CHICAGO, Ill. (WHN) – The Washington Post Editorial Board has sharply criticized Chicago Mayor Brandon Johnson’s proposed budget, citing concerns over unfunded pension liabilities and the potential impact of new taxes on the city’s economic future.
The editorial, titled “Chicago has lost its mind,” argues Johnson’s plan relies on what it terms “financial band-aids” rather than substantive fiscal reform.
The newspaper highlighted Chicago’s long-standing structural financial issues, particularly its underfunded pension programs. It referenced a 2008 deal that sold off 75 years of parking meter revenue for $1.15 billion, a sum that was rapidly expended.
The city’s net operating budget reportedly increased nearly 40 percent between 2019 and 2025. Grant McClintock of the Civic Federation stated this increase was “subsidized in large part by temporary federal pandemic funding.” McClintock added, “The pandemic is over, but many of the programs and personnel positions established during that time remain, and without the benefit of the federal funding that previously supported them.”
Mayor Johnson’s administration proposes to address a $1.15 billion shortfall through new and increased taxes, alongside borrowing. This approach is viewed critically by the Washington Post.
Specifically, the mayor’s plan includes raising the tax on “personal property” leases, such as computers and software, from 11 percent to 14 percent. It also seeks to reinstate the city’s “head tax,” which would levy large employers $33 per worker per month.
The Washington Post asserted these measures could harm Chicago’s economic growth and tax collections. This assessment comes as the Chicago Fed’s 12-month hiring outlook is reportedly the weakest since the pandemic.
Illinois Governor JB Pritzker, a Democrat, has also voiced concerns, stating the head tax would penalize employment.
During a press event, Mayor Johnson responded to the Washington Post editorial. He rejected its assessment, stating, “Their information is wrong. But it wouldn’t be the first time a publication got something that I’ve done wrong.” A video of his remarks was shared by Austin Berg.
The Washington Post editorial concluded that while former Mayor Lori Lightfoot faced criticism, Johnson’s proposals appear to be a step backward.