Lori Lightfoot is reportedly considering a tax hike in order to help with Chicago’s $1.2 billion budget deficit, Fox News reports.
Lightfoot’s plan is set to be laid out during a press conference.
The Chicago Tribune reports that the city is potentially dealing with a $94 million property tax hike.
According to reports, raising gas taxes and laying off more than 300 workers will help “fill the gap” as the Chicago Tribune put.
From Fox News:
Other potential cost-saving measures include a five-day furlough for all nonunion city employees, shifting some costs onto the books of the Chicago Public Schools and raising the cloud-computing tax.
The COVID-19 pandemic caused Chicago’s gross domestic product to decline by 10% from a year ago, leading to a $799 million mid-year 2020 budget shortfall.
Chicago has a long way to go even if the budget gap is filled. The city is burdened with $46.5 billion of unpaid bills and has just $10 billion cash, according to a July 2020 report released by Truth in Accounting.