Chicago Mayor Brandon Johnson unveiled details behind a proposed property tax increase in his 2025 budget speech on Wednesday, reversing a key campaign promise as coronavirus relief funds dwindle.
The proposed $300 million tax increase, which could change based on 2024 property assessments, would represent a 4% increase in property tax bills for city homeowners, the mayor's office said.
In his speech to the City Council on Wednesday, Johnson, who campaigned on a promise not to raise property taxes, acknowledged the cost such an increase would have on families. However, he noted that it would also save jobs as his proposal did not include any cuts for workers.
“This is difficult, and it's something I've wrestled with for weeks and weeks. We didn't take this step lightly. I've directed my budget team to look at all options to close this budget gap, and when it comes to either mass layoffs and curbing critical services in the country,” Johnson said. “City or increase property taxes, we chose to increase property taxes.”
In addition to the property tax increase, Johnson's proposed budget includes plans to use tax increment financing money for Chicago Public Schools, $52 million for youth opportunity programs, $40 million for an initiative to address the city's homeless and immigrant situation, and $39 million for small businesses. Support program.
Johnson indicated he plans to support the city's pension commitments, a promise he said would require him to change course on property taxes.
“I understand that today I am asking families to step up and do more to make sure their neighbors don't get laid off and to make sure we don't have to cut off vital city services,” Johnson said. In his title. “I know that working families across this city are making difficult decisions every day, whether it is about the cost of child care, paying utilities, or even going shopping and buying food for your families. I know that adding to these difficult choices is not easy, but this was the best choice.” Which allows our city to move forward in a sustainable way, and this is the beginning of a multi-year process that will finally get Chicago's finances back on track.
In order to pass the budget, Johnson needs 26 City Council votes by the Dec. 31 deadline. As of Wednesday, 14 aldermen have signed a letter sharing their community's demands and concerns and saying they will not support a budget that includes a tax increase, part of the broader opposition expected against the budget.
“We cannot support a budget that includes a property tax increase,” the letter read in part. “Period. A recently released poll showed that 90% of Chicagoans oppose increasing property taxes as an action the city could take
Take to increase revenue. Of that 90% population, 79% strongly oppose increasing property taxes. “This is unfortunate for us and our voters.”
The Civic Federation, a nonpartisan government research group, suggested that the city look at other alternatives — such as layoffs, furloughs, eliminating job vacancies or increasing trash collection fees — before increasing the property tax.
While Johnson announced a hiring freeze last month, trade unions, which helped elect Johnson, have opposed widespread cuts.
According to estimates, the city's projected budget shortfall for fiscal year 2024 will be about $222.9 million, which is still lower than previous estimates from earlier in the fiscal year.
With the expiration of coronavirus aid and other factors taken into account, the budget shortfall for fiscal year 2025 is estimated at $982.4 million, according to the office of city Budget Director Annette Guzman.
According to the city, budget hearings are scheduled to begin next week.
