As Chicago faces a nearly $1 billion budget deficit, Mayor Brandon Johnson retracted a major campaign promise in a City Council meeting last Wednesday. In it, he stated his plans to raise property taxes by next year.
In last week’s City Council meeting, the mayor revealed a budget proposal that included a $300 million property tax hike and a proposal to eliminate more than 700 vacant positions—more than half of which are from the Chicago Police Department. The mayor’s budget proposal also included potential increases on alcohol tax and raising weekend parking rates to the same costs as weekdays.
The city plans to also allocate $145 million in one-time dollars from the American Rescue Plan, which is COVID stimulus dollars. Johnson’s $17 billion fiscal plan for 2025 will focus more spending on violence prevention, helping the homeless, and supporting youth employment.
“Our budget reflects the commitment to invest in our people and neighborhoods, ensuring that every Chicagoan has the opportunity to thrive,” Mayor Johnson said. “We are addressing our challenges head-on with strategic investments and prudent financial management.”
Property Tax Hike Pushback
Despite its recent announcement, the property tax hike proposal is already facing an uphill battle – making it the mayor’s job to convince 26 alderpersons to support it.
Alderpersons were frustrated at hearing the tax increase proposal, particularly as it comes on top of recent reassessments that had previously raised tax bills across the Windy City.
“Property taxes are regressive taxes. Property tax increases are regressive taxation. I think that’s something that we cannot afford,” said Ald. Byron Sigcho Lopez.
Another source of frustration for alderpersons is their lack of advanced briefings on the budget proposal, only learning of the property tax hike when it was announced.
“I would say I am concerned that we are burdening the taxpayers significantly with the largest property tax increase in decades,” said Ald. Bill Conway.
Johnson’s Reasoning
According to Johnson, the property tax hike will enable him to avoid mass layoffs, yet the current proposal will still see 743 vacant positions eliminated across the city, 400 of which will be from CPD. Blaming previous administrations for the city’s fiscal crisis, Johnson said the choice was between raising property taxes or eliminating 4,000 city jobs, more than half of which would be from the police department.
“When it came down to either mass layoffs, curbing vital city services, or an increase in property taxes. I would certainly much rather tax the rich,” the mayor said.
Johnson stated that, without a property tax increase, more than 2,000 police officer positions would need to be cut, reducing an already understaffed department by just under 20%. The Chicago Fire Department would also have to be reduced by more than 600 personnel.
42nd Ward Ald. Brendan Reilly and 23rd Ward Ald. Silvana Tabares, both vocally oppose the proposed eliminated CPD positions and budget proposal.
“We can do a lot better than eliminating 400 vacancies in the Chicago Police Department. That’s not where you cut. Let’s look at these other departments that are less essential,” Reilly said. “And let’s look at not-frontline workers, not-union representative workers, managers, political appointees.”
With some alderpersons already vocally opposed to Johnson’s budget proposal, the question remains: Will the mayor get the support necessary to implement his plan?
“I won’t say I’m a hard no, but I don’t support the property tax, and so I always like to go back to listen to what my constituents were saying and what they want,” said Ald. Monique Scott.
“I represent a community that has seen a significant increase in property taxes due to rising property values and reassessing the prospect of another property tax increase is a very difficult one for my neighbors. So, I want to hear from them,” said Ald. Carlos Ramirez Rosa.
City leaders will hold two weeks of budget hearings beginning next week. The budget must be passed by December 31st.
