How to balance Chicago’s budget without raising property taxes: Civic Federation offers its options, preferring cuts over increases

CHICAGO (WLS) — There are two weeks left until Mayor Brandon Johnson presents his budget recommendations, and on Wednesday a tax watchdog group offered a series of options and recommendations, especially avoiding a property tax increase if possible.

The city faces a budget deficit approaching a billion dollars, and solving it will likely require a combination of cuts and raises, meaning the mayor and city council will have to make a lot of difficult choices.

ABC7 Chicago is now broadcasting 24/7. Click here to watch

The Civic Federation urged Johnson to try to balance the budget without raising property taxes.

“At this particular time, we are in the middle of a triennial reassessment, during a period when commercial property values ​​are suppressed, which means that residential property taxes will increase as a consequence of this,” said Joe Ferguson, president of the Federation Civic.

Ferguson said that because Chicago Public Schools will likely request a property tax increase to help with its own fiscal crisis, the city should not further increase homeownership.

READ MORE: Experts Explain TIF Funds Amid Chicago Budget Crisis

But during an interview today with ABC7’s Mark Rivera, Johnson suggested property tax increases might be necessary.

“But I can say with certainty that the services that the people of Chicago have come to rely on, whatever we do, we have to ensure that those services remain,” the mayor said.

The Civic Federation has offered a number of other revenue options that include increasing the city’s alcoholic beverage tax, implementing a 1% tax on groceries, adding video games or increasing the trash collection rate, according to the chairman of the mayor’s budget committee. , Ald. Jason Ervin, said he’s not a beginner.

RELATED: Chicago Budget Director Announces Citywide Hiring Freeze in Response to Projected Shortfall Close to $1 Billion

“Garbage taxes charge women on a fixed income the same as a millionaire. I don’t think that’s necessarily what you should,” Ervin said.

But the Civic Federation report focuses first on recommendations for how the city can cut costs before increasing revenue. They include considering furloughs and eliminating vacancies, currently estimated at more than 2,500.

“56 We carry them, even though we don’t fill them year after year. That begs the question: Why are they there? Granted, cutting jobs actually tends to involve the use of political capital, which the mayor seems reluctant to spend,” Ferguson said .

“I don’t want cuts, I don’t want layoffs,” Johnson said.

Ferguson hopes the report can provide a roadmap not only for the mayor as he prepares his budget, but also for the city council so they can be better informed before taking any votes.