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Johnson Rolls Out 26 Ideas to Plug $1.1B Chicago Budget Shortfall

Johnson advanced revenue options before his advisors’ report, prompting criticism over potential job losses from proposed levies.

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Mayor Brandon Johnson speaks during a City Hall news conference July 3, 2025, after a mass shooting outside of Artis Restaurant and Lounge in River North on July 2, 2025. (Audrey Richardson/Chicago Tribune)
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Overview

  • The mayor’s office circulated a 61-page memo outlining 26 revenue options, among them property tax tweaks, higher garbage and liquor fees, a revived corporate head tax, a 5% payroll excise, and expanded sales and betting levies.
  • Johnson reaffirmed that he will not propose a property tax increase in his draft budget but left open the possibility of approving hikes if aldermen reintroduce them.
  • Budget Director Annette Guzman imposed a hiring freeze on noncritical positions, restricted nonessential travel, and capped overtime to curb expenditures ahead of next year’s budget.
  • Republican committeeman Jason Proctor warns that reviving the corporate head tax and introducing payroll levies would drive away jobs; Johnson insists business leaders are more focused on safety issues than tax policy.
  • The working group meant to advise on budget efficiencies will report by August 31; members say the mayor’s early policy rollout has hindered its consensus-building role.