Brother, can you spare a billion? – Chicago Magazine

TThe City Council found itself in a bona fide situation a few months ago when it learned that the city was projecting a $982 million deficit by 2025. By law, the council must approve a balanced budget by the end of this year. Where is the city going to get that kind of money? Mayor Brandon Johnson says he remains committed to his progressive vision — not to mention ensuring his wife’s office gets an $80,000 upgrade. But when a billion dollars are at stake, something has to be done.

A FIFTEEN CENTURY OF DISCOUNTS

This isn’t the first time Chicago has participated in the “Oops, we don’t have enough money” rodeo. The city has suffered from a ‘structural deficit’ every year since 2001. We like to spend more than we earn, okay? It’s very bad. But this year it feels different as experts claim the city has been fully utilized. Mayors have taken austerity measures in the past. Think of corporate taxes, privatization of services, cuts to government programs and layoffs in the cities. But these are often short-term solutions and do not address the core problem. Remember when Mayor Richard M. Daley leased all the parking meters to a private investment group for 75 years? While it closed a budget gap in 2008, it has essentially poured billions into passive city revenues over the next several decades. Cool, cool.

EXPENDITURE FOR 2025

The city spends billions on services every year, but in 2025 there will be a lot of nice perks. These include, but are far from limited to, a new firefighter contract with back wages; extra OT payment for police; $150 million for migrants; and the $175 million in non-teacher pensions that Chicago Public Schools failed to budget, arguing it is the city’s responsibility. Ouch. Meanwhile, Chicago is missing out on revenue opportunities, critics say. Last year, the mayor opted to skip the automatic inflation-linked property tax increase, fulfilling a campaign promise. Maybe he should eat his words.

WHAT NOW?

Whatever hold-your-nose solution the City Council agrees to is unlikely to put the kibosh on addressing Chicago’s budget deficit problems. The city’s population has declined every year since 2015 — a fact designed in a laboratory to fuel endless Thanksgiving dinner debates from hell. Fewer working Chicagoans means fewer taxpayers and therefore less revenue. And we know exactly what keeps people sticking around: higher property taxes!