“Explaining Away the Corruption and Waste”: The Windy City Faces $538 Million Budget Gap Due to “Migrant Crisis”

Jo ShawNov 11, 2023

Minute Read

On Wednesday, Mayor Brandon Johnson of Chicago revealed that the city is expected to confront a budget deficit of $538 million for 2024. In part, his administration attributed this financial challenge to the increasing expenses associated with providing care for migrants.

Chicago Hosts Over 18,000 Migrants

Editorial credit: Ruben2533 / Shutterstock.

In the year since asylum seekers first began arriving, the city has become home to an estimated 18,000 migrants who are currently residing in various locations such as police stations, airports, and shelters.

Republican TX Gov. Abbott Sent Migrants to the City

Former Chicago Mayor Lori Lightfoot, a Democrat, had once implored Texas Governor Greg Abbott to cease sending migrants to the city, but Governor Abbott, a Republican, declined her request. In a letter of complaint, Lightfoot expressed that the city lacked the resources to accommodate the increasing influx of people.

$200 Million Deficit Due to “Special Projects”

The most recent budget projections unveiled by Mayor Brandon Johnson, who was newly elected in April, reveal that approximately $200 million of the deficit is attributed to special project expenses, encompassing the care of newcomers to the city.

Migrant Crisis Will Cost $361 Million

Updated financial projections from the mayor’s office suggest that the migrant crisis is expected to incur a cost of $361 million for taxpayers from January to December 2023.

Chicago Should Not Shoulder Responsibility

Pacione Zayas, Mayor Brandon’s deputy chief of staff, told reporters, “This should not just be on the shoulders of Chicago,” Zayas said, declaring that immigration is the federal government’s responsibility.

NBC 5 Launches Investigation

In other developments, an article written by Bennett Haeberle for NBC 5 Investigates has been inquiring with city agencies about their expenditures and has formally requested copies of their financial records to gain a more comprehensive understanding of how the funds are allocated.

The City Continued to Withhold Records

“While the city continues to withhold many of the records we’ve requested, NBC 5 Investigates did obtain contracts and a spreadsheet accounting for some of the spending,” Haeberle wrote in September.

$83 Million Spent on Migrants

“The records show since October of last year, the city has spent at least $83 million on the crisis,” he further explained.

Favorite Healthcare Staffing Received More Than Half

“The bulk of that money, more than $56 million, went to Favorite Healthcare Staffing, a Kansas-based company whose employees work in the city’s shelters,” Haeberle’s article continued. He confirmed he had only received two invoices, in response to his requests, which document “how much Favorite staffers are being paid.”

Facility Manager Earned $14,000 in a Week.

“One invoice from the now-closed shelter at Truman College shows a facility manager made $14,000 in one week last December.” Bennett Haeberle wrote.

Nurse Paid $20,000 in a Week

“Another invoice shows a nurse earned $20,000 during a week in December,” he continued.

Hourly Rates Were Extortionate

He then calculated the hourly salary for both employees based on the invoice he received and concluded, “The hourly rate for the registered nurse was $195 an hour. The facility manager earned $135 an hour.”

Three Companies Received Largest Share

Reports indicate that three companies were the recipients of most funds, accounting for 94% of the total invoiced amount. “Favorite Healthcare Staffing received $56.3 million, Equitable Social Solutions, LLC received $12.6 million, and Open Kitchens, Inc. received $9.4 million.”

There’s a Premium Being Paid

Pacione Zayas, Mayor Johnson’s deputy, previously stated, “We’ve challenged our staffing contract firm to bring their price point down. We understand that there’s a premium that’s being paid because they’re recruiting from all over the country.”

Mayor Johnson’s Challenge Is His Everyday Focus.

During a June press conference, an NBC 5 reporter asked Mayor Brandon Johnson about the growing costs. Johnson said, “I’m certainly aware of the challenges I inherited, and you know, this is why I made it a part of my everyday focus that we are decompressing police stations, and we are providing a pathway to sustainable existence and living in the city of Chicago.”

Johnson Campaigned on Promise to Hold Property Taxes

An additional $90 million of the budget deficit is attributed to Mayor Brandon Johnson’s choice to eliminate a proposal to raise property taxes in line with inflation rates. The previous Mayor, Lori Lightfoot, advocated for the property tax increase, while Johnson had campaigned on a commitment to maintain property taxes at their existing levels.

The Train Crash Is Coming

The Committee on Immigrant and Refugee Rights chairman Andre Vasquez said, “I see the train crash coming ahead. Because we’re heading into budget season, and we have to figure out how do we build the capacity needed while we’re also looking at a deficit,”

It’s Not Enough

“That $538 million budget gap includes $200 million in costs to support immigration in Chicago. Even with a newly approved $33 million federal grant, it’s not enough,” he stressed, saying the challenge over the budget would “pale in comparison” to future challenges that lay ahead.

Taxpayer Money Thrown Around

People spoke out about the growing deficit online. One user said, “Transparent money would be the start. I’m positive that in Chicago there is so much taxpayer money thrown around that never gets to where it is supposed to go.”

Explaining Away the Corruption and Waste

Another responded, “At some point, residents/voters have to quit explaining away the corruption and waste. The user went on to state, “Cut spending or these politicians are going to bleed us dry. Insane taxes and these clowns still run deficits demanding more money from the taxpayers. I’ve got no more money to pay.”