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Chicago Reports Midyear Revenue Shortfall Tied to Council-Backed Budget

Mayor Brandon Johnson says failure to realize new revenue streams has created a midyear gap that raises pressure on the city's 2027 budget.

Overview

  • The city's midyear budget report released July 7 shows large missed revenue targets, with the mayor's presentation totaling about $131.7 million in underperformance while some outlets reported a narrower $32 million first-half shortfall.
  • Two major planned sources produced no cash so far: a long-term city debt sale that was projected to bring about $89.6 million and bridge and light-pole advertising forecast at roughly $29.3 million.
  • Other council-approved ideas have stalled or are contested, including $6.8 million from legalized video-gambling terminals that remain offline because of disputes with Bally’s over exclusivity and about $6 million tied to an augmented-reality licensing program.
  • Johnson blames City Council for rejecting his proposed corporate head tax that he estimated would raise about $100 million, while the Budget Accountability Coalition says the administration has slow-walked implementing the council’s revenue plans.
  • The mayor declined to specify fixes beyond saying he will try to avoid service cuts and layoffs, and a separate mayoral task force has warned of a much larger projected shortfall for 2027 of roughly $680 million that will shape fall budget talks.