Illinois Policy Institute experts are available to discuss the city’s financial challenges
PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE
CONTACT: Micky Horstman (312) 607-4977
What to expect from Chicago Mayor Johnson’s 2025 budget
Illinois Policy Institute experts are available to discuss the city’s financial challenges
CHICAGO (Oct. 29, 2024) – Chicago Mayor Brandon Johnson will unveil his 2025 budget tomorrow as the city begins negotiations to finalize a budget by Dec. 31.
Analysis by the Illinois Policy Institute shows Chicago’s budget has ballooned by 58% since 2019, adding over $6 billion in expenditures.
As the city faces a nearly $1 billion budget deficit for 2025, the institute found Chicago’s fiscal problems are being driven by city spending on pensions and personnel, both of which have significantly increased since 2019.
Crime and policing:
- Police staffing is down by roughly 1,600 officers since 2019 as overtime spending has ballooned, costing taxpayers over $293 million in 2023.
- The institute estimates the city could rehire half of those full-time police positions and still save roughly $83 million per year on overtime costs.
Transportation:
- Since 2019, the Chicago Transit Authority has seen a 30% budget increase, while ridership has dropped 40%.
- Johnson’s 2024 budget relied on $348 million in fines from parking, speed cameras, red-light cameras and other traffic tickets – a $46 million increase from the prior year. As the city floats lowering the citywide speed limit and a possible congestion tax, this revenue source could increase and likely fall disproportionately on low-income drivers.
Pension spending:
- Pension debt is estimated to eat $2.85 billion of the city’s budget. That’s more than a $1.54 billion increase since 2019. Chicago taxpayers already face $51 billion in city-related pension debt, which is higher than the pension debt of 43 U.S. states.
“City spending has worsened in recent years following misuse of federal funds. Instead of using these one-time payments to pave a path of fiscal responsibility, city leaders decided to take on costly projects and continue to build debt,” said Bryce Hill, director of fiscal analysis at the Illinois Policy Institute. “The city has a long history of deficit spending. Unlike his predecessor, Johnson won’t have an influx of federal funds to bail him out of the nearly $1 billion hole. It’s more likely Chicagoans will be hit with another property tax increase when it’s Johnson who should rein-in his wasteful spending habits.”
To learn more about Chicago’s budget growth, visit illini.is/budgetgrowth.
For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.