Chicago Projects $982.4M Budget Gap in 2025
On August 29, Chicago Mayor Brandon Johnson announced that the city is facing a $982.4M budget gap in 2025. This represents largest deficit since 2021, when former Mayor Lori Lightfoot faced a projected $1.2B gap at the height of the COVID-19 pandemic. However, this time, Johnson will not receive a massive influx of federal stimulus funding to balance the budget. In 2024, Mayor Johnson faced a $538M budget gap which he plugged through a variety of one-time measures, such as declaring a tax increment financing (TIF) surplus, to avoid raising property taxes. Johnson has not stated if he plans increase property taxes in 2025 or consider other measurers to cut costs or raise new revenues, such as layoffs or a hiring freeze, legalizing video gaming in Chicago, or allowing slot machines in Chicago airports. Mayor Johnson will submit his budget proposal to the City Council by October 15. The City Council will hold a series of budget hearings throughout October, November, and December, before approving a final budget by December 31.
The Mayor’s Office also released 2026 and 2027 budget gap forecasts. In a base scenario they project a deficit of $1.1B in 2026 and $1.3B in 2027. With a positive outlook, they estimate a gap of $633.8M in 2026 and $702.6M in 2027. With a negative outlook, they forecast a gap of $1.58B in 2026 and $1.93B in 2027.
In his announcement, Mayor Johnson was understanding of the many challenges Chicago will face in the coming years, while remaining optimistic that the city will be able to overcome them. “While the road ahead may be challenging, I am confident in our ability to navigate these difficulties with the strength and resilience that Chicagoans are known for,” stated Johnson. Together, we will build a budget that not only addresses our current challenges but also lays the foundation for a brighter, more prosperous future for all.”
Treasurer Frerichs Announces Record Investment Earnings in FY 2024
On August 28, Illinois Treasurer Michael Frerichs announced that the state took in a record $1.495B in investment earnings in FY 2024, which closed on June 30. This figure is up 4.92% from the $1.002B in investment earnings in FY 2023, which itself was a new state record at the time. Additionally, the Treasurer’s Office reported a record $1.054B in investment earnings for units of local government taking part in the Illinois Funds local government investment pool, up 52.3% over FY 2023.
Much of the recent gains in investment earnings can be explained by high interest rates, although a portion of it can be attributed to smart investments. The treasurer is prohibited by state law from investing the state’s over $37B portfolio in the stock market. Instead, Frerichs invests in municipal and school district bonds and prime money market funds. In response to the record investment earnings, Treasurer Frerichs stated, “We have made common-sense reforms to increase how much we earn in investment returns for our state… Every dollar we earn in interest is a dollar that lawmakers don’t have to raise in taxes.”
Important Upcoming Dates – Statewide
November 5 – 2024 General Election
November 12-14 – Veto Session Week 1
November 19-21 – Veto Session Week 2
In the News
State economic news: Sales tax, economic growth slowing; Bond outlook unlikely to change – The Daily Line, September 6, 2024
Multiple reports this week on the state of Illinois’ economy point to slowing growth trends for the state along with vulnerability to an economic slowdown. Illinois’ economy overall is slowing, according to a monthly report issued by the University of Illinois Institute of Government and Public Affairs. The Illinois Flash Index, an inflation-adjusted measurement of corporate earnings, consumer spending and personal income based off tax receipts, declined for the fourth consecutive month in August, according to a report released this week.
IARF Names Four Legislators Champions for Supporting Wage Increases – Patch, September 5, 2024
The state association representing community providers of services for this disabled is publicly praising four legislators for stepping up to improve care. The Illinois Association of Rehabilitation Facilities has honored the four legislators for their support of funding to hire workers to provide high-quality care. Learn more in the announcement from the group on the honors:
Democrats need to address abandoned state property – Illinois Times, September 5, 2024
Gov. JB Pritzker and state Democrats have been touting the catchphrase, “Democrats get things done.” In one west central Illinois town, that couldn’t be further from the truth. In an election year where House Speaker Chris Welch is talking about flipping seats in this district and that, there are a handful of districts state Democrats are helping the Republicans further entrench.
McCombie continues push to protect DCFS employees as man convicted of killing DCFS worker in 2022 – The Daily Line, September 5, 2024
House Minority Leader Tony McCombie (R-Savanna) is continuing to push for more legal protections for state employees working in the field as a Sangamon County judge found a man guilty of killing a Department of Children and Family Services (DCFS) worker in 2022.
Madigan’s attorneys cry foul over ‘unfair’ media coverage, ask judge for more leeway to question jury pool – Chicago Tribune, September 4, 2024
Attorneys for ex-Illinois House Speaker Michael Madigan have compiled years’ worth of unflattering press about the political powerhouse in hopes that a judge will let them examine potential jurors more closely at Madigan’s racketeering trial.
Union leaders demand overhaul of Illinois job posting system amid vacancies – KHQA, September 4, 2024
Representatives from the local AFSCME took to the streets to let their voices be heard about the frustrations with the Illinois Central Management Services. The Illinois CMS posts job openings for state workers, but has seen some issues in the recent months. Since february, c-m-s has failed to post job openings for union related positions.
Upcoming Madigan corruption trial sparks discussions about lobbying reform – WGIL, September 3, 2024
Amidst an expected October trial of former Illinois House Speaker Michael Madigan, a legislator isn’t hopeful that meaningful ethics reforms will be passed. A recent news report details how former state Rep. Scott Drury’s testimony during the ComEd Four Trial indicates Drury introduced a bill that would have imposed a longer waiting period on legislators who leave office to become lobbyists. The report caught the attention of state Rep. Dan Caulkins, R-Decatur, who said Illinois needs ethics reforms.
Downstate Wants a Divorce – Chicago Magazine, September 3, 2024
An outfit called Illinois Separation has been placing this question on the ballots of counties all over Central and Southern Illinois: “Shall the Board of [YOUR COUNTY’S NAME HERE] correspond with the boards of other counties of Illinois outside of Cook about the possibility of separating from Cook County to form a new state, and to seek admission to the Union as such, subject to the approval of the people?”
Debates, Illinois early voting and other key dates ahead of November election – NBC Chicago, September 3, 2024
With both parties’ political conventions in the rearview, the presidential candidates are bracing for the final stretch before Election Day. Over the next two months, former President Donald Trump, Vice President Kamala Harris and their surrogates will crisscross the country, making their final pitch to voters with rallies, political ads, phone banks and more.
ACLU of Illinois responds to one-day staff union strike – Capitol Fax, September 3, 2024
On September 3, 2024, the ACLU-IL Staff United will hold a one-day Unfair Labor Practice strike in response to a recent National Labor Relations Board (NLRB) ruling that found ACLU-IL Management committed unfair labor practices for withholding annual salary raises for union members while continuing to provide raises to non-union staff.
GOP-tilted websites showed where Illinois judges live despite a law that protects their privacy – Chicago Sun-Times, September 3, 2024
An election conspiracy peddler exposed dates of birth and home addresses online for more than 6 million Illinois voters earlier this year, including dozens of state and federal judges whose places of residence are legally protected, a WBEZ investigation has found.
Dems finally catch up to Gov. JB Pritzker on promoting ‘freedom’ – Chicago Sun-Times, August 31, 2024
Several stories and columns appeared in the national news media shortly before and during the recent Democratic National Convention about Vice President Kamala Harris’ emphasis on the concept of “freedom” in her speeches and messaging. Convention delegates in Chicago hoisted signs with the word “Freedom” on them all week. Oprah Winfrey even talked about freedom in her speech to the DNC. Quite a few pundits seemed to be caught off guard by how popular the concept had suddenly become with Democrats.
Illinois Treasurer celebrates record FY24 investment earnings of nearly $1.5 billion – WGEM, August 30, 2024
As Illinois lawmakers look toward next year’s budget, they’ll have a little extra money to spend. That’s because the state made a record $1.495 billion in fiscal year 2024, according to State Treasurer Michael Frerichs. He said the money comes from low-risk investments such as municipal bonds and and prime money market funds. The state is prohibited from investing in the stock market.
Opinion: Politics for sale – Chicago Tribune, September 1, 2024
At the Democratic National Convention in Chicago, the importance of money in national politics was clear, from the appeals made at fancy fundraisers to the unrelenting streams of video ads and text messages. But in Illinois, big money is inundating politics at a pace that virtually puts government offices in the Land of Lincoln up for sale.
State Week: Illinois’ culture of corruption – NPR Illinois, August 30, 2024
Illinois has a long history with corruption. It has made the state the butt of jokes along with damaging the public’s faith in government. The Chicago Tribune is reporting a series titled “Culture of Corruption.” It details some of the most infamous cases at the federal, state and local level. On this episode, we talk about corrupt officials and why wrongdoing remains persistent.
Report shows Illinois union participation declining despite growth in new petitions – Capitol News Illinois, August 30, 2024
Overall participation in labor unions has declined in recent years in Illinois, although the state has seen an increase in successful unionization efforts for the second year in a row. That’s according to the State of the Unions 2024 report, the latest installment in an annual review of unionization in Illinois and the U.S. by the Illinois Economic Policy Institute and the University of Illinois’ Project for Middle Class Renewal.
Legislator says Illinois Senate president admitted to ‘quid pro quo’ at DNC – The Center Square, August 31, 2024
An Illinois state legislator says Senate President Don Harmon’s Democratic National Convention comments about unions are an admission of “quid pro quo.” Harmon delivered remarks at the DNC in Chicago for the Illinois delegation’s breakfast. “Democrats don’t win without organized labor and organized labor puts everything at risk when Democrats don’t win,” said Harmon, D-Oak Park. “We gotta stick together.”
AG’s public access experts to check if tollway strayed from Open Meetings Act – Daily Herald, August 30, 2024
The Illinois attorney general’s office is considering a request to review whether the tollway board violated the Open Meetings Act when members came out of executive session and into open session at a Thursday meeting. The action was prompted by a request from the Daily Herald to the attorney general’s Public Access Bureau.
‘Everything is on the table’ to eliminate $982.4 million budget shortfall, top mayoral aide says – Chicago Sun-Times, September 5, 2024
Mayor Brandon Johnson has four months to erase a $223 million shortfall for the current year and just over a month before laying out his plan to fill a gap nearly five times that size in 2025. No wonder everything is on the table — from layoffs and pay cuts on the cost-cutting side to a property tax increase, video gaming and volume-based garbage collection fees on the revenue end.
As Brandon Johnson eyes $1B budget gap, labor and its allies watch warily – Crain’s Chicago Business, September 6, 2024
Facing a nearly $1 billion budget hole for next year, Mayor Brandon Johnson is considering whether to pare the city’s workforce to save on personnel costs, a move that could draw the ire of organized labor and their allies on the City Council.
Rising Chicago deficit forecast raises eyebrows in muni market – The Bond Buyer, September 5, 2024
Chicago released a budget forecast last week projecting that its corporate fund deficit will grow in upcoming years, jumping to $982.4 million in 2025 from $222.9 million at the end of 2024.
Kaegi calls for property tax bailout for low-income homeowners – Crain’s Chicago Business, September 5, 2024
Illinois taxpayers would help pay property tax bills for low-income Chicago-area residents to help soften the blow of tax bill spikes under a proposal in the works from Cook County Assessor Fritz Kaegi. After back-to-back years of sharp increases in property tax bills for residents in a number of local suburbs, Kaegi today called on state and county officials to help provide relief for residents who have endured some of the most painful tax bill jumps despite being the most ill-equipped to pay them.
Alderpeople ask for more specific data on ARPA spending, including whether funds can be used to help plug budget gap – The Daily Line, September 6, 2024
The city is on track to obligate all of its American Rescue Plan Act (ARPA) funding by the end of the year and meet a federal deadline, but alderpeople want city officials to provide more specific data on how the money is being spent, accountability mechanisms for the organizations that got money and performance metrics for the programs funded.
GOP aims to keep McHenry County red as ‘margins get closer’ – Daily Herald, September 6, 2024
Last month’s pro-Donald Trump rally in Woodstock showed a familiar side of McHenry County, which has long been loyal to the Republican Party. But while hundreds of supporters of the former president celebrated their GOP affiliation and listened to speeches from prominent party figures, McHenry County Board Chairman Mike Buehler acknowledged the shift that has taken place in every other collar county around Chicago in recent years: They’ve turned blue.
Special events, cultural affairs and recreation committee approves appointment of new Park District commissioner, ordinance to raise open space impact fees – The Daily Line, September 5, 2024
The City Council Committee on Special Events, Cultural Affairs and Recreation on Wednesday approved the appointment of a new Chicago Park District commissioner and an ordinance that would raise open space impact fees on residential developers. The committee approved Mayor Brandon Johnson’s appointment of Marlon E. Everett to the Chicago Park District Board of Commissioners.
Alleged Blue Line shooter makes first court appearance, is ordered detained – Chicago Tribune, September 4, 2024
Shackled at the arms and legs and wearing an olive jumpsuit, the suspect accused of killing four people on a CTA train this week grew wide-eyed after seeing nearly a dozen news reporters lined up in a small room in the basement of the Maywood courthouse.
Zone offense? Cardona says he has votes to become Zoning Committee chair — with or without mayor’s support – Chicago Sun-Times, September 4, 2024
Business and labor leaders determined to prevent Ald. Byron Sigcho-Lopez (25th) from becoming chair of the City Council’s Zoning Committee have drafted a compromise candidate who claims he has the votes.
Summer 2024 in Chicago Was One for the Weather Record Books — Not for Heat but for Tornadoes – WTTW, September 3, 2024
Temperature records were set across the U.S. this summer as scores of cities experienced one of the hottest summers on record. That wasn’t the story in Chicago. Here, the summer of 2024 will be remembered not for extreme heat but for the wild derecho event in mid-July that spawned more tornadoes in a single day than typically occur in an entire year.
Judge’s ruling against state gun ban on public transit makes us less safe – Chicago Sun-Times, September 4, 2024
Part of the pro-gun playbook is to encourage so many people to get firearms that others feel they have to buy their own in self-defense, driving up gun sales all around. Unfortunately, a federal judge based in Rockford seems to have bought into that philosophy.
Downtown Chicago landlords’ post-2020 pain, mapped – Crain’s Chicago Business, September 4, 2024
Downtown Chicago will need to shake off an unprecedented wave of foreclosures if it is to reclaim the vitality it lost to the COVID-19 pandemic. Led by troubled buildings in the urban core, almost $7.2 billion worth of Chicago-area commercial properties were distressed midway through the year, dwarfing the amount in any other major market except for New York City and San Francisco, according to research firm MSCI Real Assets.
News in brief: Education committee to hearing on childcare; Transportation committee to consider sidewalk restoration ordinance – The Daily Line, September 4, 2024
The City Council’s education committee will hold a subject matter hearing on Wednesday on increasing childcare affordability and availability, and the transportation committee will consider an ordinance to regulate sidewalk restoration following permitted pavement work.
Mass murder on CTA as state mulls how to improve service, safety on public transit – The Daily Line, September 4, 2024
Four homeless people were murdered on a CTA Blue Line train Monday morning as state lawmakers consider new changes to public transportation funding and governance. Hearings on the changes have also included opportunities for senators to press CTA President Dorval Carter about safety on his trains and buses. Police responded to the Forest Park Blue Line station early Monday morning to find four individuals killed in a shooting on the train.
State Senator Mike Simmons Embodies Rogers Park Representation – The Loyola Phoenix, September 4, 2024
One night in 2020, Illinois State Senator Mike Simmons was making himself dinner when he heard voices in the streets outside his apartment. Simmons, a life-long resident of Chicago’s North Side, said he looked out his window and saw North Broadway Avenue filled with community members protesting the murder of George Floyd. Simmons said the movement happening — almost literally — in his backyard cemented his decision to advance his career in public service.
What Senate leaders learned on summer road trip, as transit mega merger looms – Daily Herald, September 1, 2024
Public transit in Chicago and the suburbs is at a crossroads. Metra, Pace and the CTA face a $730 million shortfall in 2026, sparked by a COVID-19 ridership drop. One proposed legislative solution is merging the three into a mega-agency — but that’s opposed by the agencies and Collar Counties. In pursuit of consensus, the Illinois Senate Transportation Committee has gone on a summer road trip to get riders’ opinions on the future of transit.
City forecasts nearly $1B budget gap for 2025, its largest since 2021 – The Daily Line, August 30, 2024
Chicago is facing a nearly billion-dollar budget gap for the upcoming fiscal year, a tough financial situation that will necessitate “collaborative solutions and strategic planning,” Mayor Brandon Johnson announced Thursday morning as the city unveiled its 2025 budget forecast. In addition to a projected $982.4 million budget gap for Fiscal Year 2025, the city is projecting a $222.9 million budget deficit to end Fiscal Year 2024.
Editorial: Summer is over, and an autumn reckoning awaits Mayor Brandon Johnson – Chicago Tribune, September 3, 2024
We hope Mayor Brandon Johnson had a restful Labor Day weekend because the autumn challenges facing the mayor are shaping up to be the most pivotal so far in a term that already has been a bumpy ride. Johnson’s political fortunes, which badly need improving if the few polls that have surfaced in recent months accurately reflect Chicagoans’ views, aren’t what’s most at stake.
News in brief: NASCAR back for final race of three-year deal in 2025; CTA using gun detection technology across its security camera network – The Daily Line, August 30, 2024
NASCAR will return for a street race in the final year of its multi-year deal with the city, and the Chicago Transit Authority (CTA) announced the debut of a new system to crack down on gun crime.
