Chicago budget rises over 2X faster than other big cities

Not enough revenue? How about too much spending. Chicago outpaces many of America’s biggest cities with a 62% spending spike since 2019. That’s what’s driving deficits.

Chicago faces a $1.15 billion projected deficit in 2026, and the city’s budget task force’s answer is $1.6 billion in new tax hikes.

But the numbers show the city’s true budget problem isn’t a “revenue challenge,” as Mayor Brandon Johnson and his task force claim. It’s overspending.

Chicago’s total expenditures have increased by nearly $7 billion, up 62% from 2019. Massive pension bills and rising personnel expenses, tied to costly government union contracts, have helped push the city’s spending beyond sustainable levels.

Among America’s biggest cities, Chicago’s rapid spending growth stands out.  The five most populous U.S. cities averaged only 38% spending growth since 2019.

Apart from Phoenix, Chicago’s budget growth dwarfs that of its peers. Los Angeles’ budget has only grown 30% from 2019 to 2025. New York City’s is up just 25%. While those cities have kept their budget growth roughly in line with inflation, Chicago raced ahead at twice the pace.

Billions in federal aid helped supercharge Chicago’s runaway spending. The city misused temporary funds meant to cushion post-pandemic downturns, instead locking them into permanent spending increases. Now, with these funds nearly depleted and personnel and pension bills rising, the city stares at $3.5 billion in deficits during the next three years. It spent itself into that hole despite record revenues.

The solution to Chicago’s rampant budget growth and financial mismanagement should not be to further burden taxpayers. The city already has some of the highest local tax rates in the nation. Voters have made it clear they’re exhausted by property tax hikes, progressive tax schemes and empty promises from City Hall.

Instead of floating new ideas to squeeze Chicagoans for more cash and giving them more incentive to leave, city leaders need to break their overspending habit and create a fiscal environment that supports growth and long-term sustainability.