting after Illinois implemented a sliding scale for taxes on sports betting last year. The state requires online operators to be taxed based on their adjusted gross revenue, with operators that generate over $200 million in revenue to be taxed at a 40% rate. Operators under that threshold are taxed at a 20% rate.
Before the sliding scale was introduced, Illinois levied a flat 15% tax rate.
In 2025, Illinois made additional tax-related changes by charging online operators at least 25 cents per wager as part of the state's budget. The plan requires operators to pay 50 cents per online wager after the first 20 million bets they receive in a year.
Operators responded to the per-wager tax by introducing transaction fees and raising minimum bet amounts in the state. The **Sports Betting Alliance**(SBA), a coalition of sportsbooks, also responded to the per-wager tax by [voicing](https://sbcamericas.com/2024/05/22/sports-betting-alliance-illinois-tax/) its opposition to the change.
The coalition's membership includes **BetMGM**, **DraftKings**, **FanDuel** and **Fanatics**.
_SBC Americas_ reached out to the SBA about the potential local tax on Chicago proposed by Johnson and will update this story if a response is received.
The two tax changes, along with existing recreation taxes and a new $2 per-unit tax on certain new hemp products are projected to generate roughly $429.5 million in revenue. The estimates are a $58.5 million increase compared to the 2025 fiscal budget.
Source Name [141]: Tripling the "Yacht Tax": What Mayor Johnson Is Proposing and Why It Matters Full URL: https://theplaypen.com/chicago/tripling-the-yacht-tax-what-mayor-johnson-is-proposing-and-why-it-matters/ Scraped Date/Time: 2025-11-22 23:04:11
## Tripling the "Yacht Tax"<span style="color: #0066cc; font-weight: bold;">: What Mayor Johnson Is Proposing and Why It Matters</span> [141]
**"By raising the tax on boat mooring fees — from ~7 % to possibly ~21 % or more — the City of Chicago aims to raise additional millions, shift the burden toward wealthier or non-resident leisure users, and avoid broad tax hikes on residents."**
In October 2025, Mayor Brandon Johnson unveiled his 2026 budget proposal for the City of Chicago: a $16.6 billion plan aimed at closing an estimated $1.15 billion deficit. Among the revenue features is a significant increase in the city's boat-mooring tax (often dubbed the "yacht tax") — from the current 7 % to significantly higher levels.
Here's what the proposal is, why it's being raised, who it affects, and what the ripple effects could be.
## What is the mooring tax?
Often when people say "yacht tax" in Chicago they are referring to a little-known but real fee: the 7 % tax the City of Chicago charges on the mooring or docking fee for any watercraft within the city's jurisdiction (harbors, river slips, etc.). The key features:
- It is **not** a tax on the boat's value, nor a general ownership tax. It is applied to the fee you pay to moor or dock the boat.
- The person paying the mooring or docking fee is responsible for the tax.
- The marina or docking facility collects the fee (including the tax) and remits it to the city's Department of Finance.
- Some exemptions apply: watercraft owned by a governmental body, or where other constitutional protections apply, are not subject to the tax.
In short: you bring your boat into a dock slip in city waters (Lake Michigan shoreline harbors, riverfront marinas), you pay the regular mooring fee **plus** 7% tax today.
### What's being proposed
Mayor Johnson's budget documents and reporting show that the mooring tax would be **tripled** under his proposal. One summary noted it would involve "tripling the 7 % 'Yacht Tax' on those mooring boats in Chicago's harbor." Other reporting from CBS indicates the increase in mooring-boat fees is expected to generate about **$4.1 million** annually.
While the exact new rate perhaps has some fine print yet to be formally adopted (as budget negotiations continue), the rough aim is to raise the tax well beyond 7%. Some sources interpret "tripling" literally: ~21 % or higher, though your background note mentions 23.25 % — that may reflect different drafting or illustration. The city materials themselves cite big new revenues from a raising of the "yacht docking fee."
### Why is the mayor doing this?
The Johnson administration frames the proposal in several ways:
1. **Progressive taxation**: The proposed increases are part of a broader set of revenue ideas that specifically target wealthier individuals, large corporations and non-residents rather than working‐class property-tax paying homeowners. For example, the budget also proposes a social-media tax, a "head tax" on large employers, and increased fees targeting cloud computing/tech companies.
2. **Protecting the budget**: With a projected deficit of more than a billion dollars (driven by end of federal aid, pension obligations, and other structural costs), the mayor has said the city must find new revenue rather than raise property taxes or grocery/garbage fees.
3. **"Luxury" or non-essential services**: Although a boat slip is not exactly a "luxury" in all cases, the narrative shifts toward putting more of the burden on higher-end boat owners (especially non-resident owners) rather than general taxpayers. Some versions of the proposal emphasize higher fees for "non-residents" docking in Chicago waters.
In short: the mayor is attempting to shift the balance so that those with leisure or large-asset watercraft contribute more to the city's coffers, thereby easing somewhat the tax pressure on ordinary residents.
### Who is affected and how?
Here are the stakes:
- **Boat owners who pay mooring/docking fees in Chicago**: If you own or rent a slip in a Chicago harbor, the applicable tax on that fee will rise. For example, if your mooring fee is $10,000 annually and today you pay $700 in tax (7 %), under a 21 % rate you'd pay $2,100 — a difference of $1,400.
- **Non-resident vs resident owners**: The budget lines suggest that non-resident boats might face even higher effective mooring tax increases. That could discourage out-of-town vessels from using Chicago slips (or motivate owners to relocate).
- **Marinas and docking facilities**: The tax is collected by the marina (or docking facility) and remitted to the City. Higher rates may affect the attractiveness of Chicago slips and could shift competitive dynamics (vessels may choose suburbs or other states).
- **City revenue**: The city expects the increase to bring in additional millions (quoted figure $4.1 m/year) to help balance the budget.
- **Residents and taxpayers**: By targeting mooring fees rather than general property taxes, the city hopes to protect many residents from paying more — but outcomes depend on whether revenue goals are met and cost pressures continue.
### The benefits the mayor highlights
- **Additional revenue**: The city gets more money to invest in public services, schools, infrastructure or other priority areas.
- **Fairer tax mix**: Supports the idea that those with higher-asset recreational means (boating in Chicago waters) should contribute more.
- **Avoiding property tax hikes**: By tapping new revenue streams, the mayor argues the city may avoid raising property taxes or basic service fees for average homeowners/renters.
- **Symbolic value**: The increase signals that the city is serious about progressive taxation, tackling wealth inequality, and shifting fiscal burden away from working families.
### The criticisms and risks
- **Potential reduction in boat traffic**: Higher docking taxes may discourage boaters (especially non-residents) from using Chicago harbors, possibly reducing ancillary spending (marina services, fuel, restaurants, tourism) and hurting local businesses.
- **Competitive disadvantage**: Nearby jurisdictions may have lower mooring taxes; boat owners may relocate slips to suburbs or other states, diminishing the base.
- **Question of "luxury" vs "need"**: Some argue that boats and slips are already taxed in many ways (state taxes, federal regulations, personal property taxes) and increasing one more tax may feel punitive rather than equitable.
- **Legal and administrative complexity**: Raising a tax rate is straightforward, but ensuring collection, avoiding evasion, and coping with unintended consequences (boaters shifting locations, marinas adjusting contracts) could lead to implementation challenges.
- **Is it sufficient long-term?**: The $4.1 m revenue estimate is modest relative to the billion-plus shortfall. Without structural fiscal reform, the city might still face deficits. Indeed analysts point out that the mayor's budget avoids major pension reform and relies heavily on one-time surplus sources.
- **Perception and political backlash**: Some view this as "punishing success" or "targeting leisure" rather than building sustainable growth, which could generate political resistance (from marinas, business groups, or boat owners).
### The bigger picture: City finance and taxation
This mooring tax hike is only one piece of a broader fiscal strategy:
- The mayor's 2026 budget proposes **no increase** in property taxes or garbage/grocery fees for now.
- He proposes new taxes and fees targeting large-employers, tech firms, social media, and cloud computing services.
- The mayor is also tapping a record surplus in the city's TIF (Tax Increment Financing) funds to help balance the budget.
- But major structural cost drivers — pension liabilities, long-term obligations — remain largely unaddressed.
In this sense, the mooring tax increase is a tactical move to raise revenue quickly and shift burden, but it does not by itself solve the deep structural fiscal issues facing Chicago.
### How big is the impact?
Let's walk through a hypothetical to visualize how the tax increase works.
Say you own a slip in a Chicago harbor and pay $20,000/year in mooring fees. At 7 % you currently pay $1,400 in tax. If the rate rises to ~21 %, your tax becomes $4,200 — an increase of $2,800. Over a five-year period, that's $14,000 more in tax than before. For many leisure boat owners this may be a manageable cost, but it's meaningful.
From the city's perspective: if there are (for example) 1,000 such slips subject to the tax (just for illustration) each paying $2,000 more in tax on average, that's $2 million a year in new revenue. The $4.1 million projected suggests either more slips, higher fee bases, or a somewhat higher rate than 21 %. Implementation details (which slips, what counts as "non-resident," etc.) will matter.
### Why "tripling" and why now?
The language around "tripling the tax" is deliberate.
- It signals boldness: Rather than a small uptick, this is a large jump, suggesting the city is serious about progressive taxation.
- Timing: With the city facing a large deficit and pressure on municipal services, the mayor is turning to less-traditional revenue streams (rather than hitting property tax payers).
- Targeting: By focusing on boat-mooring and slips (rather than boat ownership values or registration), the city is going after a specific revenue base tied to usage in its jurisdiction — making it harder to move to suburbs without cost.
- Political messaging: Framing the tax as a contribution from "wealthy leisure" rather than working families makes it more politically palatable (at least for the mayor's coalition).
### What to watch in the coming months
Since this is a budget proposal, there are several key variables that will determine how this plays out:
1. **Final rate and structure**: The proposed "tripling" may end up as, say, 20 %-25 % or may include sliding scales (resident vs non-resident, size of vessel, length of stay). Also, exemptions or caps may be introduced.
2. **Council amendments**: The City Council will continue reviewing and amending the budget; this tax may be softened or adjusted in negotiation.
3. **Implementation and enforcement**: How marinas will collect, whether owners will relocate, whether the city will see expected revenue without unintended declines in harbor use.
4. **Behavioral responses**: If boat owners decide to leave Chicago marinas for nearby lower-tax slips, the base shrinks. Conversely, the increase might not deter usage much if the clientele are less sensitive to cost.
5. **Budget overall and structural reforms**: Will the mooring tax increase be enough, or is it a band-aid on deeper fiscal issues? Will the city pair revenue increases with meaningful cost and pension reforms?
6. **Equity and optics**: How the public perceives targeting boat mooring fees (and potentially non-resident boaters) may influence political support. If the tax burden shifts but services don't improve, backlash may grow.
### Our take: A balanced view
Overall, we see Mayor Johnson's mooring tax proposal as a somewhat smart, politically savvy move — particularly in the context of a city stretched financially and seeking to protect ordinary taxpayers. Some strengths and cautions:
**Strengths**
- It targets a relatively narrow base (boat mooring) rather than broad-based tax increases.
- It aligns with progressive tax philosophy (ask more from those with leisure assets or who use city-owned waterfront).
- The revenue, while modest relative to the overall budget, is still meaningful and helps diversify the city's revenue streams.
- The political framing is strong: shift burden, protect working families, make wealthier users pay their share.
**Cautions**
- It depends heavily on assumptions: many boat owners may respond by relocating, reducing revenue.
- It doesn't address the core structural issues (pensions, long-term liabilities). Without those, the city may face similar deficits again.
- It could create competitive disadvantages for Chicago's harbors if nearby jurisdictions have lower tax burden.
- The increase, while symbolic and somewhat progressive, may still leave the perception of "another tax" and depending on economic conditions could be seen as less justifiable.
In short: It's a reasonable move, but far from a silver bullet. The devil will be in the details and the follow-through.
### Implications for boat owners and the marina industry
For boat owners, especially those docking in Chicago waters:
- You'll want to check your mooring contract and tax line: will the increased rate apply immediately? Will it be passed on by the marina?
- Some owners may evaluate alternatives (e.g., suburban marinas, nearby states, shorter stays) if the tax differential is large.
- For non-resident boat owners, the increased cost may tip the balance of whether Chicago is a cost-effective harbor.
For marinas and docking facilities:
- They may need to adjust pricing, marketing, and incentives to maintain occupancy.
- They ought to engage with city officials to understand how the tax is to be applied (resident vs non-resident, size thresholds, etc.).
- They may anticipate potential drop in demand – so risk mitigation or value-added services might become more important.
For the city:
- Monitoring the actual revenue and elasticity of demand will be crucial. If revenues fall short (because mooring usage drops), the city may need to revisit its assumptions.
- Using the extra revenue effectively and visibly will help maintain political support (e.g., directing funds to waterfront improvements, public access, harbor amenities) so the tax increase feels tied to value, not just cost.
- Communicating the fairness and rationale will help. If boat owners feel singled out unfairly or residents see little benefit, backlash could grow.
Mayor Brandon Johnson's proposal to **triple the mooring (or "yacht") tax** in Chicago is an illustrative example of how cities are increasingly tapping non-traditional revenue streams to balance budgets and pursue progressive tax policy. By raising the tax on boat mooring fees — from ~7 % to possibly ~21 % or more — the City of Chicago aims to raise additional millions, shift the burden toward wealthier or non-resident leisure users, and avoid broad tax hikes on residents.
Yet this move, while strategically sound in many ways, is not without risk. The actual revenue gain depends on behavior (will boaters stay or leave?), the rate may face push-back, and the increase does not solve larger structural challenges in city finance. For boat owners and marinas, it will mean re-evaluating costs and market positioning. For the city, it means delivering value, ensuring competitiveness, and balancing ambition with realism.
In the end, if implemented thoughtfully and paired with smart spending and reform, the tax hike could contribute to a more sustainable fiscal path. If done without care, it could generate unintended consequences: less harbor usage, revenue shortfalls, and political regrets. Time, and the budget negotiations ahead, will tell.
Source Name [142]: Mayor Johnson Unveils 2026 Budget Full URL: https://loyolaphoenix.com/2025/11/mayor-johnson-unveils-2026-budget/ Scraped Date/Time: 2025-11-22 23:04:11
# Mayor Johnson Unveils 2026 Budget
<span style="color: #0066cc; font-weight: bold;">The budget includes several different tax programs to advance community based initiatives.</span> [142]
By [Eleni Dutta](https://loyolaphoenix.com/author/edutta/ "Eleni Dutta")
| November 5, 2025,
5:35 am
Chicago Mayor Brandon Johnson released his third proposal for Chicago's [budget plan](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf "") for the 2026 fiscal year. Titled the "Protecting Chicago Budget," the motion outlines his office's plan to balance community investment and fiscal responsibility. The plan was unveiled by Johnson to City Council Oct. 16.
The main focus of the plan's goal to protect Chicago is to alleviate previous financial stress while simultaneously responding to federal funding policies, which Johnson described to be at a crossroads with the city. Currently, the city is experiencing a $146 million 2025 budget deficit, looming corporate tax shortfalls and pension obligations.
Johnson argues his plan will reflect a shift towards bringing stability to Chicago by focusing on initiatives at the neighborhood level.
The proposal focuses on six main priorities — public safety, affordability, youth investment, economic growth, environmental protection and maintaining an equitable balance. Johnson explained how the theme of protection reflects a pushback against federal financial trends driven by the Trump administration.
One of the most prominent proposed reforms is a $1 billion Tax Increment Financing surplus, which would be the largest in Chicago's history. The surplus's intention is to help fund Chicago Public Schools, Park District programs and libraries by reinvesting unspent development funds back into such public institutions.
Further playing into his message of "corporate accountability," Johnson's plan to tax large social media and tech companies operating in Chicago through what was described as a Social Media Amusement and Responsibility Tax.
The tax would cost large social media platforms 50 cents for each active user within the city of Chicago. To ensure smaller or local networks aren't impacted by the tax, the measure will only apply if a given platform has over 10,000 active users. Johnson's office predicts the tax will generate an annual income of $31 million to fund free mental health clinics and crisis response teams with specific emphasis towards youth mental health issues.
If approved, Chicago will become the first major U.S. city to tax social media companies directly for local mental health initiatives, setting a precedent on how cities address the intersection of technology regulation and mental health.
The proposal also wants to expand youth diversity programs, job opportunities and support domestic and gender based violence survivors with a Community Safety Fund of $100 million. A 3% tax on large corporations would support the fund.
Such a fund reflects the long-standing promise made by Johnson's campaign to shift away from a dependence on traditional police enforcement and instead focus on prevention efforts to reduce crime rates according to his campaign [website](https://www.brandonforchicago.com/issues/public-safety "").
This tax signifies Johnson's attempt to distance his administration from previous mayors who heavily relied on downtown development through corporate subsidies — a strategy he described as asking "the ultra-rich to put more skin in the game" during a live interview with [CBS News Chicago](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-chicago-budget-proposal/ "").
Johnson proposed a head tax on all companies with 100 or more full-time employees who spend 50% of their time working in Chicago. The tax, called the Community Safety Surcharge, is projected to affect 3% of Chicago businesses and would charge those businesses $21 per employee per month.
Chicago had a corporate head tax from 1974 to 2014 when it was repealed by then Mayor Rahm Emanuel. Johnson proposed reinstating the head tax when running for Mayor in 2023, according to his [website](https://www.brandonforchicago.com/issues/city-budget-and-revenue "").
Several cost-of-living protections for residents were also included in the plan. Promises in the proposal include an abolishment of property taxes, the city's grocery tax and a reduction in the motor vehicle rental tax.
Effective Jan. 1, 2026, Illinois will transfer the authority to impose what was originally a statewide 1% tax towards municipalities and counties. Therefore, local governments such as Chicago's will have the power to determine whether they'd want to implement their own version of the grocery tax. Johnson's plan suggests removing the tax along with the state to alleviate strain on the working people.
According to the [US Department of Agriculture](https://www.ers.usda.gov/amber-waves/2021/december/food-taxes-linked-with-spending-habits-of-lower-income-households ""), grocery taxes impact lower income households more considerably as they spend a larger percentage of their income on groceries.
Another way Johnson's plan intends on shifting the tax burden onto wealthier Chicagoans and large corporations is through a Yacht Tax. According to the language in the budget proposal, the tax intended to increase boat-mooring rates towards standards described as those aligned with "historical rates and the rate of parking."
Currently, the city's boat mooring [tax](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/boat_mooring_tax.html "") was 7% of boat mooring or docking fee. It became effective in 2003, where the previous tax beforehand was 25% of the fee.
The approach sharply contrasts with prior budgets which placed more dependence on service fees and property taxes. Similarly to the proposed corporate taxes, these measures align with Johnson's message where fiscal recovery should not fall on ordinary residents as they aim to make housing and transportation slightly more manageable.
The City Council will begin budget hearings in November, with the final vote expected to occur before the Dec. 31 deadline.
Source Name [143]: Chicago Slaps Social Media Giants with New $31M 'Mental Health' Tax Full URL: https://southwestregionalpublishing.com/2025/10/16/chicago-slaps-social-media-giants-with-new-31m-mental-health-tax/ Scraped Date/Time: 2025-11-22 23:04:11
Chicago Mayor Brandon Johnson
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson unveiled his proposed 2026 budget Tuesday, which includes a new tax on social media companies to fund expanded mental health services in the city.</span> [143]**
The Social Media Amusement & Responsibility Tax (SMART) would impose a fee of 50 cents per active user on large social media platforms with more than 100,000 users in Chicago. The tax is projected to generate $31 million annually, according to the mayor's budget overview. These funds are earmarked to support free mental health clinics and expand crisis response teams across the city.
Johnson's budget proposal aims to close the city's budget gap without increasing property taxes or imposing new fees on most residents. Instead, it targets large corporations, Big Tech firms, and the wealthiest residents to finance essential city services.
The budget includes more than $200 million in cost savings through measures such as hiring freezes, consolidating city-owned real estate, and reducing contracts, while explicitly avoiding layoffs or cuts to public services.
Additionally, the proposal anticipates a Tax Increment Financing (TIF) surplus exceeding $1 billion. This surplus would help support Chicago Public Schools, the Chicago Park District, City Colleges, and other taxing districts that face declining federal funding.
Other corporate tax measures in the budget include a "Yacht Tax," which aligns boat mooring fees with parking rates, an increase in the vacant building fee, and higher tax rates on Big Tech companies.
To bolster community safety, the budget proposes a $100 million Community Safety Fund, financed by a surcharge on corporations with more than 100 employees. This fund would back youth diversion programs, services for survivors of violence, mental health support for first responders, and violence intervention initiatives.
The budget also increases funding for programs assisting immigrants, LGBTQ+ residents, unhoused individuals, returning citizens, seniors, and families. Investments include rapid rehousing, reentry job training, childcare wage increases, and infrastructure improvements for neighborhoods affected by recent flooding.
Mayor Johnson emphasized that the new social media tax reflects a call for large platforms to contribute to the mental health services that benefit Chicago residents.
The Chicago City Council is expected to vote on the proposed budget later this month.
Source Name [144]: Department of Fleet and Facility Management - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/22/department-of-fleet-and-facility-management-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:10:31
<span style="color: #0066cc; font-weight: bold;"># Department of Fleet and Facility Management – BGA Policy 2026 Budget Snapshot</span> [144]
by Geoffrey Cubbage, Better Government Association
October 22, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Annual Rate of Change, 2012-2019\* | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $557,363,694 | $500,103,234 | -$57,260,460 | -10.3% | 3.7% | 18.3% |
| Positions & FTEs | 1042 | 1031 | -11 | -1.1% | 0.1% | NA |
_\*Historical comparisons are typically done from 2011-2025. For 2FM, the period 2012-2019 has been used, during which the version of 2FM most closely resembling the current department's scope and responsibilities existed._
- 2FM's standalone appropriations declined only slightly following the 2024 decoupling (when AIS was split back into 2FM and DOTI). The proposed $500.1 million budget for 2026 is higher than the $487.8 million average budget of the merged AIS department from 2020-2024.
- The department's vehicles budget has been almost completely eliminated, dropping -$7.3 million to $550,000 (-93%). However, this year's budget adds a new $1.7 million Vehicle Tracking Service appropriation.
- Budgeted funds for office and building services are also down substantially, -$12.7 million (-33.2%), as are the department's various repair and maintenance appropriations:
- REPAIR/MAINT EQUIPMENT, down -$4,169,700 (-36.8%)
- REPAIR/MAINT PROPERTY, down -$3,500,000 (-45.8%)
- MAINT FACILITIES, down -$600,000 (-22.9%)
- REPAIR PARTS AND MATERIAL, down -$334,305 (-0.9%)
- 2FM's overall net decline of 11 budgeted positions in this year's proposal is driven primarily by the elimination of seven Environmental Engineer positions (-70% change from the previous year) and four Watchman positions (-22.2%). The department is adding a second Assistant Commissioner position, in addition to other small single-position changes in staffing.
## Historical Context
The Department of Fleet & Facility Management, which is varyingly acronymized as both 2FM and FFM in city documentation, was created in Mayor Rahm Emanuel's first budget by the merger of the Department of Fleet Management with most of the responsibilities of the Department of General Services.
Mayor Lori Lightfoot's 2020 budget created a new Department of Assets, Information and Services by combining the existing Department of Innovation and Technology (DOIT) and Department of Fleet and Facility Management (2FM). A [2022 BGA Policy analysis](https://www.bettergov.org/2022/08/16/budget-analysis-merger-of-chicagos-information-technology-fleet-and-facility-departments-slowed-spending-growth/) showed preliminary budgetary efficiencies and savings in appropriations budgeted for AIS compared to the two separate pre-merger departments.
Mayor Johnson undid the merger in his first budget, returning to a standalone information department (now DOTI rather than DOIT) and a separate 2FM in 2024.
The historical overview charts in this snapshot include data from the Department of Fleet Services in the 2011 budget, the combined 2FM in the 2012-2019 budgets, and the combined AIS in the 2020-2023 budgets.
During the 2012-2019 period after the Fleet/General Services merger but before the addition of IT, the department's appropriations grew at an average annual rate of 3.7%, or 2.3% adjusted for inflation, compared to a citywide rate for the same period of 4.6% (inflation-adjusted 3.1%).
The department's appropriations then increased substantially following the merger with DOIT and transition to AIS. 2FM's standalone appropriations declined only slightly following the 2024 decoupling, and rose again in 2025 to roughly the same level as its highest merged appropriations. The proposed $500.1 million budget for 2026 is higher than the $487.8 million average budget of the merged AIS department from 2020-2024.
2026's budget proposes a -10.3% cut in 2FM's appropriations, compared to a citywide decline of -2.6%.
Over the past three complete budget years for which local fund actuals/encumbrances data is available, 2FM spent on average 92.9% of its locally funded budget, compared to the citywide average 86.4% local fund spend.
During the 2012-2019 period, 2FM's total headcount increased by an average rate of 0.1% annually, compared to a citywide average of 1.2%. Headcount dropped with the de-merger from DOTI in 2024 and has remained relatively consistent with slight declines since.
From February through September of 2025, the months for which the city released full-time position vacancy data, 2FM averaged a 11.2% vacancy rate, the same as the citywide average of 11.2%.
69 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
2FM's overall net decline of 11 budgeted positions is driven primarily by the elimination of seven Environmental Engineer positions (-70% change from the previous year) and four Watchman positions (-22.2%). The department is adding a second Assistant Commissioner position, in addition to other small single-position changes in staffing.
## Appropriations
2FM is 98.4% locally-funded in this year's budget proposal, up from the previous year's 90.7%. Nearly all of the department's grant funding has been eliminated in the 2026 proposal.
Corporate fund appropriations make up slightly more than half of 2FM's budget, with the rest covered by smaller amounts from a broad range of local funds. The department also has $7.9 million in federal grant appropriations.
### Largest Appropriations
As with most departments, salaries and wages are 2FM's largest expense category. The facilities department also spends substantially on electricity, repair parts and materials, natural gas, gasoline, and similar physical plant categories.
In the most recent year for which local fund actuals and encumbrances data is available, 2FM spent 92.8% of its locally budgeted appropriations. Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible.
### Change from Previous Year
This year's budget adds a new $1.7 million Vehicle Tracking Service appropriation.
The department's vehicles budget has been almost completely eliminated, dropping -$7.3 million to $550,000 (-93%). Budgeted funds for office and building services are also down substantially, -$12.7 million (-33.2%), as are the department's various repair and maintenance appropriations:
- REPAIR/MAINT EQUIPMENT, down -$4,169,700 (-36.8%)
- REPAIR/MAINT PROPERTY, down -$3,500,000 (-45.8%)
- MAINT FACILITIES, down -$600,000 (-22.9%)
- REPAIR PARTS AND MATERIAL, down -$334,305 (-0.9%)
Source Name [145]: Department of Procurement Services - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/27/department-of-procurement-services-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:10:31
<span style="color: #0066cc; font-weight: bold;"># Department of Procurement Services – BGA Policy 2026 Budget Snapshot</span> [145]
by Geoffrey Cubbage, Better Government Association
October 27, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $13,905,122 | $13,923,365 | $18,243 | 0.1% | 10.2% | 7.0% |
| Positions & FTEs | 130 | 126 | -4 | -3.1% | 5.1% | NA |
- DPS was one of the few non-ARPA funded departments to see significant budget increases in recent years. Overall appropriations have stayed close to a 2024 high, with this year's proposal up a very slight 0.1% increase on the previous year.
- Year-over-year changes from the previous budget are relatively minimal for DPS, with a roughly $121,000 increase in salaries and wages the largest single-appropriation increase and a decline of roughly $56,000 in IT maintenance costs the largest cut.
- DPS headcount is down four positions overall, with five Field Analyst proposals eliminated (removing the title from the department's budget entirely) and one Procurement Specification Writer added.
## Historical Context
The Department of Procurement Services's budget increased significantly from 2021-2024, rising from $8.5 million in 2021 to a high of $14.6 million in 2024. DPS was one of only a small number of non-ARPA funded departments to see a dramatic increase over this period. Reductions in the 2025 budget began to reduce that trend, though still leaving the department at substantially higher funding and headcount levels than pre-pandemic. The current budget proposal holds relatively steady from the previous year, with a very slight 0.1% increase in total appropriations.
From 2011-2025, appropriations at DPS increased at an annual average rate of 10.2%, or 7% adjusted for inflation, compared to a citywide average rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DPS spent on average 74.2% of its locally funded budget, compared to the citywide average 86.4% local fund spend.
Staffing levels at DPS have increased in recent years, with an average annual rate of change from 2011-2025 of 5.1% compared to a citywide average annual change of -0.1%.
From February through September of 2025, the months for which the city released full-time position vacancy data, DPS averaged a 24.2% vacancy rate, compared to the citywide average of 11.2%.
14 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
DPS headcount is down four positions overall, with five Field Analyst proposals eliminated (removing the title from the department's budget entirely) and one Procurement Specification Writer added.
## Appropriations
As in the previous year's budget, DPS is entirely locally-funded in the 2026 budget proposal.
Like most departments that provide services or oversight to a wide range of other city departments, DPS draws on multiple local funds. The bulk of DPS's 2026 appropriations are drawn from the corporate fund, but the department's budget includes airport, water, and vehicle fund appropriations as well.
### Largest Appropriations
As with most departments, personnel costs make up the bulk of DPS's appropriations, with salaries and wages on payroll by far the largest expense category.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, DPS spent 72.6% of its locally-funded budget. The department did not go over budget in any of the appropriations categories used by the Department of Finance in its actuals and encumbrances datasets.
### Change from Previous Year
Year-over-year changes from the previous budget are relatively minimal for DPS, with a roughly $121,000 increase in salaries and wages the largest single-appropriation increase and a decline of roughly $56,000 in IT maintenance costs the largest cut.
Source Name [146]: Chicago Department of Public Health - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/29/chicago-department-of-public-health-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:10:31
<span style="color: #0066cc; font-weight: bold;"># Chicago Department of Public Health – BGA Policy 2026 Budget Snapshot</span> [146]
by Geoffrey Cubbage, Better Government Association
October 29, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2020)* | Inflation-adjusted Rate of Change (2011-2020)* |
| Appropriations | $689,641,355 | $314,870,217 | -$374,771,138 | -54.3% | 19.1% | 20.0% |
| Positions & FTEs | 1046 | 764 | -282 | -27.0% | 0.4% | NA |
_*Historical comparisons are usually made from 2011-2025, however, in the case of CDPH, the pre-pandemic averages from 2011-2020 are presented for comparison. (The 2020 budget was set in late 2019, before the pandemic.)_
- This year's budget sees an accelerated decline in CDPH's budget, with appropriations down -54.4% from 2025, which had in turn declined -22.4% from 2024. Headcount in the 2026 proposal is down -27% from the previous year's budget, itself a -10.6% from the 2024 high-water mark.
- The proposed 2026 budget reduces CDPH's overall headcount by a net -282 positions, a -27% change. (25 of the eliminated positions are matched by equivalent titles/positions added at the expanded Department of Environment, however, as DoE takes over some of CDPH's responsibilities.)
- Among the other eliminated positions, the largest reductions came across multiple public health administrator, project management, and epidemiologist titles, including:
- A net reduction of -41 Epidemiologist positions, more than half (54.7%) the positions budgeted for those titles, as well as the elimination of seven of the department's 10 Infection Prevention Specialist positions.
- A net reduction of -43 Public Health Administrator positions, -41.3% of the positions budgeted for those titles
- A net reduction of -36 project manager, coordinator, and administrator positions, -40% of the positions budgeted for those titles
The department saw a $23 million (-25%) decline in salaries and wages on payroll, reflected in its reduced headcount. Pass-through spending to delegate agencies and outside contracting under the professional and technical services appropriation are both down in this year's CPDH budget proposal as well, -$11.5 million (-14.4%) in the delegate agencies category and -$7 million (-15.4%) in contracting.
- Despite the decline in budgeted positions and salaries, the Salary Provision appropriation category is up $7.5 million (359.8%), driven by appropriations from the Coronavirus Local Fiscal Recovery Fund ($4.4 million) and the Federal Grant Fund ($5.1 million).
- According to the Grant Details supplement, the entire $4.4 million salary provision appropriation from the Coronavirus Local Fiscal Recovery Fund comes from ARPA.
- Multiple grants from the Federal Grant Fund include salary provision appropriations, primarily CDC grants as well as $1.2 million from a U.S. Department of Health & Human Services grant for the national bioterrorism hospital preparedness program
- Reserve balance funds held over until the next year remained the health department's largest appropriation category despite a -$304.6 million (-78.6%) decline.
## Historical Context
As the city's point department for infectious disease response, the Department of Public Health's responsibilities and budget increased dramatically during the COVID-19 pandemic. CDPH allocations more than quadrupled from 2020-2022, driven primarily by federal grants, before beginning to decline in 2023 and 2024 and dropping more precipitously in 2025.
Prior to the pandemic, the department's budget had averaged a 2011-2020 growth rate of 1.8% per year. Departmental budgets overall increased an average of 1.5% per year over the same time period, while the total city budget including Finance General appropriations grew at an average rate of 4.5% annually.
This year's budget sees an accelerated decline in CDPH's budget, with appropriations down -54.4% from 2025, which had in turn declined -22.4% from 2024.
Local fund actuals are only a limited snapshot of CPDH's overall expenditures, as the prior three budget years were all years in which the department was heavily grant-funded. With that caveat, CDPH spent an average 78.3% of its locally-funded budget from 2022-2024, compared to the citywide average 86.4% local fund spend.
Because much of the pandemic-era grant funding was passed through to delegate agencies or outside contractors, the department's budgeted headcount did not expand as dramatically as its budget, but still saw multiple outlier years, with the workforce nearly doubling from 2020-2024 before beginning to decline in the 2025 budget.
The department's pre-pandemic budgeted workforce shrank at a rate of roughly -3.8% annually from 2011-2020. Overall budgeted positions for the city remained relatively flat across the same time periods, with minor year-to-year fluctuations averaging out to an overall growth rate of -0.002%.
Headcount in the 2026 proposal is down -27% from the previous year's budget, itself a -10.6% from the 2024 high-water mark.
From February through September of 2025, the months for which the city released full-time position vacancy data, CDPH averaged a 28.7% vacancy rate, one of the highest in the city, compared to the citywide average of 11.2%.
214 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
The proposed 2026 budget reduces CDPH's overall headcount by a net -282 positions, a -27% change. (25 of the eliminated positions are matched by equivalent titles/positions added at the expanded Department of Environment, however, as DoE takes over some of CDPH's responsibilities.)
Among the other eliminated positions, the largest reductions came across multiple public health administrator, project management, and epidemiologist titles, including:
- A net reduction of -41 Epidemiologist positions, more than half (54.7%) the positions budgeted for those titles, as well as the elimination of seven of the department's 10 Infection Prevention Specialist positions.
- A net reduction of -43 Public Health Administrator positions, -41.3% of the positions budgeted for those titles
- A net reduction of -36 project manager, coordinator, and administrator positions, -40% of the positions budgeted for those titles
## Appropriations
CDPH is 27% locally-funded in this year's budget proposal, up from the previous year's 13.3% as grant funds continue to expire.
Despite substantial declines, the Federal Grant fund remains the primary source of CDPH appropriations in 2026, representing 46.4% of the department's appropriations. The corporate fund is the next-largest source at 18.2% of departmental appropriations.
### Largest Appropriations
CDPH's largest appropriations category, despite declines, is once again the Reserve Balance category, used for grant funds that the department does not plan to expend during the budget year.
Setting aside that reserve, salaries and wages are the largest single-category appropriation, very nearly matched by pass-through spending to delegate agencies. Outside contracting under the professional and technical services category is the next-largest CDPH appropriation.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, CDPH spent only 70.9% of its locally-funded budget, with substantial underspend in the contracting, personnel services, and violence reduction program categories. (However, local funds for which actuals and encumbrances are available made up only 13.3% of CPDH's budgeted appropriations in 2024.)
### Change from Previous Year
Reserve balance funds held over until the next year remained the health department's largest appropriation category despite a -$304.6 million (-78.6%) decline.
The department also saw a $23 million (-25%) decline in salaries and wages on payroll, reflected in its dramatically reduced headcount.
Despite the decline in budgeted positions and salaries, the Salary Provision appropriation category is up $7.5 million, a 359.8% increase, driven by appropriations from the Coronavirus Local Fiscal Recovery Fund ($4.4 million) and the Federal Grant Fund ($5.1 million). According to the Grant Details supplement, the entire $4.4 million salary provision appropriation from the Coronavirus Local Fiscal Recovery Fund comes from ARPA, while multiple grants from the Federal Grant Fund include salary provision appropriations, primarily CDC grants as well as $1.2 million from a U.S. Department of Health & Human Services grant for the national bioterrorism hospital preparedness program.
Pass-through spending to delegate agencies and outside contracting under the professional and technical services appropriation are both down in this year's CPDH budget proposal as well, although not as dramatically as salaries or headcount, -$11.5 million (-14.4%) in the delegate agencies category and -$7 million (-15.4%) in contracting.
Source Name [147]: Chicago Fire Department - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/11/05/chicago-fire-department-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:10:31
<span style="color: #0066cc; font-weight: bold;"># Chicago Fire Department – BGA Policy 2026 Budget Snapshot</span> [147]
by Geoffrey Cubbage, Better Government Association
November 5, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $760,668,006 | $796,952,169 | $36,284,163 | 4.8% | 3.2% | 0.9% |
| Positions & FTEs | 5145 | 5141 | -4 | -0.1% | -0.05% | NA |
- In 2024, CFD was one of three departments to exceed its total budgeted appropriations, going $22 million over budget. (The police department went $188.1 million over budget in the same year, while the Commission on Human Relations spent roughly $16,000 more than budgeted.)
- CFD's budget increased substantially in two of the three areas where it overspent in 2024, with overtime increasing $47.4 million (103.2%) and non-workman's comp medical costs up $2.3 million (32.8%).
- The department's $12 million appropriation for legal judgments and settlements did not increase despite recent overspend.
- Apart from grant funds held in reserve, CFD's largest single-category appropriations cut was a -$11.8 million (-31.2%) decline in professional and technical services, the main appropriation used for outside contracting.
- From February through September of 2025, the months for which the city released full-time position vacancy data, CFD averaged a 6.3% vacancy rate, compared to the citywide average of 11.2%. CFD had the lowest vacancy rate apart from a handful of the city's smallest departments.
- 178 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data, with the most persistent vacancies concentrated in the Firefighter-EMT, Paramedic I/C, and Firefighter titles.
- CFD's budgeted positions underwent a significant amount of revision, even though the overall net change worked out to only a -4 position/FTEs reduction. Among the title and position changes representing changing roles and areas of focus within the department:
- 75 Firefighter-EMT positions were eliminated, with 89 more Firefighter – EMT – Recruit positions added.
- 16 Firefighter positions were cut, partially offset by four more positions in the Firefighter – Paramedic title.
- Similarly, the total net number of captain positions remained unchanged, but with change in designation: four Captain positions and two Captain – Paramedic positions were eliminated, replaced by six Captain – EMT positions added this year; likewise, seven eliminated Lieutenant positions were counterbalanced by four Lieutenant – EMT and three Lieutenant – Paramedic positions.
## Historical Context
The city's second-largest department by budgeted headcount and fourth-largest by total appropriations, the Chicago Fire Department has seen less dramatic fluctuations in its budget than most others, although its share of the city budget and departmental budgets overall declined with the influx of pandemic relief funds beginning in 2021.
CFD appropriations have increased at 4.8% annually 2011-2025 (3.2% adjusted for inflation), compared to a citywide average rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, CFD spent on average 98.1% of its locally funded budget, compared to the citywide average 86.4% local fund spend. In 2024, CFD was one of three departments to exceed its total budgeted appropriations, going $22 million over budget. (The police department went $188.1 million over budget in the same year, while the commission on human relations spent roughly $16,000 more than budgeted.)
The fire department has had the most consistent budgeted staffing levels of all but the city's smallest departments, with an annual rate of change in CFD headcount of -0.05% from 2011-2025, very close to the citywide average annual change of -0.1%.
From February through September of 2025, the months for which the city released full-time position vacancy data, CFD averaged a 6.3% vacancy rate, compared to the citywide average of 11.2%. CFD had the lowest vacancy rate apart from a handful of the city's smallest departments.
178 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data, with the most persistent vacancies concentrated in the Firefighter-EMT, Paramedic I/C, and Firefighter titles.
## Budgeted Position Changes
CFD's budgeted positions underwent a significant amount of revision, even though the overall net change worked out to only a -4 position/FTEs reduction.
75 Firefighter-EMT positions were eliminated, with 89 more Firefighter – EMT – Recruit positions added.
16 Firefighter positions were cut, partially offset by four more positions in the Firefighter – Paramedic title.
Similarly, the total net number of captain positions remained unchanged, but with change in designation: four Captain positions and two Captain – Paramedic positions were eliminated, replaced by six Captain – EMT positions added this year; likewise, seven eliminated Lieutenant positions were counterbalanced by four Lieutenant – EMT and three Lieutenant – Paramedic positions.
## Appropriations
CFD is 95.1% locally-funded in this year's budget proposal, up from the previous year's 83.3%.
Close to 90% of the department's budget comes from the Corporate Fund, with airport and grant funds making up the remainder.
### Largest Appropriations
As with most departments, personnel costs make up the bulk of CFD's appropriations, with salaries and wages on payroll by far the largest expense category, followed by overtime.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, CFD overspent in the personnel services, court settlement, and non-workmen's comp claims categories, exceeding the department's budget by a net total of roughly $20 million.
(Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible.)
### Change from Previous Year
CFD's budget increased substantially in two of the three areas where it overspent in 2024, with overtime increasing $47.4 million (103.2%) and non-workman's comp medical costs up $2.3 million (32.8%). The department's $12 million for legal judgments and settlements did not increase despite recent overspend.
Apart from grant funds held in reserve, CFD's largest single-category appropriations cut was a -$11.8 million (-31.2%) decline in professional and technical services, the main appropriation used for outside contracting.
Source Name [148]: Chicago Police Department - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/11/04/chicago-police-department-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:10:31
<span style="color: #0066cc; font-weight: bold;"># Chicago Police Department – BGA Policy 2026 Budget Snapshot</span> [148]
by Geoffrey Cubbage, Better Government Association
November 4, 2025
The Chicago Police Department is by far the largest city department, in terms of both headcount and budgeted appropriations.
CPD positions make up 38.6% of the city's total budgeted headcount in the 2026 budget proposal. The next-largest department, the Chicago Fire Department, is roughly one-third the size of CPD, with all other departments considerably smaller.
CPD appropriations make up 20.5% of all departmental budgets in the 2026 proposal. Looking at non-grant funds only, CPD makes up 31.4% of locally-funded departmental appropriations, and 50.5% of corporate funded departmental appropriations.
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $2,097,040,517 | $2,114,745,912 | $17,705,395 | 0.8% | 3.5% | 0.5% |
| Positions & FTEs | 13806 | 13792 | -14 | -0.1% | -0.9% | NA |
- Over the past three complete budget years for which local fund actuals/encumbrances data is available, CPD was the only city department to consistently exceed its budget, by increasing amounts each year. CPD's 2024 non-grant overspend of $188.1 million was on its own larger than the total non-grant budgets of 32 of the city's 39 departments.
- The bulk of the overspend in 2022 came from legal settlements and judgments, while in 2023 and 2024 overspend was driven by both personnel services and court settlements.
- As a 2022 BGA Policy analysis highlighted, CPD has gone over its budget for legal settlements every year since at least 2011 with the exception of 2020, when courts were closed for much of the year due to the COVID-19 pandemic. The city council has already authorized CPD-related settlements exceeding the 2025 budget as well, with two months still remaining in the year, but the 2026 proposal does not change the CPD settlements appropriation from the same level it has been at since 2020.
- Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible. However, a separate CPD overtime dataset and dashboard maintained by the Office of Inspector General showed overtime earnings well in excess of budget for CPD in 2023 ($324.4 million) and 2024 ($270.5 million), meaning that overtime likely made up the majority of the personnel services overspend.
- From Feb-Sept 2025, the months for which the city has published monthly vacancies data, 742 of CPD's budgeted full-time positions were persistent vacancies (meaning that the same title/division/section/subsection combination was vacant for all eight months of available data).
- Persistent vacancies at CPD from Feb-Sept 2025 included all three of the department's standalone, single-title divisions: the Urban Areas Security Initiative, violence against women/domestic violence protection, and response to domestic violence, sexual assault and stalking programs.
- Apart from the single-position special divisions, the DoJ-funded Community Oriented Policing Services hiring program and Office of Constitutional Policing and Reform had the highest rate of persistent vacancies, 37.3% and 23.6% respectively.
- Persistent vacancy rates at Patrol Services, the department's largest division, were very low, with only 1.6% of budgeted full-time positions unfilled from Feb-Sept 2025.
- The titles with the most persistent vacancies were Police Officer, Police Officer Assigned as Detective, Training Officer, and Police Officer – Field Training Officer.
- Budgeted positions overall remained very consistent with the previous year, with a net -14 positions primarily driven by changes in the Office of Constitutional Policing and Reform.
- 21 Training Officer positions have been eliminated from the Office of Constitutional Policing and Reform, the largest change within a single title in the proposed CPD budget.
- The department is also down a net six Sergeant positions and four of the department's five Coordinator of Research and Evaluation positions.
- Eleven new Assistant Director positions have been budgeted within the Office of Constitutional Policing and Reform, as well as six Police Officer Assigned as SWAT positions within the Bureau of Counter-Terrorism (the only Police Officer title to see a change in budgeted positions.)
- CPD's overtime budget for 2026 is nearly double that of the previous year, up $101.1 million in the largest single-category increase. Most of the remainder of the department's budget growth comes from salaries and wages and medical expenses outside of workman's compensation, with relatively small increases in other categories.
- The department saw a -$5 million (-27.7%) decrease in outside contract spending from the professional and technical services appropriation account, as well as a -$2 million (-55.4%) decrease in police vehicle appropriations.
## Historical Context
CPD's share of the budget and departmental appropriations as a whole dropped during the height of pandemic-era funding, when massive infusions of COVID-19 relief funds were added to the public health department and other departments with temporary pandemic-response programming.
As pandemic relief funds expire, CPD's share of the budget as a whole and of total departmental appropriations has begun to trend upwards once more.
From 2011-2025, CPD's budgeted appropriations grew by an average annual increase of 3.5%, or 0.5% adjusted for inflation, compared to a citywide average rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, CPD was the only city department to consistently exceed its budget, by increasing amounts each year. CPD's 2024 non-grant overspend of $188.1 million was on its own larger than the total non-grant budgets of 32 of the city's 39 departments.
CPD staffing levels have declined slowly over time since the most-recent high of 14,917 budgeted positions in 2019. From 2011-2025, CPD's budgeted headcount declined at an average annual rate of -0.9%, compared to a citywide average annual change of -0.1%.
From February through September of 2025, the months for which the city released full-time position vacancy data, CPD averaged an 8.6% vacancy rate, compared to the citywide average of 11.2%.
742 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
21 Training Officer positions have been eliminated from the Office of Constitutional Policing and Reform, the largest change within a single title in the proposed CPD budget. The department is also down a net six Sergeant positions and four of the department's five Coordinator of Research and Evaluation positions.
Eleven new Assistant Director positions have been budgeted within the Office of Constitutional Policing and Reform, as well as six Police Officer Assigned as SWAT positions within the Bureau of Counter-Terrorism (the only specific Police Officer role to see a change in budgeted positions.)
## Appropriations
CPD is 95.9% locally-funded in this year's budget proposal, up slightly from the previous year's 89.9%.
92.5% of the department's appropriations are funded from the Corporate Fund. Federal grant funded appropriations have declined significantly, down -$115.7 million (-68%) from the previous year's budget.
### Largest Appropriations
As in previous years, personnel expenses make up the vast majority of CPD's budget, with salaries and wages the largest single appropriations category by far. Overtime is the next-largest category, having nearly doubled from the previous year's appropriations.
Funds for legal settlements and judgments is the department's third-largest appropriation, despite having remained unchanged from the previous year. As a 2022 BGA Policy analysis highlighted, CPD has gone over its budget for legal settlements every year except for 2020, when courts were closed for much of the year due to the COVID-19 pandemic. The city council has already authorized CPD-related settlements exceeding the 2025 budget as well, with two months still remaining in the year.
As a predominantly locally-funded department, CPD's local fund actuals and encumbrances are a relatively reliable point of comparison to its budgeted appropriations. CPD has exceeded its non-grant budget by increasing amounts every year in the past three complete budget years for which actuals are available.
The bulk of the overspend in 2022 came entirely from legal settlements and judgments, while in 2023 and 2024 overspend was driven by both personnel services and court settlements.
Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible.
However, a separate CPD overtime dataset and dashboard maintained by the Office of Inspector General showed overtime earnings well in excess of budget for CPD in 2023 ($324.4 million) and 2024 ($270.5 million), meaning that overtime likely made up the majority of the personnel services overspend.
In 2024 specifically, the most recent year for which full-year actuals data is available, CPD spent only 55.4% of its budgeted Consent Decree appropriation.
### Change from Previous Year
CPD's overtime budget for 2026 is nearly double that of the previous year, up $101.1 million in the largest single-category increase.
Most of the remainder of the department's budget growth comes from salaries and wages and medical expenses outside of workman's compensation, with relatively small increases in other categories.
The department saw a -$5 million (-27.7%) decrease in outside contract spending from the professional and technical services appropriation account, as well as a -$2 million (-55.4%) decrease in police vehicle appropriations.
Source Name [149]: Chicago Department of Transportation - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/21/chicago-department-of-transportation-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:12:27
<span style="color: #0066cc; font-weight: bold;"># Chicago Department of Transportation – BGA Policy 2026 Budget Snapshot</span> [149]
by Geoffrey Cubbage, Better Government Association
October 21, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $2,039,303,751 | $1,836,518,885 | -$202,784,866 | -9.9% | 15.7% | 5.7% |
| Positions & FTEs | 1576 | 1481 | -95 | -6.0% | 4.3% | NA |
- CDOT is a heavily grant-funded department, with local funds making up only 13% of its proposed 2026 appropriations.
- In addition to federal, state, local, and COVID-19 grant funds, this year's CDOT budget also includes $67.1 million in appropriations from a new Disaster Recovery grant fund.
- Most of CDOT's net -95 position/FTE reduction was achieved by eliminating one or two positions from titles with multiple positions budgeted. The largest net cuts came in the Asphalt Laborer title (-10 positions), followed by Laborer (-7), Foreman of Cement Finishers (-6), and Cement Finisher, Pool Motor Truck Driver, and Civil Engineer III titles (-5 each).
- CDOT's construction of buildings and structures appropriation increased by $117.8 million (20.9%) in the 2026 budget proposal, the largest net year-over-year change among CDOT's appropriations.
- The department's overtime appropriation increased by roughly $8 million, more than double the previous year's appropriation.
- Apart from the reserve balance appropriation, the largest year-over-year reductions were $110 million (-51.7%) from CDOT's professional and technical services appropriation and the elimination of a $3.8 million "purposes as specified" appropriation from 2025.
## Historical Context
For most of the previous decade CDOT was the third-highest funded city department, following the Chicago Police Department and the Department of Aviation. A series of substantial budget increases beginning in 2021, largely driven by a billion-dollar increase in budgeted construction spending, roughly tripled the department's appropriation over three years.
Since 2022, and continuing in the proposed 2026 budget despite a -9.9% budget cut, CDOT is the second-largest department in terms of overall appropriations. The department's budget has historically increased at an average 15.7% rate of change (5.7% adjusted for inflation), compared to a citywide average rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, CDOT spent on average 91.9% of its budget, compared to the citywide average 86.4% local fund spend.
CDOT's budgeted workforce, down 95 positions (-6%) in the 2026 proposal, has historically increased at a rate of 4.3% annually.
From February through September of 2025, the months for which the city released full-time position vacancy data, CDOT averaged an 11.6% vacancy rate, very near to the citywide average of 11.2%.
104 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
CDOT has a single position budgeted for two new titles in this year's proposal: Director of Human Resources and Menu Program Manager.
Most of CDOT's net -95 position/FTE reduction was achieved by eliminating one or two positions from titles with multiple positions budgeted.
The largest net position/FTE cuts came in the Asphalt Laborer title (-10 positions), followed by Laborer (-7), Foreman of Cement Finishers (-6), and Cement Finisher, Pool Motor Truck Driver, and Civil Engineer III titles (-5 each).
The following titles from the previous year's budget were eliminated entirely in this year's CDOT budget proposal, with budgeted positions reduced to zero:
- Finance Officer
- Coordinator of Special Projects
- Assistant to the Commissioner
- Administrative Services Officer I – Excluded
- Human Resources Business Partner
- Director of Grants Management
- Senior Landscape Plan Examiner
- Coordinator of Bridge Operations
- Director of Administration I – Excluded
- Chief Contract Expediter
## Appropriations
A heavily grant-dependent department, CDOT is 13% locally-funded in this year's budget proposal, up slightly from the previous year's 11.5%.
More than half of CDOT's proposed budget comes from the Federal Grants fund, with another 21.8% from the State Grants fund. In addition to those and the Local Public and Private Grant fund and COVID-19 Grant fund, CDOT's 2026 budget draws $67.1 million in appropriations from a new Disaster Recovery grant fund, which was not present in the 2025 budget.
### Largest Appropriations
Despite a substantial reduction from the previous year, CDOT's largest appropriation account remains reserve balance, a new category added last year by OBM and described during the 2025 budget hearings as representing grant funds that will be rolled over into the next year, rather than expended in the current budget year.
Construction of buildings and structures was once again the next-largest appropriation by a substantial margin, followed by salaries and wages on payroll and professional and technical services (the city's outside contracting appropriation category).
Local fund actuals are of limited use for comparing CDOT's budget to its actual expenses since so much of the department is grant-funded; however, in the most recent year for which local fund actuals are available, CDOT expended most of its budget in all major appropriations categories without going over budget in any.
(Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible.)
### Change from Previous Year
CDOT's construction of buildings and structures appropriation increased by $117.8 million (20.9%) in the 2026 budget proposal, the largest net year-over-year change among CDOT's appropriations.
The department's overtime appropriation increased by roughly $8 million, more than double the previous year's appropriation.
Apart from the reserve balance appropriation, the largest year-over-year reductions were $110 million (-51.7%) from CDOT's professional and technical services appropriation and the elimination of a $3.8 million "purposes as specified" appropriation from 2025.
Source Name [150]: Department of Cultural Affairs and Special Events - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/11/03/department-of-cultural-affairs-and-special-events-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:12:27
<span style="color: #0066cc; font-weight: bold;"># Department of Cultural Affairs and Special Events – BGA Policy 2026 Budget Snapshot</span> [150]
by Geoffrey Cubbage, Better Government Association
November 3, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $72,961,225 | $62,003,597 | -$10,957,628 | -15.0% | 6.7% | 5.6% |
| Positions & FTEs | 81 | 80 | -1 | -1.2% | 0.2% | NA |
- DCASE retained the same number of full-time positions as the previous year. (Total positions and FTEs declined by a rounded -1 due to the elimination of a half-FTE's worth of hours in the Clerk II – Hourly position, which was cut from DCASE's budget this year.)
- From February through September of 2025, the months for which the city released full-time position vacancy data, DCASE averaged a 23.1% vacancy rate, among the highest of the city departments. The citywide average for the same period was 11.2%.
- In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, DCASE spent 85.2% of its locally-funded budget. A $2.2 million "For Redemption Expenses" appropriation was not used at all that year, according to the 2024 local fund actuals data. In 2025 and in the 2026 proposal, $2.6 million was budgeted for the same category.
- The Matching and Supplemental Grants appropriation was almost completely eliminated from this year's budget proposal, down -$2.04 million (-91.5%) from last year. Pass-through spending to delegate agencies increased by nearly the same amount, up $2.025 million (70.2%), the department's largest single-category increase.
- Grant funds held in reserve saw the largest single-category decrease, down -$12.5 million (-62.3%) from the previous year.
## Historical Context
After a relatively stable decade of funding, DCASE's budget underwent several years of dramatic fluctuations during the COVID-19 pandemic. DCASE's budget initially dropped in 2021 as shutdowns of events and hotels cut off its main source of revenue, then rebounded with pandemic relief funds in 2022, peaking at 2024 and beginning a decline in 2025 that continues with a -$11 million (-15%) cut from the previous year in the 2026 proposal.
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DCASE spent on average 85% of its locally funded budget, compared to the citywide average 86.4% local fund spend.
Unlike its budgeted funds, DCASE's budgeted headcount has remained very consistent, apart from a single-year dip in 2021. Overall the department's workforce has grown at an average annual rate of 0.2% from 2011-2025, compared to a citywide average annual change of -0.1%.
From February through September of 2025, the months for which the city released full-time position vacancy data, DCASE averaged a 23.1% vacancy rate, among the highest of the city departments. The citywide average for the same period was 11.2%.
Nine of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Budgeted Position Changes
DCASE retained the same number of full-time positions as the previous year. Total positions and FTEs declined by a rounded -1 due to the elimination of a half-FTE's worth of hours in the Clerk II – Hourly position, which was cut from DCASE's budget this year.
## Appropriations
DCASE is 70.4% locally-funded in this year's budget proposal, down from the previous year's 60.7% due to declines in all its grant fund categories.
All of DCASE's local funds come from its dedicated Special Events and Municipal Hotel Operators' Occupation Tax Fund, making it one of only a handful of city departments to receive no Corporate Fund appropriations.
### Largest Appropriations
Unlike most city departments, personnel expenses are not the largest of DCASE's appropriations. In the 2026 budget proposal, $11.2 million for festival production is the department's largest standalone appropriation, followed by $9.7 million for outside contracting through the professional and technical services appropriation.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, DCASE spent 85.2% of its locally-funded budget.
A $2.2 million "For Redemption Expenses" appropriation was not used at all that year, according to the 2024 local fund actuals data. In 2025 and in the 2026 proposal, $2.6 million was budgeted for the same category.
### Change from Previous Year
The Matching and Supplemental Grants appropriation was almost completely eliminated from this year's budget proposal, down -$2.04 million (-91.5%) from last year. Pass-through spending to delegate agencies increased by nearly the same amount, up $2.025 million (70.2%), the department's largest single-category increase.
Grant funds held in reserve saw the largest single-category decrease, down -$12.5 million (-62.3%) from the previous year.
Source Name [151]: Department of Family and Support Services - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/29/department-of-family-and-support-services-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:12:27
<span style="color: #0066cc; font-weight: bold;"># Department of Family and Support Services – BGA Policy 2026 Budget Snapshot</span> [151]
by Geoffrey Cubbage, Better Government Association
October 29, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $937,819,585 | $632,560,045 | -$305,259,540 | -32.5% | 8.2% | 4.4% |
| Positions & FTEs | 443 | 433 | -10 | -2.3% | -3.4% | NA |
- 2026's $632.6 million budget proposal would be a -32.6 % decline from the previous year, the first decrease in DFSS's budget since a 2013 low of $298.3 million (inflation-adjusted $388.2 million in 2024 dollars).
- Budget growth over time at DFSS has not been matched by corresponding staffing growth because increasing portions of the department's budget have been dedicated to the "Professional and Technical Services" and "Delegate Agencies" appropriations – outside contracting and pass-through spending on private and non-profit service providers.
- Apart from retitling/level changes, the largest share of DFSS's net -10 headcount change in the 2026 proposal came in the Youth Services Coordinator title, with four of the department's 19 positions eliminated (a -21.1% decline).
- DFSS's matching and supplemental grants appropriation saw massive growth from the previous year's budget, up $14.4 million (1393.8%) to become one of the department's top 10 largest appropriations. The increase was driven entirely by a $15 million HUD grant for disaster payments; outside of that single grant the category decreased slightly.
- Software maintenance and licensing also leapt dramatically, up $1.9 million (over 16,000%) from the previous year. Unlike the increase in matching grants, this increase is entirely within the corporate fund.
- The department's other largest appropriation-level increases came in youth employment (up $6.1 million, 14.2%) and homeless services (up $2.4 million, 3.7%).
- Multiple targeted programs saw million-dollar-plus cuts in this year's budget proposal, including early childhood education (down -$2.3 million, -21.1%), workforce services target population (down $1.5 million, -77.4%) and violence reduction (down $1.1 million, -16.9%).
## Historical Context
The Department of Family and Support Services budget increased significantly under the Lightfoot administration, even before the infusion of federal funds during the COVID-19 pandemic.
Budget growth was not matched by staffing growth because the majority of the increase was dedicated to the "Professional and Technical Services" and "Delegate Agencies" appropriations – outside contracting and pass-through spending on private and non-profit service providers. DFSS also has a number of specific program-level appropriations that are also primarily passed through to third parties.
At the start of the Emanuel administration, the city was budgeting $29.2 million for DFSS outside contracting. As DFSS workforce declined, outside contracting increased, reaching budgeted appropriations totalling $463.5 million in Emanuel's final budget, and increasing further to $508.3 million in Lightfoot's first (before the COVID-19 pandemic and the impact of relief grant funding).
From 2011-2025, DFSS appropriations increased at an average annual rate of 8.2%, or 4.4% adjusted for inflation, almost identical to the citywide average rate of 8.3% (inflation-adjusted 4.4%).
2026's $632.6 million budget proposal would represent the first decline in DFSS's budget since a 2013 low of $298.3 million (inflation-adjusted $388.2 million in 2024 dollars), and a -32.6 % decline from the previous year.
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DFSS spent on average 92% of its locally funded budget, compared to the citywide average 86.4% local fund spend.
Staffing levels at DFSS declined at an average annual rate of -3.4% from 2011-2025, compared to a citywide average annual change of -0.1%, even as the department's overall budget increased, representing the increasing share of appropriations dedicated to outside contracting and pass-through spending.
From February through September of 2025, the months for which the city released full-time position vacancy data, DFSS averaged a 12% vacancy rate, compared to the citywide average of 11.2%.
24 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
Apart from retitling/level changes, the largest share of DFSS's net -10 headcount change came in the Youth Services Coordinator title, with four of the department's 19 positions eliminated (a -21.1% decline).
## Appropriations
DFSS is 30.6% locally-funded in this year's budget proposal, up from 20% in the previous year as pandemic-era grant funds expire.
State and federal grants still make up more than half of DFSS's proposed appropriations, despite declines in both, with the corporate fund providing a further 18.1% of the department's budget as the largest local funding source.
### Largest Appropriations
Pass-through spending to delegate agencies is the largest DFSS appropriation by far this year, as it is in most years. (In 2025's budget, the new "reserve balance" category for grant funds not planned to be expended within the budget year exceeded delegate agencies.)
A standalone appropriation for homeless services, up slightly from the previous year, is the department's second-largest appropriation, followed by reserve balance and outside contracting through the professional and technical services appropriation.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, DFSS spent 94.4% of its locally-funded budget. (However, only 20% of DFSS's budget came from local funds that year.)
### Change from Previous Year
DFSS's matching and supplemental grants appropriation saw massive growth from the previous year's budget, up $14.4 million (1393.8%) to become one of the department's top 10 largest appropriations. Software maintenance and licensing also leapt dramatically, up $1.9 million (over 16,000%) from the previous year.
The department's other largest appropriation-level increases came in youth employment (up $6.1 million, 14.2%) and homeless services (up $2.4 million, 3.7%).
The reserve balance category saw the largest decrease, followed by delegate agencies, both still remaining among the department's largest appropriations despite the cuts.
Multiple targeted programs saw million-dollar-plus cuts in this year's budget proposal, including early childhood education (down -$2.3 million, -21.1%), workforce services target population (down $1.5 million, -77.4%) and violence reduction (down $1.1 million, -16.9%).
Source Name [152]: City of Chicago FY 2026 Budget Analysis - Arts Alliance Illinois Full URL: https://artsalliance.org/2025/10/city-of-chicago-fy-2026-budget-analysis/ Scraped Date/Time: 2025-11-22 23:12:27
# City of Chicago FY 2026 Budget Analysis
October 21, 2025
<span style="color: #0066cc; font-weight: bold;">On Thursday, October 16, 2025, Chicago Mayor Brandon Johnson proposed a $16.6 billion City budget for Fiscal Year 2026.</span> [152]
This year's budget reflects the continued unwinding of federal pandemic relief, coupled with slower revenue growth and persistent structural deficits across city departments. The creative sector—still recovering from years of volatility—will once again need to navigate a leaner fiscal environment that prioritizes essential services while attempting to sustain cultural investment.
**Context and Overview**
The Mayor's 2026 proposal is roughly $700 million smaller than the previous year's $17.3 billion budget, signaling both fiscal constraint and the sunset of one-time federal supports. Some of the reduction citywide is attributable to the drawdown of the Coronavirus Local Fiscal Recovery Fund (ARPA), which provided temporary revenue relief to departments like DCASE (Department of Cultural Affairs and Special Events).
For DCASE, that decline is significant: the department's share of this fund fell by 64%, resulting in an overall 13.96% decrease from 2025 revenues (from roughly $72 million to $61.9 million). These shifts mirror what many departments are experiencing as the City transitions from emergency recovery toward long-term fiscal normalization.
**Departmental Highlights**
Corresponding decreases can be seen across several DCASE line items, including:
- Programming: -$1.9 million
- Administration: -$4.7 million
- Marketing & Development: -$8.2 million
While it is not yet clear how these cuts may be felt (e.g. fewer special initiatives or reduced advertising capacity), the picture is not uniformly negative.
Notably, **appropriations for Cultural Grants and Resources increased to $15.9 million**, representing 0.096% of the City's total budget—a modest but meaningful signal that Mayor Johnson's administration intends to protect direct cultural investment even as discretionary funding tightens.
**DCASE Budget Sources**
| **DCASE Budget Sources** | FY 2025 | FY 2026<br>(Proposed) |
| --- | --- | --- |
| Special Events and Municipal Hotel Operators' Occupation Tax Fund | $44,292,225 | $43,667,597 |
| Other Grant Funds | $28,669,000 | $18,336,000 |
The hotel operators' tax fund—a key revenue stream tied to cultural tourism and conventions—remains relatively stable, a positive sign given ongoing recovery in the visitor economy. However, the steep drop in "Other Grant Funds"underscores the volatility of external funding and reinforces the need for a more resilient local funding structure for arts and culture.
**Proposed DCASE Budget Breakdown**
| **Proposed Budget Breakdown** | FY 2025 | FY 2026 (Proposed) |
| --- | --- | --- |
| Administration | $23,876,805 | $19,124,233 |
| Special Events | $3,500,000 | $3,500,000 |
| Operations | $13,733,091 | $13,861,331 |
| Programming | $8,353,664 | $6,374,782 |
| Cultural Grants and Resources | $12,612,120 | $15,984,894 |
| Marketing & Development | $9,613,980 | $1,390,298 |
| Chicago Film Office | $974,766 | $931,880 |
**Interpretation**
City leadership appears focused on consolidating operations and scaling back administrative costs while preserving the most visible, community-facing investments—notably the Cultural Grants programs that directly support Chicago's artists and organizations.
The increase in Cultural Grants & Resources, even amid an overall departmental decline, suggests that cultural funding continues to be viewed as a public good tied to economic recovery, neighborhood vitality, and quality of life. That said, decreased Programming, Administration, Marketing & Development resources may hinder DCASE's ability to cultivate, promote, and measure the impact of that work.
**What to Watch**
- **Final Council amendments** could further shift the DCASE balance, particularly if any number of negotiations absorb remaining discretionary funds.
- **Tourism and hotel-tax performance** will be crucial to sustaining FY2026 grantmaking levels; any dip in travel or convention revenue could translate into mid-year adjustments.
- **Grant program details** (CityArts, Individual Artist Grants, etc.) are not yet delineated in the public budget; the distribution of the $15.9 million allocation will determine how equitably resources reach artists and organizations across Chicago.
**Arts Alliance Perspective**
Arts Alliance Illinois remains cautiously optimistic. In a constrained fiscal climate, holding and even modestly increasing direct grants represents a win for the creative community. Still, the loss of ARPA dollars highlights the urgency of identifying dedicated, recurring revenue streams for the arts—whether through local levies, regional partnership funds, or new public-private compacts.
As always, the Alliance will continue monitoring the budget hearings, providing updates as new data emerges, and advocating for sustained, equitable investment in Chicago's creative sector. At the same time, we renew our call for more comprehensive expenditure data from past years. Public transparency about how arts funding is allocated and spent is a vital step toward building trust and accountability between the City and the cultural communities it serves.
Source Name [153]: Department of Aviation - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/22/department-of-aviation-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:14:17
<span style="color: #0066cc; font-weight: bold;"># Department of Aviation – BGA Policy 2026 Budget Snapshot</span> [153]
by Geoffrey Cubbage, Better Government Association
October 22, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $1,547,505,037 | $1,666,194,101 | $118,689,064 | 7.7% | 11.3% | 6.0% |
| Positions & FTEs | 2392 | 2445 | 53 | 2.2% | 4.6% | NA |
- DoA's budget and staffing continue to grow relative to most other departmental budgets and to the city budget as a whole, driven by increasing airport revenues.
- DoA added several new titles and pay bands in the 2026 budget proposal, including three Airport Manager positions. The largest net increases in budgeted positions came in the Project Manager (+13 positions), Aviation Security Officer (+10) and Project Coordinator (+5) titles.
- Apart from grant reserve balance, the largest budgeted appropriations increases at DoA were for IT maintenance (up $23.9 million, a 58.1% increase) and professional and technical services (up $19.6 million, or 4.9%). The department also has a new half-million dollar budget line item for vehicles, which are most commonly budgeted in the city's Fleet and Facilities Management department.
- Rental of equipment and services was down significantly, -60.9 million (-51.8%) from the previous year's budget.
## Historical Context
As a self-funded department, the Department of Aviation's budget resources are less dependent on overall city revenues. Appropriations are typically closely tied to revenues from O'Hare and Midway airport operations: the higher the city's airport revenues, the more funds are available for DoA budgets.
Airport rates and charges saw the largest net increase in the city's estimated revenues in the 2026 budget proposal, continuing a string of years of increasing airport revenues and corresponding appropriations increase.
From 2011-2025, DoA appropriations increased at an average rate of 11.3% annually (6% adjusted for inflation), much of that driven by steep growth in recent years. By comparison, the city budget as a whole increased over the same period by an average of 8.3% annually (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DoA spent on average 82% of its locally funded budget, compared to the citywide average 86.4% local fund spend. Local funds make up just over half of DoA's total budget.
The department's budgeted workforce has grown along with its appropriations, with the number of budgeted positions increasing by an annual average of 4.6% since 2011, compared to a citywide average annual change of -0.1%. The 2026 budget proposal continues the trend, adding a net 53 budgeted positions, a 2.2% increase while the overall proposed city workforce declined by -1.2%.
From February through September of 2025, the months for which the city released full-time position vacancy data, DoA averaged a 14.4% vacancy rate, compared to the citywide average of 11.2%.
158 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
DoA added several new titles and pay bands in the 2026 budget proposal, including three Airport Manager positions.
The largest net increases in budgeted positions came in the Project Manager (+13 positions), Aviation Security Officer (+10) and Project Coordinator (+5) titles.
## Appropriations
The aviation department is 55.2% locally-funded in this year's budget proposal, with the rest coming from grants, up slightly from 53.8% local funding last year.
The dedicated O'Hare fund makes up the largest portion of DoA's appropriations, with the Federal Grant Fund a close second. This year's budget also anticipates a $61.9 million increase from the state grants fund, which was not a budgeted appropriations source in the 2025 DoA budget.
### Largest Appropriations
DoA's largest budgeted appropriation category in the 2026 proposal is reserve balance, an appropriation described last year by the Office of Budget and Management as representing grant funds not planned to be expended in the current budget year.
Apart from that reserve, the largest appropriation in DoA's 2026 budget proposal is for professional and technical services, the city's outside contracting category. Salaries and wages are the next-largest.
In 2024, the most recent year for which local fund actuals and encumbrances are available, DoA expended 85% of its contracting budget, and 89.6% of its personnel services budget. (Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible.)
### Change from Previous Year
Apart from reserve balance, the largest budgeted appropriations increases at DoA were for IT maintenance (up $23.9 million, a 58.1% increase) and professional and technical services (up $19.6 million, or 4.9%). The department also has a new half-million dollar budget line item for vehicles, which are most commonly budgeted in the city's Fleet and Facilities Management department.
Rental of equipment and services was down significantly, -60.9 million (-51.8%) from the previous year's budget.
Source Name [154]: Department of Buildings - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/22/department-of-buildings-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:14:17
<span style="color: #0066cc; font-weight: bold;"># Department of Buildings – BGA Policy 2026 Budget Snapshot</span> [154]
by Geoffrey Cubbage, Better Government Association
October 22, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $39,704,856 | $39,368,782 | -$336,074 | -0.8% | 1.1% | -1.0% |
| Positions & FTEs | 280 | 279 | -1 | -0.4% | -0.9% | NA |
- The building department's budget and headcount have remained relatively stable for many years, with headcount declining slightly and appropriations slightly trailing inflation.
- DoB's budgeted positions saw relatively minimal changes, with retitling three building/construction inspector titles to Chief Building/Construction Inspector and the elimination in one of six Deputy Commissioner positions the largest shifts.
- The changes to DoB's previous year budget were relatively small, with an additional $1.7 million (5.2%) in salaries and wages the largest increase, and a -$877,500 (-23.2%) change in professional and technical services the largest decrease.
## Historical Context
DoB's total appropriations have risen at an average annual rate of 1.1% from 2011-2025, an inflation-adjusted decline of -1%, compared to a citywide average rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DoB spent on average 90.1% of its locally funded budget, compared to the citywide average 86.4% local fund spend.
Budgeted positions at DoB have declined at an average annual rate of -0.9% annually from 2011-2025, compared to a citywide average annual change of -0.1%.
From February through September of 2025, the months for which the city released full-time position vacancy data, DoB averaged an 11.2% vacancy rate, the same as the citywide average of 11.2%.
19 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
DoB's budgeted positions saw relatively minimal changes, with retitling three building/construction inspector titles to Chief Building/Construction Inspector and the elimination in one of six Deputy Commissioner positions the largest shifts.
## Appropriations
The buildings department is fully locally-funded in this year's budget proposal, having lost the small amount of federal grant funding that was included in its 2025 budget.
Most of the department's appropriations come from the corporate fund, with smaller amounts from the water, sewer, and vehicle tax funds.
### Largest Appropriations
As with most other departments, salaries and wages on payroll is by far the largest appropriation category for the buildings department, with all other categories substantially smaller in comparison.
In 2024, the most recent year for which actuals and encumbrances data is available, DoB spent 87.7% of its personnel services funds, and 86.5% of its funds overall. (Because the appropriation categories used in the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the appropriation accounts used in the budgets presented by the Office of Budget and Management, an exact line-by-line comparison of real spend to budget is not possible.)
### Change from Previous Year
The changes to DoB's previous year budget were relatively small, with an additional $1.7 million (5.2%) in salaries and wages the largest increase, and a -$877,500 (-23.2%) change in professional and technical services the largest decrease.
Source Name [155]: Department of Finance - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/20/department-of-finance-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:14:17
<span style="color: #0066cc; font-weight: bold;"># Department of Finance – BGA Policy 2026 Budget Snapshot</span> [155]
by Geoffrey Cubbage, Better Government Association
October 20, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Change, 2012-2025* | Inflation-adjusted Rate of Change (2012-2024) |
| Appropriations | $112,325,541 | $128,162,674 | $15,837,133 | 14.1% | 5.0% | 1.4% |
| Positions & FTEs | 645 | 654 | 9 | 1.5% | -0.2% | NA |
_*Historical comparisons typically begin in 2011, however the Department of Finance's size and function changed to its modern form in 2012. The outlier year 2011 has been excluded from this snapshot._
- Headcount and appropriations are both up for DoF, with a substantial 14.1% increase in budgeted appropriations from the previous year (which itself saw a 5.8% increase from 2024).
- DoF's net headcount increase is primarily driven by an additional 25 Parking Enforcement Aide positions. Seven Traffic Enforcement Technician positions were eliminated, along with three Staff Assistant positions and a number of accounting and administrative positions.
- DoF appropriations from the Water Fund and Grants Management Fund increased substantially in this year's budget, up $6 million (46.4%) and $3.9 million (155.2%) respectively.
- Budgeted IT maintenance appropriations increased significantly for DoF from the previous year, up $8 million (34.2%) from the 2025 budget.
- Personnel expenses are also up, with a $1 million (2.1%) increase in salaries and wages and a $1.4 million (169.5%) increase in fringe benefits.
- The department also has a new $4 million "reserve balance" appropriation from the State Grant Fund.
## Historical Context
In Mayor Emanuel's first budget (2012), the then-existing Department of Finance was merged with the larger Department of Revenue to create the version of the office operating today.
Since the merger, the department appropriation budget has grown at an average rate of 5% annually, or 1.4% adjusted for inflation, compared to a citywide average rate of 8.3%, or an inflation-adjusted 4.4%.
DoF budget growth has accelerated in recent years, including in this year's proposed budget with a 14.1% appropriation increase recommended.
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DoF spent on average 85.2% of its budget, close to the citywide average 86.4% local fund spend.
Staffing levels have remained relatively stable since the 2012 budget, with an average annual rate of growth of -0.2%. This year's proposal reverses last year's declines, with a net increase of nine positions/FTEs from last year's budgeted staff, a 1.5% increase.
From February through September of 2025, the months for which the city released vacancy data, DoF averaged a 12% vacancy rate, only slightly higher than the citywide average of 11.2%.
5.6% of the department's budgeted positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
DoF's net headcount increase is primarily driven by an additional 25 Parking Enforcement Aide positions. Seven Traffic Enforcement Technician positions were eliminated, along with three Staff Assistant positions and a number of accounting and administrative positions.
## Appropriations
The Department of Finance is 88.2% locally-funded in this year's budget proposal, down slightly from the previous year's 93.7%.
Appropriations for DoF are primarily drawn from the corporate fund. DoF appropriations from the Water Fund and Grants Management Fund increased substantially in this year's budget, up $6 million (46.4%) and $3.9 million (155.2%) respectively.
### Largest Appropriations
After salaries and wages on payroll (the largest category at nearly all departments), DoF's largest expenses in the 2026 budget proposal is IT maintenance.
The department also has a significant contracting budget, with the professional and technical services (outside contracting) and delegate agencies (pass-through spending) appropriations its next-largest categories.
Because the 2022-2024 actuals datasets from the Department of Finance do not correspond exactly to the same appropriation accounts as the budgets presented by the Office of Budget and Management, an exact comparison of real spend to budget is not possible at the appropriation account level.
In 2024, the most recent year for which complete actuals are available, DoF spent roughly 85.4% of its personnel services budget (a category that includes salaries and wages, overtime, and other compensation-related appropriation accounts), and 95.6% of its contracting budget.
The department also spent an unbudgeted $197,368 on payments and refunds for claims in 2024.
### Change from Previous Year
Budgeted IT maintenance appropriations increased significantly for DoF from the previous year, up $8 million (34.2%) from the 2025 budget.
Personnel expenses are also up, with a $1 million (2.1%) increase in salaries and wages and a $1.4 million (169.5%) increase in fringe benefits.
The department also has a new $4 million "reserve balance" appropriation from the State Grant Fund. According to OBM responses at the previous year's budget hearings, the reserve balance appropriation account is used for grant funds that will be rolled over into the next year, and does not represent current-year expenditures.
Source Name [156]: Department of Human Resources - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/11/11/department-of-human-resources-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:14:17
<span style="color: #0066cc; font-weight: bold;"># Department of Human Resources – BGA Policy 2026 Budget Snapshot</span> [156]
by Geoffrey Cubbage, Better Government Association
November 11, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2011-2025) | Inflation-adjusted Rate of Change (2011-2024) |
| Appropriations | $13,367,100 | $12,957,553 | -$409,547 | -3.1% | 9.0% | 5.7% |
| Positions & FTEs | 122 | 119 | -3 | -2.5% | 3.9% | NA |
- The net -3 headcount reduction includes a number of reduced, eliminated, and added titles, with a single position each budgeted for the new titles of Director of Policy, Employee Assistance Program Counselor, and Project Coordinator (Excluded). The budget proposal eliminates two positions each from the Recruitment Manager and Onboarding Specialist titles, as well as single-position reductions in multiple other titles, including the elimination of the Clinical Therapist III (Excluded) title from DHR's budget.
- Nearly all of DHR's appropriations remained the same as the previous year or declined, with a $1,704 (2.9%) increase in the Student as Trainees category the only year-over-year increase.
- The largest single-category decline was a roughly $176,000 (-35.8%) decrease in outside contracting through the professional and technical services appropriation.
## Historical Context
The Department of Human Resources remained at relatively steady budget and staffing levels from 2011 through 2022, when a Lightfoot-era push to ramp up staffing nearly doubled the department's budgeted headcount for the 2023 budget. Unlike most of the spikes in departmental budgets beginning with the 2021 budget, DHR was not primarily relying on pandemic relief funds for its increase.
From 2011-2025, departmental appropriations grew at an average rate of 9% per year, or 5.7% adjusted for inflation, largely driven by the 2023 budget increase and smaller increase in 2024. Citywide appropriations over the same period increased at an average annual rate of 8.3% (inflation-adjusted 4.4%).
Over the past three complete budget years for which local fund actuals/encumbrances data is available, DHR spent on average 86.1% of its locally funded budget, very close to the citywide average 86.4% local fund spend.
Staffing levels at DHR increased from 2011-2025 at an average rate of 3.9% annually, compared to a citywide average annual change of -0.1%.
From February through September of 2025, the months for which the city released full-time position vacancy data, DHR averaged a 15.2% vacancy rate, compared to the citywide average of 11.2%.
Seven of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Budgeted Position Changes
Overall headcount at DHR declined by a net -3 positions (-2.5%) from the previous year's budget.
The net -3 headcount reduction includes a number of reduced, eliminated, and added titles, with a single position each budgeted for the new titles of Director of Policy, Employee Assistance Program Counselor, and Project Coordinator (Excluded). The budget proposal eliminates two positions each from the Recruitment Manager and Onboarding Specialist titles, as well as single-position reductions in multiple other titles, including the elimination of the Clinical Therapist III (Excluded) title from DHR's budget.
## Appropriations
DHR is entirely locally-funded in this year's budget proposal, with the majority of its appropriations coming from the Corporate Fund and smaller amounts from multiple other local funds.
### Largest Appropriations
As with most departments, personnel costs make up the bulk of DHR's appropriations, with salaries and wages on payroll by far the largest expense category.
In 2024, the most recent complete budget year for which local fund actuals and encumbrances data is available, DHR spent 84.8% of its locally-funded budget.
### Change from Previous Year
Nearly all of DHR's appropriations remained the same as the previous year or declined, with a $1,704 (2.9%) increase in the Student as Trainees category the only year-over-year increase.
The largest single-category decline was a roughly $176,000 (-35.8%) decrease in outside contracting through the professional and technical services appropriation.
Source Name [157]: Department of Technology and Innovation - BGA Policy 2026 Budget Snapshot Full URL: https://www.bettergov.org/2025/10/21/department-of-technology-and-innovation-bga-policy-2026-budget-snapshot/ Scraped Date/Time: 2025-11-22 23:14:17
<span style="color: #0066cc; font-weight: bold;"># Department of Technology and Innovation – BGA Policy 2026 Budget Snapshot</span> [157]
by Geoffrey Cubbage, Better Government Association
October 21, 2025
## Departmental Highlights
**Snapshot: Appropriation & Staffing Changes from 2025 Budget**
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 Budgeted | 2026 Proposed | Net Change | Percent Change | Average Annual Rate of Change (2012-2019)* | Inflation-adjusted Rate of Change (2012-2019)* |
| Appropriations | $82,083,894 | $76,383,040 | -$5,700,854 | -6.95% | -2.8% | -3.7% |
| Positions & FTEs | 145 | 144 | -1 | -0.69% | 2.1% | NA |
_*The version of DOIT created in then-mayor Emanuel's 2012 budget was merged into AIS in the 2020 budget. Figures from the 2012-2019 era are used for the historical comparison here; appropriations since the re-establishment of DOTI as a standalone department in 2024 are discussed below._
- DOTI eliminated one funded position each from the Business Analyst, Senior Administrative Assistant, and Accountant positions, while adding a Senior Project Manager and a new Chief Operations Analyst position, for a net change of -1 full-time position.
- From February through September of 2025, the months for which the city released full-time position vacancy data, DOTI averaged a 43.6% vacancy rate, the highest among city departments. 51 of the department's 145 budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
- DOTI's largest single-category appropriation increase this year was in Centrex billings for the city's legacy telephone system, up $6.9 million (277.7%) from the year prior.
- IT maintenance, the department's largest expense, increased by $4.2 million, a 48.6% jump.
## Historical Context
The standalone IT department that existed from 2012-2019 (DOIT) was expanded from a much smaller department in Rahm Emanuel's first budget. During the Lightfoot administration, DOIT was merged with the Department of Fleet and Facilities Management (2FM) to create a new Department of Assets, Information and Services (AIS). Mayor Johnson undid the merger, creating a standalone information department, now renamed the Department of Technology and Information (DOTI).
From 2011-2019, the DOIT budget declined at an average annual rate of -2.8%, or -3.7% adjusted for inflation, while the revived version of the department has had slightly higher appropriations than the pre-2019 DOIT, and from 2024-2025 saw a 2.6% budget increase.
In 2024, the only year for which DOTI actuals are available, the department spent 83.9% of its locally-funded budget, compared to the 2024 citywide 89.6% local fund spend.
DOTI was re-established in 2024 with a budgeted 202 full-time positions, which dropped to 145 in the subsequent budget and to 144 in the 2026 proposal.
From February through September of 2025, the months for which the city released full-time position vacancy data, DOTI averaged a 43.6% vacancy rate, the highest among city departments.
51 of the department's budgeted full-time positions were persistent vacancies, meaning that the same title/division/section/subsection combination was vacant for all eight months of available data.
## Staffing
DOTI eliminated one funded position each from the Business Analyst, Senior Administrative Assistant, and Accountant positions, while adding a Senior Project Manager and a new Chief Operations Analyst position, for a net change of -1 full-time position.
## Appropriations
DOTI is 84.1% locally-funded in this year's budget proposal, a substantial increase from the previous year's 68.4%.
Corporate fund appropriations make up 68.6% of DOTI's proposed 2026 budget, with federal grant funds the next-largest funding source at 15.9% of departmental appropriations.
### Largest Appropriations
DOTI's largest expense category in the proposed 2026 budget is software maintenance and licensing, followed by salaries and wages on payroll.
Because the department is only partially locally funded, local fund actuals provide only a limited point of comparison between budgeted and real spend. In 2024, DOTI's largest category of local fund spend was contracting, where the department expended 88.8% of budgeted funds, compared to 68.9% of local funds appropriated for personnel services.
### Change from Previous Year
DOTI's largest single-category appropriation increase this year was in Centrex billings for the city's legacy telephone system, up $6.9 million (277.7%) from the year prior.
IT maintenance, the department's largest expense, increased by $4.2 million, a 48.6% jump.
The department's professional and technical services (outside contracting) appropriations declined $7.6 million (-60.5%)
Source Name [158]: Chicago's budget gap grows to $1.15B, second-largest in a decade Full URL: https://www.chicagobusiness.com/politics/chicago-projects-115b-deficit-2026-budget Scraped Date/Time: 2025-11-22 23:29:34
<span style="color: #0066cc; font-weight: bold;"># Chicago's budget gap grows to $1.15B, second-largest in a decade</span> [158]
By Justin Laurence
August 29, 2025
Mayor Brandon Johnson and the City Council face a $1.15 billion shortfall in 2026 while still needing to close a $146 million 2025 deficit driven by the Chicago Board of Education's refusal to take on a disputed $175 million pension payment the mayor wants off the city's books.
Chicago projects a $1.15B deficit in 2026 as Mayor Brandon Johnson clashes with CPS over pension costs and searches for new revenue options.
Source Name [159]: Johnson's Budget Fix Faces Stiff Headwinds Full URL: https://southsideweekly.com/johnsons-budget-fix-faces-stiff-headwinds/ Scraped Date/Time: 2025-11-22 23:29:34
# Johnson's Budget Fix Faces Stiff Headwinds
By Leigh Giangreco
November 4, 2025
Mayor Brandon Johnson must find a way to fill a nearly $1.2 billion hole in the city's 2026 budget. He is betting he can do that in part by passing a corporate "head tax," <span style="color: #0066cc; font-weight: bold;">but it's already facing stiff opposition from a majority of the City Council.</span> [159]
Johnson needs 26 out of 50 votes to pass his budget. The mayor is running out of revenue streams after his proposed $300 million property tax increase failed in a rare 50-0 vote last year. With property taxes a non-starter, that leaves few other options on the table to plug the city's budget gaps.
The head tax would levy $21 per employee per month on companies with 100 or more full-time employees in Chicago who spend half of their time working in the city. The city's budget office estimates the tax would generate $100 million annually, based on current employment data and the city's business licensing records.
The city plans to dedicate that revenue to community safety and violence interruption programs that were once buttressed by federal COVID relief dollars. Those funds will dry up soon since the federal government mandated that cities must obligate their American Rescue Plan Act (ARPA) funds by the end of 2024 and must spend them before the end of 2026.
"It is important to note that more than 97 percent of Chicago businesses would not be impacted by this proposal," Office of Budget and Management spokesperson LaKesha Gage-Woodard said in an email to the Weekly. "The intention is to ensure that the largest firms, who benefit most from the City's workforce, infrastructure, and services, contribute proportionally."
On Oct. 30, 27 out of 50 alders signed a letter opposing the head tax. Freshman Ald. Walter Redmond Burnet III, who the mayor just appointed to his father's old seat in the 27th Ward, initially signed the letter and then asked for his name to be removed. Burnett represents the West Loop, a mecca for luxury buildings and corporate headquarters.
Chicago once levied a $4 per employee head tax on companies with fifty or more employees. In his 2011 campaign for mayor, Rahm Emanuel promised to phase out the head tax. The city claimed the tax brought in $35 million revenue in 2009 and 2010. That November, Emanuel congratulated the City Council for passing an ordinance that would phase out the head tax, which he called a "job killer," by 2014.
If Chicago revived its head tax, it would make the city an outlier compared to the rest of the country, said Annie McGowan, a policy and research director at the Civic Federation, a local budget watchdog. Few other American cities levy a double-digit head tax: Denver's is $4 a month for each employee, while Pittsburgh levies a payroll expense tax on employers. Seattle repealed its head tax in 2018, and a proposed head tax died in Cupertino, the home of Apple, that same year.
Governor J.B. Pritzker blasted Johnson's head tax during an Oct. 21 event at the Economic Club of Chicago. It wasn't the first time that Pritzker butted heads with the mayor. Between controversies over state spending and migrant shelters in Chicago, an apparent rift has grown between the two politicians over the last two years.
"I am absolutely four-square opposed to a head tax for the city of Chicago," Pritzker said when asked about the proposal. He echoed the talking points of business groups who have argued that the tax would deter new companies and make it more difficult for those with an existing footprint in the city.
The governor then criticized Johnson's budget for not offering enough "efficiencies." When asked by the Weekly what cuts and solutions Pritzker would suggest, the governor's office did not offer specifics.
Despite the opposition, Johnson's budget office appears determined to stick with the head tax. When asked about the administration's contingency plan if the tax fails in City Council and whether the administration would propose a property tax increase again, the budget office pointed to a survey that rejected alternative revenue sources.
Progressive budget gurus argue that Chicago's job growth didn't suffer when the head tax was implemented. Julie Dworkin, co-executive director for the Institute for the Public Good and a contributor to the mayor's budget working group, used Bureau of Labor Statistics data to analyze employment growth rates in Chicago and the nation before and after the head tax's repeal.
Between 2010 and 2013, the period that the Institute for the Public Good described as "post-recession and pre-repeal," Chicago's rate of job growth was 66% higher than the rest of the country. Yet between 2014 and 2019, "pre-COVID and post-repeal," Chicago's growth rate fell to 1 percent above the rest of the nation.
"This employment data does not support the claim that the head tax was a 'job killer,'" the report reads.
Ralph Martire, the executive director of the Center for Tax and Budget Accountability, a bipartisan research organization, threw cold water on both sides of the debate.
"The peer-reviewed studies that I've seen have found no statistically meaningful correlation between tax policy and job growth or tax policy and business site location," Martire said. "That doesn't mean it doesn't happen, right? Of course, some businesses will say, 'Hey, I'm looking for a lower tax burden. So I'm going to site here rather than there.' Of course, that decision happens, but it's not a statistically meaningful driver of site decisions."
Instead, when businesses are figuring out where to locate, they factor in proximity to customers and suppliers, financial markets, transportation hubs, and the quality of the workforce, Martire added.
After leaning on federal COVID relief money for the last two years, Johnson may be squaring up for his toughest budget fight yet. Facing hard choices, his budget office has proposed reducing the advanced pension payments for the city's four employee pension funds that cover police officers, firefighters, municipal workers, and laborers. In previous years, the city paid more than was necessary toward those four pensions, a move credit rating agencies loved—and one that meant the costs of pensions wouldn't escalate in the future.
Between 2023 and 2025, the city used surpluses to help fund the advanced pension payments. Now that those funds are fully exhausted, Johnson's budget office has proposed a lower pension payment. Budget analysts, credit agencies, and some alders chafe at that because they believe it kicks the can down the road, leading to more expensive payments for future taxpayers. While the measure would save money in the 2026 budget, it could lead to credit downgrades that make it more expensive for the city to borrow money to pay for capital projects, like building bridges.
"It's not like all of these problems are the fault of the current mayoral administration," McGowan said. "These are like bad decisions that have been made over time that have built up to the situation where we are now, and a lot of progress has been made to deal with these financial issues. It's just that the pension cost is so large, it continues to crowd out the ability for the city to do everything else."
Source Name [160]: Mayor Brandon Johnson's 2026 budget targets social media, corporate "head tax" Full URL: https://www.illinoispolicy.org/mayor-brandon-johnsons-2026-budget-targets-social-media-corporate-head-tax/ Scraped Date/Time: 2025-11-22 23:29:34
# Mayor Brandon Johnson's 2026 budget targets social media, corporate "head tax"
By Dylan Sharkey
October 16, 2025
Chicago Mayor Brandon Johnson's 2026 budget proposal includes a per-user tax on social media companies and a per-employee fee on businesses. The proposal does not include a property tax hike and supports the elimination of the grocery tax.
During his 2026 budget address, Mayor Brandon Johnson's proposed "Protecting Chicago" budget leaned heavily on tax hikes targeting the city's largest employers and technology while avoiding a property tax hike.
The mayor's biggest revenue ideas include:
- A hike on the 11% higher personal property lease tax on tech companies, known as the "cloud tax"
- A $21 per employee "Head Tax" on the top 3% of companies with more than 100 employees.
- A $0.50 per user social media amusement tax projected to generate $31 million.
- Online sports wagering tax
- Tripling the 7% "Yacht Tax" on those mooring boats in Chicago's harbor
The Personal Property Lease Tax hike would affect anyone using AI platforms such as ChatGPT.
The mayor's budget does not include a property tax hike or a grocery tax. Chicago was already granted a reprieve from the grocery tax for at least six months in 2026 because the city council missed a key deadline to reinstate it, but Johnson's proposal suggests the grocery tax will be permanently eliminated. The mayor also wants to reduce the Motor Vehicle Lessor Tax from $2.75 to $0.50 for each rental period.
The budget includes some cost-savings measures such as:
- Hiring freeze across city departments.
- Contract reductions with vendors, saving an estimated $10 million.
- Merging of city offices and selling of vacant spaces.
- Reducing overtime costs for the Chicago Police Department.
Instead of confronting ballooning pension costs, runaway personnel spending or bloated bureaucracy, Johnson's budget avoids meaningful reform. His projected $200 million in "savings" comes mostly from temporary measures like hiring freezes and contract cuts not long-term efficiencies.
Pension obligations, the city's single biggest fiscal threat, remain unaddressed. The city has more pension debt than 44 states. To fix this long-term problem, the mayor needs to address rising pension liabilities. His budget fails to do this.
Taxes that may be framed as targeting the "ultra-rich" could push more businesses to leave the city or avoid investing here altogether, worsening the city's long-term revenue outlook.
Johnson also relies on a $1 billion Tax Increment Financing surplus, the largest in city history. Without structural fixes, budget issues will pressure taxpayers again in future years.
The mayor's new programs, like the $100 million Community Safety Fund and plans for expanded mental health services, may sound well-intentioned, but they lack clear accountability and are funded with unstable, politically targeted revenues.
Chicago doesn't need more tax hikes or symbolic gestures. The city needs structural fiscal reform, smarter spending and a tax climate that supports job growth.
Source Name [161]: Chicago Forward 2026: A pro-growth plan to end city budget deficits Full URL: https://www.illinoispolicy.org/reports/chicago-forward-2026-a-pro-growth-plan-to-end-city-budget-deficits/ Scraped Date/Time: 2025-11-22 23:29:34
<span style="color: #0066cc; font-weight: bold;"># Chicago Forward 2026: A pro-growth plan to end city budget deficits</span> [161]
Chicago's financial health remains in critical condition, with a baseline corporate fund deficit of $1.15 billion projected for fiscal year 2026 – continuing over two decades of projected budget shortfalls and a legacy of mismanagement.
Chicago Mayor Brandon Johnson now admits the city's finances have "reached the point of no return." He identifies a "revenue challenge" as the culprit. It's not.
Chicago's fiscal mismanagement is about overspending. As detailed below, the city's budget and its deficits have exploded during the past six years.
Debt refinancings, sweeping tax increment financing funds and last-minute cash grabs are hollow tricks that have not – and cannot – solve Chicago's fiscal crisis.
Chicago needs to prioritize financial responsibility and restraint. A common-sense approach to budgeting would stabilize Chicago's finances, restore confidence among job creators and encourage economic growth that expands the city's tax base. Ensuring Chicago has a pro-growth tax and regulatory climate will be crucial for achieving long-term prosperity.
To encourage economic and population growth, the city of Chicago should:
1. Establish a robust pro-growth economic environment to expand the tax base – not the burden – and foster enduring fiscal health.
2. Increase expenditures responsibly by capping budget growth in any year to the 10-year average growth in the consumer price index for all urban consumers.
3. Right-size programs to create at least $550 million in 2026 budget savings and offset recent spending increases.
4. Prioritize eliminating long-standing city job vacancies and filling critical roles, to reduce overtime costs and stop budgeting tricks enabled by backlogs of unfilled positions.
5. Support constitutional pension reform for long-term budget stability and advance interim measures, such as pension buybacks.
6. Secure immediate revenue without raising taxes, such as through Chicago Public Schools accountability.
With these reforms Chicago could achieve a $200 million structural surplus in 2026 alone. During the next three years, the city would cumulatively save $3.2 billion in spending, and bring in $568.2 million in short-term revenue. The reforms would eliminate the $3.5 billion cumulative, baseline corporate fund deficit and leave the city with annual budget surpluses.
If action is taken fast enough, some of these changes could even help reduce the $146 million budget shortfall in the current 2025 budget.
Chicago must shape its fiscal policies to foster economic and population growth. This is the surest path to long-lasting financial stability without further burdening taxpayers and risking further flight of people and businesses.
**Chicago's corporate fund squeeze: crowded costs, more taxes, few fixes**
Chicago's fiscal crisis is driven by persistent overspending. Since 2019 its total budget grew 62%, twice as fast as New York, Los Angeles and Houston. The biggest cost drivers: ever-larger pension payments, rising personnel costs and substantial growth in "finance general," the city's term for miscellaneous cross-departmental expenses, such as legal fees or bond payments.
From 2019 to 2025, Chicago's net appropriations of local funds – the portion of the budget paid from the city's own resources – have increased by $4.5 billion. This excludes restricted grant funding, interfund transfers and debt proceeds that don't draw on local funds.
During the past six years, pension expenses have ballooned to $2.9 billion, and debt service costs have remained high, at around $2 billion. These now consume about 40% of Chicago's net appropriations.
A significant share of net appropriations growth has come from Chicago's corporate fund – the city's general budget for discretionary funding and essentials, such as administration, police, fire, employee payrolls and benefits. The fund has increased by 51% in just six years, fueled by political decisions to increase spending and then hike taxes to cover rising costs. The corporate fund has also grown because it has been used to offset rising pension costs as they have outpaced property tax revenues.
Although the corporate fund expanded from about $3.8 billion in fiscal year 2019 to about $5.8 billion in 2025, Chicago's chronic deficits have nonetheless worsened. City leaders used temporary federal aid to bolster higher departmental costs, massive pension bills and expensive union contracts, raising the corporate fund's expenditures beyond sustainable levels. Entrenched overspending guarantees larger deficits ahead, even with record revenues.
From 2026 to 2028, the Office of Budget and Management forecasts Chicago will face a cumulative corporate fund deficit ranging between $2.52 billion to $5.19 billion, depending on economic conditions.
According to initial baseline projections, 2026 corporate fund expenditures will rise over $621 million above current levels, reaching $6.4 billion. The expenditure category of "financial costs," which can include legal fees and other expenses, is projected to decline modestly. Those savings will be eclipsed by a $629 million surge in personnel costs.
During the past five years, Chicago buoyed its budget with massive federal funding, creating permanent spending commitments with those temporary dollars. The corporate fund's revenues are set to decline by over $527 million as the city exhausts the last of that money.
The city has repeatedly leaned on tax hikes. Chicago now ranks among the most heavily taxed major cities in America. Its continued population and business losses reflect voters' dissatisfaction with the city's tax burden and persistent fiscal mismanagement. They also compound Chicago's problems because as they leave, fewer Chicagoans remain to be taxed.
Even the city's aldermen are fed up with broken promises and a lack of long-term solutions, unanimously voting to kill Johnson's $300 million property tax hike last year. Despite their resounding "no" and his scaled-back proposals also falling flat, Johnson's 2025 budget still included $181 million in new taxes and fees, hitting cloud computing, Netflix, Uber and more.
With additional property taxes rendered politically unviable, a budget task force funded by the Johnson administration has floated 39 new tax and fee ideas for 2026 that could cost $1.65 billion, ranging from corporate head taxes to higher garbage fees. But these measures neither prevent future deficits nor fix Chicago's overspending.
Chicago needs fiscal stability that fosters economic development and broadens the tax base. Spending reform and pro-growth policies can achieve that.
**1. Foster a pro-growth economic environment to expand the tax base – not the burden**
Chicago has many advantages that should support strong, sustained economic growth. As the nation's third-largest city, it boasts a deep pool of young talent and several world-renowned universities. It is a global leader in the finance and tech industries, and it serves as the region's tourism and transportation hub, anchored by two major international airports.
Despite its strengths, Chicago's economic growth has been anemic. The city's population is stagnant, its high-end talent is leaving, firms are fleeing, new businesses aren't forming, and social mobility remains low. Chicago's hostile business climate, driven by high regulation and taxes, undercuts its natural and historic strengths. As a result, inflation has outpaced the city's economic growth.
Future financial stability depends on building an economic environment in which businesses flourish, residents find opportunities and new talent from across the country chooses to settle and build careers. To accomplish this, Chicago needs fiscal stability, a pro-growth tax climate, regulatory reform to spur private development and maintain competitiveness, and stronger workforce development.
**2. Responsible expenditure growth**
Chicago already has some of the highest sales and property tax rates in the nation. This hostile tax climate has prompted residents and businesses to flee. As Chicago's tax base shrinks, its fiscal problems grow.
One way to ensure the Chicago budget grows responsibly is to adopt a spending cap, so it cannot increase faster than a set rate. The most sensible spending cap for Chicago is linking it to the 10-year average inflationary growth, which helps avoid economic shocks that can spike or shrink single-year inflation.
During the past decade, prices rose about 3% annually. Yet, Chicago's year-over-year budget growth has averaged 5.1% since 2015. And from 2019, it accelerated to 7.2%. The city's corporate fund spending has grown nearly twice as fast as inflation in the past six years.
If Chicago had adopted a spending cap in 2019 linked to the 10-year average urban inflationary growth for all expenditures excluding pensions, the city would have saved nearly $3.45 billion. That includes over $600 million just in fiscal year 2025.
Corporate fund spending is expected to rise by $621.9 million in 2026 and another $972.8 million by 2028. With a spending cap linked to inflation on all non-pension corporate fund expenditures, Chicago could save $510 million in 2026 and $2.35 billion across three years.
**3. Create more cost savings to offset recent expenditure increases**
Simply capping future growth will not be enough to close the city's deficit. From 2015 to 2019, Chicago's non-pension corporate fund spending grew by only 8%. After 2020, an influx of federal pandemic relief, intended as temporary support, was used to justify permanent budget expansion. As a result, these expenses have grown 31% since 2019.
In 2026, Chicago is projected to spend an extra $2.6 billion beyond its 2019 levels. As the last of its federal funds are spent, Chicago must reverse many post-pandemic increases.
To do that, the city must identify at least $550 million in expenditure savings for 2026, about one-fifth of the projected spending increase from 2019 to 2026. This reset would restore discipline and provide a new baseline, aligning costs to pre-pandemic growth that taxpayers can reasonably afford.
The city can look at Johnson's recent budget task force report for some ideas. The report found up to $455.5 million in potential cost savings. These include:
- Up to $52 million from potential changes to employee health care contributions, including limiting salary caps or surcharges.
- $25 million from streamlining hiring, including accelerating hiring of revenue-generating roles.
- Up to $69.5 million through a 20% reduction in overtime spending through better management of staff resources.
**4. Eliminate wasteful vacancies, fill critical roles**
Chicago accounts for thousands of full-time equivalent positions in its annual budget. To maintain transparency and accountability, the city should budget only for roles it intends to fill in the near term.
In 2025, Chicago cut 744 full-time vacant positions, helping deliver $247.6 million in "operational efficiencies." Despite this cut, 3,848 jobs across the total budget remain unfilled as of July, including 2,081 supported by the corporate fund.
Persistent vacancies may indicate structural overbudgeting or outdated staffing assumptions. If the city cut half of its vacant positions, it would save approximately $105 million.
At the same time, the city should ensure vacancies for critical roles are filled. This is especially true for the Chicago Police Department. Figures from the Chicago Office of Inspector General show there are 11,606 sworn CPD members as of June 2025, down nearly 1,750 from peak employment in early 2019.
The department carries over half of the corporate fund vacancies at 1,103 as of June 2025. Chicago Police Department vacancies force costly overtime, totaling $278.3 million in 2024. Restoring staffing can reduce personnel strain, control overtime costs and improve public safety.
**5. Pension reform**
Pensions are the leading driver of Chicago's rising expenditures in the overall budget. During the past six years, pension contributions have more than doubled from about $1.4 billion to about $2.9 billion. They take nearly 24% of the city's net appropriations. These costs eat funds for other departments and projects that Chicagoans expect and value, as well as drive budget deficits.
The recent pension sweetener signed by Illinois Gov. J.B. Pritzker, and largely neglected by Johnson despite clear warning signs, will hike Chicago's pension costs by $11.1 billion in total liabilities by 2055. The change leaves Chicago's funds "technically insolvent," city Chief Financial Officer Jill Jaworski said.
As government pension costs rise, Chicago taxpayers get stuck with the bill. Property taxes, already among the highest in the nation and the city's largest revenue source, have risen by nearly $500 million since 2019, with almost 80% of levies dedicated towards pension payments. It hasn't been enough, so city leaders have been tapping the corporate fund.
Pension contributions from the corporate fund have increased from $131 million to over $943 million. Still, all four of the pension systems the city funds rank among the worst-funded local pension systems in the country.
Achieving pension reform will require a constitutional amendment. Only then can the state adopt responsible changes, such as setting a maximum salary that increases a pension, replacing compounding increases with true cost-of-living increases and adjusting benefits to align with inflation.
Barring a constitutional amendment, to control future not-yet-earned benefits, the city can take interim steps. One proven model comes from Illinois itself. In 2018, former state Rep. Mark Batinick, R-Plainfield, introduced a pension buyback system. This offered enrolled persons in the state's Teacher's Retirement System, State Employees Retirement System and State Universities Retirement System two options:
- A 60% buyout of their total lifetime benefit in exchange for forfeiting future pension payments.
- A 70% buyout of the difference between a 3% compounded cost-of-living adjustment and a 1.5% simple cost-of-living adjustment.
Pritzker stated this system saved taxpayers money "for decades to come," with estimates of $1.8 billion in savings in 2023 alone. Tailoring a similar plan for Chicago's four main pension systems could be a path to flatten future liabilities.
**6. Secure immediate revenue through CPS accountability, non-tax revenue**
As federal pandemic-relief funds dry up, Chicago projects nearly $300 million less in local non-tax revenue. This shortfall comes primarily from the elimination of one-time resources used last year, license and permit fees bringing in less and uncertainty around whether Chicago Public Schools' will pay back its promised $175 million for city pension contributions.
First, Chicago should put more pressure on CPS to make its $175 million payment toward the Municipal Employees', Officers' and Officials' Annuity and Benefits Fund. The fund covers pensions for most civil service employees, including non-teacher employees of CPS. Currently, CPS employees make up about 62.7% of active members in the fund and are responsible for about 45% of its "normal costs," benefits earned in a given year.
Even with the city making a $1.13 billion payment into the fund in 2025, it still remains the second-worst funded local pension plan in the nation. Rising costs have been driven in part by CPS' massive increase in non-teaching staff. In just five years, CPS added 5,641 non-teaching positions, despite an enrollment drop of nearly 30,000 students, saddling the city with a higher pension bill.
CPS is supposed to pay $175 million annually toward these pension costs, but the district has withheld payments during the past two years, leading to shortfalls in Chicago's budget and forcing the city to tap into federal funds to cover the deficits. The 2026 payment is in doubt, with CPS facing its own deficit driven by an expensive contract with the Chicago Teachers Union.
The city should pursue a stronger, legally enforceable agreement with CPS, which may require changes in state law.
Second, Chicago should also pursue new ways of collecting revenues that don't rely on taxes, such as allowing commercial advertisements on city streetlights and utility poles. This could create up to $14.4 million in new revenue for the city.
**Conclusion**
For too long, overspending has driven the city into perpetual fiscal crisis. Each time, city leaders tell Chicagoans that deficits and tax hikes are unavoidable.
To restore financial stability and win back employer and investor confidence, City Hall must choose to control spending to bring down costs. It must grow the tax base, not by raising rates, but by fostering private investment and economic expansion.
Only then can Chicago shift from deepening crisis to lasting prosperity.
Source Name [162]: Aldermen vet report on budget cuts, Mayor Brandon Johnson's team urges patience Full URL: https://www.aol.com/articles/aldermen-vet-report-budget-cuts-001500625.html Scraped Date/Time: 2025-11-22 23:29:34
<span style="color: #0066cc; font-weight: bold;">Consultants hired by Mayor Brandon Johnson to find ways to save Chicago taxpayers money found themselves caught in the budget crossfire Monday between him and City Council critics who say his 2026 spending plan doesn't include enough of their recommendations.</span> [162]
Ernst & Young officials who authored a report that included dozens of recommendations on spending changes appeared before the council Budget Committee. Some aldermen frustrated by Johnson's budget proposal took the hearing as a platform to publicly push for steeper cuts.
"This is a $3 million report that we've been saying for free for years," said Ald. Anthony Beale, a top Johnson critic. "We've been saying we need cuts and efficiencies, cuts and efficiencies. We've been saying that for years, and you guys have totally ignored that."
When Southwest Side Ald. Matt O'Shea asked EY Principal Adam Chepenik if he agreed Johnson's team left "missed opportunities" in its proposal, Chepenik carefully avoided taking a stance.
"I think the options in the report identify options and opportunities to capture what is not currently captured," Chepenik said. "The report was designed to provide as many options as possible, and in terms of how things are implemented and the timeline that they take to implement, it is in the city's discretion,"
A coalition of moderate aldermen coerced Johnson and his allies to schedule the Monday hearing by filing for a full City Council meeting. EY's report, the result of an initial $3.2 million taxpayer-funded contract with the company, became a flashpoint in budget debates when Johnson initially didn't publicly release it.
Johnson's team eventually shared about a hundred pages of the report, which include dozens of recommendations that the firm said could eventually generate $530 million to $1.4 billion in savings. But Johnson argued Monday there is no money being left on the table.
"We hear a lot of calls for cuts, and people like to refer to them as 'efficiencies,' but folks get real quiet when we ask them to provide some of the specifics," Johnson told reporters during a news conference, nodding to the city workers who cleared snow Monday morning. "The reality is, our city services are essential."
Budget Director Annette Guzman told aldermen Johnson's 2026 budget includes about 70 ideas recommended by EY. But many will take years to implement, she argued.
"The city didn't get here overnight, and the structural reform won't happen overnight, but you have to begin somewhere," she said.
Johnson's team is counting on $12 million in savings from real estate consolidation and vacant land sales, $7 million by recouping more money from special event hosts who require city street closures and police deployment, $3 million from modernizing its vehicle fleet and $10 million via changes to its procurement process.
But the "road map" report could lead to a number of major budget fixes in future years, Guzman said. She pointed to a potential $100 million from real estate consolidation and vacant land sales, $21 million annually in overtime cost recovery from charges to special events hosts and $120 million with job centralization efforts.
Some daunting changes, such as alterations to city employee benefits, would only be possible with union negotiations.
Ald. Pat Dowell, Johnson's handpicked Finance Committee chair, urged her colleagues and Guzman to find ways to reduce spending.
"My constituents are looking for holding the line on this budget," she said. "Not expanding programs, not adding new programs and being very efficient in how we utilize our dollars."
Johnson's council opponents aired frustration during the hearing. They criticized the mayor for looking to expensive outside help to find cuts and accused him of dragging his feet on installing solutions.
The Monday hearing marked the start of a third week of public budget discussions in the City Council, with more hearings set to resume Wednesday. It remains unclear how Johnson and aldermen will reach a deal, though many in City Hall expect negotiations to stretch into December for a second year in a row.
A sign of the political maneuvering Johnson might need to use to pass a final budget appeared Monday when the council's Finance Committee advanced a $12 million tax incremental financing spend on an Ogden Park field house.
The field house has been a key focus for Ald. David Moore for years. Johnson's promise to support the measure was crucial to winning Moore's support on the city's 2025 budget last fall, the alderman said.
But last year's big sweetener finally getting the green light wouldn't sway his vote in this year's budget vote, he said.
"I have an ask every day," Moore said.
Asked about the field house, Johnson said the spending is "part of our vision to build a safe and affordable big city."
"We have to invest in our public spaces, particularly a time in which the Trump administration has demonstrated a great deal of animus toward what should be designed for the public good," he said.
Much of the current City Hall budget debate is centered around Johnson's proposal to levy a $21-per-employee head tax on large companies, a measure he has cast as a tax-the-rich effort to be used for public safety spending. But even more critical to Johnson's budget plan is the over $1 billion TIF surplus that would also send an estimated $552 million to Chicago Public School, plus another $20.6 million for its building improvement fund.
Interim CPS CEO Dr. Macquline King took the unusual step Friday of urging school families in an email to contact their aldermen and ask them to support the surplusing "to prevent mid-year cuts."
The money is key to the district's financial survival through the rest of the year, both the district and the Chicago Teachers Union have said, but many aldermen expressed concerns such a large surplus would threaten active or pending economic development projects in their wards.
"While we are grateful that the Mayor and a majority of City Council members now support providing additional revenue to CPS to prevent mid-year cuts, it is not a done deal," King's note said. "The Mayor and the City Council still have to pass a final budget for the City — and we need that budget to include this critical funding for our schools."
If aldermen significantly cut back on the surplus, the city would miss out on its full $175 million reimbursement for nonteacher CPS employee pension costs.
Previous CPS staff and leaders told the Tribune that it's not unprecedented for district leadership to ask parents to lobby for votes, but in the past, their efforts were focused on legislators in Springfield.
Source Name [163]: Chicago Mayor Brandon Johnson's head tax plan defeated in council committee vote Full URL: https://www.yahoo.com/news/articles/chicago-mayor-brandon-johnson-head-224600492.html Scraped Date/Time: 2025-11-22 23:29:34
<span style="color: #0066cc; font-weight: bold;"># Chicago Mayor Brandon Johnson's head tax plan defeated in council committee vote</span> [163]
CHICAGO — Aldermen voted down Mayor Brandon Johnson's 2026 budget in a Monday committee vote, a historic display of rebellion against the freshman mayor who has been struggling to shore up support for his controversial head tax.
Johnson's handpicked Finance Committee chair, Ald. Pat Dowell, moved to recess a meeting instead of considering the revenue ordinance for the mayor's $16.6 billion budget, a sign that the mayor expected to lose. Last week, Dowell said a Monday vote would be "premature," but she would allow it if the mayor nonetheless wanted to proceed.
Mayoral foes Alds. Raymond Lopez and Anthony Beale tabled her recess motion on a 24-7 roll call. Johnson's budget chair, Ald. Jason Ervin, then faltered with a superseding motion to recess the meeting later that afternoon until Dec. 2, which resulted in a 18-18 tie.
The 25-10 vote shooting down the revenue package was a remarkable rebuke against the first-term chief executive who has steadily overseen more losses in City Council than his predecessors. But not in modern times has a mayor lost a budget vote, even in committee.
How aldermen navigate the waters after Monday's defiance could chart a new course in City Hall's power dynamics and prove consequential to Chicago's longstanding fiscal woes, but their stance against the mayor sends the process for a second straight year toward a critical end-of-year deadline.
Earlier Monday afternoon, top Johnson adviser Jason Lee clutched a paper with what appeared to be his vote predictions as he lobbied on-the-fence aldermen as they grilled mayor's budget and finance teams. A few moments later, Lopez interjected to accuse Lee of inappropriately lobbying on the City Council floor against rules. Lee quickly left the room, but turned back to aldermen and blew a two-handed kiss.
The mayor's path ahead for the head tax remains fraught. Any attempts to water down or kill his head tax could lose critical support from progressives. And there are still other council members who are against his plan to halve the advance pension payment and issue more borrowing.
The council must finalize the 2026 budget by the end of this year. Last year, the mayor took that timeline to the latest it's been pushed in decades but ultimately clinched 27 votes by mid-December. Johnson this time around has made his wishes to forge full steam ahead clear, including in a Friday afternoon news conference in which he argued to his legislative counterparts "to slow it down just for the sake of slowing it down, it just doesn't make sense."
The freshman mayor first pitched the surcharge, which his team projected to raise $100 million, when he unveiled his plan to close a $1.19 billion budget gap for next year. During his October address to City Council, he framed the proposal to bring back the head tax after its 2014 repeal as the city's best chance to stand up to President Donald Trump and tax the rich.
That argument has struggled to win over allies and opponents alike. Last week, Johnson's team started floating a modified version that would up the minimum company size from 100 to 200 employees, after complaints that small business owners would be swept up by the surcharge. The $100 million revenue estimate went down to $82 million, and that $18 million gap would be filled by bumping up the personal property lease tax to 15%.
That didn't do the trick, apparently. After Dowell herself told reporters last week she opposed the levy in any form, the mayor's team floated another version this weekend where the tax would again apply to companies with 100 employees, but the $18 million that would be restored from that tweak would go toward small businesses in mainly South and West Side wards, three sources said.
Those grants, framed as a reimbursement, would apply only in Socioeconomically Distressed Areas (SEDAs), sources said. The official revenue ordinance that Johnson submitted to be voted on Monday went with the 100-employee version of the head tax, and carved out $18 million for a "Community Business Grant Program."
Johnson's third budget cycle was expected to be his most difficult yet given the city's longstanding fiscal issues and the limited options he had to pull new levers for revenue. The City Council, growing into a new era of rebellion for multiple administrations now, has smelled blood in the water and criticized multiple aspects of his plan. But the mayor has countered that he has yet to see aldermen propose an alternate budget.
With his plan now stalled on Monday, it appears he and the council will have to go back to the drawing board to find a combination of cost-cutting and new revenue that can get to 26 out of 50 votes — or 25, if Johnson is willing to cast a tie breaker.
The road to that threshold has proven difficult for Johnson given that his most ideologically aligned bloc — the Progressive Caucus — is not sizable enough to get over that hump, and not all of those aldermen are won over by his head tax and the rest of his proposal. Thus, the mayor will need the Black Caucus on board, but some of those members are also hesitant on that tax and other components.
"Council has the budget. Council has the budget," Ervin told reporters on Friday.
Dowell, who has been caught between her role on the mayor's leadership team and her unequivocal disapproval of a major component of his revenue package, sided with her colleagues against her own motion to recess. But some who voted with Lopez and Beale — including progressive Ald. Daniel La Spata — might have done so because they wanted to allow at least a floor debate, not necessarily a vote, on Monday.
The mayor has framed the case for his head tax and 2026 budget as an existential fight against Trump, who remains unpopular in Chicago. Johnson and his allies have argued without the head tax, the only alternative is punishing "working people" via a property tax hike, which he's drawn a red line against for 2026 after failing to raise that levy in his previous budget fight.
Johnson's unsuccessful weekend push to quickly pass the budget had clearly left an impact among some aldermen: frayed trust.
Ald. Timmy Knudsen said the mayor's team spread "a complete lie" about him by telling other City Council members that the Lincoln Park alderman supported a head tax. "I have been a 'heck no' the whole time," he added.
Knudsen, 43rd, called the move a "grasping at straws" effort to "get a few cheap votes."
"This body does not trust them, and things like this are pretty direct evidence as to why," he said. "Instead of having those holistic negotiations, they are trying to sneak their budget through however they can."
While the head and lease taxes have dominated the budget's public debate, one of the largest gap-fillers is his planned $1 billion surplus of special tax increment financing districts.
Sweeping $1 billion from more than half of Chicago's existing TIFs would close $233 million of the city's own budget gap and provide a lifeline to Chicago Public Schools. The district and its school building fund would receive $572.6 million from the surplus, which CPS officials and the Chicago Teachers Union said would prevent harmful midyear cuts and allow the city to get paid back for a $175 million pension payment for non-teacher CPS employees. That payment is key to helping close the city's year-end 2025 deficit.
Johnson, who has historically criticized TIF for reinforcing the city's disinvestment in Black and brown communities, said the surplus would help defend against the impacts of Trump's education cuts on CPS.
Many aldermen bristled at Johnson's plans to skim that much money over concerns it would delay or halt future economic development projects in their wards. Johnson administration officials have said property tax revenue growth that fuels TIF funds' bottom lines has been strong enough that many coffers would be quickly refilled and that no budgeted projects would be canceled.
CTU leadership has been lobbying hard for aldermen not to back away from the record amount, creating a website with a calculator they say shows cuts to school budgets and jobs by ward if the City Council voted no altogether. It was an implicit message to parents: If your alderman opposes Johnson's budget, they support these cuts to your schools — though opponents disputed the one-to-one fiscal impact.
Meanwhile, a coalition of building trades — unions that represent carpenters, plumbers, laborers, engineers, iron workers, painters, and electrical workers — have urged that "no" vote, arguing such a large TIF surplus would starve their workers of construction jobs. TIF revenues largely fund building renovations, road work and other infrastructure projects.
Aldermen would be hard-pressed to vote against any TIF surplus because they would have to find gap-filling cuts or revenue elsewhere. The search for a head tax alternative has already been difficult.
Johnson's revenue ordinance contains dozens of smaller tax and fee hikes, including a social media amusement tax of $0.50 per active user per month over 100,000 users (netting an estimated $31 million); extending the 10.25% tax on in-person sports wagering to online bets ($26.2 million); expanding the current "congestion surcharge zone" on Uber and Lyft rides ($17 million); tripling the boat mooring tax from 7% to 23.25% ($3.3 million); and 22 other smallish revenue tweaks to fines and fees, bringing in less than $6 million each.
Johnson also plans to plug at least part of his deficit by borrowing. That includes $166 million to pay for retroactive payments for the recently-inked union contract with Chicago firefighters and $283.3 million for settlements and judgements, including the $90 million "global" settlement for alleged victims of former Chicago police Sgt. Ronald Watts. But while it helps plug the 2026 gap, borrowing for the contracts and settlements will cost roughly $50 million in the following years, finance officials estimated earlier this month.
Chief Financial Officer Jill Jaworski said Monday the costs were "extraordinary" and that the global settlement for Watts, which puts 176 pending suits to rest, would reduce the city's long-term liability. They will be paid back over five years, while the retroactive pay will be paid off over three, a shorter term than historic borrowing for settlements.
The city is also asking for permission to refinance up to $2 billion in old debt over the next three years for potential savings. Jaworski said approval of that extra bonding authority would allow the city to broaden a "very successful" refinancing already underway this week that could net an extra $35 million in savings on top of the $30 million they've already budgeted for.
Source Name [164]: Editorial: While Mayor Brandon Johnson postures, aldermanic realists are quietly cooking up an alternative budget Full URL: https://www.aol.com/articles/editorial-while-mayor-brandon-johnson-110000195.html Scraped Date/Time: 2025-11-22 23:29:34
<span style="color: #0066cc; font-weight: bold;"># Editorial: While Mayor Brandon Johnson postures, aldermanic realists are quietly cooking up an alternative budget</span> [164]
By The Editorial Board, Chicago Tribune
November 21, 2025
Mayor Brandon Johnson on Thursday held a news conference at which he unveiled a new electronic tool for aldermen to submit their ideas for "efficiencies" addressing Chicago's $1.2 billion budget deficit for next year.
While the mayor spent time on that little stunt, designed to put those aldermen opposed to the mayor's corporate tax head in an uncomfortable political corner, elsewhere a small group of aldermen interested more in solutions than ideological grandstanding were preparing their own alternative budget.
Led by Ald. Pat Dowell, 3rd, the Finance Committee chair who earlier this week was among 25 on the panel who voted against the mayor's revenue package, these pragmatists are expected to unveil it as early as Monday.
The Dowell-led group of aldermen aren't just talking among themselves. We hear they're huddling with representatives of the business community, leading civic organizations like the Civic Federation and the Commercial Club, and, yes, even people from unions representing city workers.
From what we are given to understand, the head tax will not be part of the Dowell plan. Not at any level. But we are likely to see some of those "efficiencies" the mayor and his supporters on the council keep deriding as impractical or impossible.
Like all Chicagoans worried about the city's future, we await with anticipation what this rump group will put forward.
We've called consistently for shared sacrifice to address the budget crisis, including from a largely unionized city workforce from which Johnson has refused to demand concessions. As we've written before, Democratic mayors in numerous other cities have forced unions to the table — often through the threat of layoffs — in order to spare taxpayers from having to shoulder the entire burden of plugging budget holes. To date, Johnson has refused to follow this path.
But he needs at least 25 aldermen to go along with this folly in order to pass a balanced budget by the end of next month, and so far he hasn't come close to that number. So these responsible aldermen are taking it upon themselves to perform the hard work the mayor's office ought to be doing.
They deserve our gratitude. And, after they make public their ideas, they surely will need support from the mayor's budget and finance teams as they go about trying to stitch together a compromise spending plan with the clock ticking toward a Dec. 30 deadline.
If Johnson won't make the hard choices needed for a balanced budget, at the very least he should make his team available to those doing his job for him. The plain fact of Chicago governance is that only the mayor's office has the resources and expertise to number-crunch, and council members simply don't. Until now, Johnson implicitly has held that reality over the heads of his detractors, and his team dutifully has poured cold water on virtually any cost-cutting idea as unrealistic, at least in the current budget.
We say where there's a will, there's a way. And to say there has been no will on the fifth floor to honestly assess the ethics and practicality of various cost cuts is an understatement. That must change.
Next week, we hope, will mark the first concrete step to producing a 2026 budget that's balanced in every sense of the word and that will preserve the city's wobbly credit rating while giving businesses confidence to invest again in Chicago.
Source Name [165]: Mayor Johnson proposes social media tax to fund mental health clinics in 2026 budget Full URL: https://abc7chicago.com/post/chicago-mayor-brandon-johnson-present-2026-budget-city-council-meeting-thursday/18017333/ Scraped Date/Time: 2025-11-22 23:32:46
<span style="color: #0066cc; font-weight: bold;"># Mayor Johnson proposes social media tax to fund mental health clinics in 2026 budget</span> [165]
By Craig Wall
October 17, 2025
CHICAGO (WLS) -- Mayor Brandon Johnson rolled out his progressive budget for 2026 on Thursday as the city faces more than a billion-dollar deficit.
Ahead of his budget address, the mayor spoke surrounded by community organizations and elected leaders about the "Protecting Chicago Budget."
"It acknowledges a harsh reality that I think, that we all can agree on. We are living in unprecedented times," Johnson said. "We can't respond to Trump's cuts and the attacks on our city with speeches and press conferences. We must take concrete action."
A budget forecast released this summer projects a $1.15 billion deficit for the city, driven in part by the end of federal pandemic aid, and uncertainty over Chicago Public Schools pension payments.
Council members have until the end of the year to negotiate changes. The budget needs 26 votes for it to pass.
Johnson also called for a one-year hiring freeze that exempts public safety and other essential services.
There were also frequent jabs at the Trump administration, which the mayor blamed for some of the city's financial problems.
### No new taxes or fees for Chicagoans
The mayor's proposed budget does not impose any new property taxes or fees on Chicagoans.
To avoid placing an "additional financial strain on working people," the mayor also proposed the abolition of the grocery tax and reducing the motor vehicle lessor tax from $2.75 to $0.50 per rental period.
### Social media tax to fund mental health programs
The mayor's budget proposes two new special revenue funds for mental health and community safety.
The programs would be funded by adding a tax fee on social media companies called Social Media Amusement & Responsibility Tax, or SMART.
Money collected from the companies would fund "free mental health clinics throughout Chicago and the expansion of mental health crisis response teams," the mayor said.
The tax would charge social media companies 50 cents per active user over 100,000 in Chicago. The mayor's office expects the proposed tax to generate $31 million.
"And just like we tax other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way," Johnson said. "I'm not going to sugar coat it if we fail to invest in community safety in this budget at historic levels, the federal government will try to use that as justification for military occupation of our city."
"Well, a social media tax has been challenged in many other states. The Supreme Court has looked at these and said these are First Amendment issues and struck down states' chances to try to tax these," 32nd Ward Ald. Scott Waguespack said.
The budget also creates a $100 million Community Safety Fund to increase funding for youth diversion and employment programs.
### Taxing large corporations and the 'ultra-rich'
As a direct response to the Trump administration's tax cut for large corporations, the mayor proposed to implement new taxes and fees on some of Chicago's wealthiest people and corporations.
One of the proposed fees is a "yacht tax,"' which the mayor said would brings the rate for boat-mooring at city harbors into alignment with historical rates and the rate of parking.
Two other new fees include a "vacant building fee," which is a renewal fee to recover costs, incentivize development and reduce blight and taxes on big tech companies through an increase in the Personal Property Lease Transaction Tax rate.
"We are asking the top 3% of the absolute largest corporations in our city, those who have seen tremendous success and exceedingly high profits, to chip in so that we can build a safer city for all of Chicago," Johnson said.
The Community Safety Surcharge would apply to companies with more than 100 employees.
It would charge $21 per employee per month.
It would generate $100 million in revenue
That would pay for things like violence prevention programs and summer youth jobs
### $1 billion Tax Increment Financing surplus
The mayor said it's marking the largest TIF surplus in the history of the city.
The surplus is expected to support Chicago Public Libraries, financial relief to Chicago Public Schools, Chicago Park District and City Colleges of Chicago, the mayor said.
"So having not yet seen a TIF waterfall, it is hard to see how a billion dollar TIF surplus is even possible," 34th Ward Ald. Bill Conway said.
The mayor is also looking to expand the rideshare congestion fee and put a $200 million cap on police overtime.
Some alders say Johnson's proposals may not pass muster.
And the ideas also drew sharp backlash from the business community.
Local and state business groups blasted the head tax plan, along with the increase in the cloud computing tax.
"The best way to get rid of fiscal deficits is have new jobs, and the head tax and the cloud tax are job-killing taxes that will hurt businesses of every size and sector in Chicago," said Jack Lavin, president and of the CEO Chicagoland Chamber of Commerce. "Before you charge them and burden them with more taxes, there should be shared sacrifice. His budget has $200 million of cuts when they increased the budget by $6 billion since 2019; so that's not shared sacrifice."
The Progressive Caucus praised the head tax and other revenue ideas.
"There's economic warfare being put on our cities. Trump administration is taking away funds. They're laying off our workers. They're hurting our economies. That means cities have to find new solutions to how we fund our essential services," said 49th Ward Ald. Maria Hadden, chair of the Progressive Caucus. "We obviously will be looking into the budget, learning more, making sure a lot of these solutions are going to work, but we stand here as a Progressive Caucus encouraged and excited about the proposal before us."
But what alders did not see in the budget was money to pay for the new fire department contract.
So the budget discussions in the coming weeks could be contentious.
Source Name [166]: Johnson defends budget plan despite warning of credit downgrade Full URL: https://www.chicagobusiness.com/politics/brandon-johnson-defends-budget-despite-sp-credit-warning Scraped Date/Time: 2025-11-22 23:32:46
<span style="color: #0066cc; font-weight: bold;"># Johnson defends budget plan despite warning of credit downgrade</span> [166]
By Justin Laurence
November 6, 2025
Mayor Brandon Johnson defended his $16.6 billion 2026 budget proposal today despite what amounted to a warning it could lead to the city's credit being downgraded because of an over-reliance on one-time solutions.
The downgrade renewed calls from some on the City Council to strip out borrowing included in Johnson's budget and to make a larger advance pension payment.
Source Name [167]: Chicago mayor defends budget as analysts warn of credit risks Full URL: https://www.fox32chicago.com/news/chicago-mayor-defends-budget-analysts-warn-credit-risks Scraped Date/Time: 2025-11-22 23:32:46
<span style="color: #0066cc; font-weight: bold;"># Chicago mayor defends budget as analysts warn of credit risks</span> [167]
By Tia Ewing
November 6, 2025
Mayor Brandon Johnson spent more than three minutes defending his 2026 budget proposal Thursday, despite warnings that it could lead to another downgrade of Chicago's credit rating.
Earlier this year, Chicago's credit rating was downgraded, signaling to investors that the city may struggle to meet its financial obligations.
Johnson said that's exactly why he is pushing for new, progressive revenue sources. He argued that the city's financial troubles began long before he took office.
The mayor's proposed $16 billion budget includes several first-of-their-kind revenue ideas, including a social media tax. Johnson said the plan is rooted in fairness and long-term stability.
Other proposals include a community safety surcharge, a $21-per-month head tax on large employers, and higher fees on cloud-based services.
Critics warn the measures could push jobs and innovation out of Chicago, making the city less competitive.
Johnson countered that the budget is a "moment of truth" for fixing what he described as a broken system, and said he will not balance shortfalls "on the backs of the poor."
"You're asking me to go before city council and defend the very people that have made an enormous amount of revenue over the course of decades off the backs of working and poor people. What are we debating here?…" Johnson said.
No official date has been set for a City Council vote on the budget, but the vote must take place before the end of the year.
Source Name [168]: Statement Regarding Mayor Johnson's 2026 Budget Proposal Full URL: https://www.chicagolandchamber.org/statements-releases/chicagoland-chamber-of-commerce-statement-regarding-mayor-johnsons-2026-budget-proposal/ Scraped Date/Time: 2025-11-22 23:32:46
<span style="color: #0066cc; font-weight: bold;"># Statement Regarding Mayor Johnson's 2026 Budget Proposal</span> [168]
Published on October 16, 2025
The Chicagoland Chamber of Commerce issued the following statement in response to Mayor Brandon Johnson's proposed 2026 budget:
"Mayor Johnson's proposed 2026 budget relies on placing a tariff on jobs in Chicago and implementing policies that will further inflationary burdens on Chicago businesses and residents. If we want to be serious about fixing Chicago's fiscal challenges, we need to focus on long-term strategies to grow and create jobs, not quick fixes and job-killing taxes like the head tax and cloud tax that hurt businesses of all sizes and sectors. The 2026 budget proposal includes about $200 million in cost reductions, when the budget has increased by more than $6 billion in recent years. Rather than embracing shared sacrifice, this budget seeks to tax and borrow its way out of a deficit and, in the process, disincentivize job creation and hiring, deter relocation and expansion, and make Chicago less attractive at a time when national and global competition for jobs and investment is at an all-time high.
"The best way to address our fiscal challenges and strengthen essential city services is through growth. We stand ready to work with the mayor and members City Council to find serious solutions that will attract and support new employers, expand growing industries, and strengthen our tax base through opportunity and investment in every neighborhood," said Jack Lavin, President and CEO of Chicagoland Chamber of Commerce.
Source Name [169]: Mayor Johnson's record-setting $1 billion TIF surplus highlights issues Full URL: https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/ Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;"># Mayor Johnson's record-setting $1 billion TIF surplus highlights issues</span> [169]
Chicago Tax Increment Finance "surpluses" have increased more than ninefold in the past decade.
Chicago Mayor Brandon Johnson unveiled his plan to close Chicago's $1.15 billion budget shortfall for 2026 on October 16. Among the mayor's recommendations, were to declare a record-setting $1 billion "surplus" in the city's Tax Increment Financing districts balances.
The move, which is a one-time fund sweep, would result in an additional $232.6 million in additional revenue for the city and an even larger amount, estimated at $552.4 million for the Chicago Public Schools budget.
In the wake of the mayor's proposal many aldermen are [questioning](https://abc7chicago.com/post/what-are-tif-funds-experts-explain-tax-increment-financing-amid-chicago-public-schools-budget-crisis/15413919/) the decision, while others are highlighting the fundamental issues with Tax Increment Finance districts themselves. In the past decade, the amount of TIF dollars the city has declared as "surplus" has increased by nearly ninefold, rising from $113 million in 2016, to more than $1 billion for the 2026 fiscal year.
While the city of Chicago has relied on fund sweeps from TIFs to balance the city budget for nearly two decades, the reliance on TIF surpluses has surged in recent years. The consistent "surpluses" suggest that either many TIF districts do not need a significant amount of revenue for redevelopment projects, or that the city is abusing TIF districts in order to create a piggybank of funds for the city, school district, and other units of local government to pillage for increased spending without having to directly ask taxpayers for more money.
Either scenario raises fundamental questions about Chicago's TIF system and perpetuates the structural budget issues driving Chicago's recurring budget deficits.
**What is a TIF district?**
Tax Increment Financing districts are partitioned areas within the city where additional tax revenues are supposed to be specifically dedicated to redevelopment within the district and separate from the city budget. TIF districts raise money primarily through the growth in property tax revenues within the community, which is then supposed to be used to spur economic development within the "blighted" areas of the city.
For the city to create a TIF district, officials must determine the area to be blighted, deteriorating, or in need of development but these definitions are very vague.That's what allows Chicago to implement TIF districts in the Loop and River North.
Once established, TIF districts "freeze" the equalized assessed value of property within the district for local taxing bodies, meaning that the growth in property tax revenues due to changes in property values all goes directly to the TIF district. However, it is important to note that TIFs do not hinder the ability of local governments to raise revenue, since local units of government set their property tax levies independently of the taxable value of property.
Instead, TIFs simply serve to drive up property taxes on everyone as the full value of their property is not considered in the property tax base, leading to higher tax rates applied by taxing bodies. Those within the TIF district don't get a break either, as they pay the same tax rate as those outside the district, their tax dollars just go to the TIF district rather than other taxing bodies.
TIF districts last for 23 years, with an option to extend their lifespan for an additional 12 years. Since their inception in 1984, 185 TIF districts have been created in Chicago, yielding more than [$5 billion](https://chicagopolicyreview.org/2023/04/13/redevelopment-for-who-how-tif-redistributes-public-funds-to-the-wealthy/#:~:text=Through%2520the%2520nineties%2520and%2520aughts%252C%2520the%2520use,in%2520subsidies%2520and%2520funding%2520nearly%2520700%2520projects.) in revenue. There are currently 124 active TIF districts across Chicago.
**How can TIF funds be in surplus?**
Per [state legislation](https://www.ilga.gov/Documents/legislation/ilcs/documents/006500050K11-74.4-3.htm), any money within a TIF fund that has not been pledged for specific projects can be considered surplus and is to be distributed to the overlying local taxing districts proportionately to their property tax levies. In Chicago, where roughly 55% of property taxes go to the Board of Education, that means that CPS will get 55% of any TIF surpluses, the city will receive about 27% and other units of government will get smaller, proportionate shares of the revenue.
This practice used to be much less common until Mayor Emanuel signed an [executive order](https://chicityclerk.s3.us-west-2.amazonaws.com/s3fs-public-1/reports/Executive%2520Order%25202013-3_0.pdf?VersionId=UHdgYC4vn9ZVSvErZXLc1BXDUP_v6122) formalizing the annual declaration of TIF surpluses in 2013.Now the city annually declares surplus funds as part of the city budget in three primary ways:
1. Downtown Freeze" TIFs are those in and around the Central Business District that have been reserved only for major infrastructure and targeted economic diversification projects. The full available balance in these TIFs is declared surplus each year.
2. TIFs being terminated or otherwise ending must have any balance after closing out projects returned as surplus.
3. For the remaining TIFs, surplus is declared in TIFs with a balance over $750,000. The city declares 25% of the balance over $750,000, progressing up to 100 percent of the balance over $2.5 million.
Because property tax rates are determined without considering the growth in property values within a TIF district, when property values grow rapidly within the district, so too do the tax collections of the TIF. This is what has happened in recent years to allow for record-breaking TIF surpluses annually, as the cost of redevelopment projects remains relatively flat, the boon in TIF collections can be used as surplus.
However, the surplus declaration process, in addition to the creation of TIF districts in general, offers the potential for abuse. The surplus funds declaration can provide some incentive for the city to delay projects within TIF districts to have additional resources available for the city budget.
While TIFs don't hinder local governments from raising revenue, they can offer taxing bodies an additional avenue for revenues if they carry a surplus. This is particularly important for areas subject to Illinois' Property Tax Extension Limitation Laws, where growth in property tax levies is capped.In tax-capped areas like Chicago, TIFs offer taxing bodies the ability to collect additional property taxes without an explicit property tax hike.
Whether Mayor Johnson's budget proposal is doing this or simply taking advantage of the rapid increases in property values spiking TIF balances is unclear. Still, the city is certainly benefitting from TIFs in ways that they were not intended to when the districts were created.
If TIFs are found to carry large surpluses, the funds should either develop plans to reinvest in the community as designed, or the districts should be dissolved and the money returned to taxpayers. However, it should be noted that when TIF districts expire or are terminated, local taxing bodies can capture all of the "unlocked" revenue into their property tax bases without being subject to PTELL, even though they have not limited the collection of property taxes for any taxing body.
Rather than utilizing large one-time fund sweeps to balance the budget, Johnson's budget strategy for Chicago should focus on [structural reform](https://www.illinoispolicy.org/reports/chicago-forward-2026-a-pro-growth-plan-to-end-city-budget-deficits/) that corrects years of financial mismanagement and fosters long-term economic growth. The city should also conduct regular reviews of TIF districts and their associated projects and a deadline system to prevent funding for anticipated projects from being withheld indefinitely, as previously [recommended](https://igchicago.org/wp-content/uploads/2023/11/UPDATED-OIG-Follow-up-to-TIF-Sunshine-and-Surplus-Audit.pdf) by the Office of the Inspector General.
Source Name [170]: Using Microsoft, Salesforce, ChatGPT will cost more under Johnson's Cloud Tax Full URL: https://www.illinoispolicy.org/using-microsoft-salesforce-chatgpt-will-cost-more-under-johnsons-cloud-tax/ Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;"># Using Microsoft, Salesforce, ChatGPT will cost more under Johnson's Cloud Tax</span> [170]
Microsoft, Salesforce, ChatGPT, Amazon Web Services and Zoom would all come with higher prices under Chicago Mayor Brandon Johnson's cloud tax.
Cloud-based computer services such as Microsoft 365, Salesforce, ChatGPT, Amazon Web Services and Zoom could all get pricier in Chicago soon. Mayor Brandon Johnson's 2026 budget would raise the city's tax cloud tax from [11% to 14%.](https://www.illinoispolicy.org/johnsons-protecting-chicago-budget-proposes-nearly-500m-in-tax-hikes/#:~:text=Although%2520it%2520received,Apple%2520and%2520Amazon.)
Here are some of the services that would be more expensive:
- [Microsoft 365](https://learn.microsoft.com/en-us/answers/questions/1287347/what-are-the-key-differences-between-microsoft-azu#:~:text=Microsoft%2520365%2520is%2520a%2520SaaS%2520(Software%2520as%2520a%2520Service)%2520product.%2520Means%2520it%25E2%2580%2599s%2520a%2520software%25C2%25A0service%2520you%2520pay%2520to%2520use%252C%2520as%2520you%2520would%25C2%25A0for%25C2%25A0any%2520other%25C2%25A0subscription%25C2%25A0service.)
- Amazon Web Services
- [ChatGPT](https://www.illinoispolicy.org/chicago-starts-taxing-chatgpt-artificial-intelligence/) and other artificial intelligence platforms
- [Salesforce](https://technologymagazine.com/articles/top-10-fastest-growing-cloud-companies#:~:text=Below%252C%2520Technology,Francisco%252C%2520California%252C%2520USA)
- [Zoom](https://quixy.com/blog/examples-of-saas-applications/#:~:text=of%2520SaaS%2520Applications.-,20%2520Popular%2520Examples%2520of%2520SaaS%2520Applications,-1.%2520Quixy)
- Mailchimp
- Slack
- Dropbox
- Canva
The tax increase is the largest single source of revenue in the city's proposed 2026 budget and is expected to bring in $333 million from the hike, [$1.1 billion](https://www.chicagotribune.com/2025/10/19/mayor-brandon-johnson-budget-short-term-fixes/) in total.
Known formally as the Personal Property Lease Tax, it's aimed at businesses, but the added costs will most likely find their way to consumers as businesses pass them along. The tax also makes Chicago's business climate less favorable by increasing the cost of doing business in the city.
Lawmakers look at tax hikes as a quick option to fix a budget, but raising Chicago's cloud tax does nothing to address the deeper issues such as rising pension obligations.
A responsible city budget would look to change the fiscal trajectory that compels elected officials to search for new ways to squeeze more out of the city's already overtaxed businesses and families.
Tax increases that punish businesses for operating in Chicago and raise costs for residents aren't a solution to the city's financial woes: they're short-sighted and self-defeating.
The tax remains to be approved or rejected by city council as part of the city's budget process.
Source Name [171]: Mayor Johnson Unveils 2026 Budget Full URL: https://loyolaphoenix.com/2025/11/mayor-johnson-unveils-2026-budget/ Scraped Date/Time: 2025-11-22 23:43:52
# Mayor Johnson Unveils 2026 Budget
<span style="color: #0066cc; font-weight: bold;">The budget includes several different tax programs to advance community based initiatives.</span> [171]
By [Eleni Dutta](https://loyolaphoenix.com/author/edutta/ "Eleni Dutta")
\\| November 5, 2025,
5:35 am
Chicago Mayor Brandon Johnson released his third proposal for Chicago's [budget plan](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf "") for the 2026 fiscal year. Titled the "Protecting Chicago Budget," the motion outlines his office's plan to balance community investment and fiscal responsibility. The plan was unveiled by Johnson to City Council Oct. 16.
The main focus of the plan's goal to protect Chicago is to alleviate previous financial stress while simultaneously responding to federal funding policies, which Johnson described to be at a crossroads with the city. Currently, the city is experiencing a $146 million 2025 budget deficit, looming corporate tax shortfalls and pension obligations.
Johnson argues his plan will reflect a shift towards bringing stability to Chicago by focusing on initiatives at the neighborhood level.
The proposal focuses on six main priorities — public safety, affordability, youth investment, economic growth, environmental protection and maintaining an equitable balance. Johnson explained how the theme of protection reflects a pushback against federal financial trends driven by the Trump administration.
One of the most prominent proposed reforms is a $1 billion Tax Increment Financing surplus, which would be the largest in Chicago's history. The surplus's intention is to help fund Chicago Public Schools, Park District programs and libraries by reinvesting unspent development funds back into such public institutions.
Further playing into his message of "corporate accountability," Johnson's plan to tax large social media and tech companies operating in Chicago through what was described as a Social Media Amusement and Responsibility Tax.
The tax would cost large social media platforms 50 cents for each active user within the city of Chicago. To ensure smaller or local networks aren't impacted by the tax, the measure will only apply if a given platform has over 10,000 active users. Johnson's office predicts the tax will generate an annual income of $31 million to fund free mental health clinics and crisis response teams with specific emphasis towards youth mental health issues.
If approved, Chicago will become the first major U.S. city to tax social media companies directly for local mental health initiatives, setting a precedent on how cities address the intersection of technology regulation and mental health.
The proposal also wants to expand youth diversity programs, job opportunities and support domestic and gender based violence survivors with a Community Safety Fund of $100 million. A 3% tax on large corporations would support the fund.
Such a fund reflects the long-standing promise made by Johnson's campaign to shift away from a dependence on traditional police enforcement and instead focus on prevention efforts to reduce crime rates according to his campaign [website](https://www.brandonforchicago.com/issues/public-safety "").
This tax signifies Johnson's attempt to distance his administration from previous mayors who heavily relied on downtown development through corporate subsidies — a strategy he described as asking "the ultra-rich to put more skin in the game" during a live interview with [CBS News Chicago](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-chicago-budget-proposal/ "").
Johnson proposed a head tax on all companies with 100 or more full-time employees who spend 50% of their time working in Chicago. The tax, called the Community Safety Surcharge, is projected to affect 3% of Chicago businesses and would charge those businesses $21 per employee per month.
Chicago had a corporate head tax from 1974 to 2014 when it was repealed by then Mayor Rahm Emanuel. Johnson proposed reinstating the head tax when running for Mayor in 2023, according to his [website](https://www.brandonforchicago.com/issues/city-budget-and-revenue "").
Several cost-of-living protections for residents were also included in the plan. Promises in the proposal include an abolishment of property taxes, the city's grocery tax and a reduction in the motor vehicle rental tax.
Effective Jan. 1, 2026, Illinois will transfer the authority to impose what was originally a statewide 1% tax towards municipalities and counties. Therefore, local governments such as Chicago's will have the power to determine whether they'd want to implement their own version of the grocery tax. Johnson's plan suggests removing the tax along with the state to alleviate strain on the working people.
According to the [US Department of Agriculture](https://www.ers.usda.gov/amber-waves/2021/december/food-taxes-linked-with-spending-habits-of-lower-income-households ""), grocery taxes impact lower income households more considerably as they spend a larger percentage of their income on groceries.
Another way Johnson's plan intends on shifting the tax burden onto wealthier Chicagoans and large corporations is through a Yacht Tax. According to the language in the budget proposal, the tax intended to increase boat-mooring rates towards standards described as those aligned with "historical rates and the rate of parking."
Currently, the city's boat mooring [tax](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/boat_mooring_tax.html "") was 7% of boat mooring or docking fee. It became effective in 2003, where the previous tax beforehand was 25% of the fee.
The approach sharply contrasts with prior budgets which placed more dependence on service fees and property taxes. Similarly to the proposed corporate taxes, these measures align with Johnson's message where fiscal recovery should not fall on ordinary residents as they aim to make housing and transportation slightly more manageable.
The City Council will begin budget hearings in November, with the final vote expected to occur before the Dec. 31 deadline.
Source Name [172]: Chicago tax proposals draw concern over legality, 'economic death spiral' Full URL: https://www.thecentersquare.com/illinois/article_821ad9f6-c925-4300-88da-16410e4913db.html Scraped Date/Time: 2025-11-22 23:43:52
<span style="color: #0066cc; font-weight: bold;">(The Center Square) – Chicago Mayor Brandon Johnson's allies have launched a seven-figure campaign to support his 2026 budget proposal, but opponents say the mayor's tax plans will send the city into an economic death spiral and could bring about costly litigation.</span> [172]
The Chicago City Council met Tuesday but did not vote on a budget after the council's finance committee struck down the mayor's tax-laden revenue package on Monday.
Chicago Board of Education member Norma Rios Sierra, who joined the school board in January after she was appointed by the mayor, spoke during Tuesday's public comment period.
Rios Sierra threatened layoffs if aldermen did not approve Johnson's plan to divert $1 billion in tax-increment financing funds to Chicago Public Schools.
"If we do not get that TIF surplus, we're going to be sending a lot of pink slips for Christmas, and we're going to put it right back on you," Rios Sierra told the council.
Rios Sierra said the Chicago Teachers Union created a calculator so aldermen could see the impact their votes would have in their own wards.
Also Tuesday, Black Voters Matter Fund announced a seven-figure ad investment to support Johnson's spending plan.
BVM promised to "mobilize neighborhoods across Chicago, ensuring that the voices of Black, Brown, and working-class residents are front and center in the budget debate."
Alderman Brendan Reilly referred to the campaign when he told the finance committee Monday that anti-business tax policies were hurting the city.
"I can tell you there's no amount of money that's going to convince us that a head tax is good for Chicago," Reilly said.
The mayor's budget includes a $21-per-worker monthly tax on businesses with 100 employees or more.
Reilly said the city's commercial buildings have lost $400 million worth of value since their last assessment.
"Because of Cook County's broken property tax system, when commercial buildings are found to be less valuable, the rest of that burden falls on top of homeowners," Reilly said, adding that he and his colleagues have been hearing from very frustrated homeowners after they received their property tax bills last week. "If you want to accelerate our headfirst dive into an economic death spiral, pass this head tax. That is effectively what you are doing."
While the head tax proposal has drawn the most vocal opposition, an internet freedom advocate says Chicago's proposed tax on social media might actually cost the city more than it brings in.
Johnson's Social Media Amusement Tax would impose a $0.50 monthly fee per active user on digital services with over 100,000 users operating in Chicago.
NetChoice Vice President of Government Relations Amy Bos said the tax would hit residents right in their wallets.
"Those platforms aren't just going to eat that cost, right? As we've seen in other business operations, they're going to pass that on," Bos told The Center Square, adding that Chicagoans would see new fees for services they used to receive for free. "Or they'll lose access to certain features, or some platforms might just pull out of Chicago entirely."
Bos said the tax would also incite privacy concerns, because platforms would start tracking where users live in order to figure out which users are operating in Chicago.
Citing the Permanent Internet Tax Freedom Act of 2016, Bos said Chicago's proposal might violate federal law by imposing a "discriminatory tax" on electronic commerce.
Bos said a U.S. District Court in Maryland struck down that state's digital advertising tax.
"We believe the issue is similar here. Chicago would be inviting similar costly litigation," Bos said.
Bos said the states of Minnesota and Washington backed off after proposing taxes on social media.
"They reversed course. We're hoping Chicago takes the same approach," Bos said.
Even if the tax survives legal challenges, Bos said there are a host of issues with it.
"This tax is going to get stuck in the court, costing the city money instead of raising it," Bos concluded.
Johnson's $16.6 billion spending plan also includes an increased cloud tax as well as new taxes on sports betting and boat mooring.
The city council's next meeting is scheduled for Dec. 10. The council is required by law to approve a budget by Dec. 31. If a budget is not passed by that date, some government programs might be interrupted and the city's bond rating could suffer.
Source Name [173]: Chicago mayor's 2026 budget would dial back pension funding Full URL: https://www.bondbuyer.com/news/chicago-mayors-2026-budget-would-cut-pension-funding Scraped Date/Time: 2025-11-22 23:50:01
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# Chicago mayor's 2026 budget would dial back pension funding
By [Jennifer Shea](https://www.bondbuyer.com/author/jennifer-shea) October 22, 2025, 9:50 a.m. EDT 8 Min Read
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Chicago Mayor Brandon Johnson's 2026 budget plan relies on one-time revenues and dials back advance pension funding.
Bloomberg News
Chicago Mayor Brandon Johnson's proposed $16.6 billion 2026 budget would reduce the supplemental pension contributions that had lifted the city's credit stature.
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The budget, released Thursday, calls for new revenues, but avoids the property tax hikes that fell flat with City Council last year.
[The mayor's budget](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf) would cut the advance pension payment to $120.2 million from the originally planned $238 million. The supplemental pension payment policy [has earned the city plaudits](https://www.bondbuyer.com/news/chicago-sends-promised-supplemental-payment-to-pension-funds) from credit rating agencies.
"I think bond investors are always looking at the pension situation," said Howard Cure, partner and director of municipal bond research at Evercore Wealth Management. "It was bad when the state put through legislation [to increase the pension liability for the city](https://www.bondbuyer.com/news/new-pensions-law-puts-chicago-in-a-bind). That and the idea of scaling back an advance pension payment is concerning."
The advanced pension payments are above what is required by state law, but the contribution levels required under state law are part of the reason the city's pensions [are so deeply underfunded](https://www.bondbuyer.com/news/chicago-targets-pension-funding-with-help-from-improved-revenues).
New revenue sources proposed in the budget include an employee head tax, which the Johnson administration has labeled the "community safety surcharge," and new taxes on social media, online sports betting and hemp products.
It would declare the largest tax increment financing surplus in the city's history, and use short-term borrowing to fund police misconduct settlement payments and retroactive firefighter pay increases.
Johnson said his administration is "reducing the cost of administering government" without slashing services, through real estate consolidation, improved fleet management, streamlined administrative functions and special event cost recovery.
Rating agencies said they are waiting to see how the budget debate plays out in City Council, but signaled some concerns.
"Reducing the pension payment is credit negative because it results in contributions that are insufficient to curb growth in the reported unfunded liability," David Levett, vice president and senior credit officer at Moody's Ratings, said by email.
Moody's rates Chicago general obligation bonds Baa3 with a stable outlook after a [revision from positive](https://www.bondbuyer.com/news/moodys-revises-chicagos-outlook-to-stable) in September.
KBRA views the budget's one-time revenue sources less favorably than recurring revenues, said Linda Vanderperre, managing director at the rating agency.
Those one-time sources include roughly $500 million of proposed TIF surplus beyond the typical annual TIF surplus, a proposed bond refunding, the proceeds from the sale or lease of city-owned land, and borrowing for settlements.
On the flip side, she said, the employee head tax would be a credit positive.
"While the proposed $21 per month head tax on companies with over 100 employees may face opposition from the business community, we view the administration's efforts to identify potential solutions to the structural deficit favorably, including the formation in April of [The Chicago Financial Future Task Force](https://www.bondbuyer.com/news/taxes-and-cuts-advised-in-chicago-finance-task-force-report)," Vanderperre said by email.
On balance, the mayor's proposed budget would likely be credit neutral if passed in its current form, she said. KBRA rates Chicago GOs A-minus after [a one-notch downgrade](https://www.bondbuyer.com/news/kbra-downgrades-chicagos-go-bonds-to-a-minus) in January, with a negative outlook.
Municipal Market Analytics said in a Monday report that the mayor's budget may pressure the city's ratings.
"As a bellwether for credit spreads, investors will want to take note of budget-related widening; if that happens, more cheapening by other story credits could be imminent," MMA said. "The proposal does a good job articulating the administration's values… but falls short on sustainably financing them."
MMA pointed to the absence of an increase in property taxes "that would provide a stable, recurring revenue source."
Alderpeople have some questions about the mayor's budget, said Ward 32 Alderman Scott Waguespack.
"Definitely the credit impact is a concern," he said. That includes from the line of credit the Johnson administration wants to take out — a $100 million line of credit with an interest rate possibly upwards of 9%, he said.
The borrowing for police misconduct settlements is another concern.
"That's a step backward from what we had (done) in the past," Waguespack said. "(The) Emanuel and Lightfoot (administrations) took police misconduct settlements off the books… and they're going right back to that."
He also criticized the concept behind the new social media tax.
"The social media companies are challenging all of those (taxes)," he said, noting that such taxes have typically been struck down. "Even some of the liberal judges have said (it raises) a pretty serious First Amendment issue… It's not a slam dunk like they're saying."
If the tax is rejected by City Council or struck down by a court, it could leave a gaping hole in the budget, forcing the mayor to turn to a property tax hike as a potential gap closer, he said.
The social media tax is an interesting idea but is problematic for several reasons, said Justin Marlowe, research professor at the University of Chicago's Harris School of Public Policy and director of the Center for Municipal Finance.
"There's clearly a lot of movement in this direction in state and local tax policy toward taxing services, taxing digital assets, taxing digital services and so forth," he said. But "I think the mayor is probably three to five years too early on this."
Tax policy experts have also raised concerns about relocation incentives if digital services are taxed at the municipal level. It's better to tax those companies at the state or regional level, Marlowe said.
There are also [more than 200](https://www.edweek.org/policy-politics/school-district-lawsuits-against-social-media-companies-are-piling-up/2024/01) pending lawsuits from K-12 school districts, as well as counties and municipalities, against the social media companies that have been combined into one [master complaint](https://cand.uscourts.gov/sites/default/files/wp-content/uploads/cases-of-interest/InRe-SocialMedia-Adolescent-Addiction-Personal-Injury-Products-Liability-Litigation/MDL-3047-School-District-and-Local-Government-Entities-First-Amended-Master-Complaint.pdf).
Marlowe said any settlement in that litigation could further undermine the case for local taxation, with social media companies likely to argue that they'd done their penance through the settlement.
The advance pension payments "have been a real credit positive for the city," Marlowe said, and noted that the administration's justification for no longer making the full payment raises concerns about the future.
The justification is essentially that the previous administration of Lori Lightfoot had put in place an assigned portion of the corporate fund balance that's now been exhausted, so the funding source for the advance pension payments is no longer there.
"To my knowledge, there was really no mention prior to any of this about how the advanced pension payment was contingent on there being resources in that assigned general fund balance," Marlowe said. "So now, not only is it that they're not making the payment, but they're signaling that they're likely to short the advanced payments in the future… The rating agencies will most certainly take notice of that."
On the short-term borrowing for settlements, Marlowe said speed is key: "The timing is a little bit more accommodating right now," he said. "I think if they have to wait six months or something to do it, that might be a different story."
One could make the case that a shorter duration, taxable GO would probably price pretty well these days, he added. If the administration borrowed on the city's credit, in the current market, "they're probably looking at something in the neighborhood (of) like, 5% yield for three-year money, or four-year money — which is high for sure, but not nearly as high as you might think," Marlowe said.
If the administration were to borrow on the sales tax securitization corporation credit, it would be looking at a more reasonable rate, he said. "Say they say they do $300 million level debt service, $100 million a year over three years, something like that; then you're looking at probably in the neighborhood of $30 to $40 million of debt service costs," Marlowe said.
That may seem like a lot, he said, but the Johnson administration can make the case that getting those liabilities off the books, and removing that element of uncertainty, is a positive step.
Still, without a policy framework for dealing with these misconduct payments in the future, there's the potential for more large liabilities that could appear at any moment.
"I'm not sure what they're doing to prevent that going forward," Evercore's Cure said of the misconduct borrowing. "They're not in a position to keep adding debt for things that are caused by the city itself."
Cure also raised concerns about the city's relationship with the Trump administration. "You can't have a discussion about a major city anymore without thinking about its relationship with the federal government," he said.
The full impact of Trump's tax and spending bill on things like education, health, SNAP, Head Start and transit remains to be seen, he said. Is the state going to force the city to shoulder those burdens, and is the president going to further target Chicago?
"What I'm watching also is what kind of cooperation the mayor's going to get from the City Council, because [last year was a disaster](https://www.bondbuyer.com/news/chicago-city-council-rejects-mayor-johnsons-tax-increase)," Cure said.
He suggested that the fate of the advance pension funding policy will also be key to watch.
"You just don't want them to lose discipline on their pensions, because that's the biggest knock on the city. It's not the economy," he said. "You want to see them maintain some discipline in their budget. But that's going to require some tough negotiations with city employees."
S&P Global Ratings assigns Chicago a BBB rating with a stable outlook after a one-notch downgrade in January. Fitch Ratings rates the GO credit A-minus and [cut the outlook](https://www.bondbuyer.com/news/chicago-goes-to-market-following-negative-outlook-from-fitch) to negative in May.
The STSC credit is rated A-plus by S&P and AAA by Fitch and KBRA.
Correction
KBRA's concerns about one-time funding include the use $500 million more in proposed TIF surplus than typical. The original version of the story incorrectly stated the proposed Chicago budget used a total of $500 million.
October 22, 2025 10:12 AM EDT
[Jennifer Shea](https://www.bondbuyer.com/author/jennifer-shea)
Midwest reporter
For reprint and licensing requests for this article, [click here](https://info.wrightsmedia.com/arizent-licensing-and-reprints).
[Trends in the Regions](https://www.bondbuyer.com/trends-in-the-region)[City of Chicago, IL](https://www.bondbuyer.com/organization/city-of-chicago-il)[Budgets](https://www.bondbuyer.com/tag/budgets)[Illinois](https://www.bondbuyer.com/location/illinois)[Public pensions](https://www.bondbuyer.com/tag/public-pensions)
Source Name [174]: Council members seek to query city consultants on cost-cutting ideas Full URL: https://chicago.suntimes.com/city-hall/2025/11/03/mayor-brandon-johnson-budget-ernst-and-young-report-cost-cutting-ideas Scraped Date/Time: 2025-11-22 23:50:01
<span style="color: #0066cc; font-weight: bold;">Ten of the 27 City Council members who have publicly declared opposition to Mayor Brandon Johnson's proposed employee head tax are calling a special meeting for next week to grill a consultant paid $3.2 million to pinpoint cost-cutting and revenue-raising ideas that they contend the mayor chose to ignore.</span> [174]
If 26 members show up at the meeting Monday, they would have a quorum and get a chance to question representatives from EY, the global business consulting firm created by accounting giant Ernst & Young.
The EY report includes as much as $1.4 billion in savings and revenue-generation options for Chicago to consider.
It identified up to $103 million in potential savings that could come from modifying employee benefits, but that would require union concessions that Johnson has emphatically ruled out for fear of alienating the unions that helped put him in office. As much as $111 million would come from procurement reforms, and up to $257 million through organizational changes in city government.
"There's a lot in here that they've completely ignored," former Finance Committee Chair Scott Waguespack (32nd), who joined the call for the special meeting, told the Chicago Sun-Times.
Aviation Chair and 19th Ward Ald. Matt O'Shea said questioning of EY consultants could, at the very least, identify the $100 million in savings needed to eliminate Johnson's proposed $21 a month per-employee head tax.
"Everything needs to be on the table before we go back to taxpayers and hit 'em again … and this administration has refused to look at real efficiencies. That's why we want EY before us," O'Shea said.
Northwest Side Ald. Samantha Nugent (39th) said it is "incumbent on all of us to at least sit and listen to some experts who have really dug" through the city budget.
"Would this offset maybe the elimination of the head tax or help with an advanced pension payment, or perhaps prevent us from borrowing? I think all ... of my colleagues would want to dig to find efficiencies and resources so we could do those things," Nugent said.
Arguing that the already crowded schedule leaves no time for a special meeting Monday, the mayor's office arranged a Budget Committee hearing Friday to give alderpersons an opportunity to question EY consultants.
Ethics and Government Operations Chair and 47th Ward Ald. Matt Martin, who joined the call for a special meeting, said a hearing would be fine with him so long as it provides a "public opportunity" for alderpersons to grill EY on conclusions the firm reached and "compare those recommendations with what's in the mayor's budget."
Martin is particularly concerned about the mayor's decision to use "one-time tactics" to cover 40% of the $1.2 billion budget gap, cut the advanced pension payment in half and rely on tens of millions in new borrowing to bankroll large settlements and retroactive pay for Chicago firefighters.
"This invites a credit rating downgrade. And the CFO told us at our first budget hearing that would cost us between $410 million and $415 million in additional borrowing costs, which is ... hundreds of millions of dollars that aren't going toward pensions. They aren't going to mental health. They aren't going to public safety," Martin said. "We need to keep as much of that in our accounts as possible."
The Johnson administration commissioned a separate report that laid out a vast array of cost-cutting options. That report was released in mid-September by the Chicago Financial Future Task Force, co-chaired by businessman Jim Reynolds and Chicago Urban League President Karen Freeman-Wilson.
Johnson later released EY's full report under pressure from alderpersons eager to compare the two reports to determine whether politically sensitive ideas had been edited out of the Reynolds/Freeman-Wilson version.
Mayoral press secretary Cassio Mendoza questioned whether the 10 alderpersons who joined the call for the special meeting have even read the EY report.
"If they look at it, they'll see that a lot of recommendations are in the budget. And we even briefed them on exactly which recommendations are in the budget and why," Mendoza said. "Once the EY people come in, they'll just explain it, and they'll be like, 'Oh, damn. I don't know why we made such a big thing about this.'"
Source Name [175]: Chicago alders grill mayor's budget team on report aiming to close $1B deficit Full URL: https://www.fox32chicago.com/news/city-council-budget-emergency-meeting Scraped Date/Time: 2025-11-22 23:50:01
<span style="color: #0066cc; font-weight: bold;">Members of the Chicago City Council held an emergency meeting on Monday in which they grilled members of Mayor Brandon Johnson's budget team about a report outlining ways to close a more than $1 billion budget deficit.</span> [175]
What we know:
The city paid an outside accounting firm, Ernst & Young (EY), $3 million to make recommendations on how to save money in the city's massive $16.7 billion budget. The firm's report came up with as much as $1.4 billion in savings.
Several alders wanted to know why the mayor isn't incorporating the majority of the recommendations into his 2026 budget plan, which attempts to close the $1.1 billion gap.
On Monday, Johnson said, the report was just one of many considerations that he had to take in.
"I just hope that they spend the same amount of time in this EY report, also looking at how corporate interests are continuing to get away without having to pay their fair share in taxes," Johnson said. "I think all of it requires our attention at this time."
The Ernst & Young report recommends things like consolidating city real estate and some of the fleet of city vehicles, consolidating the way the city doles out contracts, and then saving $100 million by having city employees pay more toward their health coverage.
But alders have complained that only about $80 million worth of these ideas and recommendations were included in the mayor's budget proposal, along with a proposed employee head tax, a social media tax, and other revenue generators.
What they're saying:
Council members like Ald. Matt O'Shea (19th Ward) said it didn't sound like the majority of alders want to go along with the new taxes.
"We've been very clear we want to see more cuts. We want to see more efficiencies," O'Shea said. "We know we can't cut our way out of this, but before we talk about higher taxes, higher fees, we need to identify cuts and efficiencies, and this current proposal, the mayor's put forth, doesn't include enough."
Johnson's budget director defended why the administration didn't include more recommendations. She argued they included long-term solutions and the city couldn't see all the savings in a one-year budget cycle.
But several aldermen were not buying it and demanded more answers.
What's next:
The City Council has until the end of the year to approve a final 2026 budget.
Source Name [176]: Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies Full URL: https://abc7chicago.com/post/mayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies/18140114/ Scraped Date/Time: 2025-11-22 23:50:01
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson facing questions on Monday about why his budget proposal has seemingly ignored a taxpayer-funded report meant to help the city find millions of dollars in efficiencies.</span> [176]
On Monday, Chicago City Council members heard from the author of the report as the mayor and his team defended their plan.
The mayor's budget, which has already generated pushback from city council members, is now entering a new phase of scrutiny. Some alderpersons say a consultant's report deserves a good, hard look that should delay a budget vote set for next week.
Johnson refused to do any budget backpedaling despite a report by the professional services firm EY, formerly Ernst & Young, that suggests the city could find millions more in efficiencies in next year's budget.
"We put forth this investment that some had some trepidation around, which sure I did that, but we've already demonstrated that we're willing to implement the very ideas that came from this report," Johnson said.
But Joe Ferguson, the president of the Civic Federation, says the mayor is missing out on many more opportunities for saving money by not implementing more of the ideas contained in the 101-page report.
"He is not governing to all Chicagoans. He is governing more to the benefit of a subset of constituents, and he's doing so in a very ideologically-driven way," Ferguson said.
"I think there are concrete results, recommendations from the EY report, concrete recommendations that we as the council can say we want these implemented. You need to implement them, stop ignoring them, and help reduce the cost on taxpayers in your budget," said 32nd Ward Ald. Scott Waguespack.
On Monday, a representative from EY appeared before the budget committee to discuss the report and answer questions.
"EY's work was in no way an audit for a forensic analysis of the city's budget for finances," said EY Report Lead Author Adam Chepenick.
The mayor, meanwhile, continued to defend his corporate head tax proposal.
"Well, look, we still believe that the best way to balance our budget is challenging, larger corporations to pay their fair share. As I've said from the very beginning, my values, I protect," Johnson said.
The mayor's budget director dismissed critics and defended the city's proposed savings and efficiencies.
"There is a difference between someone looking at a report or making estimations on their own about what a savings is, and us actually doing the work," said Budget Director Annette Guzman.
Ald. Gil Villegas pushed the idea of implementing a city delivery fee to help balance the budget. The mayor says that would not be possible without first getting approval from Springfield.
Source Name [177]: Mayor Johnson's record-setting $1 billion TIF surplus highlights issues Full URL: https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/ Scraped Date/Time: 2025-11-22 23:53:58
Chicago Mayor Brandon Johnson unveiled his plan to close Chicago's $1.15 billion budget shortfall for 2026 on October 16. Among the mayor's recommendations, were to declare a record-setting $1 billion "surplus" <span style="color: #0066cc; font-weight: bold;">in the city's Tax Increment Financing districts balances.</span> [177]
The move, which is a one-time fund sweep, would result in an additional $232.6 million in additional revenue for the city and an even larger amount, estimated at $552.4 million for the Chicago Public Schools budget.
In the wake of the mayor's proposal many aldermen are questioning the decision, while others are highlighting the fundamental issues with Tax Increment Finance districts themselves. In the past decade, the amount of TIF dollars the city has declared as "surplus" has increased by nearly ninefold, rising from $113 million in 2016, to more than $1 billion for the 2026 fiscal year.
While the city of Chicago has relied on fund sweeps from TIFs to balance the city budget for nearly two decades, the reliance on TIF surpluses has surged in recent years. The consistent "surpluses" suggest that either many TIF districts do not need a significant amount of revenue for redevelopment projects, or that the city is abusing TIF districts in order to create a piggybank of funds for the city, school district, and other units of local government to pillage for increased spending without having to directly ask taxpayers for more money.
Either scenario raises fundamental questions about Chicago's TIF system and perpetuates the structural budget issues driving Chicago's recurring budget deficits.
What is a TIF district?
Tax Increment Financing districts are partitioned areas within the city where additional tax revenues are supposed to be specifically dedicated to redevelopment within the district and separate from the city budget. TIF districts raise money primarily through the growth in property tax revenues within the community, which is then supposed to be used to spur economic development within the "blighted" areas of the city.
For the city to create a TIF district, officials must determine the area to be blighted, deteriorating, or in need of development but these definitions are very vague. That's what allows Chicago to implement TIF districts in the Loop and River North.
Once established, TIF districts "freeze" the equalized assessed value of property within the district for local taxing bodies, meaning that the growth in property tax revenues due to changes in property values all goes directly to the TIF district. However, it is important to note that TIFs do not hinder the ability of local governments to raise revenue, since local units of government set their property tax levies independently of the taxable value of property.
Instead, TIFs simply serve to drive up property taxes on everyone as the full value of their property is not considered in the property tax base, leading to higher tax rates applied by taxing bodies. Those within the TIF district don't get a break either, as they pay the same tax rate as those outside the district, their tax dollars just go to the TIF district rather than other taxing bodies.
TIF districts last for 23 years, with an option to extend their lifespan for an additional 12 years. Since their inception in 1984, 185 TIF districts have been created in Chicago, yielding more than $5 billion in revenue. There are currently 124 active TIF districts across Chicago.
How can TIF funds be in surplus?
Per state legislation, any money within a TIF fund that has not been pledged for specific projects can be considered surplus and is to be distributed to the overlying local taxing districts proportionately to their property tax levies. In Chicago, where roughly 55% of property taxes go to the Board of Education, that means that CPS will get 55% of any TIF surpluses, the city will receive about 27% and other units of government will get smaller, proportionate shares of the revenue.
This practice used to be much less common until Mayor Emanuel signed an executive order formalizing the annual declaration of TIF surpluses in 2013. Now the city annually declares surplus funds as part of the city budget in three primary ways:
1. Downtown Freeze" TIFs are those in and around the Central Business District that have been reserved only for major infrastructure and targeted economic diversification projects. The full available balance in these TIFs is declared surplus each year.
2. TIFs being terminated or otherwise ending must have any balance after closing out projects returned as surplus.
3. For the remaining TIFs, surplus is declared in TIFs with a balance over $750,000. The city declares 25% of the balance over $750,000, progressing up to 100 percent of the balance over $2.5 million.
Because property tax rates are determined without considering the growth in property values within a TIF district, when property values grow rapidly within the district, so too do the tax collections of the TIF. This is what has happened in recent years to allow for record-breaking TIF surpluses annually, as the cost of redevelopment projects remains relatively flat, the boon in TIF collections can be used as surplus.
However, the surplus declaration process, in addition to the creation of TIF districts in general, offers the potential for abuse. The surplus funds declaration can provide some incentive for the city to delay projects within TIF districts to have additional resources available for the city budget.
While TIFs don't hinder local governments from raising revenue, they can offer taxing bodies an additional avenue for revenues if they carry a surplus. This is particularly important for areas subject to Illinois' Property Tax Extension Limitation Laws, where growth in property tax levies is capped. In tax-capped areas like Chicago, TIFs offer taxing bodies the ability to collect additional property taxes without an explicit property tax hike.
Whether Mayor Johnson's budget proposal is doing this or simply taking advantage of the rapid increases in property values spiking TIF balances is unclear. Still, the city is certainly benefitting from TIFs in ways that they were not intended to when the districts were created.
If TIFs are found to carry large surpluses, the funds should either develop plans to reinvest in the community as designed, or the districts should be dissolved and the money returned to taxpayers. However, it should be noted that when TIF districts expire or are terminated, local taxing bodies can capture all of the "unlocked" revenue into their property tax bases without being subject to PTELL, even though they have not limited the collection of property taxes for any taxing body.
Rather than utilizing large one-time fund sweeps to balance the budget, Johnson's budget strategy for Chicago should focus on structural reform that corrects years of financial mismanagement and fosters long-term economic growth. The city should also conduct regular reviews of TIF districts and their associated projects and a deadline system to prevent funding for anticipated projects from being withheld indefinitely, as previously recommended by the Office of the Inspector General.
Source Name [178]: Johnson's Budget Fix Faces Stiff Headwinds Full URL: https://southsideweekly.com/johnsons-budget-fix-faces-stiff-headwinds/ Scraped Date/Time: 2025-11-22 23:53:58
Mayor Brandon Johnson must find a way to fill a nearly $1.2 billion hole in the city's 2026 budget. He is betting he can do that in part by passing a corporate "head tax," <span style="color: #0066cc; font-weight: bold;">but it's already facing stiff opposition from a majority of the City Council.</span> [178]
Johnson needs 26 out of 50 votes to pass his budget. The mayor is running out of revenue streams after his proposed $300 million property tax increase failed in a rare 50-0 vote last year. With property taxes a non-starter, that leaves few other options on the table to plug the city's budget gaps.
The head tax would levy $21 per employee per month on companies with 100 or more full-time employees in Chicago who spend half of their time working in the city. The city's budget office estimates the tax would generate $100 million annually, based on current employment data and the city's business licensing records.
The city plans to dedicate that revenue to community safety and violence interruption programs that were once buttressed by federal COVID relief dollars. Those funds will dry up soon since the federal government mandated that cities must obligate their American Rescue Plan Act (ARPA) funds by the end of 2024 and must spend them before the end of 2026.
"It is important to note that more than 97 percent of Chicago businesses would not be impacted by this proposal," Office of Budget and Management spokesperson LaKesha Gage-Woodard said in an email to the Weekly. "The intention is to ensure that the largest firms, who benefit most from the City's workforce, infrastructure, and services, contribute proportionally."
On Oct. 30, 27 out of 50 alders signed a letter opposing the head tax. Freshman Ald. Walter Redmond Burnet III, who the mayor just appointed to his father's old seat in the 27th Ward, initially signed the letter and then asked for his name to be removed. Burnett represents the West Loop, a mecca for luxury buildings and corporate headquarters.
Chicago once levied a $4 per employee head tax on companies with fifty or more employees. In his 2011 campaign for mayor, Rahm Emanuel promised to phase out the head tax. The city claimed the tax brought in $35 million revenue in 2009 and 2010. That November, Emanuel congratulated the City Council for passing an ordinance that would phase out the head tax, which he called a "job killer," by 2014.
If Chicago revived its head tax, it would make the city an outlier compared to the rest of the country, said Annie McGowan, a policy and research director at the Civic Federation, a local budget watchdog. Few other American cities levy a double-digit head tax: Denver's is $4 a month for each employee, while Pittsburgh levies a payroll expense tax on employers. Seattle repealed its head tax in 2018, and a proposed head tax died in Cupertino, the home of Apple, that same year.
Governor J.B. Pritzker blasted Johnson's head tax during an Oct. 21 event at the Economic Club of Chicago. It wasn't the first time that Pritzker butted heads with the mayor. Between controversies over state spending and migrant shelters in Chicago, an apparent rift has grown between the two politicians over the last two years.
"I am absolutely four-square opposed to a head tax for the city of Chicago," Pritzker said when asked about the proposal. He echoed the talking points of business groups who have argued that the tax would deter new companies and make it more difficult for those with an existing footprint in the city.
The governor then criticized Johnson's budget for not offering enough "efficiencies." When asked by the Weekly what cuts and solutions Pritzker would suggest, the governor's office did not offer specifics.
"The Governor spoke from first-hand experience about the hard choices required to build and maintain a stable, balanced budget," a spokesperson wrote in an email to the Weekly. "He has emphasized that lasting fiscal stability doesn't come from one-time fixes, but from a combination of operational efficiencies, responsible budgeting, and growing the economy so revenues rise alongside opportunity. That approach has guided his work in Illinois."
Despite the opposition, Johnson's budget office appears determined to stick with the head tax. When asked about the administration's contingency plan if the tax fails in City Council and whether the administration would propose a property tax increase again, the budget office pointed to a survey that rejected alternative revenue sources.
"Based on the citywide Budget Engagement Survey results, residents prioritized new revenues from a Community Safety Surcharge (i.e. the head tax), Online Sports Wagering tax, increased Vacant Building Fees, and other progressive revenue sources, while rejecting fees or revenue sources that would increase household costs," Gage-Woodard said in an email to the Weekly. "The Office of Budget and Management remains ready to engage in conversations with City Council on proposals that ensure the City is not placing new burdens on working families in the midst of the largest upward transfer of wealth, at the federal level, to corporations and the wealthiest 1 percent of the population."
Progressive budget gurus argue that Chicago's job growth didn't suffer when the head tax was implemented. Julie Dworkin, co-executive director for the Institute for the Public Good and a contributor to the mayor's budget working group, used Bureau of Labor Statistics data to analyze employment growth rates in Chicago and the nation before and after the head tax's repeal.
Between 2010 and 2013, the period that the Institute for the Public Good described as "post-recession and pre-repeal," Chicago's rate of job growth was 66% higher than the rest of the country. Yet between 2014 and 2019, "pre-COVID and post-repeal," Chicago's growth rate fell to 1 percent above the rest of the nation.
"This employment data does not support the claim that the head tax was a 'job killer,'" the report reads.
Ralph Martire, the executive director of the Center for Tax and Budget Accountability, a bipartisan research organization, threw cold water on both sides of the debate.
"The peer-reviewed studies that I've seen have found no statistically meaningful correlation between tax policy and job growth or tax policy and business site location," Martire said. "That doesn't mean it doesn't happen, right? Of course, some businesses will say, 'Hey, I'm looking for a lower tax burden. So I'm going to site here rather than there.' Of course, that decision happens, but it's not a statistically meaningful driver of site decisions."
Instead, when businesses are figuring out where to locate, they factor in proximity to customers and suppliers, financial markets, transportation hubs, and the quality of the workforce, Martire added.
"This is a subject where there's not a lot of rationality, right? You have one side: 'Businesses, corporations, need to pay their fair share,'" Martire said. "And you have the other side saying 'Every tax is a job killer, and this in particular is a job killer because it's on jobs.' We all know those arguments. The truth, in this case, is very much somewhere in the middle."
After leaning on federal COVID relief money for the last two years, Johnson may be squaring up for his toughest budget fight yet. Facing hard choices, his budget office has proposed reducing the advanced pension payments for the city's four employee pension funds that cover police officers, firefighters, municipal workers, and laborers. In previous years, the city paid more than was necessary toward those four pensions, a move credit rating agencies loved—and one that meant the costs of pensions wouldn't escalate in the future.
Between 2023 and 2025, the city used surpluses to help fund the advanced pension payments. Now that those funds are fully exhausted, Johnson's budget office has proposed a lower pension payment. Budget analysts, credit agencies, and some alders chafe at that because they believe it kicks the can down the road, leading to more expensive payments for future taxpayers. While the measure would save money in the 2026 budget, it could lead to credit downgrades that make it more expensive for the city to borrow money to pay for capital projects, like building bridges.
"It's not like all of these problems are the fault of the current mayoral administration," McGowan said. "These are like bad decisions that have been made over time that have built up to the situation where we are now, and a lot of progress has been made to deal with these financial issues. It's just that the pension cost is so large, it continues to crowd out the ability for the city to do everything else."
Source Name [179]: Mayor Johnson pledges to use head tax for youth programs – then wants to cut funding for proven efforts Full URL: https://chicago.suntimes.com/city-hall/2025/11/20/mayor-brandon-johnson-corporate-head-tax-youth-program-cuts-become-a-man-working-on-womanhood Scraped Date/Time: 2025-11-22 23:58:00
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# Mayor Johnson pledges to use head tax for youth programs – then wants to cut funding for proven efforts
## Without city funding, group counseling programs now serving 1,400 Chicago Public School students in 33 schools will end on Dec. 31.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Nov 20, 2025, 6:30am EST
Maniya Franklin, an alumnus of the Working on Womanhood program, sits on a bench in Russell Square Park Wednesday.
Tyler Pasciak LaRiviere/Sun-Times
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[Mayor Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) has tried — and so far failed — to sell [his corporate head tax](https://chicago.suntimes.com/city-hall/2025/10/30/city-council-majority-declares-opposition-to-johnsons-head-tax) by rebranding it as a "community safety surcharge" with $100 million in annual revenue for crime fighting and prevention programs that include summer jobs and mentoring for Black and Hispanic youth.
And yet, in his [proposed 2026 budget,](https://chicago.suntimes.com/2025/11/17/finance-committee-rejects-johnsons-600m-tax-package) the mayor wants to cut funding for one of Chicago's most successful youth mentoring programs, and change city guidelines to disqualify school-based group counseling programs known as "Becoming a Man" (BAM) and "Working on Womanhood" (WOW).
"It's devastating. We have 1,400 young people benefiting from programs they get so much out of. Most of them are in the program because they've already been exposed to trauma. And we're risking traumatizing them again by ripping these supports out in the middle of the school year," said Michelle Adler-Morrison, CEO of Youth Guidance, which oversees BAM and WOW.
A spokesperson for the city's Department of Family and Support Services said the transition from group-based mentoring to an individualized, one-on-one model followed a "comprehensive review of program data and youth feedback."
More than 67% of participants surveyed "requested more one-on-one time with mentors" while more than 60% reported "difficulty attending group sessions due to scheduling or discomfort," the department said.
But Adler-Morrison said she has heard from youths, many of whom have either witnessed gun violence or been victims of it themselves, who say "how powerful it is to sit in a circle and learn from one another and learn they are not alone. Other people are going through similar things…The incredible trust and connection that gets built in this circle that is always there for you.
"I have no idea why you would defund those supports in the most under-resourced communities, when it's clear to me that the mayor values that. I can't imagine this is a knowing decision," Adler-Morrison said.
BAM and WOW are school-based youth counseling programs operated by Youth Guidance. The programs have been benefiting Chicago Public Schools students for decades with proven results.
According to studies conducted by the University of Chicago Crime Lab, 95% of BAM participants said the program helped them make better personal decisions, while 94% said the group counseling helped them pinpoint ways to improve their school performance. Half of those surveyed were less likely to get involved in violent crime, and 19% were more likely to graduate from high school.
WOW participants reported reduced anxiety (59%), fewer depression symptoms and fewer signs of trauma (68% for both).
Former Mayor Rahm Emanuel became a champion of BAM. He dramatically increased city funding for the program, and sold the concept to his former boss, then-President Barack Obama, who sat in on a BAM circle at Hyde Park Academy in February, 2013, and later launched his own version of it, called "My Brother's Keeper."
Then-President Barack Obama meets with youths at a BAM meeting at Hyde Park Academy in February 2013.
Provided.
Johnson participated in a WOW circle at Chicago Vocational High School last spring and celebrated Youth Guidance programs on Martin Luther King Jr. Day in 2024. The mayor continued to fund the program in his first two budgets at the $3 million-a-year level provided by Emanuel and former Mayor Lori Lightfoot.
That's what makes the Johnson administration's sudden about-face puzzling to leaders, counselors and participants.
Mayor Brandon Johnson meets students at a WOW gathering at Chicago Vocational High School.
Provided.
The city pullback comes in two stages. First, the Department of Family and Support Services has released a new request for proposals (RFP) that essentially declares school-based group counseling models like BAM and WOW no longer eligible for city funding.
The new criteria limits city funding to one-on-one mentoring programs — not group counseling — and declares school-based programming during the school day ineligible.
Also, the line item for mentoring programs in the Family and Support Services budget has been reduced by nearly 52% — from $9.5 million to $4.6 million. Without city funding, group counseling programs now serving 1,400 Chicago Public School students in 33 schools will end on Dec. 31.
Those students, nearly all of them Black and Hispanic, will return from their holiday break in January without the group counseling programs that have sustained them and helped them endure the violence- and family-related emotional trauma that so many of them live with on a daily basis.
The DFSS statement blamed $700,000 of the reduction for mentoring programs on cuts required by the city's $1.2 billion budget shortfall and the rest on exhausted federal pandemic relief funds.
Maniya Franklin, 19, said the four years she spent in a WOW group at Dunbar High School provided her with the therapy she needed but could not afford after her father's sudden death.
"When I came into the program, I was lost. I was unsure of purpose in my life. I wanted to find that purpose. WOW gave me that purpose again… It held me together. There were mentors who helped me heal and stay focused and believe my life still had purpose," Franklin, who will start National Louis University in January, told the Sun-Times.
"If I hadn't had that support, I really feel like I would have fallen deep into depression… It carried me through grief, through trauma and pressure when no one at home helped me through it."
Michelle Obama meets youths at a WOW gathering in Chicago in 2022.
Provided.
Darshay Moore credited the support she got during three years of group counseling at Morgan Park High School with improving her self-esteem and her grades — ultimately leading to a scholarship to Illinois State University.
"It wasn't just a program. It was more like a sisterhood. It was like a family and a sisterhood that we built," she said.
Moore said her WOW counselor provided the support she needed after her nephew was hit by a car and required brain surgery followed by months in the hospital.
"It was really bad and I really didn't have anybody to talk to because it was a whole family matter and I didn't want to put my issues on my mom so she could have more things to worry about," Moore recalled. "So, I talked to my WOW counselor about it and it just felt better to talk to somebody who was not involved in the situation. She definitely calmed me down. She understood how I was feeling. It was good to have somebody in my corner."
A.J. Staten, a BAM counselor at the Curtis School of Excellence in Roseland, said he is "frustrated and confused" about what he called the mayor's "mixed messaging about investing in youth and mentoring and meeting kids where they are."
"My fear is that students who already feel CPS doesn't hear them will feel more isolated, and feel like there's no place for them to belong. Some may feel a sense of betrayal," Staten said. "We're fighting for a program that's on the verge of being cut with no plan to replace those slots… If the head tax is truly meant for youth and mental health investment, that needs to be action not words."
Source Name [180]: Mayor Johnson Unveils 2026 Budget Full URL: https://loyolaphoenix.com/2025/11/mayor-johnson-unveils-2026-budget/ Scraped Date/Time: 2025-11-22 23:58:00
\| [Politics](https://loyolaphoenix.com/section/news/politics/)
# Mayor Johnson Unveils 2026 Budget
<span style="color: #0066cc; font-weight: bold;">The budget includes several different tax programs to advance community based initiatives.</span> [180]
By [Eleni Dutta](https://loyolaphoenix.com/author/edutta/ "Eleni Dutta")
\| November 5, 2025,
5:35 am
[](https://loyolaphoenix.com/wp-content/uploads/2025/11/AidanCahill_CityHall-4.jpg) Johnson presentó el plan ante el Ayuntamiento el 16 de octubre. (Aidan Cahill \| The Phoenix)
Chicago Mayor Brandon Johnson released his third proposal for Chicago's [budget plan](https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2026Budget/2026%20Budget%20Overview.pdf "") for the 2026 fiscal year. Titled the "Protecting Chicago Budget," the motion outlines his office's plan to balance community investment and fiscal responsibility. The plan was unveiled by Johnson to City Council Oct. 16.
The main focus of the plan's goal to protect Chicago is to alleviate previous financial stress while simultaneously responding to federal funding policies, which Johnson described to be at a crossroads with the city. Currently, the city is experiencing a $146 million 2025 budget deficit, looming corporate tax shortfalls and pension obligations.
Johnson argues his plan will reflect a shift towards bringing stability to Chicago by focusing on initiatives at the neighborhood level.
The proposal focuses on six main priorities — public safety, affordability, youth investment, economic growth, environmental protection and maintaining an equitable balance. Johnson explained how the theme of protection reflects a pushback against federal financial trends driven by the Trump administration.
One of the most prominent proposed reforms is a $1 billion Tax Increment Financing surplus, which would be the largest in Chicago's history. The surplus's intention is to help fund Chicago Public Schools, Park District programs and libraries by reinvesting unspent development funds back into such public institutions.
Further playing into his message of "corporate accountability," Johnson's plan to tax large social media and tech companies operating in Chicago through what was described as a Social Media Amusement and Responsibility Tax.
The tax would cost large social media platforms 50 cents for each active user within the city of Chicago. To ensure smaller or local networks aren't impacted by the tax, the measure will only apply if a given platform has over 10,000 active users. Johnson's office predicts the tax will generate an annual income of $31 million to fund free mental health clinics and crisis response teams with specific emphasis towards youth mental health issues.
If approved, Chicago will become the first major U.S. city to tax social media companies directly for local mental health initiatives, setting a precedent on how cities address the intersection of technology regulation and mental health.
The proposal also wants to expand youth diversity programs, job opportunities and support domestic and gender based violence survivors with a Community Safety Fund of $100 million. A 3% tax on large corporations would support the fund.
Such a fund reflects the long-standing promise made by Johnson's campaign to shift away from a dependence on traditional police enforcement and instead focus on prevention efforts to reduce crime rates according to his campaign [website](https://www.brandonforchicago.com/issues/public-safety "").
This tax signifies Johnson's attempt to distance his administration from previous mayors who heavily relied on downtown development through corporate subsidies — a strategy he described as asking "the ultra-rich to put more skin in the game" during a live interview with [CBS News Chicago](https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-chicago-budget-proposal/ "").
Johnson proposed a head tax on all companies with 100 or more full-time employees who spend 50% of their time working in Chicago. The tax, called the Community Safety Surcharge, is projected to affect 3% of Chicago businesses and would charge those businesses $21 per employee per month.
Chicago had a corporate head tax from 1974 to 2014 when it was repealed by then Mayor Rahm Emanuel. Johnson proposed reinstating the head tax when running for Mayor in 2023, according to his [website](https://www.brandonforchicago.com/issues/city-budget-and-revenue "").
Several cost-of-living protections for residents were also included in the plan. Promises in the proposal include an abolishment of property taxes, the city's grocery tax and a reduction in the motor vehicle rental tax.
Effective Jan. 1, 2026, Illinois will transfer the authority to impose what was originally a statewide 1% tax towards municipalities and counties. Therefore, local governments such as Chicago's will have the power to determine whether they'd want to implement their own version of the grocery tax. Johnson's plan suggests removing the tax along with the state to alleviate strain on the working people.
According to the [US Department of Agriculture](https://www.ers.usda.gov/amber-waves/2021/december/food-taxes-linked-with-spending-habits-of-lower-income-households ""), grocery taxes impact lower income households more considerably as they spend a larger percentage of their income on groceries.
Another way Johnson's plan intends on shifting the tax burden onto wealthier Chicagoans and large corporations is through a Yacht Tax. According to the language in the budget proposal, the tax intended to increase boat-mooring rates towards standards described as those aligned with "historical rates and the rate of parking."
Currently, the city's boat mooring [tax](https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/boat_mooring_tax.html "") was 7% of boat mooring or docking fee. It became effective in 2003, where the previous tax beforehand was 25% of the fee.
The approach sharply contrasts with prior budgets which placed more dependence on service fees and property taxes. Similarly to the proposed corporate taxes, these measures align with Johnson's message where fiscal recovery should not fall on ordinary residents as they aim to make housing and transportation slightly more manageable.
The City Council will begin budget hearings in November, with the final vote expected to occur before the Dec. 31 deadline.
Source Name [181]: Mayor Johnson proposes social media tax to fund mental health clinics in 2026 budget Full URL: https://abc7chicago.com/post/chicago-mayor-brandon-johnson-present-2026-budget-city-council-meeting-thursday/18017333/ Scraped Date/Time: 2025-11-22 23:58:00
- [budget](https://abc7chicago.com/tag/budget/)
<span style="color: #0066cc; font-weight: bold;"># Mayor Johnson proposes social media tax to fund mental health clinics in 2026 budget</span> [181]
By[Craig Wall](https://abc7chicago.com/about/newsteam/craig-wall)
Friday, October 17, 2025
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Chicago Mayor Brandon Johnson presented a 2026 budget proposal to the full City Council during their morning meeting Thursday.
CHICAGO (WLS) -- Mayor Brandon Johnson rolled out his progressive budget for 2026 on Thursday as the city faces more than a billion-dollar deficit.
### [ABC7 Chicago is now streaming 24/7. Click here to watch](https://abc7chicago.com/watch/live/11064984/)
Ahead of his budget address, the mayor spoke surrounded by community organizations and elected leaders about the "Protecting Chicago Budget."
"It acknowledges a harsh reality that I think, that we all can agree on. We are living in unprecedented times," Johnson said. "We can't respond to Trump's cuts and the attacks on our city with speeches and press conferences. We must take concrete action."
A budget forecast [released this summer projects a $1.15 billion deficit](https://abc7chicago.com/post/mayor-brandon-johnson-says-chicago-needs-close-115b-budget-deficit-cps-vote/17687545/) for the city, driven in part by the end of federal pandemic aid, and uncertainty over Chicago Public Schools pension payments.
Council members have until the end of the year to negotiate changes. The budget needs 26 votes for it to pass.
ABC7 Political Analyst Laura Washington talks about Mayor Johnson's budget proposal.
Johnson also called for a one-year hiring freeze that exempts public safety and other essential services.
There were also frequent jabs at the Trump administration, which the mayor blamed for some of the city's financial problems.
### No new taxes or fees for Chicagoans
The mayor's proposed budget does not impose any new property taxes or fees on Chicagoans.
To avoid placing an "additional financial strain on working people," the mayor also proposed the abolition of the grocery tax and reducing the motor vehicle lessor tax from $2.75 to $0.50 per rental period.
### Social media tax to fund mental health programs
The mayor's budget proposes two new special revenue funds for mental health and community safety.
The programs would be funded by adding a tax fee on social media companies called Social Media Amusement & Responsibility Tax, or SMART.
Money collected from the companies would fund "free mental health clinics throughout Chicago and the expansion of mental health crisis response teams," the mayor said.
The tax would charge social media companies 50 cents per active user over 100,000 in Chicago. The mayor's office expects the proposed tax to generate $31 million.
"And just like we tax other addictive vices that are bad for our health, like nicotine and tobacco, it is far past time we treat social media companies the same way," Johnson said. "I'm not going to sugar coat it if we fail to invest in community safety in this budget at historic levels, the federal government will try to use that as justification for military occupation of our city."
"Well, a social media tax has been challenged in many other states. The Supreme Court has looked at these and said these are First Amendment issues and struck down states' chances to try to tax these," 32nd Ward Ald. Scott Waguespack said.
The budget also creates a $100 million Community Safety Fund to increase funding for youth diversion and employment programs.
### Taxing large corporations and the 'ultra-rich'
As a direct response to the Trump administration's tax cut for large corporations, the mayor proposed to implement new taxes and fees on some of Chicago's wealthiest people and corporations.
One of the proposed fees is a "yacht tax,"' which the mayor said would brings the rate for boat-mooring at city harbors into alignment with historical rates and the rate of parking.
Two other new fees include a "vacant building fee," which is a renewal fee to recover costs, incentivize development and reduce blight and taxes on big tech companies through an increase in the Personal Property Lease Transaction Tax rate.
"We are asking the top 3% of the absolute largest corporations in our city, those who have seen tremendous success and exceedingly high profits, to chip in so that we can build a safer city for all of Chicago," Johnson said.
The Community Safety Surcharge would apply to companies with more than 100 employees.
It would charge $21 per employee per month.
It would generate $100 million in revenue
That would pay for things like violence prevention programs and summer youth jobs
### $1 billion Tax Increment Financing surplus
The mayor said it's marking the largest TIF surplus in the history of the city.
The surplus is expected to support Chicago Public Libraries, financial relief to Chicago Public Schools, Chicago Park District and City Colleges of Chicago, the mayor said.
### [RELATED: Chicago Police Department asked to come up with $98M in cuts amid city budget crisis](https://abc7chicago.com/post/chicago-police-department-superintendent-larry-snelling-asked-come-98-million-cuts-amid-city-budget-crisis/17836121/)
"So having not yet seen a TIF waterfall, it is hard to see how a billion dollar TIF surplus is even possible," 34th Ward Ald. Bill Conway said.
The mayor is also looking to expand the rideshare congestion fee and put a $200 million cap on police overtime.
Some alders say Johnson's proposals may not pass muster.
And the ideas also drew sharp backlash from the business community.
Local and state business groups blasted the head tax plan, along with the increase in the cloud computing tax.
"The best way to get rid of fiscal deficits is have new jobs, and the head tax and the cloud tax are job-killing taxes that will hurt businesses of every size and sector in Chicago," said Jack Lavin, president and of the CEO Chicagoland Chamber of Commerce. "Before you charge them and burden them with more taxes, there should be shared sacrifice. His budget has $200 million of cuts when they increased the budget by $6 billion since 2019; so that's not shared sacrifice."
The Progressive Caucus praised the head tax and other revenue ideas.
"There's economic warfare being put on our cities. Trump administration is taking away funds. They're laying off our workers. They're hurting our economies. That means cities have to find new solutions to how we fund our essential services," said 49th Ward Ald. Maria Hadden, chair of the Progressive Caucus. "We obviously will be looking into the budget, learning more, making sure a lot of these solutions are going to work, but we stand here as a Progressive Caucus encouraged and excited about the proposal before us."
But what alders did not see in the budget was money to pay for the new fire department contract.
So the budget discussions in the coming weeks could be contentious.
Source Name [182]: Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget Full URL: https://chicago.suntimes.com/city-hall/2025/10/21/brandon-johnson-2026-budget-chicago-record-tif-surplus Scraped Date/Time: 2025-11-22 23:58:00
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson was accused Tuesday of proposing a $1 billion tax increment financing surplus to bail out the Chicago Public Schools at the expense of neighborhood improvement projects, a move roundly condemned by City Council members.</span> [182]
The record TIF surplus that would provide $552.4 million to help bankroll a new teachers contract emerged as the key point of contention during the first day of Council hearings on Johnson's proposed $16.6 billion budget.
Mayoral allies and critics alike were united in their opposition to a TIF surplus that they fear could derail or, at the very least, delay indefinitely improvements to their local schools, parks and libraries, as well as job-creating economic development projects.
Eighth Ward Ald. Michelle Harris, the Rules Committee chair and powerful member of Johnson's leadership team, said she cannot go along with such a "drastic sweep" of TIFs that serve as lifelines in predominantly Black neighborhoods like her own.
"You now say to communities like mine who don't have $40 million or $50 million in a TIF, that we can't do future projecting," Harris said. "If we sweep TIFs in communities like mine, then my future projects are just dead. ... Unintentionally or intentionally, we will lose projecting in communities of color. ... It scares me to death that these projects have the potential to be taken off the table."
Budget Director Annette Guzman insisted that top mayoral aides "did not delete a project or terminate a project" to achieve the $1 billion surplus, even though state law requires the city to "sweep anything that's not encumbered for a project."
Fully 83% of the city's 108 TIFs are seeing growth and increased revenue "year over year, and two districts are seeing flat growth," the budget director said. "We are not sweeping our entire fund balance."
Every year, the equalized assessed valuation within the city's 108 TIF districts "continues to grow above beyond what was there before," Guzman added. "Not only will you see a replenishment of your TIFs for... projects next year, but future projects."
Ald. Nicole Lee (11th) said she was shocked at the size of the surplus and found it particularly "off-putting" that local alderpersons whose TIFs are being depleted were not consulted.
"I have a field house … where we're waiting for the park district to contact an engineer and a designer to give us the cost. Now that TIF is going to be completely swept down to like a couple million bucks," Lee said.
Ald. Jason Ervin (28th), the Budget chair, joined the avalanche of opposition, noting that 70% of the TIF surplus is "coming out of socially economically disadvantaged areas" like his own West Side ward.
Ervin created yet another political headache for Johnson by demanding that CPS reimburse the city for a long-disputed, $175 million pension payment for nonteaching school employees that triggered the mass resignation of the mayor's appointed school board and the firing of Chicago Public Schools CEO Pedro Martinez.
The proposed 2026 budget does not count on the city receiving that money.
"This budget will not leave this committee without a signed intergovernmental agreement from the Chicago Public Schools related to their pension obligations previous and post to us. We must have that in order to move forward ... on this budget process," Ervin said. "Hopefully, somebody on their end is listening."
The $21 a month per-employee corporate head tax and 14% cloud computing tax that Johnson is counting on to generate $433.2 million in new revenue was not a focal point during the first day of budget hearings, though business leaders have denounced them as "job killers."
Source Name [183]: Use TIF dollars for neighborhoods, not to fix budgets Full URL: https://www.chicagobusiness.com/opinion/use-tif-dollars-neighborhoods-not-fix-budgets-op-ed Scraped Date/Time: 2025-11-22 23:58:00
<span style="color: #0066cc; font-weight: bold;">Like a broken record, Mayor Brandon Johnson's 2026 budget proposal depends on declaring a $1 billion Tax Increment Financing (or TIF) surplus, continuing a damaging trend of diverting funds from one of Chicago's most effective economic development tools to cover operating deficits.</span> [183]
Every dollar removed from a TIF eliminates a full dollar of potential neighborhood reinvestment, writes the president of Chicago Neighborhood Initiatives.
Source Name [184]: How Chicago Mayor Brandon Johnson plans to close a $1B budget deficit in 2026 Full URL: https://www.fox32chicago.com/news/chicago-johnson-budget-2026 Scraped Date/Time: 2025-11-22 23:58:00
<span style="color: #0066cc; font-weight: bold;">Mayor Brandon Johnson laid out his proposal on how to close a projected nearly $1.2 billion budget deficit in 2026.</span> [184]
Johnson framed his proposal, which requires City Council approval by the end of the year, as a progressive approach by raising taxes on large corporations but not including a property tax increase — a move that has proven unpopular in recent years.
Why does the city have a $1 billion deficit?
The city government's nearly $1.2 billion projected budget deficit next year is the largest gap since 2021, when the COVID-19 pandemic decimated government revenues.
The city, along with other local and state governments, was helped out by massive federal pandemic relief spending, but those funds are set to dry up by next year.
In the meantime, expenses like salaries for the city's more than 30,000 employees and their healthcare costs have only risen.
Elected officials and analysts have said the city has a "structural deficit," which basically means that revenues (taxes and fees imposed by the city on residents, visitors, and businesses) have not kept up with expenses over the years. Over the past decade, the city's expenses have risen by around 64%, but the revenues it uses to pay those bills have only risen by about 54%, according to an interim report by a city task force the mayor created to help city leaders find ways to fix its budget woes.
Johnson's plan: Higher taxes on large corporations
The mayor has routinely argued for raising "progressive" revenue, or mostly increasing taxes and fees on large corporations and wealthy residents, instead of broader measures like a property tax increase, which would hit more middle-income residents.
"There's never been a better time to be a billionaire in America," Johnson said during his Oct. 16 budget address. "There's never been a better time to be a large corporation in our country."
To that end, Johnson made the following proposals:
- An increase of the city's personal property lease transaction tax from 11% to 14%, which Johnson described as a tax on big tech companies like Salesforce and Amazon. Such an increase is projected to raise $333 million.
- A reinstallation of the so-called corporate head tax, which would essentially charge large companies (those with more than 100 full-time employees) a rate of $21 per month per employee. It's projected to raise about $100 million a year. The city used to have such a tax, but eliminated it under Mayor Rahm Emanuel.
- A new tax on social media companies of 50 cents on every active user beyond 100,000 in the city. Such a tax could generate about $31 million, but critics argue that such a tax could face court challenges, including the Civic Federation, which called the legality of the tax "highly questionable." The Johnson administration wants to use the funds for mental healthcare services.
- A "yacht tax" would increase the cost of docking large boats at the city's harbors.
The mayor also proposes declaring a record-high $1 billion surplus from its tax increment financing (TIF) districts. Put very simply, the city has designated certain areas as TIF districts, or areas where a portion of property tax revenues that would normally pay for government expenses are set aside for economic development in that specific geographic area. If the revenue generated exceeds the expenses needed for projects in that area, the city can declare a surplus and pocket that money, which it shares with other local government bodies. That is how the city will get another $157.6 million, and Chicago Public Schools could net about $522 million, according to the Civic Federation.
Johnson also proposes borrowing about $166 million to help cover increased salaries for city workers and settlement payments to people who have sued the city, mostly for alleged police misconduct, according to the Civic Federation.
The mayor's proposal also calls for about $200 million in savings via a "targeted" hiring freeze, selling unused land and merging office space used by the city, reducing about $10 million in vendor contracts, and reducing police overtime costs, according to the city.
What's next?
A majority of the Chicago City Council will have to debate and pass a final budget by the end of the year.
Source Name [185]: Brandon Johnson pushes five-year infrastructure spending plan Full URL: https://www.chicagobusiness.com/politics/brandon-johnson-pushes-five-year-infrastructure-spending-plan Scraped Date/Time: 2025-11-23 05:39:33
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<span style="color: #0066cc; font-weight: bold;">[Politics](https://www.chicagobusiness.com/politics)</span> [185]
# Johnson wants $1.3 billion as part of $18 billion, 5-year infrastructure plan
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By [Justin Laurence](https://www.chicagobusiness.com/author/justin-laurence)
Justin Laurence is a reporter for Crain's Chicago Business covering politics and policy from City Hall to Springfield. Prior to joining Crain's in 2022 he covered city politics, development and cannabis as a freelance reporter.
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Source Name [186]: In financial maneuver, Mayor Brandon Johnson proposes millions for Chicago Public Schools Full URL: https://chicago.suntimes.com/education/2025/10/14/mayor-brandon-johnson-chicago-public-schools Scraped Date/Time: 2025-11-23 05:39:54
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[Education](https://chicago.suntimes.com/education) [Brandon Johnson](https://chicago.suntimes.com/brandon-johnson) [News](https://chicago.suntimes.com/news)
# In financial maneuver, Mayor Brandon Johnson proposes millions for Chicago Public Schools
## Some school board members say they are relieved the mayor is recommending a record TIF surplus; others say they knew the "education mayor" would come through.
By [Sarah Karp | WBEZ](https://chicago.suntimes.com/sarah-karp-wbez)
Updated
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Oct 15, 2025, 6:30pm EST
Mayor Brandon Johnson, shown at a news conference last week, will unveil Chicago's 2026 budget Thursday.
Zubaer Khan/Sun-Times
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Mayor Brandon Johnson's budget proposal includes a gift for Chicago Public Schools: He is recommending that the city take an unprecedented amount out of special taxing districts so CPS can cover its costs and send some cash back to the city to help it end the year in the black.
School board members say they believe CPS will receive more than $500 million — meaning Johnson will declare a record $1 billion TIF surplus. This would give CPS enough money to make it through the school year without massive cuts. And it would give the city some of what it needs to cover a $175 million municipal pension payment that the district balked at paying without help.
Johnson is making this proposal after the partly elected, partly appointed school board dealt him a political blow in August when members refused to include the possibility of borrowing so they could cover the pension payment **.**
At the time, board members aligned with Johnson warned others that it was risky to count on the money from the special taxing districts, called TIFs, which weren't guaranteed. But after the vote, a small group of members approached the mayor's office to see if Johnson would come through with the money, said Michilla Blaise, who was appointed by the mayor to represent a West Side district.
"Fortunately, we've got the education mayor who wants to make sure that CPS has what it needs, and so it all just came together," she said. "We were able to land the biggest TIF surplus in recorded history. I'm really excited."
With CPS facing funding cuts from President Donald Trump's administration, Johnson was compelled to try to find as much money as possible for the school district, according to a source in the mayor's office. Blaise said she hopes this gesture from the mayor brings the board together against the Trump administration.
Che "Rhymefest" Smith, elected to a South Side district, said he never had any doubt that Johnson would come through with the money. Smith said he thinks the way this unfolded is testament to the power of elected board members. This board was able to hold the line on borrowing and get the mayor to pull as much as he could out of TIFs.
Johnson will unveil the city's budget Thursday, and the City Council needs to approve it by Dec. 31.
City Council members could still object to so much money being taken out of these special taxing districts. That money is supposed to be set aside for economic development projects in their wards. But in August a majority of City Council members signed a letter saying they supported giving CPS a large TIF surplus, even without a guarantee that the city would get help with the municipal pension payment.
CPS is still facing financial pressure. The school board approved a budget that included $50 million in unspecified cuts to central office and operations. Those cuts have yet to be announced and, as the school year moves on, finding those savings will be more difficult.
Also, the federal government recently announced that it would not give CPS $8 million that it was expecting from a grant this year. While that is a relatively small amount, it could be the start of more federal funding being withheld.
Board member Debby Pope, appointed to represent a North Side district, said the TIF money helps CPS stay afloat for now. But it is one-time cash and does not solve the long-term problem of CPS being underfunded.
"\[CPS' budget\] is very delicately held together, like when you construct something out of scotch tape, and maybe the tape starts peeling or something," she said. "So at the moment, I think it is standing and it is OK, but I view it as being precarious and I don't want the education of our kids to be precarious. I want it to be secure and guaranteed."
She and Blaise said they are now focused on convincing the governor and lawmakers to provide more sustainable funding for CPS and other school districts.
This looks to finally end a long drawn out saga between Johnson and the school district — one that tested Johnson's power and led to the resignation of the entire school board and then the firing of former CEO Pedro Martinez.
The controversy started with Johnson's sort of surprising demand when he first came to office that CPS help cover the $175 million cost of the municipal pension payment. CPS employees are the majority of pensioners, but up until 2021, the city made the entire payment. As an organizer for the Chicago Teachers Union, Johnson criticized former mayor Lori Lightfoot for shifting the cost to CPS.
Lightfoot was the first to suggest that money she was pulling out of these special taxing districts called TIFs should be used to cover the pension payment.
Tax increment financing is a funding tool that uses property taxes to spur development in specific geographic areas around the city. The mayor can pull unspent or unobligated money out of TIFs and turn it back over to the taxing bodies. CPS gets 52% of that cash; while the city gets 24%.
Deciding how much to surplus is the purview of the mayor's office, but he needs to negotiate with City Council members, who often want the money for projects in their wards.
But even as Johnson was surplusing record amounts, Martinez and the school board balked at making the pension payment. Eventually, Johnson's first appointed school board resigned and the second one fired Martinez. CPS did not make the pension payment last year.
The same scenario arose this year, with the city budget counting on the $175 million for the municipal pension payment.
This time, the interim CEO Macquline King and the partly-appointed, partly-elected school board members said they would pay it, but it was "contingent upon additional revenue."
The day after the Chicago Board of Education approved the district's budget, the mayor's budget officials said they expected to surplus less than they had the year before — an amount that would result in CPS being short millions of dollars.
_Sarah Karp covers education for WBEZ. Follow her on X_ [_@WBEZeducation_](https://twitter.com/WBEZeducation) _and_ [_@sskedreporter_](https://twitter.com/sskedreporter) _._
Source Name [187]: Chicago school board passes $10 billion-plus 25-26 budget Full URL: https://www.bondbuyer.com/news/chicago-public-schools-passes-2026-budget Scraped Date/Time: 2025-11-23 05:40:09
<span style="color: #0066cc; font-weight: bold;">The Chicago Board of Education on Thursday passed the district's proposed fiscal year 2026 budget, leaving the city to pay a disputed pension payment.</span> [187]
The Chicago Board of Education approved a $10.26 billion fiscal year 2026 budget on Thursday, leaving the administration of Mayor Brandon Johnson and the City Council to pay for a disputed Municipal Employees' Annuity and Benefit Fund pension payment.
"Chicago Public Schools is hopeful that passing the balanced FY26 budget will demonstrate to investors and rating agencies another step toward its multi-year trend of fiscal stability," spokesperson Mary Ann Fergus said by email.
"The final district budget allows us to build on the academic momentum of the past few years," Interim Superintendent and CEO Dr. Macquline King said in a statement on the eve of the vote. "This is about protecting students, their future, and the district's long-term financial health."
S&P Global Ratings said the budget that passed is "fiscally responsible."
Ying Huang, a director for S&P's public finance ratings division, praised the district's decision not to take out a short-term loan to cover the costs of the pension payment, as the Johnson administration had urged it to do.
The MEABF, a city pension fund, covers most non-teaching Chicago Public School employees.
"We believe taking on a high interest, short-term loan would increase CPS' debt burden and long-term costs, and we don't view it as a structural measure to balance the budget," Huang said.
S&P rates the district BB-plus with a stable outlook.
"Although the MEABF contributions are not a legal responsibility for the board, we expect they will remain an uncertainty for CPS' future budgets and could create additional budgetary stress if they are transitioned to the board without corresponding revenue increases," she added.
With the exception of three years earlier in this decade, the city government has historically covered the MEABF payments for CPS workers, according to the Civic Federation.
Some aldermen had threatened that the city might be less generous with CPS if the district did not pay the MEABF pension costs. But one major source of support the district receives from the city, tax increment financing surplus, is determined by state law: if the city declares a TIF surplus, it must be distributed to local political subdivisions like CPS according to their share of total property tax levies.
Huang said that if the amount of TIF surplus drops significantly, it would create budgetary pressure for CPS. But she noted that according to the property tax distribution formula, about 52% of the TIF surplus has to go to CPS and 23% goes to the city.
"In our view, similar to fiscal 2025, the city's own sizable budget gap in fiscal 2026 creates the motivation to declare surpluses sufficient to balance its own budget, directly benefitting CPS' revenues," she said.
The final budget closed a $734 million deficit and avoided mid-year cuts to schools.
It includes $320 million in savings from central office department and operational cuts; $45 million in evidence-based funding from the state; the repurposing of $65 million from the debt service stabilization fund; a $25 million donation from MacKenzie Scott; and a $79 million increase in TIF revenue over fiscal 2025's number.
Source Name [188]: Chicago Public Schools board votes to approve $175M pension payment to city Full URL: https://abc7chicago.com/post/cps-news-chicago-public-schools-board-votes-pay-175m-pension-payment-city-amid-budget-crisis/18092777/ Scraped Date/Time: 2025-11-23 05:40:19
<span style="color: #0066cc; font-weight: bold;">The Chicago Public Schools board has voted to approve a $175 million pension payment to the city amid the Chicago budget crisis.</span> [188]
In a special board meeting Thursday, there was a unanimous vote in favor of the payment.
Thursday's decision comes after the Chicago Board of Education approved a balanced CPS budget in August, closing a $730 million shortfall.
A battle had been brewing over whether Chicago Public Schools or the city was responsible for the $175 million pension payment.
The pension fund includes CPS and city employees. State law requires the city to pay for it, but the city faces it own budget deficit.
After presenting his city budget proposal earlier this month, Chicago Mayor Brandon Johnson spoke with ABC7 and defended his plan to sweep a billion dollars in Tax Increment Financing (TIF) funds, more than half of which would to Chicago Public Schools.
"A TIF surplus goes to our City Colleges; it goes to our parks, goes to our libraries," Johnson said. "Because that's the way the law is designed, and so investing in CPS, that's a good thing, right? And so what I'm simply saying is that I know that there are people who are thirsty to make it about the Chicago Teachers Union. They're short-sighted; they are short-sighted because the larger, bigger picture ensures that not just our public schools are fully supported at a time in which President Trump is attacking public education."
Source Name [189]: Chicago Transit Board Approves 2026 CTA Budget Full URL: https://www.transitchicago.com/chicago-transit-board-approves-2026-cta-budget/ Scraped Date/Time: 2025-11-23 06:37:58
<span style="color: #0066cc; font-weight: bold;">The Chicago Transit Board today unanimously approved a balanced $2.23 billion operating budget for the Chicago Transit Authority (CTA), which holds the line on fares, avoids layoffs, enhances existing services, expands vehicle cleaning measures, and more. The operating budget is $75 million – or 3.2 percent -- more than the 2025 budget.</span> [189]
"This budget builds upon the tremendous progress we've made over the past year, and sets us on a path towards continued growth," said CTA Acting President Nora Leerhsen. "Getting to this point is the culmination of our commitment to delivering the kind of transformational public transit service that our region has never experienced before. I want to thank our dedicated workforce, our community of riders and transit advocates, and state and local elected officials for their support, and I look forward to working together as we chart a vibrant transit future in the years to come."
Due to the funding uncertainty earlier this fall, CTA developed and proposed three funding scenarios:
- Budget A – Baseline or simply filling the funding gap budget assumed typical state funding levels that solely address the existing structural funding gap.
- Budget B – Growth budget that fixes the funding disparity and allows CTA to close its budget gap, plus make significant investments to deliver services being requested by riders.
- Budget C – Reduced budget that has no additional funding to address the structural funding gap, resulting in a significant cut to service.
These scenarios were developed based on the potential funding CTA could receive pending the outcome of ongoing legislative efforts in Springfield last month. With the passage of SB2111, and with guidance from the Regional Transit Authority (RTA), CTA passed the Budget A or the Baseline budget, which simply fills the current operating budget gap in 2026. CTA is seeking an amended budget for all service boards in the region to recognize the additional funding from SB2111 and enable transit in the region to begin delivering now on the key investments riders have been seeking.
The budget passed today includes measurable progress on key investments and reflects feedback CTA received from thousands of riders who took part in new agency outreach events including more than a dozen "CTA Chats" pop-up events this summer, three Budget Town Hall meetings this fall, the 2026 budget hearing, plus multiple surveys.
Among the projects and initiatives CTA riders can expect in 2026 with the current budget include:
- Service Enhancements: Ongoing service adjustments to better align and connect bus and rail services to offer more one-seat rides and enhanced transit connections.
- Strengthened Security: CTA will increase the amount budgeted for CPD to further increase police resources assigned to work on the system. CTA will also launch new Safe Ride Ambassador models to pilot that were created with input from law enforcement, other security experts, transit advocates, mental health and social service professionals, and community-based organizations. These response models will be designed to assist people on CTA in visible crisis with support services and de-escalate potentially troubling situations.
- Enhanced Customer Experience: Refresh & Renew program, ChatBot Phase 2, Enhanced Cleaning Measures
- Expanded Accessibility Initiatives and Outreach
- Focus on ETOD and Transit Policy
Also approved by the Chicago Transit Board was the agency's $6.75 billion five-year (2026-2030) Capital Improvement Program (CIP), which prioritizes projects that focus on improving safety, reliability, accessibility, equity and meeting regulatory requirements. This includes the Red Line Extension, All Stations Accessibility Plan (ASAP), Elevator and Escalator Replacements, Bus System Powering, Bus Facility Conversions, Bus Turnaround Improvements, Rail Heavy Maintenance Facility Renovations, New Vehicle Purchases, and Fleet Overhauls.
Source Name [190]: Mayor Brandon Johnson's Budget Dealt Blow After Failing in Committee, but What's in It? Full URL: https://ourculture.us/mayor-brandon-johnsons-budget-dealt-blow-after-failing-in-committee-but-whats-in-it/ Scraped Date/Time: 2025-11-23 04:37:09
Mayor Brandon Johnson's flagship 2026 budget blueprint — branded "Protecting Chicago" <span style="color: #0066cc; font-weight: bold;">— was dealt a sharp rebuke on Nov. 17 when the Chicago City Council Committee on Finance voted 25-10 to reject the revenue package that underpins his $16.6 billion spending plan.</span> [190]
Johnson's proposal faced fierce opposition for its range of new taxes that largely focus on corporations. The tax proposals include reimplementing a corporate "head tax," a measure that was in place from 1973 to 2014, when it was phased out by former mayor Rahm Emanuel.
Johnson's tax would be $21 per employee per month on companies with more than 100 employees (projected at $100 million annually) and steep hikes to the "cloud tax" on software and digital services — all aimed at closing a projected $1.19 billion gap in next year's budget.
The Johnson administration projects $411 million in savings for 2026, including $101 million from personnel cuts and a hiring freeze on long-vacant positions — though police vacancies will remain, and overtime will be capped. Another $118 million would come from reducing the city's advanced pension payments. The budget also counts $112 million in "operational efficiencies," such as trimming vendor contracts, selling vacant land, consolidating real estate assets, and streamlining departments.
Opponents in the Finance Committee signalled that the mayor over-reached, insisting the city must first identify spending cuts and efficiencies before layering on tax burdens. Ald. Brendan Reilly (42nd Ward) warned the head tax would "accelerate our head-first dive into an economic death spiral."
Johnson and supporters of the mayor's budget proposal, however, rejected that framing, casting the budget fight as one of values.
"There's still only one clear choice here, for us, and that's to pass a budget that protects the interests of working people," Johnson said. "There are obviously some members of City Council that are more interested in protecting corporations. They have not provided an alternative proposal to my budget, and that's why we're going to extend the time so that they have the time to offer up something. There are not any magic third options between cuts to core services and layoffs and revenue. Anyone who wants to pretend otherwise is being disingenuous."
During Monday's Finance Committee meeting, West Side Ald. Jason Ervin (28th), a supporter of the proposed budget, echoed the mayor's framing.
"At the end of the day, this comes down to a value question," Ervin said. "Everybody wants to get to heaven, but nobody wants to die. It's ever so true. It also goes back to a point in the book of Joshua, which says, 'Pick ye this day whom you will serve?' Are we going to serve residents of the city or folks Downtown? Are we going to help Google or grandma? The stock market or the supermarket?"
With the committee's rejection, the budget now returns to negotiations and faces a steeper path to passage. The vote marks a rare defeat for a mayor's budget revenue package in committee — a blow that underscores shifting power dynamics at City Hall and signals that Johnson will need to recalibrate if he hopes to secure the 26 votes needed in the full council.
Source Name [191]: Ernst & Young Report Details Chicago's Wasteful Spending: It's Worse than You Think Full URL: https://www.chicagocontrarian.com/blog/ernst-young-report-chicago-wasteful-spending Scraped Date/Time: 2025-11-23 05:40:15
<span style="color: #0066cc; font-weight: bold;"># Ernst & Young Report Details Chicago's Wasteful Spending: It's Worse than You Think</span> [191]
November 19, 2025
[Diogenes](https://www.chicagocontrarian.com/writers/diogenes)
**_There is a reason Mayor Brandon Johnson stalled the release of Ernst & Young's Financial and Strategic Reform Options report_**
In May of this year, the City of Chicago, facing a projected $1 billion budget shortfall over the next two years, paid "Big 4" accounting firm [Ernst & Young](https://news.wttw.com/sites/default/files/article/file-attachments/ErnstYoungReport.pdf) (EY) $3.2 million to analyze the city's spending and identify potential savings and efficiencies.
A controversy arose when the mayor initially refused to release the report, instead preferring to "filter" it, in the words of Budget Director Annette Guzman. Aldermen were rightly suspicious of this approach, assuming that the mayor's office would delete proposals that they did not agree with.
In the meantime, in mid-October, the mayor released his "Protecting the People" budget, which proposed $500 million in new taxes — including (most controversially) a head tax which he gave the Orwellian name of a "Community Safety Surcharge", as well as a tax on cloud computing that would be the nation's highest, and large new taxes on social media and ride sharing. In addition, the budget relies on one-time gimmicks such as the release of TIF funds.
A few days later, the EY report was released. It proposed cost savings and revenue generation ranging from $530 million on the low end to $1.4 billion on the high end. When asked why he is not implementing these ideas, the mayor variously has stated "it takes time," "it's a process," and "I won't negotiate my values."
The EY report, written in dry consultant language, makes clear what most Chicagoans have long suspected: There is massive waste in Chicago government. After all, overall spending (appropriations) has grown by about 40 percent in the past five years, far outpacing the rate of inflation.
The report recommends raising revenues by increasing fees for certain services that the city performs at a loss, such as police coverage and overtime for parades and movie productions. It also advises raising certain fees and fines to be in line with other cities. However, the really interesting part (and most of the financial impact) is in the cost savings. Austin Berg over at Illinois Policy Institute has commendably been out front on this issue, but it is worth a deeper dive just to illustrate the magnitude of the problem.
**_Too many managers, inefficient staffing ($148–$257 million annually)_**
Incredibly, many managers oversee only one to three direct reports rather than the usual six to eight that is considered best practice. This alone would save $37 million per year. Correcting this excess, plus consolidating overlapping functions and using shared labor pools rather than more overtime would generate some of the largest savings.
**_Vehicle fleet costs ($17–$31 million in savings)_**
Chicago has 15,000 vehicles and a fleet budget of $145 million. Overall cost per mile is about five times the nationwide government fleet average. In addition, the average miles per year driven is only 7,000, compared to a nationwide government average of 33,400 miles per year. There is no utilization monitoring, and limited or no charge-back for personal use. Further, the city's fuel cost per mile is about twice the nationwide government average for fleet vehicles. Overall, EY makes 20 recommendations to reduce fleet expenses.
**_Excess real estate ($147–$202 million in savings over 10 years)_**
The city's management of its real estate is characterized by "underutilization and inefficiency." In particular, based upon the number of employees and their in-office requirements, the city could reduce its workspace by 24 percent. In addition, the city could consolidate or sell unused real estate and buildings.
**_Employee benefits ($80–$103 million annual savings)_**
This is the largest potential area of saving but would require renegotiation with employee unions. EY benchmarked Chicago's benefits against those of New York, Los Angeles, Houston, Cook County, and the State of Illinois. Chicago employees pay significantly less for healthcare than the comparator cities. In fact, Chicago's benefits are so generous that many working spouses of city employees forego their own employer's health insurance and instead elect to be covered under Chicago's more generous plans. Since 2019, benefit costs (mostly healthcare) have increased 64 percent (compared to an overall CPI increase of about 27 percent), despite the city having fewer employees. Bringing Chicago's health benefits merely to the middle of the comparator cities' cost would generate enormous annual savings.
**_Procurement ($55 –$111 million annual savings)_**
Finally, centralizing the procurement function and using Chicago's combined purchasing power would result in significant estimated savings.
**_Mayor Johnson is uninterested in savings_**
Obviously, many of these proposed changes would take time and the savings could not all be realized within the next year. Yet the fact Mayor Johnson has distanced himself from the report and continues his refrain that he will continue to "invest in people" and "won't compromise his values" doesn't give Chicago's beleaguered citizens much hope that relief is in sight. But of course, in the mayor's latest budget proposal, dropped on the aldermen only minutes before Monday's Finance Committee meeting, he proposes to adopt many of the fee increases recommended by EY.
So apparently, the administration can move quickly when it wants to.
Source Name [192]: Johnson defends budget plan despite warning of credit downgrade Full URL: https://www.chicagobusiness.com/politics/brandon-johnson-defends-budget-despite-sp-credit-warning Scraped Date/Time: 2025-11-23 05:40:25
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# Johnson defends budget plan despite warning of credit downgrade
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Justin Laurence is a reporter for Crain's Chicago Business covering politics and policy from City Hall to Springfield. Prior to joining Crain's in 2022 he covered city politics, development and cannabis as a freelance reporter.
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Source Name [193]: Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies Full URL: https://abc7chicago.com/post/mayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies/18140114/ Scraped Date/Time: 2025-11-23 05:40:30
- [budget](https://abc7chicago.com/tag/budget/)
<span style="color: #0066cc; font-weight: bold;"># Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies</span> [193]
Some alderpersons say a consultant's report deserves a good, hard look that should delay a budget vote set for next week.
By[Craig Wall](https://abc7chicago.com/about/newsteam/craig-wall)
Monday, November 10, 2025
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Some Chicago City Council members say an EY report deserves a good, hard look that should delay a vote on Chicago Mayor Brandon Johnson's budget.
CHICAGO (WLS) -- Mayor Brandon Johnson facing questions on Monday about why his budget proposal has seemingly ignored a taxpayer-funded report meant to help the city find millions of dollars in efficiencies.
On Monday, Chicago City Council members heard from the author of the report as the mayor and his team defended their plan.
### [ABC7 Chicago is now streaming 24/7. Click here to watch](https://abc7chicago.com/watch/live/11064984/)
The mayor's budget, which has already generated pushback from city council members, is now entering a new phase of scrutiny. Some alderpersons say a consultant's report deserves a good, hard look that should delay a budget vote set for next week.
Johnson refused to do any budget backpedaling despite a report by the professional services firm EY, formerly Ernst & Young, that suggests the city could find millions more in efficiencies in next year's budget.
"We put forth this investment that some had some trepidation around, which sure I did that, but we've already demonstrated that we're willing to implement the very ideas that came from this report," Johnson said.
But Joe Ferguson, the president of the Civic Federation, says the mayor is missing out on many more opportunities for saving money by not implementing more of the ideas contained in the 101-page report.
"He is not governing to all Chicagoans. He is governing more to the benefit of a subset of constituents, and he's doing so in a very ideologically-driven way," Ferguson said.
"I think there are concrete results, recommendations from the EY report, concrete recommendations that we as the council can say we want these implemented. You need to implement them, stop ignoring them, and help reduce the cost on taxpayers in your budget," said 32nd Ward Ald. Scott Waguespack.
On Monday, a representative from EY appeared before the budget committee to discuss the report and answer questions.
"EY's work was in no way an audit for a forensic analysis of the city's budget for finances," said EY Report Lead Author Adam Chepenick.
The mayor, meanwhile, continued to defend his corporate head tax proposal.
"Well, look, we still believe that the best way to balance our budget is challenging, larger corporations to pay their fair share. As I've said from the very beginning, my values, I protect," Johnson said.
The mayor's budget director dismissed critics and defended the city's proposed savings and efficiencies.
"There is a difference between someone looking at a report or making estimations on their own about what a savings is, and us actually doing the work," said Budget Director Annette Guzman.
Ald. Gil Villegas pushed the idea of implementing a city delivery fee to help balance the budget. The mayor says that would not be possible without first getting approval from Springfield.
Source Name [194]: Mayor Brandon Johnson's 2026 budget targets social media, corporate "head tax" Full URL: https://www.illinoispolicy.org/mayor-brandon-johnsons-2026-budget-targets-social-media-corporate-head-tax/ Scraped Date/Time: 2025-11-23 05:40:35
<span style="color: #0066cc; font-weight: bold;">Chicago Mayor Brandon Johnson's 2026 budget proposal includes a per-user tax on social media companies and a per-employee fee on businesses. The proposal does not include a property tax hike and supports the elimination of the grocery tax.</span> [194]
During his 2026 budget address, Mayor Brandon Johnson's proposed "Protecting Chicago" budget leaned heavily on tax hikes targeting the city's largest employers and technology while avoiding a property tax hike.
The mayor's biggest revenue ideas include:
- A hike on the 11% higher personal property lease tax on tech companies, known as the "cloud tax"
- A $21 per employee "Head Tax" on the top 3% of companies with more than 100 employees.
- A $0.50 per user social media amusement tax projected to generate $31 million.
- Online sports wagering tax
- Tripling the 7% "Yacht Tax" on those mooring boats in Chicago's harbor
The Personal Property Lease Tax hike would affect anyone using AI platforms such as ChatGPT.
The mayor's budget does not include a property tax hike or a grocery tax. Chicago was already granted a reprieve from the grocery tax for at least six months in 2026 because the city council missed a key deadline to reinstate it, but Johnson's proposal suggests the grocery tax will be permanently eliminated. The mayor also wants to reduce the Motor Vehicle Lessor Tax from $2.75 to $0.50 for each rental period.
The budget includes some cost-savings measures such as:
- Hiring freeze across city departments.
- Contract reductions with vendors, saving an estimated $10 million.
- Merging of city offices and selling of vacant spaces.
- Reducing overtime costs for the Chicago Police Department.
Instead of confronting ballooning pension costs, runaway personnel spending or bloated bureaucracy, Johnson's budget avoids meaningful reform. His projected $200 million in "savings" comes mostly from temporary measures like hiring freezes and contract cuts not long-term efficiencies.
Pension obligations, the city's single biggest fiscal threat, remain unaddressed. The city has more pension debt than 44 states. To fix this long-term problem, the mayor needs to address rising pension liabilities. His budget fails to do this.
Taxes that may be framed as targeting the "ultra-rich" could push more businesses to leave the city or avoid investing here altogether, worsening the city's long-term revenue outlook.
Johnson also relies on a $1 billion Tax Increment Financing surplus, the largest in city history. Without structural fixes, budget issues will pressure taxpayers again in future years.
The mayor's new programs, like the $100 million Community Safety Fund and plans for expanded mental health services, may sound well-intentioned, but they lack clear accountability and are funded with unstable, politically targeted revenues.
Chicago doesn't need more tax hikes or symbolic gestures. The city needs structural fiscal reform, smarter spending and a tax climate that supports job growth.
Source Name [195]: Chicago alders reject mayor's budget proposal, head tax in committee Full URL: https://www.fox32chicago.com/news/alders-reject-johnson-budget-finance-co Scraped Date/Time: 2025-11-23 05:40:55
<span style="color: #0066cc; font-weight: bold;">The City Council's Finance Committee on Monday rejected Mayor Brandon Johnson's 2026 budget proposal, which included a controversial corporate head tax to help close a more than $1 billion projected deficit.</span> [195]
Johnson wanted the City Council to approve his budget plan this week, but many aldermen pushed back against his proposals for new taxes and instead advocated for more of a focus on cutting spending first.
What we know:
The members of the Finance Committee voted down the corporate head tax by a convincing 25-10 vote.
It was part of a vote on the mayor's entire revenue package, which included, by Fox 32's count, more than 20 different taxes and fees going up. But the 25 alders made clear on Monday that they reject any tax hikes without more spending reductions.
"Ask them if they support raising property taxes in Englewood and North Lawndale," Johnson said during a press conference. "Ask them if they support collecting a grocery tax. Ask them that. If you ask me, guess what I'm gonna tell you. I'm gonna tell you 'no,' because I believe in being straight up with the City of Chicago. There are two options here: We challenge these big corporations and the ultra rich to put more skin in the game, or you ask people who are standing in line for bread, milk and food and clothing, ask them to put more skin in the game."
The vote came after furious last-minute budget changes, arm-twisting, and backroom meetings to try and change votes. But at the end of the day, the head tax went down.
The debate over taxes and spending also comes as homeowners in Chicago and Cook County are opening their property tax bills. Residential homeowners on the South and West Sides are seeing historic increases in their bills, partly due to a decline in commercial property values in the Loop, which means everyone else has to make up the difference.
But Johnson said it's further reason not to propose any city property tax increases in his budget.
Several alders on Monday though said they do have ideas on how to handle the budget deficit.
"I want to make perfectly clear that this committee right here is willing and able to stand and work with the mayor to come up with a balanced budget," said Ald. Anthony Beale (9th Ward). "The notion that we are not bringing ideas to the forefront is a farce. We are willing and able anytime, anywhere we will meet to help pass a responsible, balanced budget. We just want cuts and efficiencies."
Because of the disagreement on the budget, the mayor is calling a pause in voting on his budget plan, at least until the beginning of December.
The City Council must approve a 2026 budget by the end of this year.
Source Name [196]: Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget Full URL: https://chicago.suntimes.com/city-hall/2025/10/21/brandon-johnson-2026-budget-chicago-record-tif-surplus Scraped Date/Time: 2025-11-23 05:42:05
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# Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget
## Mayoral allies and critics alike were united in their opposition to a TIF surplus that they fear could derail or, at the very least, delay indefinitely improvements to their local schools, parks and libraries as well as job-creating economic development projects.
By [Fran Spielman](https://chicago.suntimes.com/authors/fran-spielman)
\[month\] \[day\], \[year\], \[hour\]:\[minute\]\[ampm\] \[timezone\]
Oct 21, 2025, 5:21pm EST
Mayor Brandon Johnson presented his proposed 2026 budget to the Chicago City Council meeting at City Hall last week.
Ashlee Rezin/Sun-Times
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Mayor Brandon Johnson was accused Tuesday of proposing a $1 billion tax increment financing surplus to bail out the Chicago Public Schools at the expense of neighborhood improvement projects, a move roundly condemned by City Council members.
The record TIF surplus that would provide $552.4 million to help bankroll a new teachers contract emerged as the key point of contention during the first day of Council hearings on [Johnson's proposed $16.6 billion budget.](https://chicago.suntimes.com/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit)
Mayoral allies and critics alike were united in their opposition to a TIF surplus that they fear could derail or, at the very least, delay indefinitely improvements to their local schools, parks and libraries, as well as job-creating economic development projects.
Eighth Ward Ald. Michelle Harris, the Rules Committee chair and powerful member of Johnson's leadership team, said she cannot go along with such a "drastic sweep" of TIFs that serve as lifelines in predominantly Black neighborhoods like her own.
"You now say to communities like mine who don't have $40 million or $50 million in a TIF, that we can't do future projecting," Harris said. "If we sweep TIFs in communities like mine, then my future projects are just dead. ... Unintentionally or intentionally, we will lose projecting in communities of color. ... It scares me to death that these projects have the potential to be taken off the table."
Budget Director Annette Guzman insisted that top mayoral aides "did not delete a project or terminate a project" to achieve the $1 billion surplus, even though state law requires the city to "sweep anything that's not encumbered for a project."
Fully 83% of the city's 108 TIFs are seeing growth and increased revenue "year over year, and two districts are seeing flat growth," the budget director said. "We are not sweeping our entire fund balance."
Every year, the equalized assessed valuation within the city's 108 TIF districts "continues to grow above beyond what was there before," Guzman added. "Not only will you see a replenishment of your TIFs for... projects next year, but future projects."
Ald. Nicole Lee (11th) said she was shocked at the size of the surplus and found it particularly "off-putting" that local alderpersons whose TIFs are being depleted were not consulted.
"I have a field house … where we're waiting for the park district to contact an engineer and a designer to give us the cost. Now that TIF is going to be completely swept down to like a couple million bucks," Lee said.
Ald. Jason Ervin (28th), the Budget chair, joined the avalanche of opposition, noting that 70% of the TIF surplus is "coming out of socially economically disadvantaged areas" like his own West Side ward.
Ervin created yet another political headache for Johnson by demanding that CPS reimburse the city for a long-disputed, $175 million pension payment for nonteaching school employees that triggered the mass resignation of the mayor's appointed school board and the firing of Chicago Public Schools CEO Pedro Martinez.
The proposed 2026 budget does not count on the city receiving that money.
"This budget will not leave this committee without a signed intergovernmental agreement from the Chicago Public Schools related to their pension obligations previous and post to us. We must have that in order to move forward ... on this budget process," Ervin said. "Hopefully, somebody on their end is listening."
The $21 a month per-employee corporate head tax and 14% cloud computing tax that Johnson is counting on to generate $433.2 million in new revenue was not a focal point during the first day of budget hearings, though business leaders have denounced them as "job killers."
References
References are ordered by credibility, with reference [1] being the most credible source and reference [196] being the least credible of the selected sources.
[1] "Mayor Brandon Johnson Presents The Protecting Chicago Budget" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/budget-proposal-2025.html
[2] "Mayor Brandon Johnson Releases FY2026 Budget Forecast" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/august/FY2026-budget-forecast.html
[3] "Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html
[4] "Chicago City Council Passes Mayor Johnson's Landmark Green Social Housing Ordinance" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/may/Green-Social-Housing-Ordinance-Passes.html
[5] "Government Alliance for Safe Communities Announces $100 Million In Grant Opportunities for Violence Prevention and Community Violence Intervention Initiatives" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/november/Government-Alliance-for-Safe-Communities-100-Million-Grant.html
[6] "Mayor Brandon Johnson and the Mayor's Office of Community Safety Announce the Launch of the Office of Re-entry Led by Director Joseph Mapp" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2024/december/Office-of-Re-entry-Launch.html
[7] "Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html
[8] "Mayor Brandon Johnson, DFSS Release 2025 Summer Youth Impact Report Highlighting Vital Role Of Youth Programs" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/october/summer-youth-impact-report.html
[9] "Mayor Brandon Johnson Announces 2026 Budget Engagement Roundtables" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/june/2026-Budget-Engagement-Roundtables.html
[10] "Chicago City Council Passes Mayor Johnson's Landmark Green Social Housing Ordinance" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/may/Green-Social-Housing-Ordinance-Passes.html
[11] "Mayor Brandon Johnson and the Chicago Department of Housing Launch Program to Expand and Preserve Affordable Home Ownership Opportunities" https://www.chicago.gov/city/en/depts/doh/provdrs/housing_resources/news/2024/october/mayor-brandon-johnson-and-the-chicago-department-of-housing-laun.html
[12] "Mayor Brandon Johnson, Federal Transit Administration and the Chicago Transit Authority Announce Finalization of the $1.9 Billion Funding for Transformational Red Line Extension Project" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/january/1_9B_Funding_for_Red_Line_Extension_Project.html
[13] "Mayor Brandon Johnson Releases City's First-Ever Mid-Year Budget Report To Advance Transparency and Accountability" https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2025/july/mid-year-budget-report.html
[14] "Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance, Signaling Steep Climb" https://news.wttw.com/2025/11/17/mayor-brandon-johnson-s-2026-spending-plan-fails-advance-signaling-steep-climb
[15] "Mayor Brandon Johnson's head tax plan defeated in council committee vote" https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/
[16] "Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance" https://news.wttw.com/2025/11/18/alderpeople-weigh-path-forward-budget-negotiations-after-johnson-s-plan-fails-advance
[17] "Mayor Brandon Johnson's budget includes money for ShotSpotter replacement" https://www.chicagotribune.com/2025/11/06/mayor-brandon-johnson-budget-shotspotter-replacement/
[18] "Johnson Vows to Crack Down on Police Overtime Spending in 2026, As CPD Budget Swells to $2.1B" https://news.wttw.com/2025/10/20/johnson-vows-crack-down-police-overtime-spending-2026-cpd-budget-swells-21b
[19] "Editorial: Brandon Johnson plays fast and loose with Chicago's credit standing" https://www.chicagotribune.com/2025/11/10/editorial-mayor-downgrade-brandon-johnson-bonds-budget/
[20] "Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance" https://news.wttw.com/2025/11/18/alderpeople-weigh-path-forward-budget-negotiations-after-johnson-s-plan-fails-advance
[21] "Mayor Brandon Johnson's head tax plan defeated in council committee vote" https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/
[22] "David Greising: Chicago government can't afford to shut down. We need good-faith budget negotiations." https://www.chicagotribune.com/2025/11/21/column-chicago-budget-mayor-johnson-city-council-deadline/
[23] "With No Easy Fixes in Sight, Debate Over Chicago's 2026 Spending Plan Reaches Tipping Point" https://news.wttw.com/2025/11/12/no-easy-fixes-sight-debate-over-chicago-s-2026-spending-plan-reaches-tipping-point
[24] "Firefighters union, Mayor Brandon Johnson reach tentative contract deal" https://www.chicagotribune.com/2025/08/12/firefighter-union-mayor-brandon-johnson-contract-deal/
[25] "Mayor Brandon Johnson's head tax plan defeated in council committee vote" https://www.chicagotribune.com/2025/11/17/mayor-brandon-johnson-not-head-tax-vote/
[26] "Chicago Set to Borrow $283.3M to Resolve Police Misconduct Lawsuits" https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits
[27] "Chicago Officials Make the Case for Funding Youth Programs in 2026 Budget" https://news.wttw.com/2025/11/12/chicago-officials-make-case-funding-youth-programs-2026-budget
[28] "Mayor Brandon Johnson's plan to borrow money to pay police settlements raises questions" https://www.chicagotribune.com/2025/11/21/mayor-brandon-johnsons-plan-to-borrow-money-to-pay-police-settlements-raises-questions/
[29] "CPS gets $522M boost from Mayor Brandon Johnson's budget proposal" https://www.chicagotribune.com/2025/10/16/proposed-mayor-johnson-budget-cps/
[30] "Alderman warning Mayor Brandon Johnson budget vote 'premature'" https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/
[31] "Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions" https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/
[32] "Wall Street Ratings Agency Sounds Alarm About Chicago's Finances" https://news.wttw.com/2025/11/06/wall-street-ratings-agency-sounds-alarm-about-chicago-s-finances
[33] "Mayor Brandon Johnson floating change to head tax proposal: sources" https://www.chicagotribune.com/2025/11/12/mayor-brandon-johnson-change-head-tax-proposal/
[34] "Mayor Brandon Johnson faces complaints about property tax sweep plan to balance budget" https://www.chicagotribune.com/2025/10/26/mayor-brandon-johnson-faces-complaints-about-property-tax-sweep-plan-to-balance-budget/
[35] "Mayor Brandon Johnson's 2026 Spending Plan Fails to Advance, Signaling Steep Climb" https://news.wttw.com/2025/11/17/mayor-brandon-johnson-s-2026-spending-plan-fails-advance-signaling-steep-climb
[36] "Vicki Kurzydlo: Mayor Brandon Johnson's budget is about the Chicago we want. Vote yes, aldermen." https://www.chicagotribune.com/2025/11/06/opinion-chicago-budget-corporate-tax-vote-yes/
[37] "More money, stricter rules for Chicago police overtime spending face City Council scrutiny" https://www.chicagotribune.com/2025/11/05/more-money-stricter-rules-police-overtime-spending-city-council/
[38] "With No Easy Fixes in Sight, Debate Over Chicago's 2026 Spending Plan Reaches Tipping Point" https://news.wttw.com/2025/11/12/no-easy-fixes-sight-debate-over-chicago-s-2026-spending-plan-reaches-tipping-point
[39] "Mayor Brandon Johnson's plan to borrow money to pay police settlements raises questions" https://www.chicagotribune.com/2025/11/21/mayor-brandon-johnsons-plan-to-borrow-money-to-pay-police-settlements-raises-questions/
[40] "Chicago Set to Borrow $283.3M to Resolve Police Misconduct Lawsuits" https://news.wttw.com/2025/11/17/chicago-set-borrow-2833m-resolve-police-misconduct-lawsuits
[41] "Alderman warning Mayor Brandon Johnson budget vote 'premature'" https://www.chicagotribune.com/2025/11/14/alderman-warning-mayor-brandon-johnson-vote-budget-premature/
[42] "Mayor Brandon Johnson's plan to borrow money to pay police settlements raises questions" https://www.chicagotribune.com/2025/11/21/mayor-brandon-johnsons-plan-to-borrow-money-to-pay-police-settlements-raises-questions/
[43] "Illinois lawmakers pass mass transit funding bill. Here's what that means for CTA, Metra and Pace riders." https://www.chicagotribune.com/2025/10/31/transit-funding-fiscal-cliff-illinois-lawmakers/
[44] "No service cuts, no layoffs and no fare increases: CTA board approves rosy-looking 2026 budget" https://www.chicagotribune.com/2025/11/12/cta-budget-fares/
[45] "Editorial: Death of Mayor Brandon Johnson's head tax should lead to negotiations with unions" https://www.chicagotribune.com/2025/11/18/editorial-budget-head-tax-brandon-johnson-unions-chicago/
[46] "Alderpeople Weigh in on the Path Forward for Budget Negotiations After Johnson's Plan Fails to Advance" https://news.wttw.com/2025/11/18/alderpeople-weigh-path-forward-budget-negotiations-after-johnson-s-plan-fails-advance
[47] "Mayor Brandon Johnson blames past administrations after rating agency's negative budget outlook" https://www.chicagotribune.com/2025/11/06/mayor-brandon-johnson-rating-agency-negative-budget-outlook/
[48] "Mayor Brandon Johnson proposes $16.6 billion budget with new social media tax, record TIF surplus" https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-2026-chicago-budget-address-tif-surplus/
[49] "Chicago Outlook Cut One Notch by S&P on Deficits, Pension Woes" https://www.bloomberg.com/news/articles/2025-11-06/chicago-outlook-cut-one-notch-by-s-p-on-deficits-pension-woes
[50] "Mayor Brandon Johnson's corporate head tax plan fails to clear first big hurdle" https://www.nbcchicago.com/news/local/mayor-brandon-johnsons-corporate-head-tax-plan-fails-to-clear-first-big-hurdle/3852461/
[51] "Chicago City Council to meet after Finance Committee rejects Mayor Brandon Johnson's tax plan" https://www.cbsnews.com/chicago/news/chicago-city-council-meet-after-finance-committee-rejects-tax-plan/
[52] "Chicago Outlook Cut One Notch by S&P on Deficits, Pension Woes" https://www.bloomberg.com/news/articles/2025-11-06/chicago-outlook-cut-one-notch-by-s-p-on-deficits-pension-woes
[53] "Finance Committee votes down Mayor Brandon Johnson's 2026 tax plan, putting budget in limbo" https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/
[54] "City Council Members Weigh in on Chicago's 2026 Budget" https://www.pbs.org/video/city-council-members-weigh-in-on-chicagos-2026-budget-hbhrgx/
[55] "What is a social media tax? Chicago mayor's proposed new tax explained" https://www.nbcchicago.com/news/local/chicago-politics/what-is-a-social-media-tax-chicago-mayors-proposed-new-tax-explained/3839999/
[56] "Finance Committee votes down Mayor Brandon Johnson's 2026 tax plan, putting budget in limbo" https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/
[57] "Chicago Outlook Cut One Notch by S&P on Deficits, Pension Woes" https://www.bloomberg.com/news/articles/2025-11-06/chicago-outlook-cut-one-notch-by-s-p-on-deficits-pension-woes
[58] "Mayor Brandon Johnson defends Chicago budget proposal: "We're not going backwards"" https://www.cbsnews.com/chicago/news/mayor-brandon-johnson-chicago-budget-proposal/
[59] "City Council approves Mayor Johnson's "green social housing" plan to boost affordable housing" https://www.cbsnews.com/chicago/news/brandon-johnson-green-social-housing-approved-affordable-housing-city-council/
[60] "Finance Committee votes down Mayor Brandon Johnson's 2026 tax plan, putting budget in limbo" https://www.cbsnews.com/chicago/news/finance-committee-rejects-mayor-brandon-johnson-2026-tax-plan-budget-vote/
[61] "What is a social media tax? Chicago mayor's proposed new tax explained" https://www.nbcchicago.com/news/local/chicago-politics/what-is-a-social-media-tax-chicago-mayors-proposed-new-tax-explained/3839999/
[62] "Chicago's FY2026 Proposed Budget: A Stumbling Start" https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start
[63] "Chicago Mayor Brandon Johnson proposes 2026 city budget with half a billion dollars for public schools" https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/
[64] "Which Cuts Didn't Make the Cut - Efficiency Opportunities for Chicago's FY2026 Budget" https://civicfed.org/blog/which-cuts-didnt-make-cut-efficiency-opportunities-chicagos-fy2026-budget
[65] "Mayor's Budget Rejected By Key City Committee Over Controversial Head Tax, Borrowing Plan" https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/
[66] "An out-of-state campaign just entered Chicago's budget battle" https://thetriibe.com/2025/11/an-out-of-state-campaign-just-entered-chicagos-budget-battle/
[67] "Chicago's 2026 city budget proposal includes $552 million for CPS" https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/
[68] "Chicago mayor commits $7 million to raises for early childhood education workers" https://www.chalkbeat.org/chicago/2025/05/13/mayor-announces-pay-raises-for-early-childhood-education-workers/
[69] "Chicago's FY2026 Proposed Budget: A Stumbling Start" https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start
[70] "Mayor Brandon Johnson took your calls about property taxes and the Chicago budget" https://www.wbez.org/city-hall/2025/11/21/ask-the-mayor-wants-your-questions-for-chicago-mayor-brandon-johnson-this-friday
[71] "Librarians, Aldermen Push Back Against Proposed Library Cuts" https://blockclubchicago.org/2025/11/05/librarians-aldermen-push-back-against-proposed-library-cuts/
[72] "An out-of-state campaign just entered Chicago's budget battle" https://thetriibe.com/2025/11/an-out-of-state-campaign-just-entered-chicagos-budget-battle/
[73] "Chicago's FY2026 Proposed Budget: A Stumbling Start" https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start
[74] "Mayor's Head Tax Plan Tweaked, But 2026 Budget Still Faces Uphill Battle Ahead Of Vote" https://blockclubchicago.org/2025/11/14/mayors-head-tax-plan-tweaked-but-2026-budget-still-faces-uphill-battle-ahead-of-vote/
[75] "Proposed Head Tax, Social Media Tax, and Cloud Tax Increases Would Hurt Chicago" https://taxfoundation.org/blog/chicago-head-tax-social-media-tax-cloud-tax/
[76] "Finance Committee rejects Johnson's $600M tax package" https://www.wbez.org/city-hall/2025/11/17/brandon-johnson-city-hall-finance-committee-rejects-600m-tax-package-corporate-head-tax
[77] "Which Cuts Didn't Make the Cut - Efficiency Opportunities for Chicago's FY2026 Budget" https://civicfed.org/blog/which-cuts-didnt-make-cut-efficiency-opportunities-chicagos-fy2026-budget
[78] "Newswire: Chicago alders vote against corporate head tax" https://www.citybureau.org/newswire/2025/11/19/newswire-chicago-alders-vote-against-corporate-head-tax
[79] "Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal" https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/
[80] "Mayor does budget about-face on funding for domestic violence programs" https://www.wbez.org/city-hall/2025/11/14/chicago-mayor-brandon-johnson-does-about-face-on-funding-for-domestic-violence-programs-budget
[81] "Chicago Public Schools could get half a billion dollars from city's 2026 budget" https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/
[82] "Understanding the Components of CPS' FY2026 Projected Structural Deficit" https://civicfed.org/blog/understanding-components-cps-fy2026-projected-structural-deficit
[83] "In a precarious moment for the arts, Chicago's cultural department could see funding decline" https://www.wbez.org/city-hall/2025/11/05/chicago-dcase-cultural-affairs-budget-clinee-hedspeth-kenya-merritt-grants-arts
[84] "Johnson pushes social media tax in budget plan" https://www.axios.com/local/chicago/2025/10/16/chicago-mayor-brandon-johnson-budget-social-media-tax
[85] "Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal" https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/
[86] "Mayor's Budget Rejected By Key City Committee Over Controversial Head Tax, Borrowing Plan" https://blockclubchicago.org/2025/11/17/mayors-budget-proposal-rejected-by-city-finance-committee-as-process-kicked-to-december/
[87] "Proposed Head Tax, Social Media Tax, and Cloud Tax Increases Would Hurt Chicago" https://taxfoundation.org/blog/chicago-head-tax-social-media-tax-cloud-tax/
[88] "Why some alderpeople are pushing back on Johnson's budget proposal: borrowing, head tax and cuts to youth programs" https://thetriibe.com/2025/11/why-some-alderpeople-are-pushing-back-on-johnsons-budget-proposal-borrowing-head-tax-and-cuts-to-youth-programs/
[89] "Mayor's Head Tax Plan Tweaked, But 2026 Budget Still Faces Uphill Battle Ahead Of Vote" https://blockclubchicago.org/2025/11/14/mayors-head-tax-plan-tweaked-but-2026-budget-still-faces-uphill-battle-ahead-of-vote/
[90] "Chicago's FY2026 Proposed Budget: A Stumbling Start" https://civicfed.org/blog/chicagos-fy2026-proposed-budget-stumbling-start
[91] "Mayor Johnson's $16.6B budget would revive corporate head tax, tax social media companies" https://www.wbez.org/city-hall/2025/10/16/mayor-brandon-johnson-2026-proposed-budget-corporate-head-tax-social-media-online-sports-betting-deficit
[92] "Mayor Johnson sees budget hole deepen, and takes political hit, after Chicago school board's defiance" https://www.wbez.org/government-politics/2025/09/02/mayor-brandon-johnson-budget-forecast-shortfall-chicago-school-board-pension-loan-vote
[93] "In financial maneuver, Mayor Brandon Johnson proposes millions for Chicago Public Schools" https://www.wbez.org/education/2025/10/15/mayor-brandon-johnson-chicago-public-schools-tifs
[94] "Why some alderpeople are pushing back on Johnson's budget proposal: borrowing, head tax and cuts to youth programs" https://thetriibe.com/2025/11/why-some-alderpeople-are-pushing-back-on-johnsons-budget-proposal-borrowing-head-tax-and-cuts-to-youth-programs/
[95] "CTA gets $74M from Metra, Pace to delay 40% service cuts next year" https://www.wbez.org/transportation/2025/08/22/cta-metra-pace-budget-cliff-chicago-public-transportation-covid-ridership
[96] "CTA Saved From Massive Cuts As State Lawmakers Pass $1.5 Billion Funding Bill For Local Transit" https://blockclubchicago.org/2025/10/31/cta-saved-from-massive-cuts-as-state-lawmakers-pass-1-5-billion-funding-bill-for-local-transit/
[97] "Finance Committee rejects Johnson's $600M tax package" https://www.wbez.org/city-hall/2025/11/17/brandon-johnson-city-hall-finance-committee-rejects-600m-tax-package-corporate-head-tax
[98] "Newswire: Chicago alders vote against corporate head tax" https://www.citybureau.org/newswire/2025/11/19/newswire-chicago-alders-vote-against-corporate-head-tax
[99] "Proposed Head Tax, Social Media Tax, and Cloud Tax Increases Would Hurt Chicago" https://taxfoundation.org/blog/chicago-head-tax-social-media-tax-cloud-tax/
[100] "Mayor Johnson instructs Chicago residents to 'call their alders' after finance committee rejects budget proposal" https://thetriibe.com/2025/11/mayor-johnsons-message-to-residents-after-finance-committee-rejects-budget-proposal-call-their-alders/
[101] "Chicago's 2026 city budget proposal includes $552 million for CPS" https://www.chalkbeat.org/chicago/2025/10/16/chicago-city-2026-budget-includes-552-million-for-public-schools/
[102] "Johnson expected to revive head tax in 2026 budget plan" https://www.chicagobusiness.com/politics/brandon-johnson-revive-head-tax-2026-budget-plan
[103] "City to borrow $166M to cover back pay for firefighters, paramedics" https://chicago.suntimes.com/city-hall/2025/10/16/chicago-firefighters-contract-185-million-back-pay-borrowing-city-council
[104] "Council members seek to query city consultants on cost-cutting ideas" https://chicago.suntimes.com/city-hall/2025/11/03/mayor-brandon-johnson-budget-ernst-and-young-report-cost-cutting-ideas
[105] "Budget chair claims Mayor Johnson's corporate head tax isn't dead yet" https://chicago.suntimes.com/city-hall/2025/11/19/budget-chair-jason-ervin-mayor-brandon-johnson-corporate-head-tax-city-club
[106] "Budget chair claims Mayor Johnson's corporate head tax isn't dead yet" https://chicago.suntimes.com/city-hall/2025/11/19/budget-chair-jason-ervin-mayor-brandon-johnson-corporate-head-tax-city-club
[107] "Chicago alders grill mayor's budget team on report aiming to close $1B deficit" https://www.fox32chicago.com/news/city-council-budget-emergency-meeting
[108] "Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies" https://abc7chicago.com/post/mayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies/18140114/
[109] "City Council calls special meeting to grill Ernst & Young over budget audit" https://www.chicagobusiness.com/politics/aldermen-press-ernst-young-johnsons-budget-audit
[110] "Chicago mayor releases long-awaited Ernst & Young report" https://www.bondbuyer.com/news/chicago-mayor-releases-long-awaited-ernst-young-report
[111] "Chicago's Mayor proposes a $21 per employee corporate head tax to close budget gap" https://taxnews.ey.com/news/2025-2124-chicagos-mayor-proposes-a-21-per-employee-corporate-head-tax-to-close-budget-gap
[112] "Chicago City Council Majority Objects to Mayor Reinstating Head Tax" https://www.cpapracticeadvisor.com/2025/11/03/chicago-city-council-majority-objects-to-mayor-reinstating-head-tax/172245/
[113] "Chicago alders reject mayor's budget proposal, head tax in committee" https://www.fox32chicago.com/news/alders-reject-johnson-budget-finance-co
[114] "Key Council Committee Rejects Mayor's Budget" https://southsideweekly.com/key-council-committee-rejects-mayors-budget/
[115] "Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget" https://chicago.suntimes.com/city-hall/2025/10/21/brandon-johnson-2026-budget-chicago-record-tif-surplus
[116] "Chicago tax proposals draw concern over legality, 'economic death spiral'" https://www.thecentersquare.com/illinois/article_821ad9f6-c925-4300-88da-16410e4913db.html
[117] "Battle over Chicago mayor's tax and budget proposals heats up, called an 'economic death spiral'" https://justthenews.com/nation/states/center-square/chicago-tax-proposals-draw-concern-over-legality-economic-death-spiral
[118] "Mayor Brandon Johnson's Budget Dealt Blow After Failing in Committee, but What's in It?" https://ourculture.us/mayor-brandon-johnsons-budget-dealt-blow-after-failing-in-committee-but-whats-in-it/
[119] "City of Chicago FY 2026 Budget Analysis" https://artsalliance.org/2025/10/city-of-chicago-fy-2026-budget-analysis/
[120] "Chicago Mayor Brandon Johnson's head tax plan defeated in council committee vote" https://www.union-bulletin.com/news/national/chicago-mayor-brandon-johnson-s-head-tax-plan-defeated-in-council-committee-vote/article_e66c4f5f-659a-5c03-b73e-2807846dc0e9.html
[121] "Mayor Johnson's record-setting $1 billion TIF surplus highlights issues" https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/
[122] "Chicago Mayor's $16.555B 2026 Budget Proposal Relies on Revived 'Head Tax' on Big Businesses, $1B TIF Surplus to Address $1.189B Projected Deficit" https://octus.com/resources/articles/chicago-budget-proposal-relies-on-revived-head-tax-on-big-businesses/
[123] "Acquired: Over half a billion dollars for our schools" https://www.ctulocal1.org/posts/acquired-over-half-a-billion-dollars-for-our-schools/
[124] "Chicago Mayor's Head Tax Plan Defeated in Council Committee Vote" https://www.cpapracticeadvisor.com/2025/11/17/chicago-mayors-head-tax-plan-defeated-in-council-committee-vote/173281/
[125] "Johnson's "Protecting Chicago" budget proposes nearly $500M in tax hikes" https://www.illinoispolicy.org/johnsons-protecting-chicago-budget-proposes-nearly-500m-in-tax-hikes/
[126] "Here's a Look at the 2026 Chicago Budget Proposal" https://secretchicago.com/2026-chicago-budget-proposal-guide/
[127] "Task Force outlines $2.1 billion in options to tackle City budget deficit" https://chicagocrusader.com/task-force-outlines-2-1-billion-in-options-to-tackle-city-budget-deficit/
[128] "Mayor Brandon Johnson blames past administrations after rating agency's negative budget outlook" https://www.yahoo.com/news/articles/mayor-brandon-johnson-blames-past-194600255.html
[129] "CPD to slow hiring, pause academy training next summer to cut costs, superintendent says" https://chicago.suntimes.com/city-hall/2025/11/05/chicago-police-hiring-slowdown-larry-snelling-brandon-johnson-budget
[130] "2026 Preliminary Budget Overview" https://www.bettergov.org/2025/10/17/2026-preliminary-budget-overview/
[131] "Finance panel rejects Johnson's revenue plan for 2026 budget" https://www.chicagobusiness.com/politics/finance-panel-rejects-johnsons-revenue-plan-2026-budget
[132] "Johnson threatens vetoes as budget standoff deepens" https://www.chicagobusiness.com/politics/johnson-threatens-vetoes-budget-standoff-deepens
[133] "Chicago Public Library – BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/11/03/chicago-public-library-bga-policy-2026-budget-snapshot/
[134] "Calls For 'Belt-Tightening' in Chicago Budget Face Hurdles Amid Few Options for Pain-Free Cuts" https://illinoisanswers.org/2025/10/15/tightening-chicago-budget-faces-hurdles-amid-few-options-for-pain-free-cuts/
[135] "Mayor Johnson resolves contract with firefighters union, without major concessions" https://chicago.suntimes.com/city-hall/2025/08/12/brandon-johnson-chicago-firefighters-contract-agreement
[136] "Chicago mayor's 2026 budget would dial back pension funding" https://www.bondbuyer.com/news/chicago-mayors-2026-budget-would-cut-pension-funding
[137] "Chicago Police Department – BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/11/04/chicago-police-department-bga-policy-2026-budget-snapshot/
[138] "Mayor Johnson's record-setting $1 billion TIF surplus highlights issues" https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/
[139] "Chicago Mayor Proposes City Tax On Sports Betting Revenue" https://www.ingame.com/chicago-sports-betting-tax-proposal/
[140] "Chicago budget plan proposes 10.25% local tax on sports betting" https://sbcamericas.com/2025/10/17/chicago-budget-local-tax-sports-betting/
[141] "Tripling the "Yacht Tax": What Mayor Johnson Is Proposing and Why It Matters" https://theplaypen.com/chicago/tripling-the-yacht-tax-what-mayor-johnson-is-proposing-and-why-it-matters/
[142] "Mayor Johnson Unveils 2026 Budget" https://loyolaphoenix.com/2025/11/mayor-johnson-unveils-2026-budget/
[143] "Chicago Slaps Social Media Giants with New $31M 'Mental Health' Tax" https://southwestregionalpublishing.com/2025/10/16/chicago-slaps-social-media-giants-with-new-31m-mental-health-tax/
[144] "Department of Fleet and Facility Management - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/22/department-of-fleet-and-facility-management-bga-policy-2026-budget-snapshot/
[145] "Department of Procurement Services - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/27/department-of-procurement-services-bga-policy-2026-budget-snapshot/
[146] "Chicago Department of Public Health - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/29/chicago-department-of-public-health-bga-policy-2026-budget-snapshot/
[147] "Chicago Fire Department - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/11/05/chicago-fire-department-bga-policy-2026-budget-snapshot/
[148] "Chicago Police Department - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/11/04/chicago-police-department-bga-policy-2026-budget-snapshot/
[149] "Chicago Department of Transportation - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/21/chicago-department-of-transportation-bga-policy-2026-budget-snapshot/
[150] "Department of Cultural Affairs and Special Events - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/11/03/department-of-cultural-affairs-and-special-events-bga-policy-2026-budget-snapshot/
[151] "Department of Family and Support Services - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/29/department-of-family-and-support-services-bga-policy-2026-budget-snapshot/
[152] "City of Chicago FY 2026 Budget Analysis - Arts Alliance Illinois" https://artsalliance.org/2025/10/city-of-chicago-fy-2026-budget-analysis/
[153] "Department of Aviation - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/22/department-of-aviation-bga-policy-2026-budget-snapshot/
[154] "Department of Buildings - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/22/department-of-buildings-bga-policy-2026-budget-snapshot/
[155] "Department of Finance - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/20/department-of-finance-bga-policy-2026-budget-snapshot/
[156] "Department of Human Resources - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/11/11/department-of-human-resources-bga-policy-2026-budget-snapshot/
[157] "Department of Technology and Innovation - BGA Policy 2026 Budget Snapshot" https://www.bettergov.org/2025/10/21/department-of-technology-and-innovation-bga-policy-2026-budget-snapshot/
[158] "Chicago's budget gap grows to $1.15B, second-largest in a decade" https://www.chicagobusiness.com/politics/chicago-projects-115b-deficit-2026-budget
[159] "Johnson's Budget Fix Faces Stiff Headwinds" https://southsideweekly.com/johnsons-budget-fix-faces-stiff-headwinds/
[160] "Mayor Brandon Johnson's 2026 budget targets social media, corporate "head tax"" https://www.illinoispolicy.org/mayor-brandon-johnsons-2026-budget-targets-social-media-corporate-head-tax/
[161] "Chicago Forward 2026: A pro-growth plan to end city budget deficits" https://www.illinoispolicy.org/reports/chicago-forward-2026-a-pro-growth-plan-to-end-city-budget-deficits/
[162] "Aldermen vet report on budget cuts, Mayor Brandon Johnson's team urges patience" https://www.aol.com/articles/aldermen-vet-report-budget-cuts-001500625.html
[163] "Chicago Mayor Brandon Johnson's head tax plan defeated in council committee vote" https://www.yahoo.com/news/articles/chicago-mayor-brandon-johnson-head-224600492.html
[164] "Editorial: While Mayor Brandon Johnson postures, aldermanic realists are quietly cooking up an alternative budget" https://www.aol.com/articles/editorial-while-mayor-brandon-johnson-110000195.html
[165] "Mayor Johnson proposes social media tax to fund mental health clinics in 2026 budget" https://abc7chicago.com/post/chicago-mayor-brandon-johnson-present-2026-budget-city-council-meeting-thursday/18017333/
[166] "Johnson defends budget plan despite warning of credit downgrade" https://www.chicagobusiness.com/politics/brandon-johnson-defends-budget-despite-sp-credit-warning
[167] "Chicago mayor defends budget as analysts warn of credit risks" https://www.fox32chicago.com/news/chicago-mayor-defends-budget-analysts-warn-credit-risks
[168] "Statement Regarding Mayor Johnson's 2026 Budget Proposal" https://www.chicagolandchamber.org/statements-releases/chicagoland-chamber-of-commerce-statement-regarding-mayor-johnsons-2026-budget-proposal/
[169] "Mayor Johnson's record-setting $1 billion TIF surplus highlights issues" https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/
[170] "Using Microsoft, Salesforce, ChatGPT will cost more under Johnson's Cloud Tax" https://www.illinoispolicy.org/using-microsoft-salesforce-chatgpt-will-cost-more-under-johnsons-cloud-tax/
[171] "Mayor Johnson Unveils 2026 Budget" https://loyolaphoenix.com/2025/11/mayor-johnson-unveils-2026-budget/
[172] "Chicago tax proposals draw concern over legality, 'economic death spiral'" https://www.thecentersquare.com/illinois/article_821ad9f6-c925-4300-88da-16410e4913db.html
[173] "Chicago mayor's 2026 budget would dial back pension funding" https://www.bondbuyer.com/news/chicago-mayors-2026-budget-would-cut-pension-funding
[174] "Council members seek to query city consultants on cost-cutting ideas" https://chicago.suntimes.com/city-hall/2025/11/03/mayor-brandon-johnson-budget-ernst-and-young-report-cost-cutting-ideas
[175] "Chicago alders grill mayor's budget team on report aiming to close $1B deficit" https://www.fox32chicago.com/news/city-council-budget-emergency-meeting
[176] "Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies" https://abc7chicago.com/post/mayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies/18140114/
[177] "Mayor Johnson's record-setting $1 billion TIF surplus highlights issues" https://www.illinoispolicy.org/mayor-johnsons-record-setting-1-billion-tif-surplus-highlights-issues-and-abuse-of-chicagos-tax-increment-financing-districts/
[178] "Johnson's Budget Fix Faces Stiff Headwinds" https://southsideweekly.com/johnsons-budget-fix-faces-stiff-headwinds/
[179] "Mayor Johnson pledges to use head tax for youth programs – then wants to cut funding for proven efforts" https://chicago.suntimes.com/city-hall/2025/11/20/mayor-brandon-johnson-corporate-head-tax-youth-program-cuts-become-a-man-working-on-womanhood
[180] "Mayor Johnson Unveils 2026 Budget" https://loyolaphoenix.com/2025/11/mayor-johnson-unveils-2026-budget/
[181] "Mayor Johnson proposes social media tax to fund mental health clinics in 2026 budget" https://abc7chicago.com/post/chicago-mayor-brandon-johnson-present-2026-budget-city-council-meeting-thursday/18017333/
[182] "Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget" https://chicago.suntimes.com/city-hall/2025/10/21/brandon-johnson-2026-budget-chicago-record-tif-surplus
[183] "Use TIF dollars for neighborhoods, not to fix budgets" https://www.chicagobusiness.com/opinion/use-tif-dollars-neighborhoods-not-fix-budgets-op-ed
[184] "How Chicago Mayor Brandon Johnson plans to close a $1B budget deficit in 2026" https://www.fox32chicago.com/news/chicago-johnson-budget-2026
[185] "Brandon Johnson pushes five-year infrastructure spending plan" https://www.chicagobusiness.com/politics/brandon-johnson-pushes-five-year-infrastructure-spending-plan
[186] "In financial maneuver, Mayor Brandon Johnson proposes millions for Chicago Public Schools" https://chicago.suntimes.com/education/2025/10/14/mayor-brandon-johnson-chicago-public-schools
[187] "Chicago school board passes $10 billion-plus 25-26 budget" https://www.bondbuyer.com/news/chicago-public-schools-passes-2026-budget
[188] "Chicago Public Schools board votes to approve $175M pension payment to city" https://abc7chicago.com/post/cps-news-chicago-public-schools-board-votes-pay-175m-pension-payment-city-amid-budget-crisis/18092777/
[189] "Chicago Transit Board Approves 2026 CTA Budget" https://www.transitchicago.com/chicago-transit-board-approves-2026-cta-budget/
[190] "Mayor Brandon Johnson's Budget Dealt Blow After Failing in Committee, but What's in It?" https://ourculture.us/mayor-brandon-johnsons-budget-dealt-blow-after-failing-in-committee-but-whats-in-it/
[191] "Ernst & Young Report Details Chicago's Wasteful Spending: It's Worse than You Think" https://www.chicagocontrarian.com/blog/ernst-young-report-chicago-wasteful-spending
[192] "Johnson defends budget plan despite warning of credit downgrade" https://www.chicagobusiness.com/politics/brandon-johnson-defends-budget-despite-sp-credit-warning
[193] "Mayor Johnson defends budget plan despite report that city could find millions more in efficiencies" https://abc7chicago.com/post/mayor-brandon-johnson-defends-chicago-budget-despite-ey-report-city-could-find-millions-more-efficiencies/18140114/
[194] "Mayor Brandon Johnson's 2026 budget targets social media, corporate "head tax"" https://www.illinoispolicy.org/mayor-brandon-johnsons-2026-budget-targets-social-media-corporate-head-tax/
[195] "Chicago alders reject mayor's budget proposal, head tax in committee" https://www.fox32chicago.com/news/alders-reject-johnson-budget-finance-co
[196] "Record $1B TIF surplus emerges as key point of friction in Mayor Johnson's proposed 2026 budget" https://chicago.suntimes.com/city-hall/2025/10/21/brandon-johnson-2026-budget-chicago-record-tif-surplus