Equity-based budgeting is a framework for distributing government resources in a way that actively addresses systemic disparities and promotes fairness across communities. This approach prioritizes spending that meets the greatest needs, repairs historical harms, and expands opportunities—particularly for populations that have been historically underserved or marginalized. While much of this…
On August 28th, 2025, Chicago Public Schools (CPS, or the “District”) passed a balanced budget for its 2026 fiscal year, covering the 2025-2026 school year. The budget successfully closed a $734 million deficit. The District’s choice to avoid short-term borrowing as a deficit-closing method likely prevented a credit downgrade.
The City of Chicago faces one of its largest operating budget gaps in history, with a massive $1.15 billion shortfall projected for FY2026. Mayor Johnson’s proposed budget must close that gap by the time of introduction in October. Since the Mayor convened a working group to address the City’s structural budget gaps via executive order in April 2025, City stakeholders have been…
This dashboard allows for viewing of grant funding that flows to Illinois state governments, local governments, and nonprofit institutions, with one view including Medicaid grants and one excluding Medicaid grants. Both views do not include other types of federal funding such as direct transfers (e.g., Social Security, SNAP) or contracts.
Tax Increment Financing (TIF) Districts are a complex, often misunderstood part of Chicago’s tax structure. TIF Districts segment and dedicate a portion of property tax collections within a designated geographic area to fund economic development and capital or infrastructure projects. They do not, as critics often claim, siphon funds away from local governments. Instead, TIF districts limit the…
The State of Illinois’ FY2026 enacted budget, signed June 16, builds modestly on the prior year with 3.8% increases in revenues and expenditures, but it relies heavily on new and expanded taxes, one-time fund sweeps, delayed transfers, and other short-term measures to balance. While the budget funds statutory pension contributions and provides targeted increases in education, healthcare, and…
Civic Federation President Joe Ferguson testified before the Illinois House Executive Committee on July 31, 2025, urging action to address Chicago Public Schools’ (CPS) $734 million budget deficit and long-term structural challenges. Ferguson highlighted the District’s reliance on one-time revenues, underfunded pensions, declining enrollment, and junk credit rating, warning that short-term…
Over the past three decades, Illinois’ state government workforce has declined significantly from a peak in FY2001, with persistent staffing shortages despite recent increases in budgeted positions. High vacancy rates—driven by outdated hiring systems, labor market competition, and structural challenges—have strained the state’s capacity to deliver services, particularly in public safety and…
The $55.1 billion state spending plan signed into law Monday by Pritzker marked one of the toughest budget seasons of his tenure, amid federal funding uncertainty under President Donald Trump.
CPS has recently concluded negotiations with the CTU over its 2025-2028 contract. The District projects a $529 million structural deficit for FY2026. This deficit could grow if the District chooses to spend extra money on pension reimbursements or charter schools or loses federal funding. Several of the assumptions CPS makes in defining this deficit are flawed or uncertain. The real deficit could…
