CTA Orange Line Train, Chicago is licensed under Creative Commons.
Democrats in Illinois recently finalized their last-minute $55.2 billion budget, including a slew of higher taxes on tobacco and vaping products, gambling, and corporations. Yet even with $800 million in new tax revenue, many Democrats still claim that there is not enough money in the budget for public transit.
Lawmakers floated a plan to pump hundreds of millions into the CTA, but even some Democrats weren’t sold on Mayor Brandon Johnson’s ability to handle the money responsibly, given his terrible track record.
Whilst lawmakers are bemoaning funding cuts, the underlying problem—the city of Chicago’s budget—goes unaddressed. With a budget that has grown by 58% over the past six years, Chicago needs to address runaway spending before it considers raising taxes.
The Chicago Transit Authority (CTA), which is under the Regional Transit Authority, had a proposed operating budget of $1.99 billion in 2024. Its biggest expense was labor, comprising close to 70% of its costs. Owing to a decline in ridership, revenue has consistently underperformed expectations. In 2024, CTA ran a deficit of $472.5 million; that amount is currently projected to balloon to $576.9 million. Whilst the city received COVID-era assistance to plug this shortfall in the past, those payments are due to expire.
Lawmakers are struggling to find the funding to prevent a $770 million shortfall for 2026, which complicates matters as Illinois is currently projected to have a $3.2 billion deficit. Mayor Brandon Johnson, who currently boasts a 6% approval rating, called for higher taxes on wealthier residents to secure funding. Speaking to reporters, he said, “The ultra rich continue to get away with not having to put more skin in the game” and suggested taxing property sales above $1 million.
Mayor Johnson is a big fan of runaway spending, having approved of $830 million in borrowing just this year. The city’s pension debt is mounting to the amount of $51 billion, along with $400 million in yearly interest payments on the city’s debt.
The mayor’s comments represent a philosophy of governance that has failed time and time again but refuses to die. The city of Chicago has long been a victim of politicians that spend more than they bring in, and the consequences are finally catching up to them. As the nation moves towards fiscal responsibility, it is impossible for the city to continually justify federal spending on inefficient systems. As a result, Chicago will be forced to look inwards and ensure fiscal responsibility before they undertake any tax-and-spend plans in the future.
Since 2019, the city of Chicago’s budget has grown by $6 billion. Spending has largely gone to non-personnel costs, with over half of it going to infrastructure projects, and another quarter going to “city development” and “community services” in the city; the expenditure on these projects massively outweighs the $770 million that the city is looking to raise through regressive taxes on goods.
Chicago must put the welfare of its citizens before pipe dream projects and reallocate funding to meet the needs of its residents before they ask taxpayers to shell out even more.
