M
ayor Brandon Johnson's $17.3 billion 2025 budget proposal aims to close a $982 million shortfall through increased property taxes, funding reallocations, and personnel adjustments. The plan relies heavily on a $300 million property tax hike, which marks a significant shift from Johnson's campaign promises to avoid such tax hikes. This move risks political fallout as the proposal heads to a divided City Council for approval.

    The budget would increase property tax revenue by an estimated 4 percent for most owners, with reassessments potentially causing fluctuations. The $300 million hike is primarily aimed at covering pension obligations, with Johnson stating that he will not leave unpaid bills to future generations. Besides property taxes, the proposal relies on $570 million from tax-increment financing districts and $42.7 million from eliminating 743 funded but vacant positions.

    To address migrant and homeless assistance needs, Johnson's budget allocates $40 million for an expanded shelter system, doubling homeless beds from 3,000 to 6,800. The city will also seek $10.6 million by increasing the liquor tax and $4.6 million by reclaiming a portion of the bag tax. Johnson's plan to continue advance pension payments underscores his focus on reducing long-term debt.

    The proposal faces uncertainty as it heads to City Council for approval, with 26 votes needed for passage. The budget director has cited inflation as a reason for increasing taxes, and Johnson has emphasized the need to address pension obligations.