Chicago City Wire

In Chicago, discussions about the city’s finances have intensified following comments from Chief Financial Officer Jill Jaworski, who told Bloomberg that a property tax increase is “likely” due to a projected $1 billion budget deficit. The statement has prompted reactions from both city officials and residents as they brace for possible changes to their tax bills.

Mayor Brandon Johnson responded by saying that no final decisions have been made regarding the upcoming budget. He stated that “a working group” is still developing proposals and emphasized it is “too early” to determine what measures will be included in the final package. Johnson previously proposed a $300 million property tax hike last year, which was unanimously rejected by the City Council.

The city currently faces financial challenges beyond its immediate deficit. Chicago’s long-term obligations, including unfunded pension liabilities and general obligation bonds, total approximately $37 billion, equating to about $40,000 per taxpayer. The high level of debt continues to influence policy discussions as officials consider how best to address ongoing fiscal pressures.

Chicago also maintains one of the highest sales tax rates in the United States. Residents pay additional fees for services such as parking and grocery bags, contributing to concerns about affordability and cost of living within the city (https://taxfoundation.org/data/all/state/sales-tax-rates-city-2024/).

Alderman Marty Quinn expressed skepticism about current fiscal management: “I don’t think Chicagoans trust the mayor with the checkbook, frankly.” Alderman Silvana Tabares added: “We need to see somewhere we’re going to cut in this budget, and residents cannot continue getting squeezed out with taxes and fees.”

Some residents have voiced frustration over repeated increases in taxes and fees. Nicole Loury of Austin told ABC 7: “It’s taxes, on top of taxes, on top of taxes, on top of taxes.” These sentiments reflect broader concerns among middle-class families who feel increasingly burdened by rising costs.

Public safety remains another area of concern for many Chicagoans. This July saw an increase in homicides affecting not only those involved in gang activity but also bystanders and children. City Hall has continued to cite root causes such as historical trauma while maintaining that overall conditions are improving when viewed over longer periods.

As officials prepare for further deliberations through Johnson’s working group—which includes civic leaders, union representatives, and political appointees—many expect recommendations focused on new revenue tools or structural reforms. However, skepticism persists regarding whether these measures will lead to meaningful change or simply result in higher costs for residents.