CHICAGO - Mayor Brandon Johnson’s office expects the city to run a $1.15 billion budget deficit in 2026 amid declining revenues, rising personnel costs, and fears of the effects of federal funding cuts to social service programs.

Chicago is also expected to finish 2025 with a $146 million deficit due in part to the uncertainty over a CPS pension reimbursement payment.

What we know:

While local leaders touted the city’s strong economy, they pointed to the structural imbalance between the revenue it takes in compared to its growing expenses.

Johnson has in the past proposed increasing property taxes to raise revenues, but it's been politically unfeasible after City Council members rejected the idea last year.

The mayor has also been arguing for taxing the "ultra rich." One idea h

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