Organization Offers Recommendations to Fix Chicago’s $1B Budget Gap

The City of Chicago is facing a double-edged fiscal crisis as it prepares for FY2025. With a staggering projected deficit of $982.4 million for the upcoming fiscal year and a remaining $222.9 million shortfall for FY2024, officials are scrambling to identify solutions. The Civic Federation has released a comprehensive report offering immediate and long-term recommendations to help city leaders navigate these unprecedented challenges. The report not only highlights Chicago’s ongoing budgetary difficulties but also presents a framework of options aimed at stabilizing the city’s finances. Civic Federation President Joe Ferguson emphasized the gravity of the situation: “The City’s habitual reliance on one-time revenues, unsustainable pension obligations, and the lack of financial clarity in public safety spending are key issues that need urgent attention. Our roadmap provides a set of immediate actions and longer-term solutions to help Chicago restore financial stability.” Immediate Potential Non-Revenue Options The Civic Federation’s report suggests several non-revenue measures that the city should prioritize before resorting to new taxes or fees: Cut or offset dormant vacancies: The city routinely carries thousands of unfilled positions in its budget, which tie up unnecessary resources. The city could reduce its projected deficit by cutting positions that it does not plan...