(The Center Square) – Although Mayor Brandon Johnson says he is starting Chicago’s budget process earlier than ever, one alderman says the city’s deficit could be much greater than the mayor’s projections.
Johnson signed an executive order Monday to establish a budget working group, which would be tasked with making recommendations to streamline operations, enhance service delivery and evaluate potential revenue strategies.
“Our city faces two challenges: a structural deficit and a hostile federal administration that has threatened to cut off billions in funding for Chicagoans,” said Johnson. “This executive order is about bringing Chicagoans together so that we can continue the critical work of investing in our people. I have confidence in the collective wisdom and expertise of this wide range of stakeholders that will generate sustainable solutions to the challenges in front of us.”
The mayor said Chicago faces a $1.12 billion budget gap in fiscal year 2026 and a $1.32 billion gap in 2027. Johnson cited personnel, pension and contractual costs as key budgetary challenges. He also said the Trump administration threatened to cut more than $3 billion in federal funding.
Alderman Scott Waguespack told The Center Square that the city’s budget deficit is likely to be much greater than the mayor’s numbers indicate.
“We’re going to have a pretty significant shortfall. I would say it’s going to be close to a billion and a half dollars, if not more, just because of the lack of cuts and reluctance by the mayor and his administration to do the things that were necessary, that a lot of us were talking about, that industries were talking about,” Waguespack said.
Waguespack said the mayor’s timing is aggressive and premature.
“First of all, they don’t have a legislative agenda for the city, the state or the feds, especially on budgetary issues or finance issues. Typically, you would reach out to the participants before launching,” Waguespack said. “There is a way to do it, but I think so far they’ve really jumped ahead of themselves without having a good plan in place.”
Waguespack said city officials need to work with the business community.
“If we don’t sit down and speak to small to large businesses, manufacturing, finance and other industry, we’re not going to be able to get around this corner and really focus on what needs to change in the city,” Waguespack said.
