Chicago officials revealed Friday that the city is heading into 2026 with a staggering $1.15 billion budget shortfall, raising urgent questions about how Mayor Brandon Johnson will bridge the gap. The deficit comes on top of a nearly $150 million shortfall this year, driven by rising costs and uncertain revenues. While Johnson pledged transparency and progressive solutions, he offered little detail on specific measures to address the crisis.
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Growing Budget Shortfall
Mayor Brandon Johnson and his budget team confirmed Friday that Chicago is projected to face a $1.15 billion deficit in 2026, slightly higher than last year’s estimate of $1.12 billion. The figure is compounded by a $146 million shortfall for the rest of 2025, which officials attribute to underperforming revenues and unresolved questions over pension reimbursements from Chicago Public Schools. “The drivers are clear: rising personnel, health care and pension costs, combined with the loss of one-time supports that previously helped balance the budget,” Johnson said.
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Transparency Over Tough Truths
During a press briefing, Johnson said the grim forecast highlights “some hard truths” but emphasized his administration is choosing transparency. “Unlike in the past, when forecasts sometimes understated the scope of the problem, this administration, of course, is choosing to be transparent. We are not hiding the challenge.” Officials presented three outlooks, positive, baseline, and negative, with the baseline viewed as the most realistic scenario…