Chicago mayor orders citywide hiring freeze amid budget struggles

CHICAGO - Mayor Brandon Johnson announced a hiring freeze across city departments, including police and fire, as Chicago grapples with a projected $223 million budget shortfall for 2024.

The freeze takes effect immediately and is part of a broader effort to rein in spending as the city braces for an even larger $1 billion deficit looming in 2025.

In addition to halting new hires, the city will also impose strict limits on overtime to further control costs.

The deficit is primarily driven by uncertainty over a $175 million Chicago Public Schools pension payment for non-teaching staff. The city’s budget problems are also exacerbated by a decline in revenue from the state's Personal Property Replacement Tax.

Funding for Chicago's "New Arrivals Mission," which supports recent migrants and asylum seekers, has added to the financial strain.

During a budget hearing last month, city officials acknowledged that a property tax increase may be necessary to help close the budget gap.