Aldermen call for transparency as Chicago wrestles with deficit over $1
billion
[September 11, 2025]
By Jim Talamonti | The Center Square
(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.
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The Chicago City Council
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“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.
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