On Wednesday, Mayor Brandon Johnson unveiled the City of Chicago’s Budget Forecast for the forthcoming 2024 fiscal year, revealing a projected budget shortfall of $538 million.
A significant portion of that shortfall is being attributed to the city’s ongoing migrant crisis. A third of that estimated shortfall, around $200 million, will be needed to support new arrivals.
Acknowledging the intricate financial landscape inherited by his administration, Mayor Johnson pointed out that the Federal Reserve’s decision to raise benchmark interest rates to combat inflation has had a detrimental impact on local revenues and the economy. The Johnson Administration also anticipates increased costs related to personnel costs, pensions and contractual expenditures.
Mayor Johnson emphasized his dedication to finding solutions that prioritize the welfare of Chicago’s residents while preserving essential services and programs.
“The projected budget gap paints a realistic picture of our city’s financial condition, which will require careful consideration and strategic action,” Mayor Johnson said. “In the coming weeks, we will be taking a much closer look at the challenges we face and how we will address those challenges reasonably and responsibly, and not on the backs of workers and working families.”
He added, “My administration is fully committed to transparency, inclusivity, and effective co-governance. We will work tirelessly to ensure that our budgetary decisions reflect our commitment to the betterment of Chicago and the livelihoods of its residents and provide support around my priorities in the areas of public safety, the environment, youth and mental health.”
In a statement, Mayor Johnson said his strategy for addressing the budget gap is shaped by his commitment to community partnership and collaboration.
He cited his commitment to maintaining open dialogue and engagement with various city stakeholders, including hosting four budget roundtable events this summer, one of which concentrated on the concerns of Chicago youths.
The Mayor said his strategy includes a multifaceted approach encompassing expenditure reviews, revenue enhancement measures and potential resource reallocations.
While specific details of the plan are still in development, Mayor Johnson said his administration is committed to minimizing the impact on crucial public services and ensuring that the burden of closing the budget gap is distributed as fairly as possible.
As the city navigates the budget season, Mayor Johnson also reaffirmed his promise to foster economic growth, attract investments and create opportunities for all Chicagoans. He also urged residents to stay engaged and participate in ongoing discussions about budget priorities.
He expressed optimism about the city’s ability to overcome financial obstacles while staying true to its core values.
“Chicago is a resilient city with a rich history of confronting challenges head-on. We will emerge from this period stronger and more united, continuing our journey towards investing in our people and building a better, stronger, and safer Chicago.”
To review the 2024 Budget Forecast, please visit Chicago.gov/obm.
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