Overview
- The $16.6 billion plan seeks to close roughly a $1.15–$1.2 billion gap without a property tax hike by declaring a record $1 billion TIF surplus, with Chicago Public Schools projected to receive about $520–$552 million under the statutory formula.
- Revenue measures include reviving a $21-per-employee-per-month head tax on firms with 100 or more employees (estimated $100 million), a first-of-its-kind social media user tax of $0.50 per active user over 100,000 (about $31 million for mental health services), and higher taxes on cloud/software and online sports betting.
- Spending controls feature $200 million in departmental savings, a targeted hiring freeze, consolidation and asset sales, and a cap on police overtime that would require council approval to exceed.
- The proposal reduces the previously planned 2026 pension advance to $120.2 million from an earlier $185.8 million target due to weaker-than-expected revenues such as delayed casino proceeds.
- Reactions split quickly, with the Chicago Teachers Union and some school board members praising CPS relief to avert midyear cuts, while business groups warn the taxes could depress hiring and investment as the administration signals willingness to negotiate tax levels to secure the 26 votes needed.