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Chicago<\/a> is freezing hiring and curbing other expenses to help close more than $1 billion in budget shortfalls through next year for the nation\u2019s third-largest city.<\/p>\n Effective Monday, Chicago is limiting non-essential travel and overtime expenses outside of public safety spending, budget director Annette Guzman said in an emailed statement. Chicago is staring down an estimated $222.9 million deficit this year and another $982.4 million projected gap next year.<\/p>\n \u201cThese measures, while necessary, reflect our commitment to responsible fiscal management during a time of financial uncertainty,\u201d Guzman said in the statement. City officials including the budget and finance teams \u201care working diligently to navigate these financial challenges and ensure the continued delivery of essential services to our residents.\u201d<\/p>\n Mayor Brandon Johnson<\/a>, who is crafting his second spending plan, is trying to make good on his progressive social and economic campaign promises while grappling with the city\u2019s challenging finances. He will outline his budget \u2014 including how he plans to close the 2025 gap \u2014 in the next month or two. The Chicago City Council <\/a>then will vote on the proposal by the end of 2024.<\/p>\n The back-to-back budget gaps come amid a drop in the so-called personal property replacement taxes from the state and because the city\u2019s school district isn\u2019t sending $175 million to pay a portion of pension contributions for its non-teaching staff that participate in the city\u2019s municipal employee retirement fund, according to Guzman\u2019s statement. Rising personnel, pension and contractual costs \u201calongside ongoing revenue challenges\u201d are driving the shortfall next year, according to the statement.<\/p>\n<\/div>\n\nRecommended reading:<\/strong>
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