CHICAGO (WLS) — Chicago’s budget director has stated that 2026 is anticipated to be one of the most challenging budget years in recent memory, as the city confronts another significant budget deficit with limited effective solutions to address it.
“These roundtables hold great importance tonight,” expressed Chicago Mayor Brandon Johnson. “To ensure that our budget and budgeting process guarantees that all our residents are given a voice.”
ABC7 Chicago is now streaming 24/7. Click here to watch
On Monday, Johnson attended the second of four budget roundtables meant to engage the public ahead of what could be a contentious budget fight.
“Budget imbalances occur when one side of your ledger outpaces the other in growth. Ideally, this would be on the revenue side, but regrettably, it’s on the expenditure side,” explained City Budget Director Annette Guzman.
The city projected a 2026 deficit of nearly $1.2 billion, a figure that could grow if there are cuts in federal funding.
“We’re demanding a budget that serves the many and not the few, a budget that taxes the wealthy and not the working families,” said West Side resident and community organizer Crystal Gardner.
Last year, Johnson broke a campaign pledge and proposed a $300 million property tax hike. But facing objections, he took it off the table in favor of fee increases, cuts to unfilled positions and debt restructuring.
READ MORE | Chicago Mayor Johnson sends aldermen letter ahead of earlier budget talks, reluctant to make cuts
With the mayor determined to preserve investments for the unhoused and those needing mental health support, along with youth employment programs, he may again ask taxpayers to dig deeper.
“If we’re looking at a budget gap that’s grown by, say, $600 million to $700 million, I would think that’s the property tax hike that he’s going to ask for. It is going to be pretty painful for taxpayers,” said 32nd Ward Ald. Scott Waguespack.
After the mayor was criticized last year for failing to engage stakeholders, he formed a working group in April that will deliver budget recommendations by the end of August.
A balanced budget must be passed by the end of the year. Overreliance on one-time revenue could lead to another credit downgrade for the city.
Copyright © 2025 WLS-TV. All Rights Reserved.
