The city of Chicago is taking drastic measures to close a budget deficit of over $1 billion by the end of next year. Budget Director Annette Guzman said in an email that starting Monday, non-essential travel and overtime expenses outside of public safety operations will be restricted. This year, the nation’s third-largest city faces an estimated deficit of $222.9 million, while another $982.4 million deficit is expected in 2024. “These measures reflect our commitment to responsible fiscal management in times of financial uncertainty,” Guzman said. City officials, including the budget and finance team, are working hard to address these financial challenges and ensure the continued delivery of essential services to residents. Mayor Brandon Johnson, currently drafting his second budget, is trying to implement his progressive social and economic campaign promises while grappling with the city’s challenging finances. Johnson will unveil his budget in the next month or two, including measures to close the 2025 budget gap. The Chicago City Council will then vote on the proposal by the end of 2024. The consecutive budget gaps are due in part to declining revenue from the state’s so-called personal property replacement taxes and the Chicago School District’s failure to pay $175 million to help fund pension contributions for non-teaching staff. Rising personnel costs, pensions and contractual obligations, as well as ongoing revenue problems, are driving next year’s projected deficit, according to Guzman.
