Johnson's budget team proposes new fees and taxes: Chicago faces a billion-dollar deficit

Chicago Mayor Brandon Johnson is facing a massive budget challenge, and his working team has proposed a series of new taxes and fees to close a deficit of as much as $1.15 billion.

Although these are just recommendations, Johnson has less than a month to present an official plan before the City Council.

Proposals for increasing revenue and reducing costs

A working group composed of representatives from business, trade unions, and the community has put forward ideas that include:

• increase in the tax on bottled water and plastic bags,
• the introduction of the so-called “employee head tax” of $4 per month per employee,
• higher garbage collection fees,
• annual property tax increase in line with inflation.

On the savings side, proposals include cost reduction through:

• mandatory furlough days,
• increase in employee health insurance contributions,
• abolition of the police equestrian unit,
• rerouting a portion of medical calls from 911 to telehealth services.

Overall, the plan projects $455 million in savings and $1.65 billion in new revenue.

Johnson: No property tax increases

Appearing on WGN Radio, Mayor Brandon Johnson made it clear:
„I will not increase the property tax. I said that very clearly.“

According to him, Chicago does not have a problem with excessive spending, but rather with a lack of revenue. However, he added that he wants to avoid harsh cuts and that city services must remain a priority.

Expert reactions

Joe Ferguson, president of the Civic Federation, warns that the problem is not just in revenues, but also in the size of the city administration. He believes that the current crisis is an opportunity to rethink the workforce structure.

„It doesn't have to mean mass layoffs, but the mayor must talk to the unions and involve them in finding a solution,“ Ferguson said.

Last year's budget negotiations lasted all the way until December, and already City Council members are hinting that they will not automatically approve Johnson's proposal. Everything indicates that Chicago is entering another long and difficult budget season.

SOURCE:WGNTV PHOTO: PIXABAY