Overview

• Facing a shortfall near $1.2 billion, Mayor Brandon Johnson presented a FY2026 plan that closes the gap without raising property taxes.
• A record $1 billion TIF surplus would be declared, sending about $157.6 million to the city budget and roughly $520 million to Chicago Public Schools, with additional support for libraries, parks and City Colleges.
• A revived per‑employee “community safety surcharge” targets large employers at $21 per worker per month, affecting about 3% of companies and projected to raise $100 million for a new fund backing violence prevention, youth jobs and related services.
• A first‑of‑its‑kind social media amusement tax would charge 50 cents per active user per month beyond the first 100,000 in Chicago, estimated to raise $31 million for mental health services, and city lawyers are preparing to defend it.
• Additional moves include higher taxes on cloud and software leases projected to bring in $333.2 million, increased fees such as boat mooring and vacant‑building charges, a hiring freeze and $200 million in departmental savings, a cap on police overtime, and a reduced $120.2 million advance pension payment.