Chicago’s Budget Director, Annette Guzman, has announced a citywide hiring freeze to help tackle a nearly $1 billion deficit expected for the city in 2025.
Guzman said her office is addressing a $222.9 million shortfall for this year, which she attributed to a drop in certain revenue streams, including the State Personal Property Replacement Tax. The city also didn’t receive a $175 million reimbursement for non-teacher pension contributions at Chicago Public Schools, which was included in the budget.
The projected $982.4 million gap for 2025, Guzman explained, is due to rising costs for staff, pensions and contracts, along with ongoing revenue problems. To manage this, the city will limit hiring, non-essential travel, and overtime expenses, except for public safety jobs. No new interviews or meetings for hiring will be scheduled for the time being.
“These measures, while necessary, reflect our commitment to responsible fiscal management during a time of financial uncertainty,” Guzman said in her statement.
In the past, police and fire departments were usually exempt from hiring freezes, but it’s unclear if that will happen this time. Both unions have voiced concerns about understaffing, and there’s worry that the freeze could make the situation worse.
The firefighters union, which has been without a contract for years, echoed concerns that a freeze would further strain already overworked paramedics and firefighters.
Mayor Brandon Johnson, who campaigned on not raising property taxes, is now facing pressure as some feel it may be unavoidable.
“If they planned to spend the way they have, the mayor should have been upfront about the need to raise property taxes,” said Ald. Scott Waguespack of the 32nd Ward to ABC 7 Chicago.
Chicago Public Schools clarified that the city’s hiring freeze doesn’t affect them or their negotiations with the teachers union. The district already has a hiring freeze in place for administrative positions.
ABC 7 Chicago contributed to this report.
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