Paul Vallas, a senior fellow at the Illinois Policy Institute, has expressed concerns regarding Mayor Brandon Johnson's 2026 budget proposal and the potential implementation of a congestion tax in Chicago. Vallas articulated his views on X, suggesting that these measures could negatively impact the city's economy and employment.
"The mayor's fiscal blueprint isn't progressive," said Paul Gust Vallas. "it's regressive, reckless, and a betrayal of Chicago's future."
According to Mayor Johnson, the "Protecting Chicago" 2026 budget proposal aims to generate new revenue streams without increasing city property taxes. The plan proposes targeted taxes on large corporations and technology companies to address a significant budget shortfall while continuing investments in youth employment, mental health services, affordable housing, and violence prevention. The administration asserts that this approach will protect residents from service cuts while maintaining fiscal stability. However, it has sparked debate within the City Council and among civic groups about long-term competitiveness and equity considerations.
Axios reported that the 2026 budget outlines a $16.6 billion financial plan intended to close an approximate $1.15 billion deficit. Key revenue initiatives include reinstating a corporate "head tax" as a $21-per-employee monthly "community safety surcharge" on major firms and imposing a social media levy of $0.50 per user beyond a 100,000-user threshold, with funds earmarked for mental health services. The proposal also considers adjustments to amusement and betting taxes and plans to utilize Tax Increment Financing surpluses while promising no increase in city property taxes.
NBC Chicago highlighted discussions around congestion pricing, noting New York's model as an example. Reports indicate that New York implemented a base toll of $9 for certain entries into Manhattan's Congestion Relief Zone. Mayor Johnson has suggested that Chicago should explore a similar system. Proponents argue such policies can alleviate traffic congestion and provide dedicated funding for transit projects; however, critics caution about potential costs to commuters and businesses. This ongoing debate informs Vallas's characterization of a possible Chicago congestion charge as "crushing," warning of its economic repercussions.
Vallas is recognized nationally as an expert in education and public-sector finance. His previous roles include serving as budget director for the City of Chicago and CEO of Chicago Public Schools, as well as leading the School District of Philadelphia and Louisiana’s Recovery School District. He also held superintendent positions in Bridgeport, Connecticut. Vallas has advised on extensive fiscal and operational reforms and frequently writes about budgets, pensions, and urban governance issues.