Overview

• On August 5, Mayor Johnson declared Chicago’s finances at a “point of no return,” warning that vital public systems are woefully underfunded after a state pension law increased liabilities by over $11 billion.
• Chicago faces a $1.1 billion shortfall in its 2026 budget with no option for another property tax hike following the City Council’s unanimous rejection of a 2025 increase.
• To close the gap, Johnson is targeting Chicago’s 127,000 millionaires and 25 billionaires with proposed “progressive revenue” measures.
• He is also weighing reinstatement of the corporate head tax and a new levy on social media advertising as revenue sources.
• The fiscal crisis reflects pandemic-era revenue losses, rising migrant support costs and chronic pension underfunding that have strained core city services.