Amy Korte | Executive Vice President | Illinois Policy Institute website
Amy Korte | Executive Vice President | Illinois Policy Institute website
Chicago Mayor Brandon Johnson is set to present his 2025 budget proposal as the city embarks on negotiations to finalize the budget by the end of the year. An analysis by the Illinois Policy Institute indicates that Chicago's budget has increased by 58% since 2019, adding over $6 billion in expenditures.
The city is currently grappling with a nearly $1 billion budget deficit for 2025. The institute attributes Chicago's fiscal challenges to rising expenses on pensions and personnel, both of which have seen significant increases since 2019.
In terms of crime and policing, police staffing has decreased by approximately 1,600 officers since 2019, while overtime spending has surged, costing taxpayers over $293 million in 2023. The institute suggests that rehiring half of those full-time police positions could save around $83 million annually on overtime costs.
The transportation sector has also seen changes. Since 2019, the Chicago Transit Authority's budget has risen by 30%, despite a 40% drop in ridership. In Johnson’s 2024 budget, fines from parking, speed cameras, red-light cameras, and other traffic tickets accounted for $348 million—a $46 million increase from the previous year. As discussions about lowering speed limits and introducing a congestion tax continue, this revenue source may grow and potentially impact low-income drivers disproportionately.
Pension spending remains a significant concern. Pension debt is projected to consume $2.85 billion of the city's budget—a more than $1.54 billion increase since 2019. Chicago taxpayers are already burdened with $51 billion in city-related pension debt, surpassing the pension debt of 43 U.S. states.
"City spending has worsened in recent years following misuse of federal funds," said Bryce Hill, director of fiscal analysis at the Illinois Policy Institute. "Instead of using these one-time payments to pave a path of fiscal responsibility, city leaders decided to take on costly projects and continue to build debt." Hill added that unlike his predecessor, Johnson lacks an influx of federal funds to address the nearly $1 billion deficit and warned that residents might face another property tax increase if wasteful spending isn't curtailed.
Further information about Chicago’s budget growth can be found at illini.is/budgetgrowth.
Alerts Sign-up