After weeks of heated discussions and revisions, the Chicago City Council narrowly passed Mayor Brandon Johnson’s proposed $17.3 billion budget on Monday. The budget includes a property tax increase that was a major point of contention during the debates.
Despite initial plans for a $300 million property tax hike, last-minute changes reduced it to zero. However, other taxes and fees will still see an increase totaling $165.5 million. This includes a 2% rise in taxes on software licenses, cloud services, and digital goods as well as a 1.25% increase for streaming and cable TV subscriptions.
In addition to these changes in revenue sources, the approved budget also calls for cost-cutting measures within city government itself. This includes eliminating ten positions from Mayor Johnson’s office and reducing staffing levels in middle management roles across various departments.
Furthermore, the new budget aims to save an additional $40 million by restructuring debt payments related to the city’s acquisition of land previously occupied by Michael Reese Hospital.
Overall,the final vote tally was 27-23 in favor of passing Mayor Johnson’s revised proposal without any property tax hikes included.
