Chicago Mayor Brandon Johnson has proposed a $300 million property tax increase to address a nearly $1 billion budget shortfall.

Background

The budget proposal for 2025 is $17.3 billion, with a significant portion allocated to the corporate fund. The property tax increase is expected to help with underfunded pension costs. To mitigate the budget shortfall, the proposal includes drawing from unused economic development funds, increasing taxes on alcohol, and eliminating vacant positions. The surplus from tax-increment financing districts will be used to balance the budget, with funds allocated to Chicago Public Schools.

Impact

The proposed property tax increase would align with the consumer price index. Without the tax increase, the city may have to reduce its workforce by 17%, impacting public safety departments.

Budget Scrutiny

The budget proposal will be scrutinized by the city council before a vote is held. The mayor is also exploring additional funding sources from state and federal levels. The outcome of the budget hearings and council vote will shape the city's financial future.

Economic Pressures

The budget and tax increase come at a time when Chicago is facing economic pressures.