Mayor Brandon Johnson revealed his 2025 budget plan before city council Wednesday morning, and proposed a property tax increase to offset Chicago’s near $1 billion budget deficit projected for the coming year.
Mayor defends budget proposal
The motion reneges on a key campaign promise of Johnson’s, who previously assured voters that he would not increase property taxes during his mayoral bid in 2023.
“I’m not going to raise property taxes,” Johnson told Block Club Chicago in a 2023 interview. “I’m the only person running in this race who made a commitment to that.”
According to a statement from the mayor’s office, Johnson is seeking to raise property taxes by $300 million in the new year. Johnson has stated his budget plan is reflective of an equitable approach to increasing revenue and amending Chicago’s looming budget shortfall.
“This budget isn’t just balanced; it’s focused on delivering for the people of Chicago,” Johnson said Wednesday. “We are upholding our promise to move forward toward a brighter future, investing in our people and ensuring that Chicago remains a city where everyone has the opportunity to succeed.”
Tax hike faces opposition
Johnson’s proposal would raise taxes by approximately 4% for property owners, an increase which some alderpeople have already expressed opposition to.
According to CBS Chicago, a group of 14 aldermen sent Johnson a letter before Wednesday’s budget address, stating they would not support a property tax increase. The letter reportedly cited statistics showing that 90% of Chicagoans oppose property tax increases.
If city council fails to approve the budget plan, Johnson’s office has stated it will need to make major cuts to close the budget gap. This could include reducing the city workforce by 17%, including police and fire officials, streets and sanitation workers, and other positions.
Mayor proposes supplementing budget with TIF surplus
Along with the proposed tax increase, Johnson also proposed surplusing $570 million in Tax Increment Funding (TIF), with $131 million of those funds allocated towards the budget gap. An additional $300 million would go to Chicago Public Schools, and the remainder split between various city departments.
City council is expected to convene over the budget plan in the next few weeks. State law mandates that city council must reach a budget consensus before the end of the year, according to Block Club Chicago. Johnson will need majority city council approval in order to pass the budget.