# 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 Politics · Updated 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](https://blockclubchicago.org/2026/10/21/mayor-proposes-corporate-head-tax-package-tax-in-17-6-billion-budget/), 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](https://www.chicagopolitics.org/committee/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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5). 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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=3835)). 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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=4128)). 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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=8293)). He also asked about $381 million in "maverick spend," purchasing that goes around the procurement department ([2:20:25](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=8425)).

**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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=9208)). 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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=9384)).

**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](https://www.chicagopolitics.org/matter/O2026-0029644-titles-2-4-6-7-8), and asked for a summary ([1:10:30](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=4230)).

**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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=7744)).

**Jobs.** Ald. Michael Rodriguez (22nd) cautioned that savings targets should not come from cutting frontline union staff ([1:46:57](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=6417)).

## What our records add

**This committee's members split last year.** On the [2026 revenue ordinance](https://www.chicagopolitics.org/matter/SO2025-0021719-titles-1-3-4-7-8), 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: [SO2025-0021719](https://www.chicagopolitics.org/matter/SO2025-0021719-titles-1-3-4-7-8)

**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](https://www.chicagopolitics.org/meeting/6AC88818-A8C8-F111-AAAE-001DD80B58E5?t=2065)).

**The management ordinance is a budget bill too.** The [2027 Management Ordinance](https://www.chicagopolitics.org/matter/O2026-0029644-titles-2-4-6-7-8) (O2026-0029644), introduced Oct. 21 with the budget, is in committee with the rest of the package. Last year's version, [SO2025-0021100](https://www.chicagopolitics.org/matter/SO2025-0021100-titles-2-4-6-7-8), passed 29 to 20.

## What's next

The Budget Committee's department hearings begin [Monday, Oct. 26](https://www.chicagopolitics.org/meeting/4E4F726A-90C9-F111-AAAE-001DD80B58E5), and continue [Oct. 27](https://www.chicagopolitics.org/meeting/851CA01E-91C9-F111-AAAE-001DD80B58E5), [Oct. 28](https://www.chicagopolitics.org/meeting/2D73B4D3-91C9-F111-AAAE-001DD80B58E5), [Oct. 29](https://www.chicagopolitics.org/meeting/31EFF839-92C9-F111-AAAE-001DD80B58E5), [Nov. 4](https://www.chicagopolitics.org/meeting/8A97D1CA-92C9-F111-AAAE-001DD80B58E5), [Nov. 5](https://www.chicagopolitics.org/meeting/93474B73-93C9-F111-AAAE-001DD80B58E5), [Nov. 6](https://www.chicagopolitics.org/meeting/62AEBFEC-93C9-F111-AAAE-001DD80B58E5), [Nov. 9](https://www.chicagopolitics.org/meeting/1D6DFF77-94C9-F111-AAAE-001DD80B58E5) and [Nov. 10](https://www.chicagopolitics.org/meeting/D7BBF3E9-94C9-F111-AAAE-001DD80B58E5). 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](https://www.chicagopolitics.org/meeting/54F057FC-81CC-F111-A05C-001DD80B58E5?t=4504)).


## Legislation in this story

- [Amendment of Municipal Code Titles 1, 3, 4, 7, 8, 9, 10, 11, 14A, 14B, 14X and 15 (2026 Municipal Code Revenue Ordinance Alternative)](https://www.chicagopolitics.org/matter/SO2025-0021719-titles-1-3-4-7-8) (SO2025-0021719)

## Sources

1. City Clerk: [SO2025-0021719: Amendment of Municipal Code Titles 1, 3, 4, 7, 8, 9, 10, 11, 14A, 14B, 14X and 15 (2026 Municipal Code Revenue Ordinance Alternative)](https://chicityclerkelms.chicago.gov/Matter/?matterId=39036309-ECD5-F011-8543-001DD8018EAF)
2. City Clerk: [SO2025-0021719, Legislation: NEW UPDATED SO2025-0021719 Substitute Ordinance 2.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/27253856-496b-4f12-81be-4d69dddfcc7a.pdf)
3. City Clerk: [SO2025-0021719, Legislation: UPDATED Substitute Ordinance SO2025-0021719.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/9860dd46-7fc7-4a91-9ed1-9abd5ca83301.pdf)
4. City Clerk: [SO2025-0021719, Committee Letter: SO2025-0021719 C.L..pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/a6de8bc2-64b9-4280-81f2-4f564575b881.pdf)
5. City Clerk: [SO2025-0021719, Legislation: O2025-0021719 Revenue Ordinance.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/dc392f47-b5c4-4514-8b9f-679c93011ee7.pdf)
6. City of Chicago: [City Council, Dec 19, 2025: meeting video](https://vimeo.com/1147756540)
7. City Clerk: [City Council, Dec 19, 2025: Agenda](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/53e4dd02-fec2-4762-b368-34b24a23eaca.pdf)
8. City Clerk: [City Council, Dec 19, 2025: Notice](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/f47bf8a5-b0da-f011-8543-001dd80c6da5.pdf)
9. Block Club Chicago: [Block Club Chicago reported](https://blockclubchicago.org/2026/10/21/mayor-proposes-corporate-head-tax-package-tax-in-17-6-billion-budget/)
10. Chicago Politics: [SO2025-0021719: votes, timeline and summary](https://www.chicagopolitics.org/matter/SO2025-0021719-titles-1-3-4-7-8)
11. Chicago Politics: [City Council, Dec 19, 2025: transcript](https://www.chicagopolitics.org/files/transcripts/1147756540.txt)

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Source: https://www.chicagopolitics.org/on-my-block/chicago-budget-hearings-begin-ernst-young-savings · Chicago Politics, an independent tracker of the Chicago City Council. Guide for agents: https://www.chicagopolitics.org/llms.txt