CITY HALL — Chicago is facing a projected $1.15 billion deficit for 2026, Mayor Brandon Johnson and his budget team announced Friday — on top of an almost $150 million spending gap for the rest of 2025.

Friday’s budget forecast is one of the first major steps in the city’s extensive annual budget process, which will include the release of official spending recommendations from Johnson in October followed by weeks of vetting in the City Council.

The $1.15 billion number is slightly higher than the $1.12 billion 2026 projection shared last year. It comes as the city also faces a $146 million gap for the rest of 2025, which officials said stems largely from underperforming revenues and the uncertainty over receiving a pension reimbursement from Chicago Public Schools.

During a briefing wit

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