Mayor Brandon Johnson defended his administration’s budget priorities at a Lakeview town hall, saying on March 5 that recent changes made by the City Council could put Chicago at risk of a financial crisis.
Johnson said his original proposal aimed to close the city’s budget gap by increasing taxes on large corporations instead of relying on new fees and measures that might impact working-class residents. However, he said the final budget passed in December removed several corporate tax proposals and replaced them with alternative revenue ideas that rely on uncertain projections.
Budget Director Annette Guzman said, “When we ran the numbers, the revenue assumptions simply didn’t add up. Under our analysis, that plan would leave the city about $163 million short and set us up for a midyear budget crisis.”
The City Council approved an alternative budget just before a year-end deadline to avoid a government shutdown. The council-backed plan included legalizing video gambling machines, raising the checkout bag tax from 10 cents to 15 cents, adding a 1.5 percent tax on retail liquor sales, expanding congestion fees for rideshare services, allowing ads on city-owned bridge houses and light poles, and calling for the sale of city debt.
During the town hall attended by more than 50 people at Broadway United Methodist Church, Johnson was joined by Guzman and Jung Yoon, chief of policy for the mayor’s office. They answered questions about housing affordability, public safety, school closures, and how potential budget changes could affect city services and workers.
Housing affordability was one of the main concerns raised. Johnson highlighted last year’s Green Social Housing ordinance creating a city-run nonprofit to partner with private developers for mixed-income housing projects. Each development must include at least 30 percent affordable units with majority ownership retained by the city. Another initiative allows borrowing up to $1.25 billion in bonds backed by expiring tax-increment financing districts to fund affordable housing and economic development projects.
Johnson said expanding these programs requires reliable revenue sources: “The thing that I believe is the greatest challenge for us right now is the lack of sustainable revenue to fund these programs.” He noted most property tax revenue goes toward pension debt from previous administrations.
Attendees also asked if financial challenges could lead to layoffs or service reductions. Johnson said his administration has tried to protect public services but warned options are limited without new revenues: “We’re going to continue to find ways to streamline government,” he said. “But it becomes harder and harder to do that without affecting services and the workers who provide them.”
Looking ahead, Johnson referenced upcoming elections and debates over education funding: “If someone is starting their campaign talking about closing schools and cutting services instead of talking about progressive revenue, that’s not my candidate,” he said.
