Chicago Mayor Brandon Johnson’s 2026 budget blueprint doesn’t mention Barrington by name. But with tens of thousands of suburban residents commuting to the city for work, services and entertainment, several of the plan’s funding moves could still find their way into suburban wallets and business ledgers.

Unveiled Oct. 16, 2025, Johnson’s proposal totals $16.6 billion for the next fiscal year — a 3% decrease from this year — and attempts to close a newly projected $1.19 billion deficit. It leans on roughly $437.5–$438 million in new or expanded taxes and fees, a record sweep of about $1 billion from tax-increment financing (TIF) districts, and cuts including the elimination of 446 city jobs. The mayor also halves a planned extra pension payment, from $271.8 million to $120.2 million, and would borrow to cover costly settlements and back pay, including $185 million owed to Chicago firefighters.

Where the money would come from

Johnson framed his plan as progressive and aimed at larger corporations, reviving a corporate head tax at $21 per employee per month for companies with more than 100 employees who work more than half their time in Chicago. His team estimates only about the top 3% of businesses would be subject to it. He’s projecting $100 million from the head tax for a Community Safety Fund, with $18.4 million for new community violence-reduction grants.

The mayor said he is steering clear of a property tax increase. “I am not proposing a property tax. Like, I can’t make it any more emphatic than that,” Johnson said, later adding, “If I’m open to it, I would be proposing it. I’m saying I’m not offering one. That is my answer.”

Beyond the head tax, the city would seek revenue from:

  • Raising the personal property lease tax (which includes cloud software and infrastructure) from 11% to 14%, projected to net $333 million — the administration has dubbed it a tax on big tech.
  • Expanding Chicago’s ride-hail congestion surcharge zone, adding an estimated $65 million.
  • Charging large social media companies $0.50 per active user over 100,000 in Chicago, projected to bring in $31 million for mental health services.
  • Increasing the boat mooring fee (a “yacht tax”) for $4.1 million, along with a proposed online sports betting tax ($26.2 million) and a long-pending hemp tax needing state approval ($10 million).

What it could mean for suburbs like Barrington

The notes provided for this story do not mention Barrington specifically. The likely implications below are analysis based solely on the Chicago budget details described above:

  • Employers: The $21 head tax would apply to companies with more than 100 employees who work more than half their time in Chicago. Barrington-headquartered firms with sizable Chicago-based staff could be subject to the tax. Business groups are expected to argue the levy will harm hiring, while Johnson countered it’s “not a job killer. In fact, it’s a job creator.”
  • Commuting and trips into the city: The expansion of the ride-hail congestion surcharge zone suggests fees on some Uber and Lyft trips will extend to more parts of Chicago. Suburban riders using those services in the city could encounter higher per-trip costs.
  • Technology and service costs tied to Chicago: The increased personal property lease tax targets cloud software and infrastructure use in Chicago. Companies with operations or users in the city could see higher bills on Chicago-attributed usage. The social media tax targets platforms, not individual users, but its costs could affect how those companies operate in the Chicago market.
  • Construction and development work: A near-$1 billion TIF sweep could scale back, delay or eliminate some TIF-funded projects, which the notes say may anger aldermen and the building trades that count on construction jobs. That could ripple through regional contracting and union workforces that include suburban residents.

TIF sweep, pensions and borrowing

Johnson’s plan would sweep more than $1 billion from TIF accounts — nearly double last year’s record. Of that, the city would keep roughly a quarter, and Chicago Public Schools would get a little over half, or more than $520 million. CPS had assumed a lower surplus; any extra would help reimburse teacher pension costs the city had been picking up.

The administration would more than halve its planned extra pension payment next year. Ratings agencies had praised past extra contributions, but Chief Financial Officer Jill Jaworski said, “we also made the decision that there are other priorities that we needed to fund as well.” The city would borrow to fund obligations including $185 million in firefighter back pay and a $90 million “global” payment tied to misconduct claims involving a former Chicago police sergeant, adding interest costs in future years. Asked about the added cost, Jaworski said, “I don’t have the interest amount in front of me.”

What the proposal would mean for jobs and services

The budget trims 446 city positions as federal relief dollars ebb, though officials said some employees could move into existing vacancies. Johnson also proposes a $200 million cap on Chicago Police Department overtime; additional overtime would require City Council approval. Budget director Annette Guzman said Supt. Larry Snelling and his team indicated “for next year, they are in line that this is a realistic goal for them.” The police department’s overall budget would rise by $37.9 million to about $2.11 billion due to contract-driven salary increases.

Johnson keeps or creates several social and public-health investments: a $31 million social media tax to help fund the Crisis Assistance Response and Engagement (mental health crisis) program and two reopened mental health clinics; $50 million for summer youth jobs; $7 million in early childhood education; $5 million for Rapid Rehousing; and $7.5 million for the Office of Re-Entry, funded by cannabis tax revenue. The Department of Environment would gain regulatory power, and the Law Department would get $1 million for an “affirmative” litigation arm the administration frames as a response to federal actions. In a combative budget speech, Johnson argued, “They are trying to militarize and occupy our city… What is even more devastating is the economic attacks: the Trump Cuts,” adding, “The Protecting Chicago budget protects Chicagoans from Trump’s cuts and his attacks on our city.”

The politics — and what Barrington should watch

Johnson needs 26 City Council votes to pass a budget by year’s end and avoid a shutdown. The head tax is poised to be a flash point, with aldermen likely feeling pressure from larger employers to scrap it. The plan skips a property tax hike — a politically sensitive move that the mayor underscored — but significant elements could change as negotiations unfold.

Questions Barrington residents and business owners may want answered next, based on the proposal:

  • Do any Barrington-headquartered employers have more than 100 employees working primarily in Chicago, and how would the $21 head tax affect them?
  • Which neighborhoods will be added to Chicago’s ride-hail congestion surcharge zone, and how might that alter trip costs for suburban riders?
  • Will the $1 billion TIF sweep delay or downsize projects that employ regional construction and trades workers from the suburbs?
  • For companies operating in both Barrington and Chicago, how will the 11% to 14% cloud software tax increase be applied to Chicago-based usage?

For now, the biggest variable for suburban stakeholders is what survives the City Council’s bargaining. Johnson insists the plan asks more of the city’s largest companies in exchange for a safer, better-resourced Chicago. “Having the safest big city in America, is that somehow not enough for people?” he asked. Whether that argument wins a majority — and how that shapes final tax and fee language — will determine how much of this budget is ultimately felt beyond the city limits.