Illinois Policy Institute statement on Brandon Johnson’s inauguration as mayor

May 15, 2023

Chicagoans need a commitment to affordability and improving public safety

PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Melanie Krakauer (312) 607-4977

Chicagoans need a commitment to affordability and improving public safety:
Illinois Policy Institute statement on Brandon Johnson’s inauguration as mayor

CHICAGO (May 15, 2023) – Brandon Johnson will be inaugurated as mayor of Chicago this morning. The city faces financial obstacles Chicagoans need to see addressed as a new leader takes office.

Fast facts on Chicago:

Budget

  • Johnson’s first budget for 2024 will face an estimated budget shortfall of $85 million, followed by a $125 million gap in 2025 and $145 million gap in 2026.
  • Despite years of tax hikes and new fees, Chicago has projected a budget deficit every year since at least 2001.

Property taxes

  • Chicago’s property tax levy has doubled in the past decade, currently at $1.73 billion compared to $860 million in 2014.
  • More than 80% of the city’s property tax levy goes to fund its pension systems.

Pensions

  • Chicago’s core pension systems, plus the Chicago Teachers Pension Fund, have a combined pension debt of nearly $48 billion. That is currently more pension debt than 44 U.S. states have.
  • Six Chicago and Cook County pension systems are among the 10 worst-funded pension systems in the U.S. Pension contributions as a share of the budget have tripled to 23% in the past decade.

Population loss

  • The city shrank by 45,000 people in 2021, driven primarily by residents moving away.
  • Five large companies – including Boeing, Citadel, Caterpillar, Tyson Foods – have announced their departure in the past year, and a sixth from Guggenheim Partners may be expected.

Violence

  • Overall crime in Chicago rose 41% in 2022, driven primarily by theft. Over the past five years, crime has increased by nearly 20%.
  • Since 2000, Chicago had its most homicides in 2016, 2020, 2021 and 2022.

Matt Paprocki, president and CEO of the Illinois Policy Institute, offered the following statement:

“It isn’t easy to take an honest look at the city’s problems, but the departure of major businesses highlights the urgent need for our elected leaders to address our city’s most pressing issues.

“The status quo of more spending and higher taxes hasn’t worked. Relying heavily on tax increases as a solution to our budget woes will only drive more people and businesses away.

“Chicago’s future hinges on a commitment to improving public safety and affordability, and it is crucial our new mayor champions this vision, partners with the business community and inspires residents to believe that things can improve.”

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