Chicago projects $882M budget deficit for 2027

Chicago is facing a projected budget deficit of $882 million for 2027, according to a financial forecast released by Mayor Brandon Johnson's administration this week. While this figure is lower than previous estimates, it signals significant fiscal challenges ahead as the city prepares its annual budget. City officials attribute the reduced deficit, down from an earlier projection of approximately $1.2 billion, to better-than-expected revenue from several city initiatives, including the Personal Property Lease Transaction Tax and taxes on online sports gambling. Mayor Johnson highlighted these revenue measures as key factors in narrowing the gap. However, the forecast also points to substantial increases in city expenses. Settlements and judgments, particularly those related to police misconduct lawsuits, are expected to rise by $266 million compared to the previous fiscal year, with a total of about $401 million budgeted for these costs. Other rising expenditures include debt service, which is projected to increase by $70 million, along with higher costs for fuel, energy, employee benefits, and pension obligations.