Mayor Brandon Johnson on Wednesday presented his proposed budget for 2027. It totals $17.6 billion and includes a deficit of more than $882 million.
The spending plan calls for a new tax on businesses (a so-called head tax), more funding for violence prevention, and investments in housing and public services. The proposal could become a point of contention in the City Council. Aldermen must approve the budget by Dec. 31. Johnson’s administration calls it the “Fair Share Budget.”
The proposal includes $131.5 million in new spending. It also provides an additional $7 million for community violence prevention programs, including funding to hire 390 street outreach workers and 50 youth peacekeepers. The 2027 budget also calls for opening a new city health clinic, $30 million for public libraries, and $100 million for housing and assistance for the homeless. The proposal also identifies savings and cost reductions totaling $120 million.
Under the plan, $500 million would be released through tax increment financing (TIF), of which $285 million would go to Chicago Public Schools (CPS). Although Johnson said in September that he would not do so, he is now proposing to borrow $480 million to cover settlements related to misconduct by officers of the Chicago Police Department (CPD).
One of the main points of contention will likely be the proposed tax based on the number of people a business employs, which the mayor’s administration calls the “Equitable Employer Tax.” Under the proposal, companies with more than 125 employees would have to pay $25 per month for each worker. The proposal also allows businesses that employ workers from historically underinvested areas to receive a partial reimbursement of costs.
“Every child, in every neighborhood, deserves a city that invests in their future, and that is the premise at the foundation of the budget I presented today,” Johnson said. “My 2027 budget ensures that every Chicagoan receives a fair share of the investments, services and opportunities that define the character of our city. The money for this comes from responsible spending cuts that preserve key services, and from requiring wealthy corporations to make a fair contribution,” Johnson stressed.
The head tax was proposed earlier by the mayor, but the City Council rejected it. Gov. JB Pritzker has also said he will not support the measure. The proposed tax, at $25 per month for each employee and applying to companies with more than 125 workers, is estimated to bring in just over $101 million in revenue. Employers operating in socioeconomically disadvantaged areas could receive a tax break.
Some aldermen are already signaling that the proposal has no chance of passing. Ald. Bill Conway of the 34th Ward said Chicago needs to create new jobs, not scare off investment and stifle economic growth. Johnson is also proposing to raise the city’s tax on online betting to 20%, which is expected to bring in $37 million. Among his other tax plans, the mayor intends to expand the plastic bag tax to cover “packaging waste” as well, which is expected to bring the city an estimated $9 million.
Johnson is also proposing to raise taxes on leases of personal property, even though current law freezes the rate of that tax at its present level until 2028. The increase would apply to rentals of vehicles and equipment, though Johnson noted that he would like to lower the tax for the film production industry. The proposal is estimated to generate $234 million in revenue. At the same time, given the serious financial burdens facing the city and Cook County over lawsuits involving police misconduct, including cases involving former CPD detective Reynaldo Guevara, Johnson is asking to issue $480 million in bonds to cover the cost of those settlements.
Amid the city’s difficult financial situation, Johnson proposes savings of $34 million in personnel costs and another $10.7 million from reducing non-personnel spending in individual departments. The budget proposal comes five months before the election for Chicago mayor. In his address, Johnson also thanked his supporters, highlighted his own accomplishments, and referred to President Donald Trump and what he described as the impact the White House administration has had on families in Chicago. Last year, Chicago aldermen passed their own budget without Johnson’s approval, and they have already signaled that they are prepared to do so again.
BK
Source: Polski.FM
