Chicago budget deficit balloons to almost $1 billion under Mayor Johnson

Chicago Mayor Brandon Johnson says the city’s budget deficit will grow to nearly $1 billion next year.

The mayor’s office released the city’s 2025 Budget Forecast on Thursday. The report estimates a $222.9 million deficit for the end of 2024 and a $982.4 million deficit in fiscal year 2025.

Chicago Fifth Ward Republican Committeeman Tyler Shasteen said Mayor Johnson did not inherit the budget gap.

“Don’t forget that the mayor also rolled over a $50 million budget surplus from 2023 into this year’s budget and still had this large of a deficit,” Shasteen said.

Shasteen attributed a lot of the spending to the migrant situation in the city.

“If we just took the amount of money that the mayor’s office has spent on the migrant crisis in this last fiscal year and put that toward the budget and we just didn’t spend that money there, then we would actually have a surplus,” Shasteen said.

Mayor Johnson said the budget forecast presents a significant challenge for the city.

“My administration is committed to finding solutions that balance fiscal responsibility with our obligation to invest in the people of Chicago. Together, we will ensure our budget reflects the values of equity, fairness and shared prosperity,” Johnson said in a statement.

According to Chicago Budget Director Annette Guzman, the forecasted budget gap is a clear indication of the financial pressures facing the city.

“It also highlights the critical need for structural solutions that address these challenges not just for the coming year, but for the future. We will continue to explore all options to close this gap while minimizing impact on essential services and making prudent investments in our city’s future,” Guzman stated.

Republican Committeeman Shasteen said the budget deficit under then-Mayor Lori Lightfoot during the COVID-19 pandemic in 2021 was $1.2 billion.

“That was in the midst of a pandemic. We’re out of that now. To have the budget deficit up to those same levels is just insanity,” Shasteen said.

Shasteen said Mayor Johnson does not have a sustainable plan.

“The gap in how much tax revenue they brought in and how much they spent is much larger than this. It’s just that they were able to use a lot of these one-time funding opportunities that they’re getting from the federal government,” Shasteen explained.