Overview

• Johnson urged aldermen at a June 3 Revenue Subcommittee meeting to implement a 1% local grocery tax before the October 1 deadline when the state levy expires.
• Budget Director Annette Guzman warned that without the local tax Chicago’s 2026 budget would face an $80 million additional hole on top of a $1 billion‐plus shortfall.
• Chief Financial Officer Jill Jaworski and Guzman proposed broadening the state sales tax to professional services and boosting the city’s share of state corporate and income taxes to raise over $100 million annually.
• More than 150 Illinois municipalities have already adopted local grocery levies following Governor Pritzker’s decision to let the state tax lapse.
• With Springfield’s spring session closed, city leaders say local revenue diversifications are now the only viable path to avoid cuts in critical services.