Chicago mayor's 'Fair Share Budget' calls for increased spending, corporate tax

CHICAGO - Chicago faces a major budget shortfall and a familiar fight over how to close it.

Budget aims to close shortfall

What we know:

Mayor Brandon Johnson unveiled his long-awaited 2027 budget Wednesday, proposing a corporate head tax to help close a nearly $900 million shortfall.

The administration is calling it the "Fair Share Budget." The proposal includes $131.5 million in new spending.

It allocates an additional $7 million to community violence intervention programs, including funding to hire 390 street outreach workers and 50 youth peacekeepers.

Corporate head tax targets larger businesses

Dig deeper:

The $17.6 billion budget also calls for opening a new city-run health clinic, allocating $30 million for libraries and providing $100 million for housing and homelessness services. The proposal also identifies $120 million in savings and cost reductions.

Under the plan, $500 million in tax increment financing (TIF) funds would be made available, with $285 million going to Chicago Public Schools.

Despite saying in September that he would not do so, Johnson is proposing borrowing $480 million to cover police misconduct settlements.

A major point of contention is expected to be the proposed corporate head tax, which the administration has branded the "Equitable Employer Tax."

The proposal would charge businesses with more than 125 employees $25 per employee each month. It also includes a potential rebate for businesses that hire workers in historically disinvested areas.

For Chicago residents, the question is how those costs could affect them. At City Hall, the question is whether aldermen will approve the proposal.

City Council faces deadline

What's next:

The City Council must pass a budget by Dec. 31. Budget hearings could begin as soon as next week.

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