close
close

Le-verdict

News with a Local Lens

Mayor’s Budget Team Explains Why Chicago’s Property Tax Hike Was Inevitable in 2025 Tax Recommendations
minsta

Mayor’s Budget Team Explains Why Chicago’s Property Tax Hike Was Inevitable in 2025 Tax Recommendations

CHICAGO (WLS) — ABC7 spoke with Mayor Brandon Johnson’s budget team to review their 2025 proposal and understand why a property tax hike was inevitable.

The city of Chicago faces a budget deficit of nearly $1 billion for next year. Budget Director Anette Guzman, Controller Chasse Rehwinkle and Finance Director Jill Jaworski are the experts behind the 607-page, $17 billion budget plan for next year.

ABC7 Chicago is now broadcast 24/7. Click here to watch

“I just want to be very clear, when the mayor said everything is on the table, everything is on the table,” Guzman said.

But because of the city’s financial crisis, it became clear that a property tax increase was inevitable, the mayor’s team said. Furloughs were considered, but were later deemed impractical.

LEARN MORE: Mayor Brandon Johnson calls for $300 million property tax increase in Chicago budget proposal

“So about 89 percent of the city’s workforce is unionized, and so imposing things like furlough days on the union is not something that’s possible,” Guzman explained.

The budget director dismissed accusations that the mayor was using fear tactics over the alternative to a $300 million property tax increase, resulting in 4,000 layoffs, the majority of them police officers.

“This is not a fear tactic, these are facts,” Guzman said. “The highest salaries in the city are the police. To get the kind of value that $300 million requires, you have to provide public safety. There’s no other way.”

RELATED: How to balance Chicago’s budget without increasing property taxes: Civic Federation offers its options

The mayor’s budget plans to raise the alcohol tax for the first time in 16 years and increase weekend parking rates to reflect those charged during the week.

“We were looking under every couch cushion to try to find revenue that we thought would help us get to that billion dollars without having a really dramatic impact on people on a daily basis,” Rehwinkle said.

Part of the budget problems stem from the expiration of a national corporate tax law.

“There was a provision limiting the amount of losses that companies could take that is now defunct. Companies are now allowed to take unlimited losses, and we saw a decrease of $160 million,” Jaworski said.

With $100 million dedicated to violence prevention programs, the city is now closely evaluating the goals and targets of organizations receiving city funds.

“I think it’s really important for communities to see how this money will be used directly in their communities,” Guzman said.

The mayor’s top fiscal advisers stressed that they remain open to suggestions from City Council members and the community, and are always looking for additional ways to save taxpayers’ money.

Copyright © 2024 WLS-TV. All rights reserved.