Chicago Implements Citywide Hiring Freeze to Combat $1 Billion Deficit Projected for 2025

Chicago’s Budget Director, Annette Guzman, has announced a citywide hiring freeze to help tackle a nearly $1 billion deficit expected for the city in 2025.& Guzman said her office is addressing a $222.9 million shortfall for this year, which she attributed to a drop in certain revenue streams, including the State Personal Property Replacement Tax. The city also didn’t receive a $175 million reimbursement for non-teacher pension contributions at Chicago Public Schools, which was included in the budget. The projected $982.4 million gap for 2025, Guzman explained, is due to rising costs for staff, pensions and contracts, along with ongoing revenue problems. To manage this, the city will limit hiring, non-essential travel, and overtime expenses, except for public safety jobs. No new interviews or meetings for hiring will be scheduled for the time being. “These measures, while necessary, reflect our commitment to responsible fiscal management during a time of financial uncertainty,” Guzman said in her statement. In the past, police and fire departments were usually exempt from hiring freezes, but it’s unclear if that will happen this time. Both unions have voiced concerns about understaffing, and there’s worry that the freeze could make the situation worse. The firefighters union, which...