PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Micky Horstman (312) 607-4977

Chicago mayor addresses budget problems, priorities today

CHICAGO (Oct. 11, 2023) – Chicago Mayor Brandon Johnson will unveil his 2024 budget proposal today, estimated to face a deficit of $538 million. Without major reforms to the budgeting process, Chicago sits on the precipice of fiscal disaster, Illinois Policy Institute experts warn.

What to watch for during today’s budget address: 

• Pensions: Chicago owes over $35 billion to its four city-run employee pension funds, which are also among the nation’s worst funded. The number climbs when including other pension funds Chicago taxpayers cover, such as those for teachers or county employees.
• Debt: The city has nearly $27 billion in non-pension debt. Together, annual contributions for pensions and debt service make up 42% of the city budget, or over $5 billion per year, crowding out spending for services taxpayers rely on. Johnson hasn’t outlined a plan to reduce the growing burden of either non-pension or pension debt.
• Property taxes: Johnson has pledged not to raise property taxes, but the city still has automatic annual increases. It’s unclear if the mayor will remove these increases or break his promise. The city’s property tax levy has already doubled in a decade.
• Real-estate transfer tax increase: Johnson’s proposed “mansion tax,” hitting commercial and residential property sales over $1 million, could cost the city new businesses and residents.
• Immigration: The city is expected to spend at least $345 million dealing with the influx of migrants this year, with no end to rising costs in sight.
• Public safety: The city has 1,000 police vacancies with no real plan to fill them as serious crimes have surged 54% compared to five years ago.

Paul Vallas, policy adviser for the Illinois Policy Institute, offered the following statement:

“As Chicago confronts yet another massive deficit, an influx in immigration, and growing pension debt, the public deserves an open and informed budget process. Mayor Johnson should provide transparency and accountability in the process, not uphold the status quo.

“Chicago’s secretive budget process fails the public. Months of public scrutiny should come before a budget vote. And an unfettered inspector general must root out waste. With Chicago on the brink of insolvency, the current dysfunctional budget system must end.

“Most major cities have moved past this mayor-centric model, however the Chicago city council remains woefully unprepared for budget season. They lack the resources and staff  to effectively analyze Chicago’s budget. Without significant reforms, Chicago’s budget will never balance. Mayor Johnson keeps adding burdens when the city is already failing the basics of keeping its residents safe and educating its children.”

To read in depth about Vallas’ budget suggestions, visit illin.is/budgetreform.

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.