Chicago Budget Task Force Recommends Tax Hikes, Higher Fees To Close 1 Billion Gap

The Chicago Financial Future Task Force has presented a series of recommendations to address a projected $1 billion budget gap for 2026. Among the proposals are increases in garbage and rideshare fees, a hike in the liquor tax to 3%, and an extension of the current hiring freeze for non-critical positions. Although some recommendations could raise substantial revenue, they face significant political hurdles. Additionally, the city is dealing with a $146 million shortfall for the remainder of 2025, attributed to underperforming revenues and a lack of pension reimbursements. The task force, created by Mayor Brandon Johnson's executive order, consists of over 20 members from various sectors, including business and labor.

Their report suggests potential solutions that could generate between $1 billion and $2. 1 billion for the city. Notably, the task force's proposal to tie property tax increases to inflation has already met resistance from the mayor. The recommendations emphasize a collaborative effort to stabilize Chicago's financial future while providing a range of options for the City Council.