Chicago Projects Nearly $1 Billion Deficit for 2025

Chicago is facing a significant budget crisis, projecting a $223 million deficit for 2024 and a staggering $982.4 million shortfall for 2025, primarily driven by rising pension costs and declining tax revenues. Mayor Brandon Johnson indicated that various options, including potential tax increases and budget cuts, are being considered to address these gaps, although he has not committed to specific measures. The city anticipates a notable drop in revenue from the Personal Property Replacement Tax (PPRT), which is expected to fall by $169 million in 2024. Additionally, the Chicago Public Schools (CPS) have rejected Johnson's proposal to cover a pension payment, complicating efforts to manage the budget. Johnson emphasized the need for sacrifices and expressed a desire to find solutions that protect working families as he navigates this fiscal landscape. The mayor's upcoming budget recommendation will be presented to the City Council in October, where he will need to secure support for his plan.