Chicago Mayor Brandon Johnson has unveiled a proposed budget of $17.3 billion for 2025, which includes a controversial $300 million property tax increase aimed at addressing a significant budget shortfall.

This proposal marks a shift for Johnson, who previously campaigned against raising property taxes, promising not to impose such hikes during his election.

Johnson attributed the city's financial challenges to rising pension costs and personnel expenses, exacerbated by the depletion of federal COVID-19 relief funds.

The projected budget deficit for fiscal year 2025 is estimated at $982.4 million, significantly impacted by the end of COVID assistance.

Under the new budget, 52% of the Tax Increment Financing (TIF) surplus, approximately $296 million, is earmarked for Chicago Public Schools (CPS), a notable increase from the $226 million allocated last year.

Despite the budget's overall increase of 3.2% from 2024, it aims to maintain around 36,000 full-time positions without layoffs, which had been a concern for city unions.

Without the proposed tax hike, the city would face a drastic 17% reduction in its workforce, which could severely compromise public safety and emergency services.

CPS CEO Pedro Martinez has requested an additional $325 million in TIF surplus funds to cover labor costs and pension obligations, emphasizing that without this assistance, cuts or borrowing may be necessary.

Alderman Gilbert Villegas criticized CPS for mismanaging COVID relief funds, which had temporarily balanced its budget but have now expired, contributing to a $500 million deficit.

He urged residents to accept the tax increase as a necessary measure for the city's financial sustainability, framing it as part of a multi-year recovery plan.

In his budget address, Johnson highlighted the struggles of marginalized communities in Chicago, linking the budget to his commitment to racial equity and social justice.

While the budget continues to fund mental health initiatives and anti-violence programs, it also proposes cuts of $150 million in migrant services.