(The Center Square) – A Chicago alderman says a taxpayer-funder report on city finances should be made public before Mayor Brandon Johnson’s administration makes changes.
The city council’s Budget and Government Operations Committee opened a series of hearings Tuesday as officials wrestle with a projected deficit of more than $1 billion.
Alderman Samantha Nugent asked to see a $3 million budget analysis prepared for the city by Ernst & Young. Alderman Brendan Reilly repeated Nugent’s question to Chicago Budget Director Annette Guzman.
“So I guess I’d ask on the record, will we be given access to the unredacted raw report before it’s filtered by your departments, since it’s taxpayer dollars that this body approved?” Reilly asked. “It’s not the mayor’s report. It belongs to all of us. I’m asking if we’ll be able to see the recommendations we paid Ernst & Young a tremendous amount of tax dollars for before you all filter it and curate it to the mayor’s desire.”
Guzman said aldermen could expect the report soon.
“What you can expect is the final document with the recommendations in it,” Guzman said.
Reilly then asked the committee chair, Alderman Jason Ervin, to request the unredacted report.
“We’ll address that. We’ll work through with the mayor’s office and law to work through that,” Ervin said.
With the city facing a $1.15 billion deficit, Reilly said Johnson’s administration should not be “hiding the football.”
During her presentation to the committee, Guzman said city revenues are up this year, but a measure of business tax income dropped in the city and statewide.
“Transaction taxes are outperforming projections, led by the personal property lease tax as well as increases in each of the five taxes increased by city council as part of the 2025 budget. And utility taxes are outperforming projections, driven by natural gas usage and higher rates,” Guzman said.
Guzman reported ongoing declines in the personal property replacement tax (PPRT), which is collected by the state on business income.
“Statewide, PPRT revenues are down nearly $1 billion, with Chicago’s share down 37%, a loss of approximately $38 million through May,” Guzman said.
The city’s chief financial officer, Jill Jaworski, discussed the cost of Illinois House Bill 3657, which Gov. J.B. Pritzker signed Aug. 1. The new law enhances Tier 2 pensions for Chicago police and firefighters.
“Annual pension contributions will grow by $60 million starting in fiscal 2027 but will balloon over time, reaching an estimated $750 million by 2055. In total, we estimate the legislation will require $6.6 billion in additional contributions over the plan’s 30-year funding horizon,” Jaworski said.
Last month, the mayor’s office reported an increase in the city’s projected deficit from $1.12 billion to $1.15 billion. Among other things, the mayor’s office cited weaker-than-expected business-related tax revenues, the exhaustion of one-time reserves and pension reforms at the state level.
