Oct 21, 2024
The city of Chicago is facing a massive budget shortfall of nearly one billion dollars for 2025.
In an effort to limit the shortfall, Chicago Mayor Brandon Johnson told reporters "everything is on the table,” including the potential layoff of city workers — although he hopes to avoid that.
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However, invoices and receipts — collected through several Freedom of Information Act requests by NBC 5 Investigates — are sparking questions about how the city has spent funds in recent months.
For example, the paper trail shows that the city spent more than $80,000 renovating and redecorating an office for Chicago First Lady Stacie Johnson.
The electricians, carpenters, and painters on the city’s payroll for this project accrued more than 350 hours of labor at more than $25,000.
This has raised eyebrows from many who question the need for such lavish renovations during a time of financial crisis in the Windy City.
The mayor's response
In addition to the cost of labor, the receipts obtained by NBC 5 Investigates showed various high-end furniture purchases. For example, the city was billed $2,200 for a high-back executive chair and $4,400 for a desk listed on the invoice as "First Lady's Desk."
The paperwork also shows that the city spent more than $43,000 on office furniture alone.
The work on Room 306 of the Chicago Cultural Center allegedly began in February and continued through August of this year.
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When asked for an explanation, Mayor Johnson told reporters, "the Cultural Center has always been a location for dignitaries; every first lady has had office space there. Renovations for my office or any other office is standard procedure."
When pressed again by reporters about the optics of such expenses in a time of financial criss, Mayor Johnson explained that the purchase of an office desk “is not going to change the financial structural damage that has been in place for a long time.”
A spokesperson for former Chicago Mayor Lori Lightfoot, who held the office from 2019 to 2023, told reporters that she did not do any major renovations during her term in office.
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How budget deficits could impact Chicago
It’s been less than two years since Mayor Johnson took office, but his approval rating has rapidly plummeted to a mere 27.1%, according to polling from the Illinois Policy Institute.
Of those surveyed, more than 62% have an “unfavorable” opinion of Mayor Johnson.
However, the city of Chicago has a long history of budget deficits. In 2023, the city projected a $538 million dollar deficit, nearly half of the projected shortfall for 2025.
But with regards to the current crisis, Mayor Johnson hasn’t ruled out property tax increases, which is a major concern for the Civic Federation who is urging the mayor to “not further pile on homeowners.”
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In addition, the Chicago Public Schools (CPS) faces deficits of more than $500 million.
All seven members of CPS’ board resigned in early October after Mayor Johnson pushed them to take out a high-interest loan to bridge its budget shortfalls.
Chicago's transportation system is also facing significant challenges, with officials warning that the Chicago Transit Authority (CTA), which provides public transit service to Chicago and surrounding suburbs, is facing a “fiscal cliff” that could force service cuts or a possible rate increase.
The city has already enacted hiring freezes and “stringent limitations” on non-essential travel in response to the budget shortfall.
Johnson has yet to elaborate on how he plans to close the gap, stating that property tax hikes, slot machines in city airports, and legalized video gambling were some ways to raise revenue.
As for the $80,000 spent on his wife’s office, Johnson told NBC 5 Investigates, “if I were to allow my leadership to be based on someone's opinion of me, it would be a derelict of duty. I never question my position to invest in people. I don't do this for optics; I do this to transform lives."
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
