The City of Chicago has announced a citywide hiring freeze to address the $222.9 million budget deficit projected for the 2024 fiscal year (FY2024). The mayor’s office announced it will also implement restrictions on travel expenses for city workers and limits on overtime expenditures, not including public safety operations.
Initially, the hiring freeze impacted all city departments. The city has since revised its statement, telling ABC7 that the hiring freeze will no longer affect public safety positions, including law enforcement and fire officials.
“These measures, while necessary, reflect our commitment to responsible fiscal management during a time of financial uncertainty,” said Budget Director Annette Guzman in a statement.
“The City’s leadership team, including the Office of Budget and Management (OBM) and the Department of Finance, are working diligently to navigate these financial challenges and ensure the continued delivery of essential services to our residents. We appreciate the cooperation of all City departments as we implement these cost-saving measures.”
The Johnson Administration is reportedly considering other options to patch the FY2024 budget deficit, including property tax increases. According to ABC, Johnson previously vowed to avoid raising property taxes during his mayoral campaign, but the budget crisis has jeopardized this promise.
Budget hearings will reportedly begin in October, with the renewed budget to be approved by the end of the year. Pending spending cuts, Chicago reportedly faces a budget gap of nearly $1 billion for 2025.