Chicago’s Budget Deficit Balloons to Nearly $1 Billion in 2025

Chicago Mayor Brandon Johnson announced that city’s deficit for 2025 will be close to $1 billion because of higher pension and labor costs. The city will need to fill an unexpected shortfall in this year’s budget as well.

The third-largest US city must close a shortfall of $982.4 million in its main operating account — known as the corporate fund — for next year, according to a budget briefing. That estimate includes the cost of migrant services and revenue declines from a levy placed on corporations known as a replacement tax.

“The size of the budget gap is significant” Johnson ...