>> Chicago is facing an 882 million dollar budget deficit in 2027.

That's according to a budget forecast released by Mayor Brandon Johnson's office last week.

The forecast highlights soaring pension costs spiraling personnel costs and a massive amount of debt as factors driving the shortfall, setting the stage for a dramatic season.

A budget negotiate negotiations in City Council.

Joining us is Jason Ervin, alderman of the 28th Ward and chair of the City Council's Budget committee.

We also invited members of the coalition of all people who adopted a budget over Mayor Johnson's objections last year.

But they either declined or did not respond.

Alderman Urban, welcome back.

>> Thank you for having me.

So what is your reaction to the forecast that was released last week?

>> Really, it's probably the most honest interpretation of the city's financial condition.

I've seen in my 16 year tenure as an alderman for us to talk about having pension obligations fully disclosed and put on the table to have the lawsuit and settlement stat.

We know exist fully disclosed and put on the table.

It's something that we have not seen, which is a, which part of the driving factors of 882 million dollar deficits.

If you take those things out, you're probably looking at more about 3, 40 million, which, you know, is small comparison to where we've been, but it would not given us honest assessment of where we are.

>> The forecast a deficit for this budget cycle.

As we said, 882.4 million.

That 23% smaller than last year's deficit, which was 1.1, 5 billion smaller, but still massive.

What he what you think is behind this decrease?

Well, a couple of things we did at some structural revenue with the personal property replacement tax.

We've added some things in of also killed the line.

>> On expenses, which of course, are the 2 things that are going to drive any deficit.

However, we still have costs that are increasingly look at our NBA Bf.

I'm sorry, our pension payments that are going and also aren't necessarily the city of Chicago's responsibility, but we are, you know, legally responsible for them.

So when you look at these factors, we take some of these things weigh.

city itself is doing fairly well.

This is external factors that have kind of caught up with the sun is giving us situation, OK?

Mayor Brandon Johnson, he's declined to rule out property taxes to raise that additional revenue.

>> It failed its failed before in the past under Mayor Brandon Johnson.

Could that be back on the table?

It could be if that's what he proposes.

I know that we're while living to residents that are represented.

>> We just saw some of the highest property tax assessment changes.

We've got residents whose bills, you know, gone 30, 40, 50, 60%, not in a position to support that.

As of today.

But again, I would wait to see what he puts on the table and looking you yet of changes pope hopefully between expenses and on the revenue side.

You know, we will get to a balanced budget.

>> The mayor has said he will once again focus on passing progressive revenue options.

He's declined to rule out that per employee head tax so-called head tax on Chicago's largest did not pass last year.

Would you support a revived push for the head tax?

>> I think we have to look at progressive revenue as a whole.

We need support and help from the state of Illinois and how we're able to look at certain things.

For example, I'll use an example.

If you look how we collect garbage, a garbage fee, for example, we do have a garbage fee.

But it's same fee.

There's somebody in Beverly pays somebody in Garfield pages, somebody across the other parts of the city pay, which again is a is a flat tax which is regressive.

We have to look at ways in which we can potentially look you know, look at people's property values in assessed along those lines as well, which again, is is not ideal, but he would give some level of value as relates to what we're doing.

So I think we have to find better ways.

We also need to work with our work with the state has released a sales tax modernization right?

We're we're one of a handful of states to have our cake sales tax system.

So think there are ways we can look at this.

However, the city of Chicago on its all can implement the sting.

So we have to work with the state to get used so garbage.

The sales tax working with the state.

What other kind of revenues would you like to see?

What do you think would get through the city council and raise funds research for Good quest to 882 million dollar question for you know what?

I think that we will have to come to some conclusions.

I think they're going to be competing this interest as always are.

>> There's one group that wants us to reduce expenses as one who wants this to raise expenses.

One who wants to reduce revenue of one wants to raise revenue.

>> So ultimately, I believe that the members of the city council will come together chart a path that is equitable.

The works for Mosul work fine, but I think would work work for essential services.

The mayor has ruled out cuts to those, but is it possible that an 882 million dollar hole can be plugged without cuts?

>> I don't believe so.

I think that there will be some adjustments needed to be made on our expenditure side.

>> Again, no one wants to reduce our police fire services, but other things may have to be looked at it is what it We have to have a balanced budget.

We have to work within our means.

If we don't have the revenue that we have to make adjustments to bring our expenses down, to meet that, what could be on the chopping block.

That is a very good Again, I think that when we look at this, we have to look at services.

We have to look at what we do when you go to different places across the country Chicago has a very high level of municipal service in comparison to other municipalities across the country.

And we have to honestly look at are there some things that we may not continue to do order to bring that into balance.

Now, when you asked residents, the answer is I want to continue.

Everything is going to want to have the lowest tax possible.

So we'll go through this exercise.

And again, we'll wait to mayor to make his executive introduction.

And will we as the council will take a look at it make heads or tails the forecast estimates the city will have about 340 million dollars in surplus dollars from TIF districts.

>> 181 million of that would go to Chicago.

Public schools in the budget.

Those and public schools is budgeting for much more than that for about 280 Million.

Did the school district make a bad bet to assume 280 million based on previous year's surplus?

Is is my understanding that the since Scott was very clear as to what the anticipate that number to be, not only did you know, they're above the number 4 to surplus, but also some additional funding from the state of Illinois.

>> That they, too, looking to have 150 Million.

So I don't know the answer to that question.

And if the city of Chicago, we'll increase the amount of the surplus in order to give more money to CPS.

Again, doing that would require a project to be put on hold these to be delayed or to be castle, which will come down to decisions groups of all as these projects impact communities across the city.

Last year, the city declared a billion dollar surplus.

Why is this one so much smaller again?

we everyone knew that that was not in and you will.

thing that would happen, right?

Because it is a surplus and it takes time to generate a surplus.

And also part of that could would result in cancellation or pushing back a certain projects.

And I think everyone kind of got the message that and said, hey, the project that you are thinking about had in your mind and headed in your office somewhere.

We need to get that with the Department of Planning.

So could be put on the books so that a lot of members did.

This will now we are projects on the books so we don't have a level of surplus that one may have anticipated.

They've been in the past because people now looking at and we must see the use it or lose it and people are beginning to use it.

>> So last year a coalition of aldermen were able to pass a budget over the mayor's objections and they have that, you know, coalition supported plans, including selling Chicagoans debt to private companies, as well as a plan to sell advertising spots on city.

Light poles.

In a statement, they say, quote, while the Johnson administration works overtime to deflect from failures of its own, making, the reality is straight forward.

This administration abandon Chicagoans on the most basic responsibility of governing, executing the budget.

They slow walked multiple fiscal year 2026 revenue measures that could have generated hundreds of millions of dollars towards reducing our structural deficit, then pointed fingers at everyone else for not getting the job done.

30 seconds left alderman, what's your reaction to that position?

That's not a fair assessment.

I said and working groups you met with some of the same bankers.

I mean, the biggest chunk of that 89 million dollar decision to sail debt.

>> That 20 of the top bankers in this country said no to.

So I think that speaks volumes over whatever the thought and again, to sail the dead.

And when you look at that impacted would handle some of our communities would have been monsters.

Okay.

We know that we've got about a month before we hear the mayor's budget