Mayor Brandon Johnson Proposes $17.6 Billion Chicago Budget

Mayor Brandon Johnson introduced a $17.6 billion spending plan for 2027 to close an $882.4 million gap in Chicago's main operating fund. The proposal increases spending from the current $16.7 billion, prioritizing a $40.6 million investment in community violence intervention, a $30.9 million subsidy for Chicago Public Libraries, and the permanent establishment of the Department of Community Wellness and Safety.

To fund these initiatives and address the deficit, Johnson proposed an Equitable Employer Tax, or corporate head tax, charging $25 per employee for businesses with 125 or more staff. The tax is expected to generate approximately $113.8 million, though the plan offers rebates to companies hiring in underserved South and West Side neighborhoods. Other revenue measures include raising the sports wagering tax and the Personal Property Lease Transaction tax to 20%, and introducing a 15-cent tax on non-medical and non-food packaging. Johnson also proposed a TIF sweep to provide $285 million to Chicago Public Schools and the sale of bonds to fund police misconduct settlements.

A coalition of 29 City Council members has signaled opposition, arguing the head tax will drive businesses away. Critics, including Alderman Bill Conway and Illinois Hotel & Lodging CEO Michael Jacobson, claim the budget taxes away jobs. Meanwhile, City Clerk Anna Valencia has suggested a debt amnesty program as an alternative revenue approach.