Chicago Mayor Brandon Johnson, a Democrat, announced a hiring freeze on city employees on Monday to help close a roughly $1 billion shortfall in next year's city budget, the Chicago Tribune reported.
The freeze is meant to help close a projected $982.4 million budget shortfall for fiscal year 2025 while Johnson awaits city council approval when he presents his budget in October. According to The deficit is mainly due to “rising personnel, pension and contract costs and continuing revenue challenges,” Chicago Budget Director Annette Guzman said, according to the Chicago Tribune. said He said in a statement Monday, ABC7 reported.
“Starting today, I am implementing a series of budget restrictions, including a citywide hiring freeze and strict limits on non-essential travel and overtime spending outside of public safety operations,” Mayor Guzman said, according to the Chicago Tribune. (Related: Chicago's Brandon Johnson named 'Worst Sanctuary Mayor')
It has not been made clear whether Chicago police or fire department employees would be affected by the staffing freeze, according to the Chicago Tribune. There have been no details released about how the city will make up the shortfall beyond the staffing freeze.
Chicago Mayor Brandon Johnson speaks onstage during the first day of the Democratic National Convention at the United Center in Chicago, Illinois, August 19, 2024. (Photo by Joe Raedle/Getty Images)
Prime Minister Johnson previewed plans to implement budget cuts for 2025 in August, projecting a budget deficit of $223 million by the end of 2024. According to According to a city press release, the shortfall for 2024 is due to a decline in state personal property replacement tax revenue and the city's failure to receive the $175 million Chicago Public Schools (CPS) budget pays annually to contribute to pensions for non-teaching CPS employees.
“The projected budget gap clearly illustrates the financial pressures facing the City of Chicago,” Guzman said in an August press release, “and highlights the critical need for structural solutions that address these challenges not only next year but into the future. We will continue to explore all options to close this gap while minimizing impacts to essential services and making smart investments in the City's future.”
Former Chicago Mayor Lori Lightfoot, a Democrat, also instituted a hiring freeze in 2019 when she faced a budget shortfall, according to the Chicago Tribune.
Johnson's office did not immediately respond to a request for comment from the Daily Caller News Foundation.
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