Chicago’s budget gap might result in higher taxes for residents and businesses

CHICAGO (WGN) — Chicago Mayor Brandon Johnson will soon unveil his plan to close the city’s billion-dollar budget deficit, though the financial strain could force Chicago residents and businesses to foot the bill.

The Chicago Transit Authority (CTA) is considering hiking its base bus and rail fare by 25 cents.

“Twenty-five cents is 25 cents, but it adds up really quickly,” said CTA commuter Sydnee Alexander.

“Not good, not good, that is not ideal,” added CTA commuter Mason Manning.

Pass prices will align with the fare increase:

• A 1-Day Pass would increase by $1.
• A 7-Day pass would increase by $5.
• A 30-Day pass would increase by $10.
• The Regional Connect would increase by $15.
• A Ventra single ride would increase to $3.50.

CTA, Metra, and Pace say the price increases are needed regardless of whether or not Springfield sends them a bailout.

On Thursday, Johnson is set to unveil his long-awaited plan to close the city’s $1.15 billion 2026 budget shortfall.

City Hall sources confirm the mayor is expected to propose reinstating a corporate head tax. Before former Mayor Rahm Emanuel eliminated the tax, most companies with 50 or more employees paid a $4-per-employee fee. The city of Chicago has had the tax for more than 40 years.

Reaction from city alders has been strong.

“It’s not a good idea when you have a mayor who’s anti-business from Day 1 and you’re basically saying we’re going to look for any way we can to tax your employees, it really does a number on businesses that are existing, but it also says to new businesses, ‘Don’t come to Chicago,'” said Alderman Scott Waugspeck (32 Ward).

Mayor Johnson famously proposed a $300 million property tax hike last year, only to have the City Council vote it down unanimously. This budget season, the mayor has ruled out raising property taxes.

“There’s no will among taxpayers or aldermen who are listening to taxpayers to have a property tax increase when you have a mayor who is spending like an out-of-control person,” Waugspeck said.

The mayor has taken some steps to reduce spending. In addition to a hiring freeze, the Johnson administration asked commissioners to prepare for budget cuts of 3 to 5 percent. But even Mayor Johnson’s allies are bracing for revenue pain.

“Everything needs to be on the table, including property taxes this time around,” said Chicago Ald. Leni Manaa-Hoppenworth (48th Ward).

The mayor is also reportedly considering expanding the rideshare congestion tax. Some alders are set to be briefed on the mayor’s plan on Wednesday, the eve of his Thursday speech.