Chicago mayor requests 3% pay cuts from contractors

Mayor Brandon Johnson is defending his administration's recent request for city contractors to lower their prices by at least 3%. This request was made last Wednesday in an email from Chief Procurement Officer Sharla Roberts to contractors currently doing business with Chicago. At a news conference on Tuesday, Johnson described the price reduction request as “standard procedure.” He noted that this initiative aligns with the city's budget for 2025, which was passed in December. The city hopes to save $8.6 million this year through what it calls a “contract savings initiative.” This is part of a broader plan to address a nearly $1 billion budget gap. Johnson mentioned that the city is counting on $286.3 million from various operational efficiencies to balance its budget. However, some financial rating agencies are skeptical about the city's revenue projections. Roberts mentioned that they have received positive responses from contractors so far. Many responses are expected by the end of the week. This request for price cuts is not new. Former Mayor Richard M. Daley and Mayor Rahm Emanuel both attempted to negotiate similar voluntary reductions in the past. Budget Director Annette Guzman indicated that such requests are typical in city budgeting processes. Some city council members have criticized the request. Alderman Raymond Lopez referred to the letter in a social media post, questioning who might face cuts next. Alderman Daniel La Spata urged contractors, especially those in minority and women-owned businesses, to maintain their contracts without agreeing to lower their rates.