Following multiple revisions and weeks of deliberation, Chicago City Council has approved Mayor Brandon Johnson’s budget for the 2025 fiscal year, just weeks before the end-of-year deadline for negotiations.
Johnson Scraps Property Tax
The decision comes weeks after Johnson initially proposed a $300 million property tax increase in the 2025 spending plan, sparking public outcry and prompting major pushback from City Council
Johnson revised his plan several times, according to multiple reports, putting forth a decreased tax hike of $150 million, followed by an increase of $68 million.
Despite slashing numbers, the property tax hike failed to garner unanimous approval from City Council and was ultimately scrapped before Monday’s vote.
No service cuts, job reductions
According to the Mayor’s office, the approved $17.1 billion financial plan also avoids service cuts and city job reductions, while prioritizing the needs of working class communities.
“For too long, Chicago’s budgets balanced on the backs of working people, forcing them to bear the burden of cuts to schools, clinics, public housing and critical services,” said Johnson in a statement.
“The budget we passed today is an investment towards a better, stronger and safer future for Chicago where our young people, workers and families are prioritized and where equity is no longer an afterthought but the foundation of our decisions.”
Community resources and youth employment programs
The spending plan includes a record Tax Increment Funding surplus of $570 million, with funds allocated between Chicago Public Schools, the parks district, libraries, and City Colleges, according to the Mayor’s office.
Additionally, the 2025 plan boasts the largest investment in city-funded youth employment programs which will roll out next summer and include over 29,000 jobs.
Investment in public safety and city services
The budget also covers investment in public safety, with funding towards the Crisis Assistance Response and Engagement (CARE) program which emphasizes community-centered approaches to crime reduction.
In addition, the plan maintains a commitment to “robust city services,” such as snow removal, garbage collection, and other public infrastructure positions.
Fee increases for rideshares, grocery bags, and streaming services
Taxes on some everyday items and services will increase under Johnson’s budget plan.
Single-use grocery bags will increase in price from 7 cents to 10 cents, according to Block Club, while downtown rideshares will now include an extended service fee of $1.50 applied to all rides in the city’s downtown traffic zone.
Additionally, Chicago’s “amusement tax” which covers streaming services will increase to 10.25%, up from 9%. The increased tax is anticipated to bring in nearly $13 million in revenue for 2025, according to reports.
A long road ahead
While commending the passage of the budget, Johnson acknowledged that City Council’s work is far from over. “This is just the beginning,” he said.
“We must continue the fight for progressive revenue solutions that ensure the ultra-rich pay their fair share and stand strong against efforts to undermine our city’s progress. Chicago is proving that equity-driven governance works, and we will remain an example of what’s possible when leadership prioritizes people over politics.”