Chicago’s Budget Deficit Balloons to Nearly $1 Billion in 2025
- City must also close a $223 million gap this fiscal year
- Mayor Brandon Johnson says pension, migrant costs led to gap
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Chicago Mayor Brandon Johnson announced that city’s deficit for 2025 will be close to $1 billion because of higher pension and labor costs. The city will need to fill an unexpected shortfall in this year’s budget as well.
The third-largest US city must close a shortfall of $982.4 million in its main operating account — known as the corporate fund — for next year, according to a budget briefing. That estimate includes the cost of migrant services and revenue declines from a levy placed on corporations known as a replacement tax.