NewsChicago Sun-TimesJuly 1, 2026Illinois
Chicago Ends 2025 with $52 Million Deficit Despite Budgetary Surplus
Chicago concluded 2025 with a negative $52 million unassigned balance, leaving the city with no cash cushion despite reporting a $219 million budgetary surplus. The deficit was driven by $166 million in retroactive pay raises for firefighters and large legal settlements, though the city avoided a deeper shortfall by tapping into a $1 billion tax increment financing (TIF) surplus.
Read the full story at Chicago Sun-TimesWhy It Matters
The city's lack of a cash cushion and ongoing $35.1 billion pension crisis may influence future decisions regarding property tax increases ahead of the 2027 mayoral election.
Key Facts
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Who's Mentioned
personSteve Mahr“Provided financial analysis of the 2025 audit and city pension status.”personBrandon Johnson“Mayor who has faced budget rejections from the City Council and is evaluating op”personJB Pritzker“Signed a police pension sweetener that increased city pension liabilities.”organizationCity Council“Rejected the mayor's proposed property tax and corporate head tax increases.”personLori Lightfoot“Initiated supplemental pension payments and the automatic property tax escalator”organizationChicago Public Schools“Received a bailout from the city via a $1 billion TIF surplus.”organizationDeloitte & Touche LLP“Accounting firm that conducted the annual city audit.”