Chicago's mayor unveils details of proposed property tax hike as part of 2025 budget
Chicago Mayor Brandon Johnson unveiled his plans for the 2025 city budget Wednesday, proposing a $300 million property tax increase, among other proposals, as funds from the COVID pandemic dwindle. The proposed tax increase, which could change based on property assessments for 2024, would mark a 4% increase in property tax bills for homeowners in the city, the mayor’s office said. In his address to City Council Wednesday, Johnson, who campaigned on a promise he would not raise property taxes, acknowledged the cost such an increase would place on families. He noted, however, that it will also save jobs as his proposal includes no cuts for workers. “This is tough, it is something that I grappled with for weeks and weeks. We did not take this move lightly. I directed my budget team to look at all options at closing this budget gap, and when it came down to either mass layoffs and curbing vital City services or an increase in property taxes, we chose to increase property taxes,” Johnson said. Beyond the property tax hike, 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 migrant situation, and $39 million for a small business support program. Johnson noted that he plans to uphold the city’s pension obligations, which he cited as the need for the property tax hike. “I understand that today I am asking families to lean in and do a little bit more in order to make sure that their neighbors aren’t laid off and to make sure that we don’t have to cut vital City services,” Johnson said in his address. “I know that across this city working families make tough decisions everyday, whether it’s the cost of childcare or paying your utilities or even going grocery shopping and buying food for your families. I know adding to those tough choices is not easy, but this was the best option that allows our city to move forward in a sustainable way. This is the start of a multi-year process that will finally get Chicago’s finances back on track.” In order for a proposal to pass, Johnson needs 26 votes by Dec. 31. As of Wednesday, 14 alderman signed onto a letter to Johnson, sharing their community’s demands and concerns and saying they would not support a budget that includes a tax hike. NBC 5 Investigates Oct 10 Chicago spent more than $80K to renovate, furnish office for First Lady Johnson Chicago City Council Sep 11 How far-reaching is Chicago’s hiring freeze amid budget mess? “We cannot support a budget that includes a property tax increase,” the letter read in part. “Period. The recently released poll shows that 90% of Chicagoans oppose increasing property taxes as an action the city couldtake to raise revenue. Of those 90% of residents, 79% strongly oppose raising property taxes. This is a non-starter for us and our constituents.” The Civic Federation, a non-partisan government research group, suggested the city look at other alternatives — like layoffs, furloughs, eliminating job vacancies or raising trash collection fees — before a property tax hike. While Johnson did announce a hiring freeze last month, labor unions, which helped get Johnson elected, have pushed back against extensive cutbacks. According to estimates, the city’s projected budget deficit for FY 2024 will clock in at approximately $222.9 million, which is still below previous estimates from earlier in the fiscal year. With the expiration of COVID assistance and other factors taken into account, the budget deficit for FY 2025 is estimated to be $982.4 million, according to city Budget Director Annette Guzman’s office. The Chicago City Council still needs to vote on a new budget for the coming fiscal year, but Johnson has told reporters he was willing to consider a variety of options to help close the gap. According to the city, budget hearings are set to begin next week.
Chicago Mayor Brandon Johnson unveiled his plans for the 2025 city budget Wednesday, proposing a $300 million property tax increase, among other proposals, as funds from the COVID pandemic dwindle.
The proposed tax increase, which could change based on property assessments for 2024, would mark a 4% increase in property tax bills for homeowners in the city, the mayor’s office said.
In his address to City Council Wednesday, Johnson, who campaigned on a promise he would not raise property taxes, acknowledged the cost such an increase would place on families. He noted, however, that it will also save jobs as his proposal includes no cuts for workers.
“This is tough, it is something that I grappled with for weeks and weeks. We did not take this move lightly. I directed my budget team to look at all options at closing this budget gap, and when it came down to either mass layoffs and curbing vital City services or an increase in property taxes, we chose to increase property taxes,” Johnson said.
Beyond the property tax hike, 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 migrant situation, and $39 million for a small business support program.
Johnson noted that he plans to uphold the city’s pension obligations, which he cited as the need for the property tax hike.
“I understand that today I am asking families to lean in and do a little bit more in order to make sure that their neighbors aren’t laid off and to make sure that we don’t have to cut vital City services,” Johnson said in his address. “I know that across this city working families make tough decisions everyday, whether it’s the cost of childcare or paying your utilities or even going grocery shopping and buying food for your families. I know adding to those tough choices is not easy, but this was the best option that allows our city to move forward in a sustainable way. This is the start of a multi-year process that will finally get Chicago’s finances back on track.”
In order for a proposal to pass, Johnson needs 26 votes by Dec. 31. As of Wednesday, 14 alderman signed onto a letter to Johnson, sharing their community’s demands and concerns and saying they would not support a budget that includes a tax hike.
“We cannot support a budget that includes a property tax increase,” the letter read in part. “Period. The recently released poll shows that 90% of Chicagoans oppose increasing property taxes as an action the city could
take to raise revenue. Of those 90% of residents, 79% strongly oppose raising property taxes. This is a non-starter for us and our constituents.”
The Civic Federation, a non-partisan government research group, suggested the city look at other alternatives — like layoffs, furloughs, eliminating job vacancies or raising trash collection fees — before a property tax hike.
While Johnson did announce a hiring freeze last month, labor unions, which helped get Johnson elected, have pushed back against extensive cutbacks.
According to estimates, the city’s projected budget deficit for FY 2024 will clock in at approximately $222.9 million, which is still below previous estimates from earlier in the fiscal year.
With the expiration of COVID assistance and other factors taken into account, the budget deficit for FY 2025 is estimated to be $982.4 million, according to city Budget Director Annette Guzman’s office.
The Chicago City Council still needs to vote on a new budget for the coming fiscal year, but Johnson has told reporters he was willing to consider a variety of options to help close the gap.
According to the city, budget hearings are set to begin next week.
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