Brandon Johnson creates fiscal working group to tackle Chicago's budget deficit

Chicago Mayor Brandon Johnson aims to tackle city's $1.1B budget deficit

Mayor Brandon Johnson is getting an early start on the 2026 budget process by creating a group to tackle the city's projected $1.1 billion deficit.

CHICAGO - Chicago Mayor Brandon Johnson launched a citywide initiative Monday aimed at addressing Chicago's structural budget challenges through collaboration and fiscal reform.

Johnson signed an executive order which directs the Office of Budget and Management to establish a diverse working group of business leaders, nonprofits, civic groups and City Council members.

A preliminary report is due by Aug. 31 with a final report expected by May 31, 2026.

The group will review city operations and develop proposals to streamline services, enhance efficiency and explore new revenue strategies.

"Bringing Chicagoans together"

What they're saying:

"Our city faces two challenges: a structural deficit and a hostile federal administration that has threatened to cut off billions in funding for Chicagoans," Johnson said in a statement. "This executive order is about bringing Chicagoans together so that we can continue the critical work of investing in our people. I have confidence in the collective wisdom and expertise of this wide range of stakeholders that will generate sustainable solutions to the challenges in front of us." 

Budget director Annette Guzman said the working group represents a "historic opportunity" to rethink how the city manages public funds. 

The group's recommendations are expected to be incorporated into the fiscal year 2026 budget process.

Last December, Chicago City Council passed Johnson's 2025 budget with a 27-23 vote after lengthy negotiations and the removal of a controversial $68 million property tax hike.

To read the full executive order, tap here.