Mayor Johnson establishes group to address Chicago's budget gaps
CHICAGO (WLS) -- Chicago Mayor Brandon Johnson signed an executive order to create a group to focus on the city's budget gap Monday.
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The group is made up of business leaders, community leaders and City Council members.
"This executive order is about bringing Chicagoans together, so that we can continue the critical work of investing in our people," Johnson said. "We need to identify cost savings, but we also have to identify opportunities where we can streamline operations and improve services that are delivered to our residents. We essentially need to do more with less."
It is unknown who will join the group yet. However, the group will be tasked with writing proposals to address the city's chronic budget gaps.
The potential loss of federal dollars adds some urgency to their work.
The city is facing billion-dollar deficits in each of the next two fiscal years, partly due to rising pension and personnel costs.
Chicago's financial situation is already challenging enough, but it would get significantly more complicated if the Trump administration follows through with the president's threat to cut off more than $3 billion in federal aid to the city.
The city's is projecting a $1.1 billion deficit in 2026.
In 2027, the shortfall grows to $1.3 billion.
"This work cannot be done in silos. It must be done in a collaborative fashion, and with all sectors of the Chicago economy at the table," said 3rd Ward Ald. Pat Dowell, chair of the Finance Committee.
The last two budgets, the mayor has avoided layoff or furloughs for city workers, but they will be on the table this time, at least to start.
The mayor may also have to consider accepting the automatic annual increase in property taxes: something he has skipped his first two years in office.
"It would be premature for me to say that any specific remedy is going to be the one that this task force ends up recommending. And I do think it's the right time to put everything on the table and create a rational approach to the city's finances," said Ralph Martire, executive director of the Center for Tax and Budget Accountability.
A preliminary report is expected by Aug. 31. A final comprehensive report is expected by May 31, 2026.
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