Mayor Johnson's $17.6 billion 2027 budget: what's in it, and where the Council stands

The plan closes an $882 million gap with a head tax, higher lease and betting taxes, a package tax and $480 million in settlement borrowing. It is now in committee, with a Dec. 31 deadline.

By Chicago PoliticsUpdated Oct 23, 2026

Mayor Brandon Johnson sent the City Council a $17.6 billion budget for 2027 on Oct. 21. He calls it the "Fair Share Budget." The Council now has until Dec. 31 to pass a balanced budget, in an election year and a year after it rejected the Mayor's revenue plan and passed its own.

Why it matters on your block: the budget sets how many crews trim trees and fill potholes, how many outreach workers and mental health responders the City fields, and which taxes and fees go up. This proposal does not raise the property tax. It does ask large employers, people who lease equipment and software, sports bettors and online shoppers to pay more.

What the Mayor proposed

The plan is meant to close a gap of about $882 million in the Corporate Fund, the City's main operating account, Block Club Chicago reported. Block Club counted $664 million in added revenue, $131.5 million in new spending and nearly $120 million in cuts.

The main revenue pieces, as reported by CBS Chicago and Block Club:

A head tax of $25 a month per full-time employee on employers with 125 or more, with a credit for jobs in disadvantaged areas. The Mayor's office projects about $101 million.
A higher lease tax, from 15% to 20%, on leased equipment and cloud software, projected at about $234 million.
A higher sports betting tax, from 10.25% to 20%, projected at about $37 million.
A new 15-cent tax on delivered packages, projected at about $9 million.
$480 million in borrowing for police misconduct settlements and judgments.

On spending, the Mayor's address listed more Streets and Sanitation quality-of-life crews, 10 more forestry crews, money for libraries and homelessness services, more youth jobs and a larger street outreach program. Block Club reported $34.4 million in savings from eliminating or freezing vacant positions.

In his address, Johnson told the Council that "you cannot cut your way to a better future" (watch at 1:22:02). He also asked reporters not to let the debate center on the head tax, which he said is about 1.5% of the corporate budget (1:33:14).

What our records add

The budget arrived as a package of ordinances, all referred to committee on Oct. 21 (agenda items at 2:15:08):

Fiscal Year 2027 Budget Recommendations (O2026-0029642), the spending plan itself
2027 Revenue Ordinance (O2026-0029643), the tax and fee changes, now in the Committee on Finance
FY2027 Tax Levy (O2026-0029645)
2027 Management Ordinance (O2026-0029644) and Corrections Ordinance (O2026-0029649)
General obligation bonds (O2026-0029650), the $480 million borrowing
Motor Fuel Tax agreement with the CTA and Cook County (O2026-0029647)

The revenue ordinance also suspends, for 2027, the automatic yearly property tax increase tied to inflation, according to the ordinance text (Article VIII). Last year's revenue ordinance did the same for 2026.

The last two budget votes were close. In December 2025 the Council passed an alternative 2026 revenue ordinance, sponsored by Ald. Matthew O'Shea (19th), 29 to 19, without the Mayor's head tax. A year earlier, the 2025 revenue ordinance and property tax levy passed 27 to 23. Twenty-six votes pass a budget when all 50 members vote.

How each ward voted

29 yea, 19 nay, 2 not voting · Dec 19, 2025 · Passed

Yea Nay Not voting

SO2025-0021719: the roll call, the timeline and the documents

Early reaction has followed last year's lines. Ald. Bill Conway (34th), who voted for last year's alternative, told CBS Chicago the head tax was "dead on arrival." Ald. Brendan Reilly (42nd), another yes vote last year, called the budget "tone deaf" to Block Club. Ald. William Hall (6th), who voted no on the alternative, defended the head tax to CBS. Ald. Walter Burnett (27th), also a no vote last year, told Block Club he was undecided on the head and lease taxes.

What's next

The Committee on Budget and Government Operations opened hearings on Oct. 23 with a session on the City's Ernst & Young efficiency work. Department hearings are posted for Oct. 26, Oct. 27, Oct. 28, Oct. 29, and Nov. 4, 5, 6, 9 and 10. The Committee on Finance meets Nov. 16.

Ald. Jason Ervin (28th), the Budget Committee chair, said the budget book would be open for public inspection by Oct. 26 (2:17:26). The Council set the formal public hearing for Dec. 8 at 11:30 a.m. in the Council chamber. City Council meetings are on the calendar for Dec. 8 and Dec. 9.

Block Club reported that the 29-member coalition that blocked last year's head tax will review the plan before deciding whether to offer amendments or its own budget. Find your alderperson's record on their ward page.

Sources: WTTW: Johnson touts $17.6B proposed budget for 2027.