By Townhall Chicago News Staff
Mayor Brandon Johnson hosted a virtual town hall to promote his proposed fiscal year 2027 “Fair Share Budget,” drawing more than 150 residents who posed questions about spending priorities and revenue, according to an Oct. 23 mayor’s office news release.
The session came two days after Johnson delivered the budget proposal to City Council, and it offered residents a direct channel to weigh in as alderpersons prepare for committee hearings and votes.
The $882.4 million budget gap that the proposal seeks to close represents one of the largest shortfalls the city has confronted in recent years. Johnson’s plan avoids layoffs and cuts to critical services, instead relying on a mix of cost savings, debt management and new revenue, according to an Oct. 21 budget news release from the mayor’s office.
The centerpiece revenue measure is the Equitable Employer Tax, which would charge the city’s largest corporations $25 per month for each Chicago-based employee. The tax is projected to generate $101.8 million, according to the release. Companies could earn back a monthly credit for each employee who lives in a historically disinvested neighborhood through the Socioeconomically Disadvantaged Area Employment Expansion and Development Credit.
“Every year during the Johnson administration, the budget office has undertaken an exhaustive review of each City department’s spending, going line by line, looking for ways to streamline and cut costs without impacts on city services,” Acting Budget Director Jonathan Ernst said in the Oct. 21 release.
The proposal also includes $7 million in increased funding for Community Violence Intervention street outreach, enabling the hiring of 390 new street outreach workers and 50 Youth Peacekeepers. An additional $30 million targets homelessness prevention, while $30.9 million would subsidize Chicago Public Libraries to avoid service cuts or a property tax levy increase, according to the release.
Johnson’s plan calls for opening an additional city-run mental health clinic and expanding the Crisis Assistance Response and Engagement program to seven days a week.
Since 2023, the city has made nearly $1.1 billion in supplemental pension payments beyond what is required by statute, according to the release. A $363 million supplemental payment is included in the fiscal year 2027 plan.
“The City estimates that the global settlements accounted for in the 2027 budget will save the City between $300 and $400 million relative to litigation that could go on for years,” Chief Financial Officer Ashlee Gabrysch said in the release.
The administration said 88 percent of residents who participated in budget engagement sessions called for taxing large corporations, a figure the mayor’s office cited in framing the Equitable Employer Tax.
Across the first three Johnson budgets, the city has realized more than $740 million in cost savings through organizational improvements and personnel reductions achieved without layoffs, according to the release.
The virtual town hall format allowed residents from all 50 wards to participate without traveling to an in-person hearing. The mayor’s office did not specify when the next public engagement opportunity would occur.
City Council committee hearings on the budget are expected to continue in the coming weeks ahead of a final vote. Residents seeking additional information about the proposal can visit the city’s Office of Budget and Management website.
