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CHICAGO — Today, The Civic Federation released the following statement:
"This morning’s announcement from Mayor Johnson that he would not veto the budget passed by City Council over the weekend brought a conclusion to an unprecedented and complex FY2026 budget season. The final result—the budget that will take effect January 1—should leave Chicagoans expecting much better of City Hall. The Council-generated FY2026 budget improves on the Mayor’s initial proposal, but still falls far short of what is needed to address Chicago’s deeply challenged financial situation. Among other things, the budget wisely makes Chicago’s full advance pension payment, but it still relies on a shocking amount of new borrowing for operating costs as well as an unprecedented TIF surplus, which could impair economic development capacities in the near future. It relies heavily on taxpayers, both individual and corporate, through a bevy of small revenue increases that only move the needle marginally on the structural budget imbalance, and leaves out significant opportunities for savings and efficiencies.
“We commend the City Council budgeteers for attempting to flex muscles they have always had but never used, and on their decision to institute better accountability methods moving forward. Meaningful success will require substantial reforms to City ordinance and rules, as well as the resources to build City Council’s capacity. We exit this budget cycle with a damaged fiscal reputation, continued structural imbalance, and another large deficit to come in 2027, awaiting a further credit downgrade that would leave the City at the precipice of junk status. In 2026, Chicago must take bold, decisive action on a turnaround plan because the City can’t afford not to.”
Read more from The Civic Federation HERE.