The City of Chicago faces one of its largest operating budget gaps in history, with a massive $1.15 billion shortfall projected for FY2026. Mayor Johnson’s proposed budget must close that gap by the time of introduction in October. Since the Mayor convened a working group to address the City’s structural budget gaps via executive order in April 2025, City stakeholders have been waiting with bated breath to see what the working group would propose as ways to streamline operations…
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.
Tax Increment Financing (TIF) Districts are a complex, often misunderstood part of Chicago’s tax structure. TIF Districts segment and dedicate a portion of property tax collections within a designated geographic area to fund economic development and capital or infrastructure projects. They do not, as critics often claim, siphon funds away from local governments. Instead, TIF districts limit the taxable value of property, or the tax base, from which local governments can draw their property tax…
The State of Illinois’ FY2026 enacted budget, signed June 16, builds modestly on the prior year with 3.8% increases in revenues and expenditures, but it relies heavily on new and expanded taxes, one-time fund sweeps, delayed transfers, and other short-term measures to balance. While the budget funds statutory pension contributions and provides targeted increases in education, healthcare, and human services, it does not advance long-term fiscal priorities such as building rainy day reserves,…
Civic Federation President Joe Ferguson testified before the Illinois House Executive Committee on July 31, 2025, urging action to address Chicago Public Schools’ (CPS) $734 million budget deficit and long-term structural challenges. Ferguson highlighted the District’s reliance on one-time revenues, underfunded pensions, declining enrollment, and junk credit rating, warning that short-term borrowing could worsen its financial position. He outlined potential solutions, including increased State…
Over the past three decades, Illinois’ state government workforce has declined significantly from a peak in FY2001, with persistent staffing shortages despite recent increases in budgeted positions. High vacancy rates—driven by outdated hiring systems, labor market competition, and structural challenges—have strained the state’s capacity to deliver services, particularly in public safety and healthcare. Major disruptions, including early retirement incentives, the Great Recession, a prolonged…
The $55.1 billion state spending plan signed into law Monday by Pritzker marked one of the toughest budget seasons of his tenure, amid federal funding uncertainty under President Donald Trump.
CPS has recently concluded negotiations with the CTU over its 2025-2028 contract. The District projects a $529 million structural deficit for FY2026. This deficit could grow if the District chooses to spend extra money on pension reimbursements or charter schools or loses federal funding. Several of the assumptions CPS makes in defining this deficit are flawed or uncertain. The real deficit could end up significantly higher than the current projection. CPS has few realistic options for revenue…
On February 19, Governor Pritzker released his proposed budget for Illinois’ fiscal year 2026 (FY2026), beginning on July 1, 2025. The proposed budget includes several new revenue sources but does not include a tax increase. It also includes a host of minor spending reductions across most state areas of expenditure, as well as significant savings due to the elimination of the state’s healthcare program for adult immigrants. Though the budget is balanced, it does not address several major fiscal…
The Forest Preserve District of Cook County (FPDCC, or “the District”) adopted its FY2025 budget on November 19, 2024, for the fiscal year that began on January 1, 2025. This is the third annual budget supported by a $40 million increase in property tax revenue approved by Cook County voters in a referendum question on the November 2022 ballot. As a result of the referendum, the Forest Preserve District’s annual adopted budget increased from $137 million in FY2022 to $182.2 million in FY2023,…
