|
Chicago City Budget Update
The Civic Federation remains the first stop for anyone seeking to understand the nuance behind Chicago’s budget: how the numbers are built and the debates that shape the City’s fiscal future. This year, our coverage has become even more responsive to the rapid pace of the 2026 budget cycle, and over the past several weeks, we have published seven reports, analyses, statements, and opinion pieces calling for prudent, forward-looking decisions as the City confronts a more than $1 billion structural gap.
After pieces in October setting the stage and highlighting expenditures, November began with a close look at long-term spending trends within the Chicago Police Department, providing essential context for understanding cost drivers and structural pressures. We also examined efficiency recommendations from the consulting firm EY—most of which were left out of the FY2026 budget proposal—and identified more than a dozen areas where operational reforms could generate meaningful savings without service cuts.
At the same time, we issued a statement on S&P Global’s adjustment of Chicago’s credit outlook, underscoring the importance of structural, not one-time, solutions. President Joe Ferguson’s op-ed in Crain's further outlined the long-term reforms needed to break the cycle of crisis budgeting.
As the administration advanced assumptions of rising casino revenues, we evaluated how realistic those projections are, noting persistent underperformance at the temporary casino and the risks of relying on revenues that have yet to materialize. Finally, yesterday, President Joe Ferguson published another op-ed urging elected leaders to make necessary efficiency and revenue decisions now before next year’s cycle brings an even more dire situation.
Together, this body of work offers a clear roadmap toward a more stable and sustainable fiscal future for Chicago.
| | |
President's Note
Dear friends,
As I write this the week of Thanksgiving, City Hall remains embroiled in a complicated and in many ways opaque process to reach a balanced Chicago’s FY2026 budget. At the same time, the Cook County Treasurer issued property tax bills two weeks ago that shocked many residential owners, changes to SNAP benefits threaten hundreds of thousands of Chicagoans, and the approaching traumatic specter of major cuts to Medicaid, as the federal government pushes a contraction and restrictive agenda. The noise from these overlapping concerns can feel like separate, deafening maelstroms, but beneath it all runs a single truth: everything in government is interconnected and interdependent.
Nowhere is that clearer than in Chicago’s current budget crisis. The longer-term fiscal prospects of the City and Chicago Public Schools will hinge on state legislative and budgetary determinations. Operations of those two largest components of local government, both of which teeter on functional insolvency, are highly dependent on the already burdened Cook County property tax system to provide sustainable funding. Seemingly small or distant changes can have potentially disastrous consequences. A major pension proposal pushed through committee in the October veto session would have upended the City’s budget, on top of the unfunded mandate imposed on the City by the spring session police and fire pension sweetener. The latest effort – the so-called “We Are One” legislation was held for now, but reemergence in the Spring 2026 session in Springfield is inevitable.
Yet, apart from a few key areas (such as the disputed Municipal Employees' Annuity and Benefit Fund reimbursement, the City has repeatedly endeavored to strongarm a cash-strapped CPS to pay, and which has been the center of much debate), these interconnectivities rarely get discussed as they should. Budgetary and fiscal initiatives get introduced by legislators, reported by the media, and debated by all, in governmental silos, with little recognition of their impact on other units of government. Our goal this year at the Civic Federation is to begin to change that, because one cannot truly understand what is happening in any one of Illinois’ thousands of governmental units without understanding the whole. Tax systems, budgeting practices, and fiscal decisions ripple across one another – often without coordination or shared understanding among the officials, staff, advocates, and residents affected by them.
This year, the Civic Federation’s work is guided by that recognition. Our North Star is to illuminate how government practices, structures, and decisions are part of a single, interdependent system, and what that means for stability, sustainability, and resilience.
It’s a complex, Wild West out there, but do not despair. The first step is to take a breath, zoom out, and focus on where we can make the most impact together. This is precisely why the Civic Federation exists: to shed light on and explain the system and help identify the starting points for change. We hope you will stay with us as we continue to elevate the good, the bad, and the instructive – and sometimes destructive – in these unprecedented times.
Thank you, as always, for your support of our work.
| | Excellence in Public Service Award | | | | |
Erin Aleman, Executive Director of the Chicago Metropolitan Agency for Planning, will receive the Motorola Solutions Foundation Excellence in Public Service Award for her leadership in addressing the state of the mass transit system in Illinois. Erin’s career has been dedicated to the public sector and exemplifies what a pathway to good government could look like.
Leading up to the event, we have been speaking with close friends and colleagues of our honoree. Here's what people are saying about Erin:
| | |
"I'm very grateful that the Civic Federation takes it upon itself to honor people who are in public service. Erin, on the basis of the work that CMAP has done, is deserving...she's been doing the difficult work of trying to bring people together across the region to focus not just on transportation and infrastructure, but on environmental resilience. There's nobody else that's doing that work, so that makes CMAP kind of a unicorn." - Hon. Toni Preckwinkle, President of the Cook County Board of Commissioners
"Erin's lived experience allows her to be different than a lot of other leaders who would be at the same place. Her lived experience allows her to be empathetic... She plans for a region that's very diverse." - Hubert Morgan, Founder and Principal, Stanhope Consulting
"Erin, first and foremost, is a planner and understands how all the pieces fit together. So she's going to understand why housing and transportation are related to one another, or why transportation and the environment have to work together." - Michael S. Davidson, President and CEO, Openlands
| | Making Sense of Property Tax | |
If property taxes weren’t top of mind at the start of November, they certainly were after Cook County’s latest bills landed on November 14. The Civic Federation has long warned that Illinois’ property tax system is too complex, too opaque, and too unpredictable for taxpayers to reasonably understand or for governments to responsibly plan around.
In a statement issued following the bill release, we emphasized that these sharp year-to-year swings are symptoms of a convoluted system that obscures how levies, assessments, and exemptions interact. This unpredictability not only strains household budgets but also undermines the region’s ability to attract investment and support long-term economic growth. At the same time, local governments continue to raise levies with limited regard for the cumulative impact on taxpayers.
These challenges are compounded by a state “tax cap” law that is not working as intended. Our report released this month with the Mansueto Institute shows that Illinois’ Property Tax Extension Limitation Law (PTELL)—designed to slow property tax growth—has fallen short, allowing bills to rise far faster than inflation while providing only an illusion of restraint.
This report taken with the recent bills bring into sharp focus longstanding structural problems that demand reform. Taxpayers deserve clarity, transparency, and a system that works. The Civic Federation will continue providing research and solutions to get there.
| | |
Ensuring IDEC Delivers for Families
Research by Lily Padula
Illinois is taking an important structural step in early childhood governance, and our latest report breaks down what this transition means for families, providers, and policymakers. With the launch of the new Illinois Department of Early Childhood (IDEC), the State is consolidating more than a dozen programs into one agency to simplify access, reduce administrative burdens, and strengthen oversight of public resources.
Our analysis outlines three priorities essential to the Department’s success: streamlined pathways for families, aligned funding and data systems, and strong public accountability. This explainer is the first in a three-year Civic Federation initiative to monitor the stand-up and early years of IDEC, including convenings and additional educational materials beginning in 2025.
We are grateful to the McCormick Foundation for generously supporting this work, which will help ensure the new Department delivers on its promise for Illinois families.
| |  | |
What New SNAP Rules Mean for Illinois
Research by Lily Padula
The federal government shutdown this fall exposed just how vulnerable millions of Americans are to disruptions in essential supports, and Illinois residents are no exception. In our latest analysis, the Civic Federation examines how forthcoming federal changes will reshape the Supplemental Nutrition Assistance Program (SNAP) for the nearly 1.9 million Illinois residents who rely on it.
Major revisions will expand work requirements for adults without dependents, narrow the State’s ability to seek waivers, and dramatically shift costs to Illinois by reducing the federal administrative match and imposing a new state cost-share tied to payment accuracy. Using 2023 USDA data, our report estimates that 120,000–200,000 Illinois participants could lose eligibility, while the State could face up to $80 million in added administrative costs beginning in FY2027 and more than $700 million in new annual benefit obligations beginning in FY2028.
These changes carry profound fiscal, economic, and public-health consequences, especially for communities already facing barriers to food access and employment.
| | | |
Civic Federation Governance Transition
This month, the Civic Federation marked an important milestone. At our Annual Board Meeting on November 13, we concluded a year’s work toward the first goal of our strategic plan, “Stronger Together,” with a comprehensive reimagining of our governance and membership structure. With the support and leadership of our Board Directors, past and present, the Federation approved new organizational bylaws, adopted a modernized membership structure, and confirmed our FY2026 slate of Directors.
We are proud to welcome our new Directors and express deep appreciation to the many who continue to serve and guide our work. Their commitment ensures that a 131-year-old organization can grow, evolve, and remain a trusted, independent voice for fiscal responsibility.
You can view our Board of Directors list here.
We are incredibly grateful to our Directors for leading us through this period of renewal and positioning the Federation for impact in the years ahead.
| | Recent Event: Congressman Mike Quigley | | | | |
The Civic Federation welcomed Congressman Mike Quigley back as the featured guest in our Fall Speaker Series, hosted at Loyola University Chicago. In a wide-ranging and candid fireside chat with President Joe Ferguson, the Congressman offered reflections on Chicago’s fiscal crossroads, the long-term solutions needed to stabilize the City’s budget, and the levers that may help chart a more sustainable path forward.
Drawing on his years of public service at both the county and federal levels, Congressman Quigley underscored the need for stronger efficiency reforms, cross-jurisdictional coordination, and renewed public trust. He also brought a unique perspective on what reforms are realistic, what obstacles remain, and how political culture and governance structures must evolve for meaningful change to take hold.
We extend our sincere thanks to Board Director Phil Hale and Loyola University Chicago for hosting this thoughtful and engaging conversation.
| |
Get Involved with the Civic Federation
Join a network of civic, business, and nonprofit leaders who are shaping the future of Chicago and Illinois. Civic Federation members bring deep expertise across a wide range of sectors—and a shared passion for civic engagement, collaboration, and driving real change.
Membership includes access to a series of exclusive programs and events held throughout the year, connecting you directly with Civic Federation staff, public officials, subject-matter experts, and fellow leaders. These gatherings spark dynamic conversations, foster new partnerships, and turn bold ideas into actionable solutions for our region’s most pressing challenges. We offer several levels of membership, thoughtfully calibrated to organization type and size, individual needs, and the desired level of engagement and impact.
| | Civic Federation In the News | | |
ICYMI: Highlights from Recent Months
Each month builds on the last. Explore our past work on Chicago and Illinois’ fiscal health, governance reform, and good government:
| | Want to dive deeper into the Civic Federation's work? Visit our Research Library to explore our research by government and topic area. | | |
Interested in learning about Civic Federation membership opportunities?
Click here for more information.
| | | | |
