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 aims to unite the people of Chicago so we can focus on investing in our community,” expressed Johnson. “We must find ways to save costs while also improving our services and operations to better serve our residents. We need to be more efficient with the resources we have.”
Mayor Brandon Johnson signed an executive order on Monday creating a new budget committee.
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 is already facing financial difficulties, and it would worsen if the Trump administration goes ahead with the threat of cutting over $3 billion in federal assistance to the city,” referencing the potential challenges ahead.
The city’s is projecting a $1.1 billion deficit in 2026.
In 2027, the shortfall grows to $1.3 billion.
Alderman Pat Dowell, chair of the Finance Committee, emphasized, “This task requires collective effort and involvement from all sectors of Chicago’s economy, working together rather than independently.”
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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