Facing a $982 million shortfall, Mayor Brandon Johnson’s $17.3 billion budget proposal includes a $300 million property tax increase, sparking mixed reactions (Photo Credit: @ChicagosMayor/X).
Mayor Brandon Johnson’s proposed 2025 budget includes a $300 million property tax hike to close a $982 million shortfall. The increase would raise taxes on a $250,000 home by roughly $240 yearly. While Johnson pledged not to raise property taxes during his campaign, he argues this hike is the only way to prevent widespread layoffs.
Without this tax increase, officials warn the city would face a drastic reduction in services and jobs—up to 4,000 positions or 17% of its workforce. This would cut 2,500 police officers and over 600 firefighters and reduce basic services like garbage collection, street maintenance, and emergency response.
Johnson’s $17.3 billion budget also aims to support public schools. It declares $311 million in property tax funds as “surplus,” directing them to Chicago Public Schools for necessary pension payments.
In a response to Mayor Johnson’s proposed budget, the Chicago Teachers Union applauded him for reaffirming “his commitment to maintaining the city’s staffing and essential services.” In a release, the body also cited Johnson’s plan to direct tax increment financing (TIF) surplus dollars to schools and city agencies and having plans that would potentially save “billions for the city long-term, and welcomed additional ideas for revenue.”
“Chicago’s working families already shoulder an obscene amount of our city’s needs from cuts in services, closures to schools, and the unrelenting fees and fines. It’s time for the ultra-wealthy and rich corporations to be taught to share,” said CTU President Stacy Davis Gates.
Rather than focusing solely on cuts, the budget seeks to expand programs that aid residents. Johnson’s plan adds $52 million for youth employment, $40 million to double shelter beds through the One System Initiative, and $30 million to help transition people from homelessness to stable housing. Over $100 million is allocated to support violence prevention and mental health programs.
Johnson will also reallocate $570 million from Tax Increment Financing (TIF) surpluses to aid public schools, parks, libraries, and other vital city services.
“This budget secures Chicago’s future by preserving jobs and essential services,” Johnson told the City Council. “We’re investing in the people who make this city work.”
For Johnson’s tax hike to be approved, he’ll need the support of 26 alderpersons.
City leaders will start two weeks of budget hearings next week.
The law requires a budget to be passed by Dec. 31.