Mayor Lightfoot announces tax increases, job cuts due to COVID-19

It's a plan balanced by tax increases and across the board job cuts.  

Using the Great Chicago Fire as an example of how the city has recovered in the past, Mayor Lightfoot said we'll do it again, but not without more tax dollars that will have every Chicagoan feeling the burn. 

"It has been a very tough year,” Mayor Lightfoot said Wednesday. "And yes, we seek a modest property tax increase."

"This budget we are presenting today also contains layoffs of approximately 350 positions,” Lightfoot continued. 

Over 100,000 Chicagoans have filed for unemployment this year by the city's count. Despite this, the mayor is still asking all Chicagoans to dig a little deeper. 

How deep? A $94 million property tax increase will go up even more each year based on inflation.

“And for the average Chicago home valued at $250,000, you will pay just $56 additional dollars for the whole year," said Lightfoot.

That's not all. A three cent gas tax increase was also announced, which will be on top of the state's gas tax increase this year from 19 to 38 cents a gallon. 

The spending plan also calls for refinancing city debt, which will cost Chicagoans more down the road. There will be more city parking meters, as well as a mixture of layoffs and furloughs.

Millions of dollars in costs will be shifted to Chicago Public Schools. The city will also take $30 million from it's rainy day fund to make ends meet. 

Revenue loss from the pandemic has resulted in a 65 percent budget gap. The city lost $800 million already this year. Next year that deficit is forecast to be $1.2 billion.

They mayor says if the city doesn't get federal help, there could be more to come.