Chicago Mayor Brandon Johnson unveiled a $17 billion budget proposal for fiscal year 2027 that earmarks almost $100 million for existing housing and services for people experiencing homelessness and $30 million to strengthen the Chicago Public Library. The mayor plans to present the budget to the City Council on Wednesday.
Funding for homelessness prevention
The budget includes $99 million to protect current housing and supportive services for low‑income renters and people experiencing homelessness. The allocation breaks down into $15 million for the Department of Family and Support Services’ Homeless Services, $13 million for the Chicago Low‑Income Housing Trust Fund, and $2 million for the Flexible Housing Pool, which supports both Chicago and Cook County.
Johnson said the money is needed to counter anticipated federal cuts to the Permanent Supportive Housing program, which provides long‑term assistance to chronically homeless individuals facing severe mental illness or substance‑use disorders. He emphasized that the city must act now to keep 3,000 Chicagoans from becoming homeless next year.
Library investment
To address staffing shortages and long wait times for book deliveries, the mayor proposes $30.9 million from the city’s Corporate Fund for the Chicago Public Library, plus $9.4 million from the TIF surplus. The total would raise the library’s budget to $166.9 million, a 10 percent increase over the current year.
Mayor Johnson explained that the funds will close the library’s structural deficit, prevent layoffs, and allow the hiring of additional staff to improve services such as book holds and inter‑library transportation.
Revenue plan
While no property‑tax increase is proposed, Johnson is again advocating for a per‑employee corporate head tax on companies with more than 125 full‑time workers. The tax would be $25 per month per employee, with rebates available for businesses located in economically disadvantaged neighborhoods. Alderman Bill Conway called the tax “a dead tax” and warned that vilifying companies could hinder job creation.
The budget also proposes higher taxes on liquor, lease transactions for services such as cloud computing and sports betting, and relies on borrowing to cover police misconduct settlements.
Reactions
Mary Tarullo, director of city policy for the Chicago Coalition to End Homelessness, welcomed the proposed protections for housing programs but urged the city to fully fund the allocations in the final budget. Alderman Conway expressed concern that the head tax could discourage employment growth and urged the mayor to focus on collaboration rather than divisive rhetoric.
AFSCME Local 1215, representing many library workers, declined to comment before the full budget release.
Next steps
The mayor is confident that alderpeople will approve the plan, citing last year’s $40 million investment that improved seven shelters on the South and West sides. The City Council will debate the budget and the corporate head tax in the coming weeks, with the final package expected before the municipal elections next year.
Original reporting: Block Club Chicago — read the source article.
