Chicago Faces More Fiscal Pain Even After Budget Narrowly Passes

While Chicago Mayor Brandon Johnson scraped together enough votes to pass a 2025 budget with a patchwork of tax hikes, the city’s fiscal woes are far from over.

Higher wages, pension bills and inflation are still weighing on the city as Covid-era funds used to help plug the 2025 deficit are ending. That means less cushion for future shortfalls, and the outlook for more state and federal aid is uncertain. Johnson said that he’ll keep pushing for progressive revenue like higher levies on the rich, a campaign vow that hasn’t panned out yet.

“While Chicago’s approved 2025 budget underscores a ...