Chicago’s $16.6 billion FY2026 budget is officially enacted, but the math reveals a city borrowing from tomorrow.
With federal pandemic aid gone, the City Council took a historic lead, rejecting the Mayor’s head tax and closing a $1.19 billion gap through record-breaking maneuvers:
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15% Cloud Tax: Now the highest in the nation.
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$1B TIF Sweep: The largest in Chicago’s history.
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$1.8B in New Bonds: Borrowing to pay for police settlements and retroactive pay.
While the budget is balanced for now, these one-time fixes can’t be repeated. With pensions and debt already consuming 40% of the operating budget, Chicago faces a projected $1.16 billion deficit for 2027.
Using this guide, here are some questions to ask your Alderperson:
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What is the plan for 2027 that doesn’t rely on one-time sweeps?
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What is the long-term interest cost of borrowing to pay police settlements?
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At what point do these fixed costs force cuts to neighborhood services?
You can access the guide here