Hiring Freeze Not Enough, Chicago Mayor Tells City Departments to Cut Vacant Spots, Limit Projects

Chicago city leaders forced by Mayor Johnson to weigh tough budget cuts to address growing financial crisis

Mayor Brandon Johnson presides over Chicago City Council meeting where he asks that vacant positions be cut in addition to the hiring freezePhoto byScreen Capture/Youtube Video [Creator]

CHICAGO — As Chicago grapples with a ballooning budget deficit, Mayor Brandon Johnson's administration is urging city departments to consider cutting vacant positions and scaling back on projects to address a financial gap that has now surpassed $1 billion.

The mayor’s office has requested that Chicago department heads evaluate the impact of eliminating unfilled jobs and explore potential cost savings, according to Cristina Pacione-Zayas, the mayor’s chief of staff. The city, which has already frozen hiring, postponed the announcement of its budget by two weeks as the administration works to close a $223 million shortfall for the current year, along with an additional $982 million deficit projected for next year.

“The mayor has consistently said that everything is on the table,” Pacione-Zayas stated following a recent Chicago city council meeting. “Departments were asked to assess their vacancies, with an analysis already underway to understand where cuts might be feasible and what the operational impact could be.”

Mayor Johnson, now in his first term, is tasked with the difficult balancing act of fulfilling his progressive campaign pledges, which include avoiding property tax hikes, while navigating revenue challenges that have fallen short of projections. Additionally, the city’s budget woes were exacerbated by an unexpected refusal from the Chicago Public Schools district to make a scheduled pension payment, further straining financial resources.

Chicago’s full-time workforce saw a slight decline in 2021, with 36,420 employees at the end of 2023 compared to 36,970 in 2010, based on city bond documents. Despite this decrease in headcount, overall personnel costs have continued to rise, driven by wage increases, contract obligations, and pension commitments.

As the mayor prepares to unveil his spending plan on October 30, no definitive decisions on job cuts have been made, according to Pacione-Zayas. The administration is also reviewing several programs initiated by previous administrations to determine whether they still align with current resources and priorities.

“Departments are the experts in their fields,” Pacione-Zayas noted. “They know that any reductions must be made with operational efficiency in mind, particularly when it comes to mission-critical functions.”

The potential for job cuts could put Mayor Johnson, who was strongly supported by the Chicago Teachers Union during his campaign, in conflict with labor groups. About 90% of Chicago’s municipal workforce is unionized, and any reduction in staff is expected to face significant opposition from unions.

The American Federation of State, County and Municipal Employees (AFSCME) has already voiced its resistance to any budget proposals that include cuts to city workers. “The city workforce has already been reduced to the point where many departments are critically understaffed,” AFSCME spokesperson Anders Lindall said in a statement. “Further reductions — whether through layoffs or not filling vacancies — will only harm the essential services residents depend on. Budget solutions must not involve damaging cuts.”

As discussions continue, Johnson's administration is meeting with Chicago department heads, city council members, and labor leaders to evaluate every option on the table. “We are working collaboratively to address this challenge,” said mayoral spokesperson LaKesha Gage-Woodard in a statement, noting that the administration remains committed to finding solutions that will not compromise the city’s core services.