Chicago City Wire

The City of Chicago has released its first-ever Mid-Year Budget Report, an initiative intended to provide a detailed look at the city's finances at the midpoint of the fiscal year. Mayor Brandon Johnson announced the report, which has been submitted to the City Council Committee on Budget and Government Operations.

The new report offers an analysis of revenue collections, departmental spending, grant funding, and workforce trends through mid-2025. The document is in accordance with Section 2-4-055 of the Municipal Code of Chicago.

“This new budget report shows a clear turning point: revenues are stabilizing, and core operating costs are coming down. That reflects both Chicago’s economic resilience and the disciplined reforms we’ve implemented to contain spending,” said Mayor Brandon Johnson. “This is the kind of fiscal stewardship people deserve—where every dollar is used effectively and transparently to invest in residents and build a stronger, more equitable city.”

According to the report, revenues have increased by 4.9% so far this year due to higher-than-expected utility taxes, transaction taxes, income taxes, and internal service reimbursements.

The report also highlights changes in workforce dynamics. Employee attrition rates—defined as employees retiring or leaving city service—have dropped by 28% since their peak in 2022. This indicates improved retention and greater stability among city workers. Additionally, overtime expenditures across all departments have fallen by $38 million compared to last year during the same period, despite overall compensation rates continuing to rise.

In terms of expenditures and cost controls, there has been a $39 million reduction in Contractual Services spending year-over-year within the Corporate Fund. Spending on commodities and materials has also decreased by $6.4 million even as economic pressures persist.

A preliminary analysis included in the report outlines some of the economic factors that will inform Chicago's upcoming three-year budget forecast expected next month.

“This is the first time the City is publishing a mid-year report like this, and it reflects a real shift in how we’re approaching the budget,” said Budget Director Annette Guzman. “We’re being clear about where we stand financially and what it will take to move forward. Transparency isn’t just a principle—it’s a tool to make better decisions and hold ourselves accountable. We invited the public and City Council into the conversation earlier and more meaningfully.”

The full 2025 Mid-Year Budget Report is available for public review through the Office of Budget and Management website at https://chi.gov/Mid-Year2025.