Debt is an essential part of every local government’s budget, but often a confusing one. In the Chicago region, many local governments are overburdened by debt, often citing it as a high “legacy” cost that constrains discretionary spending. This report will serve as a basic primer on how municipal debt works and how it is meant to be used, using the debt load of one local government as a case study: the Chicago Public School District (CPS or ‘the District’). The report is grounded in widely…
Federal funding supports about a third of Illinois’ total All Funds operating budget, funding a variety of programs including health and human services. Changes in federal policy create significant fiscal and operational pressure for the State. The enactment of H.R. 1 represents a shift in the federal-state fiscal relationship, increasing Illinois’ responsibility for administering and financing core health and human services programs that the State previously could depend on the federal…
Governor Pritzker’s FY2027 budget proposal for the State of Illinois (Illinois or ‘the State’) largely reflects a “maintenance budget.” Overall, spending remains relatively flat or slightly higher compared with FY2026, with limited new initiatives and few major structural policy changes. The proposal closes the $2.2 billion budget gap projected by the Governor’s Office in October 2025 primarily through a combination of targeted revenue changes, modest reallocations of existing revenues,…
As the Illinois General Assembly takes up Governor Pritzker’s FY2027 budget proposal, a realistic picture ofthe current state of labor markets is essential. The labor market is one of the clearest signals about thestrength of the State’s economy, underlying lags and weaknesses compared to national trends, and howreliable state revenues will be in the coming fiscal year. This report discusses both national and state labormarket conditions, highlighting a cooling labor market that could impact…
by Roland CaliaThe State of Illinois (Illinois or the 'State') enacted a multi-year $52.6 billion FY2026 capital budget on June 16, 2025 The budget is a 1.5% decrease from FY2025 due to lower spending on new projects. The following are some capital budget…
In 2019, the City of Chicago (Chicago or the ‘City’) had a budget of $8.9 billion, excluding grants from the State of Illinois (Illinois or the ‘State’) and the Federal government. By 2025, expenditures had grown to $12.4 billion—a 40% increase. Using 2019 as a baseline, this report explains how much the Chicago budget has grown compared to pre-pandemic levels of spending and what areas of the budget are driving that growth.
Each fall, the Governor’s Office of Management and Budget (GOMB) issues its Illinois Economic and Fiscal Policy report, which serves as the State of Illinois’ (Illinois or the ‘State’) primary long-term fiscal planning document and an early indicator of whether Illinois is structurally balanced heading into the next budget year. The 2025 edition of the report, released on October 9, 2025, about a month earlier than required by statute, signals an increasingly strained fiscal environment due to…
Chicago enters the FY2026 budget season at a pivotal moment. If it feels like we have been here before, it is because we have for as long as can be remembered. Ever-mounting taxes and fees, persistent structural budget gaps, high long-term debt, underfunded pensions, and debates over government spending are long-held staples of local political discourse. Despite occasional wins, the City’s fiscal situation remains largely unchanged, and new financial burdens further threaten an already fragile…
The Local Pension Dashboard is intended for use as a resource and educational tool to increase the accessibility of local pension fund data. The dashboard reports metrics for the ten major local pension funds within the City of Chicago and Cook County, Illinois, with data from 1996 to 2024 (2024 CTA data is not included as that data has not been released as of publication). Using this tool, dashboard users can create custom visualizations and comparisons of up to ten funds.
This dashboard allows for viewing of grant funding that flows to Illinois state governments, local governments, and nonprofit institutions, with one view including Medicaid grants and one excluding Medicaid grants. Both views do not include other types of federal funding such as direct transfers (e.g., Social Security, SNAP) or contracts.
