Chicago budget hearings open with a grilling over Ernst & Young's $10 million savings work

On day one, alderpersons asked how much of the Mayor's $120 million in savings came from the consultant. The answer: $52.2 million built into the 2027 budget.

By Chicago PoliticsUpdated Oct 23, 2026

The City Council's budget hearings started Friday, Oct. 23, and the first one was not about any department. It was about Ernst & Young, the consulting firm the City has paid about $10 million to find savings, and how much of the Mayor's 2027 budget its work actually delivers.

Why it matters: Mayor Brandon Johnson's $17.6 billion budget counts on nearly $120 million in cuts and savings, Block Club Chicago reported, alongside new taxes many alderpersons oppose. Members who want fewer taxes are looking for more savings, and Friday's hearing was their first chance to test the administration's numbers in public.

What happened

The Committee on Budget and Government Operations, chaired by Ald. Jason Ervin (28th), heard from Adam Chepanek of Ernst & Young and Acting Budget Director Jonathan Ernst. Video, transcript and our notes are on the meeting page. No votes were taken.

How much is EY's work worth? Ald. Matthew O'Shea (19th) laid out the contracts: $3.2 million in May 2025 and $6.7 million in April 2026. He asked how much of the Mayor's claimed $120 million in savings came from that work (watch at 1:03:55). The administration answered that $52.2 million is built into the 2027 budget, with about $8 million more in what it called "value add," such as fleet maintenance improvements that do not yet show up as a budget cut.

Did EY recommend the new taxes? O'Shea asked whether any EY recommendation called for a head tax or a higher lease tax. "That was not part of the report," Chepanek answered (1:08:48). The firm was not engaged to look at revenue.

Procurement savings. Ald. Scott Waguespack (32nd) noted that the September report showed about $10 million in procurement savings so far, against EY's earlier estimate of $55 million to $111 million a year once fully in place (2:18:13). He also asked about $381 million in "maverick spend," purchasing that goes around the procurement department (2:20:25).

Who does EY work for? Ald. Brendan Reilly (42nd) asked whether alderpersons could meet with the firm without the administration in the room (2:33:28). He said the money spent on the firm "belongs to the city of Chicago, the people of Chicago, and the two bodies that govern it" (2:36:24).

Changes members had not seen. Ald. Andre Vasquez (40th) said he and colleagues were surprised to learn of 14 ordinance changes on special event cost recovery tucked into the 2027 Management Ordinance, and asked for a summary (1:10:30).

Unpaid fines. Ald. Anthony Napolitano (41st) said the City is owed close to $8 billion in fines and fees, and asked whether more staff should go to collecting it rather than fighting over the budget gap (2:09:04).

Jobs. Ald. Michael Rodriguez (22nd) cautioned that savings targets should not come from cutting frontline union staff (1:46:57).

What our records add

This committee's members split last year. On the 2026 revenue ordinance, the Council's alternative plan that passed without the Mayor's head tax in December, several of Friday's questioners were on the winning side: O'Shea, who sponsored it, plus Waguespack, Reilly and Napolitano. Rodriguez and Ervin voted no; Vasquez did not vote.

How each ward voted

29 yea, 19 nay, 2 not voting · Dec 19, 2025 · Passed

Yea Nay Not voting

SO2025-0021719: the roll call, the timeline and the documents

Procurement has been a theme this week. Three days earlier, the Committee on Contracting Oversight and Equity held a hearing on the delayed gunshot detection contract that the chief procurement officer declined to attend. There, Waguespack cited "over $400 million" in purchasing outside the procurement process (meeting notes).

The management ordinance is a budget bill too. The 2027 Management Ordinance (O2026-0029644), introduced Oct. 21 with the budget, is in committee with the rest of the package. Last year's version, SO2025-0021100, passed 29 to 20.

What's next

The Budget Committee's department hearings begin Monday, Oct. 26, and continue Oct. 27, Oct. 28, Oct. 29, Nov. 4, Nov. 5, Nov. 6, Nov. 9 and Nov. 10. Each meeting page will carry video and a searchable transcript once posted. Vasquez asked for a one-page breakdown comparing EY's recommendations with what the City has carried out before those hearings (1:15:04).