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Greetings!
Our office will be closed on Monday, September 1st in observance of Labor Day. There will also be no black or blue cart collection on Monday. Residents should ensure all carts are accessible throughout the week, not solely on their regular day of collection. Additionally, residents should be advised of potential changes to blue cart recycling collection based on their service provider. Please visit www.chicagorecycles.org to find out your waste and recycling pick up schedule.
Yesterday, the Chicago Board of Education approved a $10.2 billion budget for 2026, passing 12-7, with one abstention. The budget puts a $175 million CPS pension payment on the City books that could be paid by CPS if and when more revenue might come in to CPS. The budget did avoid CPS having to take out a out a high-interest loan that the Mayor was demanding of the board. The CPS budget gap was closed with state funding, a huge increase of dedicated TIF revenue, and other funds. If you recall, CPS CEO fought back against taking out a payday loan and was evenutally forced out of his position.
Today, city council members were briefed on the Johnson Administration's mid-year City budget projections and the outlook is not good. The City will hit a $1.15 Billion budget gap. Mayor Johnson has stated he will start to close the gap with new revenue and no cuts. Enterprise funds like the water, sewer and Midway and O'Hare airport funds have increased and are remaining stable. These are enterprise funds and kept as separate as possible from corporate fund expenditures in order to maintain long-term financial sustainability for water, sewer and airport functions. They cannot be raided to make up budget gaps in the corporate fund and have separate accounting and financial reporting. Each of these maintain solid credit ratings for now.
The City budget gap of $1.15 billion increases the risk of another downgrade.
due to this budget deficit, the $175 million CPS pension payment and a new unfunded pension mandate (about $3 Billion by 2055) from the state General Assembly, among other concerns. Debt service payments will increase 11% this year and we will have another 34% increase in 2027. Many debt payments for the $3.5 billion in borrowing over the last 2 years has been pushed back by a couple decades, which as we have stated before will significantly increase payments for a future mayor and generation.
The City also faces a $146 million deficit for the 2025 budget and this deficit must be closed as well. Revenues for many of the funds in the corporate fund are declining at a time when expenditures are constantly increasing. Additional budget problems include healthcare mandates at the state level that have added to costs on the city budget. We will be looking at the details on this new mandate and what the specific costs are in the budget.
The Mayor’s subcommittee of revenue has come up with several ideas to trim the budget including advertising on lightpoles, bottled water tax, increasing garbage fees, restaurant taxes, liquor tax, head tax, property tax, and real estate property transfer tax. Additional ideas at the state level did not make it into the state budget discussions.
I’ve also asked for a copy of the Ernst & Young cost cutting and efficiencies report that will cost taxpayers $3.2 million to produce, with another $3 million Ernst and Young report expected to be produced for 2027. The report likely says cuts and efficiencies must be undertaken as part of the City's efforts to close the budget gaps. As more information becomes available and the mid-year report is released, we will share it with you.
This week, I attended a ribbon cutting with the Lakeview Roscoe Village Chamber of Commerce for a mural on the Home Carpet One building (3071 N. Lincoln). Painted by Argentinian artist Melina Scotte who writes that this mural is an "abstract piece representing freedom, peace, and the search of identity through the lens of LGBTQIA+ community." It's bright, beautiful, and a welcome addition to our community and city!
Have a nice weekend.
Alderman Scott Waguespack
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