Mayor Brandon Johnson is defending his administration’s approach to fiscal management, asserting that Chicago does not have a spending problem despite the city’s budget ballooning to $17.1 billion and a projected deficit rising to $1.15 billion.
Speaking Tuesday about findings from his fiscal sustainability working group, Johnson said the city faces a “revenue challenge,” not a spending issue. “That’s an important conclusion that I believe was necessary for the people of Chicago to hear,” Johnson said.
The mayor’s working group includes union representatives and political allies, raising questions about the objectivity of the conclusion. Despite recommending property tax hikes tied to inflation, Johnson publicly disagreed with that proposal.
Still, Chicagoans already pay some of the highest taxes in the nation. Commercial property tax rates exceed 4%, more than twice the national average. The city also imposes steep gas taxes and is considering a controversial grocery tax next week.
Facing mounting pressure to find new revenue, the city council is considering legalizing video gaming terminals (VGTs), which could generate between $60 million and $100 million annually. Alderman Anthony Beale, who introduced the proposal, said it’s time for practical solutions.
“Are we going to turn our blind eye on $60 [million] to $100 million, or are we going to look to increase property taxes, increase ticket fees, increase garbage fees?” Beale asked, noting Johnson’s ongoing opposition to video gaming.
Beale’s proposal passed the License and Consumer Protection Committee on Tuesday in a narrow 8–6 vote. The full council is expected to take it up on Sept. 25.
With a projected budget shortfall and few politically viable options for revenue, pressure is mounting on Johnson’s administration to balance the books without hitting working families even harder.
