Mayor Brandon Johnson calls for $300M property tax hike in Chicago budget proposal
Mayor also proposed increasing tax on alcohol, raising weekend parking rates to same level as weekdays
CHICAGO (WLS) -- Mayor Brandon Johnson said he plans to raise property taxes next year, walking back a major campaign promise as the city faces a nearly $1 billion budget deficit.
In a Wednesday morning City Council meeting, the mayor unveiled a budget proposal that includes a property tax hike of $300 million, as well as eliminating more than 700 vacant positions. More than half of those vacant positions are from the Chicago Police Department.
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The mayor proposed increasing the tax on alcohol and raising weekend parking rates to the same level as weekdays.
The city will also allocate $145 million one-time dollars from the American Rescue Plan, which are COVID stimulus dollars.
WATCH: Full budget address
The mayor's $17 billion fiscal plan for 2025 includes more spending for violence prevention and helping the unhoused, as well as youth employment.
RELATED: How to balance Chicago's budget without property tax hikes: Civic Federation offers its options
"Our budget reflects the commitment to invest in our people and neighborhoods, ensuring that every Chicagoan has the opportunity to thrive," Mayor Johnson said. "We are addressing our challenges head-on with strategic investments and prudent financial management."
But the tax hike is already facing significant pushback, and the mayor has to convince 26 alderpersons to support it. Early indications are it could be an uphill battle.
The reaction to the property tax increase from councilmembers was questionable, and comes on top of recent reassessments which already raised tax bills across the city.
"Property taxes are regressive taxes. Property tax increases is a regressive taxation. I think that's something that we cannot afford," said Ald. Byron Sigcho Lopez.
Alderpersons are also frustrated they got not advance briefings on the budget and only learned of the property tax hike today.
"I would say i am concerned that we are burdening the taxpayers significantly with the largest property tax increase in decades," said Ald. Bill Conway.
Johnson said the hike will allow him to avoid mass layoffs, but there will be 743 vacant positions eliminated across the city, 400 of them from CPD. He said given the city's fiscal crisis, which he partially blamed on previous administrations, the choice was between raising property taxes or cutting 4,000 city jobs, more than half from the police department.
"When it came down to either mass layoffs, curbing vital city services, or an increase in property taxes. I would certainly much rather tax the rich," the mayor said.
Johnson said the cuts to CPD without a property tax increase would include more than 2,000 police officers in an already understaffed department. He said in total CPD would have to be reduced by 2,500 positions, or just under 20%, and the Chicago Fire Department would have to be reduced by more than 600 personnel.
Eliminated CPD positions is a non-starter for 42nd Ward Ald. Brendan Reilly and 23rd Ward Ald. Silvana Tabares, who both vocally oppose the budget proposal.
"We can do a lot better than eliminating 400 vacancies in Chicago Police Department. That's not where you cut. Let's look at these other departments that are less essential," Reilly said. "And let's look at not-frontline workers, not-union representative workers, managers, political appointees."
"So, I think that having these conversations with citizens to say, do you want this? And I guarantee you, the citizens have more to say that, no, we don't want those reductions. We want to have services," said Ald. Jason Ervin, chairman of the budget committee.
And 41st Ward Ald. Anthony Napolitano are calling for the budget to include public safety money for a new contract for CFD firefighters who have been working without one for more than three years.
")) for us to be blowing off a contract and not making sure that it's part of this budget, three-and-a-half years without settling this contract is absolutely ridiculous," he said.
But the real question is if the mayor will have the necessary support.
"I won't say I'm a hard no, but I don't support the property tax, and so I always like to go back to listen to what my constituents were saying and what they want," said Ald. Monique Scott.
"I represent a community that has seen a significant increase in property taxes due to rising property values and reassessment the prospect of another property tax increase is very difficult one for my neighbors. So, I want to hear from them," said Ald. Carlos Ramirez Rosa.
City leaders will have two weeks of budget hearings beginning next week.
By law, a budget is required to be passed by Dec. 31.
