Chicago Budget Passes Without Property-Tax Hike, Includes $40M Loan after Revision

Chicago Budget Passes Without Property-Tax Hike, Includes $40M Loan after Revision (1)

Chicago, IL–  On Monday, the Chicago City Council greenlit a new budget that does not include a property tax hike, yet numerous aldermen are expressing that the mayor must still implement spending cuts.

The council approved a budget of $17.1 billion with a close vote of 27-23, incorporating a $40 million loan.

Demonstrators interrupted the meeting on Monday several times while council members deliberated on the proposed budget. Numerous community members voiced their concerns regarding Mayor Brandon Johnson and the updated budget plan during the public comment session. Shortly after the public comments concluded, a number of individuals started to yell.

The uproar persisted as the mayor attempted to regain control, prompting Johnson to direct the sergeant-at-arms to remove the audience from the council chamber.

On Friday, residents expressed their discontent as the council unexpectedly paused proceedings before a crucial budget vote could occur.

On Monday, Alderman Nicole Lee of the Eleventh Ward announced her decision to vote against the budget. Lee criticized the mayor’s approach as chaotic.

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“All expert accounts indicate that this budget’s over-reliance on one-time remedies, rather than structural solutions, are gonna lead us to multiple credit-rating agency downgrades,” Lee said.

Chicago Budget Passes Without Property-Tax Hike, Includes $40M Loan after Revision
Image: The Center Square

Johnson implemented several job reductions, leading to a decrease in the city’s fiscal year 2025 spending plan from $17.3 billion to $17.1 billion.

The budget for Chicago in the fiscal year 2024 stands at $16.6 billion. The mayor announced that his administration is focused on investing in the community.

“We’re going to protect people who see public education as a human right. We’re going to protect people, of course, who are here who have migrated or emigrated to this city,” Johnson said.

In a letter addressed to Johnson on Sunday, 15 aldermen criticized the mayor’s fourth budget proposal, describing it as “a compilation of adjusted savings, revised revenue forecasts, and postponed payments that will ultimately act as a concealed property tax hike.”

The letter states, “This gimmick will add to the debt burden already faced by every Chicagoan, currently pegged at $10,642, a 30.3% increase from FY2023 to FY2024 according to the Chicago Civic Federation.”

Read More: Unfunded Pension Liability Hits $143.7 Billion in Illinois, Taxpayer Costs to Rise by 2045

The city council members have asked for a reduction of $823.7 million from the mayor’s most recent budget plan.

In November, the city council voted unanimously against the mayor’s initial budget proposal for 2025, which featured a $300 million increase in property taxes.

Last Friday’s council meeting came to an unexpected halt following revelations that Johnson and his allies lacked sufficient votes to approve a spending proposal that encompassed over $230 million in increased taxes and fees.

Ninth Ward Alderman Anthony Beale joined 14 other council members in urging the mayor to reduce the amended budget by nearly $824 million.

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Alice Poole

Alice Poole

Alice Poole is a seasoned journalist who specializes in human interest topics and investigative reporting. With more than a decade of expertise, she is passionate about giving light on forgotten stories. When she is not writing, Alice enjoys exploring local art scenes and participating in community outreach projects.

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