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Chicago Releases Annual Financial Audit for 2025
Every year, the City of Chicago commissions an independent audit of its financial position. The audit for the fiscal year ending December 31, 2025 was completed by Deloitte US and sent to City Council on June 30, 2026. The reason for the large gap between the end of the year and the submission of the audit is in part because the City collects revenue and fulfills expenses well into the year after the fiscal year is officially over.
The audit makes the challenges facing the City clear. The City's net deficit grew to $30.5 billion, up $1.3 billion from 2024. The City's total pension funding ratio grew to only 28.1%, up from 25.4%. In real dollars, the City's pension liability is at $36.4 billion across the 4 pension funds. The General Fund balance is $75.6 million (1.5% of expenditures), down $312 million in one year. For the first time ever, the unassigned fund balance is a negative $52.6 million. General Obligation debt outstanding up to $5.9 billion, plus the City has drawn down $551.8 million on our various lines of credit. Fitch and Kroll both downgraded General Obligation debt again in February 2026, to BBB+ with negative outlooks, which means the City is now low investment grade across all 4 agencies.
In the face of these challenges, Alderman Dowell remains committed to passing a fair and balanced budget for the next fiscal year. In previous budgets, she has demanded that the City make an advanced pension payment, lowering the City's outstanding long-term liabilities and strengthening our credit rating. She has identified and supported government cuts and efficiencies, saving the taxpayer millions of dollars. She has also supported modernizing the City's fines, fees, license, and permit costs, raising millions of dollars by charging people who use City services the appropriate amount to cover the actual costs of providing these services. This dedication to proper fiscal responsibility will continue as the City prepares to consider its FY2027 Budget.
For a copy of the full audit document, please click here.
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