Overview
- Mayor Brandon Johnson’s plan seeks to close a gap of more than $1 billion without raising property taxes by drawing $1 billion from TIF districts, including $500 million for CPS, and introducing over $400 million in new taxes.
- A $21-per-month per-employee charge on firms with more than 100 workers is projected to raise about $100 million and is described by the mayor as affecting roughly 3% of the largest corporations to fund mental health, domestic violence services, youth jobs and CVI programs.
- Other proposed revenues include a $2 per-unit cannabinoid hemp tax, a social media amusement tax on large tech companies, a tripled yacht mooring tax and higher vacant building fees.
- During the opening hearing, aldermen questioned the $1 billion TIF sweep’s impact on neighborhood projects, the reliance on one-time funds, potential workforce cuts and the feasibility of a tech-focused tax, while the Budget Committee chair demanded a signed CPS reimbursement agreement before the plan advances.
- Johnson continued defending the proposal in media appearances, citing service protections and no property tax hike, as the city pursues a multi-city lawsuit over federal grant cuts linked to the plan’s fiscal context.