CHICAGO (WBBM NEWSRADIO) — The Johnson administration is forecasting a budget deficit of nearly $1 billion for 2025, and the mayor has not said how exactly he hopes to close it.
Chicago Budget Director Annette Guzman said the mayor’s finance team projects a budget gap of $982.5 million. She said there are revenue issues and, of course, personnel costs.
“On the expenditure, what we’re largely seeing are increased labor costs due to contractual, negotiated agreements with our unions and anticipated contractual agreements for union agreements that are still under negotiation,” Guzman said.
There’s also a $200 million-plus gap still left from this year, and that must be worked out before the end of this year.
When asked, Mayor Brandon Johnson refused to be pinned down on where he might turn to close the shortfall. Whether it would be layoffs or property taxes, he wouldn’t say.
“This is a projection,” he said. “To make a decision based upon a snapshot, that’s not responsible governance. What I can say is there are a plethora … of options, as you know.”
Johnson acknowledged that there will be some difficult, but necessary decisions ahead. He said, though, that he doesn’t want to burden everyday people or abandon his progressive goals.
Paul Vallas, a former city budget director who ran against Johnson in the city’s 2023 runoff election, said he's concerned that the ranks of police officers may suffer as the city tries to close its projected budget gap. He noted that Chicago Public Schools is projecting a similar budget gap, which could create a twin crisis for the city.
Although Johnson hasn’t specified how he’ll close the gap, Vallas said he thinks the city will forgo filling police vacancies.
“It’s hard to see how they would be able to close the … budget hole without trimming out their largest employment sectors,” he said. “All the mayors have talked a good game on public safety. So did Rahm [Emanuel], but you’ll remember, Rahm didn’t fill 2,000 positions. Of course, the murder rate skyrocketed and then he ended up restoring those positions.”
Ald. Raymond Lopez (15th), an occasional mayoral critic, echoed that sentiment. He doesn’t want to see the police officer vacancies go unfilled, and those jobs eliminated, to help balance the budget. He said the city will need to take a hard look at all of its spending.
“We’ve seen where, in particular, a lot of our surpluses and things like that, like dealing with the migrant situation, for example, where that $67 million we put toward them earlier in the year could’ve [gone] toward reducing the budget gap this year,” Lopez said. “And we don’t have those options.”
South Side Ald. William Hall (6th) said solving the budget gap will require some tough conversations. He said higher taxes could even be in store for Chicago. Like others, Hall said he opposes service cuts.
“Tough times don’t last; tough people do,” he said. “I think that this mayor and his administration has the capability to navigate through some tough waters. Listen: We’re dealing with some of the fiscal … mismanagement that have been carried on for decades. We’re not blaming, we’re just explaining that in these times, we have to take a closer look at what’s best, fiscally.”
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