2025 Budget Blog

Following the success of last year’s Budget Blog, which provided a relatively succinct way to communicate with residents about the complicated topic of the City Budget, 1st Ward Staff are once again maintaining a blog about the budget.

Departmental Hearings
2025 departmental hearings will kick off on Wednesday, November 6. This year, Ald. La Spata is committing to highlighting at least one 1st Ward resident’s question during his second round of questioning (5 min). Submit any questions you may have to info@the1stward.com. Click here to view the daily lineup of departmental hearings. Each hearing will be livestreamed via the Office of the City Clerk’s website.

Prior to a department’s hearing, Ald. La Spata sends “through the Chair” (TTC) letters with data specific questions, which gives the department time to find the data and doesn’t cut into the Alderman’s time during his round of questioning. You can learn more about TTC letters and review 2025 letters here.

Structural Vacancies (November 7, 2024)

For each Committee on Budget and Government Operations hearing, each department provides a budget book that includes specific human resources, employment, and vacancy information. 1st Ward staff studied vacancies between 2024 and 2025 departmental books, and found 292 vacancies that may have appeared in both the 2024 proposal and 2025 proposal. These positions cost nearly $24 million in the Corporate Fund, which is where the City’s budget gap is. Yet, studying these positions is not simply important to consider cutting persistent vacancies: it also demonstrates where vacancies could hurt the City, in everything from public safety investigative positions to technology development and procurement positions that could boost the City’s economy.

Finance General (November 7, 2024)

One of the largest lines in the entire budget is the Finance General category. This is a type of catch-all account for many different types of personnel costs for the City. The good news for the 2025 gap is that the City has reduced the Corporate Fund “Finance General” line by approximately $300 million. However, there remain some large lines in this aspect of the budget that Alderman La Spata and staff are continuing to scrutinize.

Applying Budget Forecast Improvements to Future Budgets (November 1, 2024)

Between the publication of the 2025 Budget Forecast and the 2025 Budget Overview & Recommendations, the City found improvements in its forecasted revenue projections and also clarified the extent to which additional pension payments were included in the forecasted budget gap. The next Budget Blog demonstrates these improvements, and compares these improved assumptions with the 3-year outlook originally published in the 2025 Forecast.

Mayor’s Budget Address (October 30, 2024)

The City’s Budget books are live:

Chicago’s 2025 budget proposes 744 Full-Time Equivalent (FTE) positions cut. This document lists the top line cuts per department.

The City of Chicago’s 2025 budget has been published, and 1st Ward staff are highlighting key aspects. Significant investments are planned for public safety ($213.6 million), community and gender-based violence prevention, mental health, and youth employment, although specific funding sources are not always clear. To close the $5.6 billion corporate fund gap, measures include projected savings, efficiencies, and a substantial $300 million property tax increase intended to relieve pension subsidies. Additional analysis to come.

What does the revenue forecast say about the economy? (October 28, 2024)

Prior to the expected release of the Budget on Wednesday, October 30, 2024, let’s take one more look at the 2025 Forecast. By looking at historical data, 2024 collections, and the 2025 forecast, it is possible to assess the City’s expected outlook for the economy in the next year. In this case, a negative forecast expectation for Chicago may be exacerbating the City’s expected budget gap.

What is the Budget Gap? (October 22, 2024)

The published budget gap in the 2025 Budget Forecast is nearly $1 billion, which is quite a daunting figure. Yet, two years ago the City forecast was much less extreme, with a forecasted 2025 gap of approximately $550 million. While that number is not small, it’s much less than the current gap. What changed in two years? This budget blog tackles some of the line items forecasted by the City, to show how Alderman La Spata and the 1st Ward staff form budget priorities. This blog discusses issues and forecasts related to pensions, projected Building Permit and Business License fees, and services for our new arrivals seeking asylum.

You can read more here, and with the City’s Comprehensive Annual Financial Reports and Budget Forecast documents for 2023 and 2025: