illi News - Chicago: Mayor Brandon Johnson's Structural, Progressive Revenues Exceed Expectations in 2026 Mid-Year Budget Report

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CHICAGO ~ Chicago Mayor's Mid-Year Budget Report Shows Success in Progressive Revenue Measures

In a recent press release, Mayor Brandon Johnson announced the release of the City of Chicago's 2026 Mid-Year Budget Report. The report highlights the success of many progressive revenue measures proposed by the Mayor, while also shedding light on the underperformance of certain components of the alternative 2026 budget adopted by the City Council.

According to Mayor Johnson, the report clearly demonstrates that when revenue is collected in a stable and fair manner, without placing an undue burden on working families, the budget works. However, when efforts are made to collect more from working Chicagoans instead of asking the wealthiest to pay their fair share, it does not have the same positive impact. This has real consequences for future planning and budgeting.

One of the key successes highlighted in the report is the performance of online sports wagering and social media amusement tax, both of which were advanced by Mayor Johnson's administration. These measures have generated a combined revenue of nearly $31 million through May this year, exceeding projections by 69% and 25% respectively. Additionally, revenue from Personal Property Lease Tax has also exceeded projections by 11%, bringing in over $402 million.

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These strong performance indicators build upon the success seen in Mayor Johnson's 2025 budget in terms of revenue generation. On the other hand, proposals included in City Council's alternate 2026 budget have not generated any revenue so far. This includes a plan to sell city debt to a private buyer instead of taxing wealthy corporations, which was projected to bring in between $89 million and $90 million. As a result, there is a risk of a revenue shortfall of over $130 million.

The Mid-Year Report also highlights significant progress made by Mayor Johnson's administration in cutting costs and creating efficiencies within city operations. This is based on proposals laid out in the City's Financial and Strategic Reform Options report published in October 2025. All city departments are currently under budget, and efficiency improvement initiatives are showing promising results. For instance, benefits savings have exceeded the target by 143%, while fleet disposition has achieved 65% of its revenue goals through May this year. Other initiatives such as land sales and procurement efficiency are also on track to meet their goals.

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Budget Director Annette Guzman credits collaboration across all city departments and a shared resolve to do more with limited resources for these positive results. She also emphasizes the importance of maintaining firm control over spending and continuing to track progress towards efficiency goals.

The Johnson Administration remains committed to strengthening the city's financial foundation through responsible budgeting, transparent financial reporting, and investments that benefit Chicagoans. This includes addressing the city's financial challenges with fiscal discipline and investing in the people and communities that make Chicago strong.

For more information on the Mid-Year Report, including the full report itself, visit the City of Chicago Office Of Budget and Management (OBM) website.

Filed Under: Government, City

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