Mayor Johnson considers layoffs, property tax hike to address $1 billion budget deficit

CHICAGO – Mayor Brandon Johnson is looking for new ways to close the nearly $1 billion budget deficit the city is currently facing, including possible layoffs or even a property tax increase, according to a new report in Crain’s Chicago Business.

This comes as the mayor defends his appointments for a new school board .

Johnson recently addressed the school board shakeup on WTTW after he announced his new appointees Monday.

“The parents of this city elected one of their own, and I’m going to do everything in our power to ensure we don’t go back to a time of chaos,” Johnson said on WTTW. “I replaced this board because this is a transition period. I’m going to shepherd calmness and stability as we move towards, for the first time in Chicago, at least a partially elected representative school board.”

The current school board resigned rather than fire Chicago Public Schools CEO Pedro Martinez and take out a high-interest loan to cover budget costs.

“I’m going to make sure we invest in children and invest in the families of this city,” Johnson said. “I’m not going to cut, take away, layoff, fire, privatize so that other people can benefit and the people of the City of Chicago continue to lose. Not under my watch.”

However, Johnson is looking to cuts and potential layoffs to tackle the city’s nearly $1 billion budget shortfall.

The Chicago Sun Times reports Johnson has canceled two months of police academy classes as part of the effort to close the gap.

“I’m being assured that every recruit who’s been hired, trained and is in the process of going through the academy will still be able to complete their training. It will just be delayed by a couple of months. Frankly, I don’t really see the advantage of doing this and my concern is that there will be some attrition,” Ald. Brian Hopkins (2nd Ward) said.

However, a new statement from the Office of Budget and Management issued Tuesday night seems to indicate those police academy classes are, in fact, not canceled, but they were approved ahead of time.

In terms of trying to fix the billion-dollar deficit, Johnson has told city department leaders to find personnel cuts in their budgets in an “exercise” in case the city has to lay off employees, according to Crain’s Chicago Business.

The American Federation of State, County and Municipal Employees (AFSCME) made it clear it does not support a budget plan that includes layoffs and issued the following statement:

“AFSCME will oppose a budget plan that includes employee layoffs or furloughs. The city of Chicago has reduced frontline staffing in recent years and now has imposed a hiring freeze; further cuts to frontline staffing would hurt the city services that residents need. We’re ready to work cooperatively toward a budget plan that keeps Chicago working.”

The mayor has also reportedly considered a property tax increase, which would go back on a campaign promise, but could avoid layoffs and, with them, a disagreement with unions.

“It’s tough right now. I don’t envy the position that he’s in,” Hopkins said. “This may be the most challenging set of circumstances that I’ve ever seen to sit down and craft a balanced budget. “

The city is also planning to save money through refinancing. The mayor’s office announced Tuesday the finance committee has approved the city to issue $1.5 billion in new bonds at lower interest rates to replace outstanding bonds at higher interest rates. It’s estimated that would save the city $110 million.

Johnson has pushed back his budget address to the end of the month, but that refinancing idea requires full approval from the city council. They are expected to take it up tomorrow.

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