Overview

• Johnson’s office distributed a memo listing 26 potential revenue measures to the City Council in an effort to close a $1.12 billion budget shortfall.
• The mayor has ruled out any property tax increase and is prioritizing alternative levies such as a revived corporate head tax and payments-in-lieu-of-taxes from nonprofits.
• The proposed head tax would charge employers $4 per month for each employee and is projected to generate about $25.6 million annually.
• Payments-in-lieu-of-taxes from tax-exempt entities like hospitals and universities could yield roughly $52 million but face legal and political hurdles.
• Republicans and business leaders warn that new levies could drive firms to relocate payrolls outside Chicago, threatening job growth and municipal revenues.