Committee on Budget and Government Operations meeting, July 16, 2026

When: Thu, Jul 16, 2026, 10:00 AM (Chicago time)
Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
Status: Scheduled & Published
Committee: Committee on Budget and Government Operations
Video: https://vimeo.com/showcase/8925576?video=1210310337
Transcript: full text (48,447 words, automatic captions)

Video chapters

18:15 Public comment (none)
28:23 2026 Mid-Year Budget Report presentation (OBM, CFO, Comptroller)
45:09 Appendix: outstanding receivables, debt sale evaluation and collections
49:59 Pat Dowell: Asked how many violators are in the pool of administrative hearings debt and how much the top 10…
53:02 Member questions on mid-year budget report (rounds one and two)
58:00 Michelle A. Harris: Asked how delayed Cook County property tax distributions affect the city and whether the…
1:00:30 Michelle A. Harris: Asked whether the city will make the additional supplemental pension payment and…
1:03:06 Michelle A. Harris: Raised concerns about garbage collection delays in her ward and asked how many trucks…
1:12:53 Brendan Reilly: Asked the Budget Director who is responsible for implementing legislation passed by the…
1:14:04 Brendan Reilly: Asked what happened in the 10 days between announcing Bank of America for the debt sale and…
1:16:32 Brendan Reilly: Asked whether the mayor's description of the revenue as predatory and his executive order…
1:23:51 Jason C. Ervin: Asked what advertising revenue the city expects if not the budgeted amount and when the…
1:27:36 Marty Quinn: Asked what TIF surplus to expect given reported CPS teacher layoffs and furlough days.
1:29:01 Marty Quinn: Asked about the status of CPS's $175 million pension reimbursement for 2026 and the related…
1:31:10 Marty Quinn: Asked what steps are being taken to separate city and CPS finances now that the school board…
1:34:02 Matthew J. O'Shea: Said Streets and Sanitation and CDOT are significantly short of drivers and laborers and…
1:37:07 Matthew J. O'Shea: Said crews are short during the peak garbage season and warned that missed alley pickups…
1:37:50 Matthew J. O'Shea: Asked for a yes or no answer on whether the second supplemental pension installment will…
1:43:27 Debra L. Silverstein: Said the zeros on the revenue slide, including video gaming after the mayor introduced…
1:46:00 Debra L. Silverstein: Said the revenue lines at zero are those the mayor opposed and disagreed with the…
1:46:37 Debra L. Silverstein: Said a police station and firehouse annex in her ward prioritized in the management…
1:49:09 Raymond A. Lopez: Said council priorities are treated as secondary to the mayor's and that ward projects…
1:49:46 Raymond A. Lopez: Asked for the city's total bond debt and repayment timeline.
1:51:45 Raymond A. Lopez: Asked what the city is doing to collect the roughly $8 billion owed to it as reported by…
1:57:23 Gilbert Villegas: Asked about the status of the time and attendance system, saying the delay has cost about…
1:57:57 Gilbert Villegas: Asked whether the city would consider writing off the roughly $8.1 billion in old…
1:58:32 Jason C. Ervin: Said writing off old receivables would not help the budget from an accounting perspective…
1:59:34 Gilbert Villegas: Argued that uncollected fines and fees have affected the budget because they are part of…
2:08:43 Daniel La Spata: Requested the turnover goal for each department this year.
2:09:11 Daniel La Spata: Asked how the $219 million 2025 general fund surplus is reflected in budget documents and…
2:14:13 Daniel La Spata: Asked why water and sewer enterprise fund revenues so far exceed the departments' operating…
2:20:12 David H. Moore: Asked for confirmation that funded infrastructure and menu projects are not being held back…
2:21:02 David H. Moore: Asked whether the higher checkout bag tax is reducing sales tax revenue as residents shop…
2:26:30 David H. Moore: Asked what the impact would be if CPS were excluded from TIF.
2:28:21 Rossana Rodríguez Sánchez: Thanked the finance team and said the revenue measures proposed by council…
2:29:08 Rossana Rodríguez Sánchez: Asked what work had been done to establish the municipal marketing and augmented…
2:33:21 Rossana Rodríguez Sánchez: Asked whether departments were consulted on the feasibility of those revenues and…
2:36:09 Samantha Nugent: Cited a Pokemon Go event in Chicago with more than 100,000 ticket buyers to argue that…
2:37:07 Samantha Nugent: Said the management ordinance called for proposals by February 15 but the RFI was not…
2:39:03 Samantha Nugent: Asked why the city could not run a pilot with a vendor and why it could not use sister…
2:43:54 Matthew J. Martin: Requested data on Department of Finance tax auditor positions over seven years, including…
2:44:36 Matthew J. Martin: Asked for the current year-to-date budget gap and corporate fund spending compared to…
2:45:19 Matthew J. Martin: Asked how many positions were eliminated in the 2026 budget, how many vacancies remain,…
2:51:27 William Conway: Asked how the $219 million surplus squares with the ACFR's $75.6 million year-end fund…
2:55:36 William Conway: Said the accrual-based $75 million figure appears more accurate than the $219 million cash…
2:57:52 William Conway: Asked whether pension funded ratios include the impact of the 2025 state police and fire…
3:00:51 Walter R. Burnett: Asked whether the city has agreements with sister agencies so their employees repay city…
3:02:50 Walter R. Burnett: Asked what is driving sports wagering tax revenue and raised concern about gambling as a…
3:07:05 Andre Vasquez Jr.: Asked whether some platforms are not paying the social media tax that should be.
3:08:09 Walter R. Burnett: Requested a breakdown of on-premise and off-premise liquor tax and asked how the JCDecaux…
3:12:50 Maria E. Hadden: Asked about progress on special events cost recovery.
3:14:02 Maria E. Hadden: Asked about state revenue efforts, including LGDF and the ability to tax services.
3:17:22 Maria E. Hadden: Said the truth lies between colleagues' frustrations, that new programs take time to…
3:22:05 Anthony Beale: Asked about CPS pension reimbursements and whether the city would condition TIF surplus on…
3:23:53 Anthony Beale: Asked why sweepstakes machine revenue is not reflected and who was responsible for notifying…
3:26:58 Anthony Beale: Said the administration is stonewalling parts of the budget it does not support and has a…
3:34:58 Andre Vasquez Jr.: Asked whether social media tax revenue is counted toward the deficit given a possible…
3:37:46 Andre Vasquez Jr.: Asked how the administration plans to close the gap, whether through layoffs, slowing…
3:44:02 Byron Sigcho-López: Said council members who proposed the budget's revenues are responsible for the…
3:46:07 Byron Sigcho-López: Asked the Acting CFO to walk through the memos on the advertising, marketing and…
3:49:15 Byron Sigcho-López: Asked how many coordination meetings were held and why interest in the RFIs and RFPs was…
3:56:22 Ronnie L. Mosley: Asked how core services such as police, fire and Streets and Sanitation are prioritized as…
3:59:15 Ronnie L. Mosley: Said core services may not be able to sustain more cuts given problems with garbage…
4:00:21 Ronnie L. Mosley: Asked about working with the county to stop property tax sale practices that let a few…
4:04:48 Pat Dowell: Said council members also worked at the state level to protect city revenue, including the LGDF…
4:06:37 Pat Dowell: Asked whether the administration has considered an early retirement buyout for city employees.
4:32:00 William E. Hall: Asked the probability and size of potential city layoffs given current finances.
4:33:52 William E. Hall: Asked when layoff notices would go out and how much revenue is needed to avoid them.
4:37:36 William E. Hall: Asked on behalf of a constituent whether the budget had guaranteed revenue when it was…
5:11:59 Jason C. Ervin: Said greater collaboration between the council and the executive branch is needed so the…
5:13:34 Nicole T. Lee: Asked whether the projected $90 million gap accounts for any offset from last year's surplus…
5:14:41 Nicole T. Lee: Asked how turnover targets affect approval of hiring, including for revenue-generating…

Meeting notes

AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.

The Committee on Budget and Government Operations held its 2026 mid-year budget hearing with the Budget Director, the Acting Chief Financial Officer and the Comptroller; no one gave public comment. Officials reported that several local taxes and two new taxes (online sports wagering and social media) are running ahead of budget and that departments are within overtime appropriations, but that the sale of debt, advertising, augmented reality and video gaming license revenues budgeted by the council have produced no revenue so far, leaving a preliminary projected corporate fund gap of about $89.3 million for 2026. Members questioned the collapse of the planned debt sale, the timing of RFPs for advertising and augmented reality, the second installment of the supplemental pension payment, staffing in Streets and Sanitation, TIF surplus and CPS payments, fund balance figures in the 2025 annual financial report, and possible layoffs if the gap is not closed. Members expressed differing views on whether the administration had worked to implement the council-passed revenues or whether those revenues were realistic, and several called for better collaboration ahead of the 2027 budget. The hearing was informational and no vote was taken on the report.

Topics: 2026 mid-year budget report, revenue shortfall, sale of debt, advertising and augmented reality revenue, video gaming licenses, supplemental pension payment, TIF surplus and CPS, fund balance and ACFR, city staffing and layoffs, executive-council collaboration

Agenda items discussed

28:23 2026 mid-year budget report presentation by the Office of Budget and Management, CFO and Comptroller: discussed
39:24 2025 annual comprehensive financial report results and pension funded ratios: discussed
45:09 Appendix on outstanding receivables, debt sale evaluation and collections trends: discussed

Alderpersons who spoke

Jason C. Ervin (chair): Asked what advertising revenue the city expects if not the budgeted amount and when the related RFPs will be issued. (1:23:51); Said writing off old receivables would not help the budget from an accounting perspective and keeping them preserves some ability to collect. (1:58:32); Said greater collaboration between the council and the executive branch is needed so the city does not face mid-year budget fixes, and that the 2026 gap must be closed in the next 60 to 90 days. (5:11:59)
Pat Dowell (alderperson): Asked how many violators are in the pool of administrative hearings debt and how much the top 10 owe the city, and requested a list of the top 10. (49:59); Said council members also worked at the state level to protect city revenue, including the LGDF share and defeating a sports wagering bill, and that the branches must work together. (4:04:48); Asked whether the administration has considered an early retirement buyout for city employees. (4:06:37)
Michelle A. Harris (alderperson): Asked how delayed Cook County property tax distributions affect the city and whether the city will need a line of credit. (58:00); Asked whether the city will make the additional supplemental pension payment and confirmed that the executive branch is making that determination. (1:00:30); Raised concerns about garbage collection delays in her ward and asked how many trucks and laborers Streets and Sanitation is short. (1:03:06)
Brendan Reilly (alderperson): Asked the Budget Director who is responsible for implementing legislation passed by the council. (1:12:53); Asked what happened in the 10 days between announcing Bank of America for the debt sale and the partnership ending, and who ended it. (1:14:04); Asked whether the mayor's description of the revenue as predatory and his executive order removing EMS debt affected buyer interest. (1:16:32)
Marty Quinn (alderperson): Asked what TIF surplus to expect given reported CPS teacher layoffs and furlough days. (1:27:36); Asked about the status of CPS's $175 million pension reimbursement for 2026 and the related intergovernmental agreement. (1:29:01); Asked what steps are being taken to separate city and CPS finances now that the school board will be fully elected. (1:31:10)
Matthew J. O'Shea (alderperson): Said Streets and Sanitation and CDOT are significantly short of drivers and laborers and asked whether there is a plan to privatize the aldermanic menu program. (1:34:02); Said crews are short during the peak garbage season and warned that missed alley pickups lead to rat problems. (1:37:07); Asked for a yes or no answer on whether the second supplemental pension installment will be made and whether it will be in the August forecast. (1:37:50)
Debra L. Silverstein (alderperson): Said the zeros on the revenue slide, including video gaming after the mayor introduced an ordinance to ban it, are frustrating and asked for an explanation. (1:43:27); Said the revenue lines at zero are those the mayor opposed and disagreed with the administration's account of its efforts. (1:46:00); Said a police station and firehouse annex in her ward prioritized in the management ordinance have had no follow-up. (1:46:37)
Raymond A. Lopez (alderperson): Said council priorities are treated as secondary to the mayor's and that ward projects face repeated delays. (1:49:09); Asked for the city's total bond debt and repayment timeline. (1:49:46); Asked what the city is doing to collect the roughly $8 billion owed to it as reported by the Inspector General, including business tax and inspection fee debt. (1:51:45)
Gilbert Villegas (alderperson): Asked about the status of the time and attendance system, saying the delay has cost about $40 million a year. (1:57:23); Asked whether the city would consider writing off the roughly $8.1 billion in old receivables. (1:57:57); Argued that uncollected fines and fees have affected the budget because they are part of balancing it. (1:59:34)
Daniel La Spata (alderperson): Requested the turnover goal for each department this year. (2:08:43); Asked how the $219 million 2025 general fund surplus is reflected in budget documents and why it goes to reserves rather than addressing the current gap. (2:09:11); Asked why water and sewer enterprise fund revenues so far exceed the departments' operating expenditures. (2:14:13)
David H. Moore (alderperson): Asked for confirmation that funded infrastructure and menu projects are not being held back to cover the budget gap. (2:20:12); Asked whether the higher checkout bag tax is reducing sales tax revenue as residents shop outside the city. (2:21:02); Asked what the impact would be if CPS were excluded from TIF. (2:26:30)
Rossana Rodríguez Sánchez (alderperson): Thanked the finance team and said the revenue measures proposed by council members were not achievable and were now being blamed on the administration. (2:28:21); Asked what work had been done to establish the municipal marketing and augmented reality programs. (2:29:08); Asked whether departments were consulted on the feasibility of those revenues and whether budgeting $29.3 million and $6 million for them in one year was prudent. (2:33:21)
Samantha Nugent (alderperson): Cited a Pokemon Go event in Chicago with more than 100,000 ticket buyers to argue that augmented reality is a realistic revenue source. (2:36:09); Said the management ordinance called for proposals by February 15 but the RFI was not issued until February 10, indicating a lack of urgency. (2:37:07); Asked why the city could not run a pilot with a vendor and why it could not use sister agencies' advertising contracts as a model. (2:39:03)
Matthew J. Martin (alderperson): Requested data on Department of Finance tax auditor positions over seven years, including vacancies. (2:43:54); Asked for the current year-to-date budget gap and corporate fund spending compared to budget. (2:44:36); Asked how many positions were eliminated in the 2026 budget, how many vacancies remain, and the scope and savings of the hiring freeze. (2:45:19)
William Conway (alderperson): Asked how the $219 million surplus squares with the ACFR's $75.6 million year-end fund balance, which he said has declined sharply since 2022. (2:51:27); Said the accrual-based $75 million figure appears more accurate than the $219 million cash figure. (2:55:36); Asked whether pension funded ratios include the impact of the 2025 state police and fire pension bill. (2:57:52)
Walter R. Burnett (alderperson): Asked whether the city has agreements with sister agencies so their employees repay city debt as city employees must. (3:00:51); Asked what is driving sports wagering tax revenue and raised concern about gambling as a public health issue. (3:02:50); Requested a breakdown of on-premise and off-premise liquor tax and asked how the JCDecaux contract affects the advertising program. (3:08:09)
Andre Vasquez Jr. (alderperson): Asked whether some platforms are not paying the social media tax that should be. (3:07:05); Asked whether social media tax revenue is counted toward the deficit given a possible lawsuit. (3:34:58); Asked how the administration plans to close the gap, whether through layoffs, slowing hiring or changing the pension payment. (3:37:46)
Byron Sigcho-López (alderperson): Said council members who proposed the budget's revenues are responsible for the shortfall, which he equated to about 2,000 city jobs. (3:44:02); Asked the Acting CFO to walk through the memos on the advertising, marketing and augmented reality programs. (3:46:07); Asked how many coordination meetings were held and why interest in the RFIs and RFPs was low. (3:49:15)
Maria E. Hadden (alderperson): Asked about progress on special events cost recovery. (3:12:50); Asked about state revenue efforts, including LGDF and the ability to tax services. (3:14:02); Said the truth lies between colleagues' frustrations, that new programs take time to implement, and called for a reset with transparency on both sides. (3:17:22)
Anthony Beale (alderperson): Asked about CPS pension reimbursements and whether the city would condition TIF surplus on repayment. (3:22:05); Asked why sweepstakes machine revenue is not reflected and who was responsible for notifying the state that the city allowed video gaming terminals. (3:23:53); Said the administration is stonewalling parts of the budget it does not support and has a responsibility to implement the passed budget. (3:26:58)
Ronnie L. Mosley (alderperson): Asked how core services such as police, fire and Streets and Sanitation are prioritized as intergovernmental revenues decline. (3:56:22); Said core services may not be able to sustain more cuts given problems with garbage pickup, tree trimming and response times. (3:59:15); Asked about working with the county to stop property tax sale practices that let a few owners amass neglected lots. (4:00:21)
Nicole T. Lee (alderperson): Asked whether the projected $90 million gap accounts for any offset from last year's surplus held in reserves. (5:13:34); Asked how turnover targets affect approval of hiring, including for revenue-generating positions, and requested average time-to-hire data. (5:14:41)
William E. Hall (alderperson): Asked the probability and size of potential city layoffs given current finances. (4:32:00); Asked when layoff notices would go out and how much revenue is needed to avoid them. (4:33:52); Asked on behalf of a constituent whether the budget had guaranteed revenue when it was passed. (4:37:36)

Exchanges between members

50:45 The chair said Dowell's point of information was a question and asked her to wait for her turn.
50:57 Dowell said she wanted an answer to her point of information before taking her turn for questions.
1:13:27 Reilly said Harris had set up his next set of questions.
1:29:40 Quinn asked the chair whether he recalled the city-CPS intergovernmental agreement.
1:48:08 Quinn asked for an answer to Silverstein's question about the police district and firehouse projects.
1:49:28 Lopez echoed O'Shea's point about delays in ward projects.
1:59:00 Villegas partly agreed with the chair but said very old debt should eventually come off the books.
1:59:11 The chair responded to Villegas that the receivables are not on the books.
2:51:27 Conway said he was following up on La Spata's questions about the fund balance.
3:07:19 Vasquez followed up on Burnett's question about social media tax payments.
3:21:44 The chair thanked Hadden and asked about her remark on hoping to be around for the budget process.
4:03:58 Lee asked the chair how much time she had for questions.
4:10:03 Dowell remarked that the chair had shortened her first round of questions.
5:07:26 Sigcho-López said he agreed with Dowell on returning to co-governance.
5:07:39 Sigcho-López referenced Hadden's comment about efforts to embarrass the mayor.
5:23:42 Hall referred to Dowell's earlier question about the debt buyers' conference.

Documents

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