Chicago Mayor Proposes Property Tax Hike to Close Budget Gap

Brandon Johnson Promises to Not Raise Property Taxes

During his mayoral campaign, Brandon Johnson, who now governs the city of Chicago, repeatedly pledged that he would not raise property taxes as part of his platform. In a March 2023 interview with Block Club Chicago, Johnson stated, "For my first term, we’re not raising property taxes."

However, facing significant budget challenges adap the spending gap, Johnson’s commitment to his prior promise is now in question. In his latest budget address, set for Wednesday, Johnson is expected to propose a 4 percent increase in the city’s property tax levy, as reported by the mayor’s office. This new tax hike would generate an additional $300 million per year.

Changes in Johnson’s Stance

Johnson and his finance team have identified the need to increase the property tax rate to address the city’s financial issues. The city’s deficit remains a pressing concern, with projections indicating a $982.4 million gap in the corporate fund for the fiscal year 2025.

The mayor’s proposed budget relies on a mix of new revenue sources, surplus funds from tax increment financing (TIF), and operational efficiencies at city departments, in addition to the tax hike. According to city officials, the budget will also include cuts to more than 700 full-time vacant city positions.

Budget Breakdown

Here’s a summary of Johnson’s budget proposal:

• Tax Hike: A 4 percent increase in property taxes, adding $300 million annually.
• Reduction in City Staff: Elimination of more than 700 vacant city positions.
• Record TIF Surplus: More than $570 million in funds will be distributed, with $131 million allocated to the city and $300 million to Chicago Public Schools.

Reaction to the Budget Proposal

Aldermen and city officials around Mayor Johnson’s budget proposal have not been universally supportive. Some alderpeople have criticized the proposed property tax increase, urging the mayor to reconsider and proceed with alternative funding methods to avoid placing an undue burden on the city’s homeowners.

Opposition to the tax hike is growing among alderpeople who have sent Johnson a public letter, urging him to avoid raising property taxes and renew the ShotSpotter contract. Some alderpeople have also expressed concerns about other unrelated issues, such as the tentative closure of the city’s migrant shelter system.

A Battle Over Budget and Funding

Johnson’s budget proposal will be scrutinized by alderpeople over the next few weeks, as they hold departmental meetings to vet the mayor’s spending plan. The City Council must pass a balanced budget by the end of the year, as mandated by state laws.

Johnson expressed confidence in his spending vision, stating at a briefing, "That is their job. I’m going to present this budget. The City Council’s job is to pass it." The mayor emphasizes that the city’s people expect investments in people, money, and public services — themes prevalent in his budget proposal.

Conclusion and Call to Action

As Chicago residents, it is crucial to stay informed about the budget proposals and participate in local decision-making processes. The outcome of Johnson’s budget will significantly impact everyday life, affecting property owners and taxpayers alike. Engaging in city forums, contacting alderpeople, and voicing your opinions can help shape how the budget is finalized.

Stay tuned to Block Club Chicago for more updates on the developing story.