Chicago Releases First-Ever Mid-Year Budget Report

The City of Chicago has unveiled its first-ever Mid-Year Budget Report, providing a comprehensive snapshot of the city’s financial health as of mid-2025. The report, introduced by Mayor Brandon Johnson, has been formally submitted to the City Council Committee on Budget and Government Operations.

The report was developed by Section 2-4-055 of the Municipal Code of Chicago. It includes a detailed analysis of the city’s revenue performance, departmental expenditures, grant allocations, and staffing trends through the midpoint of the fiscal year.

Mayor Johnson characterized the report as a reflection of the city’s ongoing fiscal stabilization.

“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,” he said. “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, revenue collections have risen by 4.9% year-to-date, driven by strong performance in utility, transaction, and income tax categories, as well as internal service reimbursements.

Workforce and Cost Trends

A key component of the report is the assessment of workforce dynamics. Employee attrition—defined as retirements or voluntary departures from city service—has declined by 28% since reaching its highest point in 2022. City leaders say this marks a trend toward increased employee retention and organizational stability.

Moreover, the city has achieved a $38 million reduction in overtime costs across all departments compared to the same period last year, despite total compensation continuing to grow.

The report also notes disciplined cost controls in other areas. Contractual Services expenses within the Corporate Fund are down by $39 million year-over-year, while spending on commodities and materials has fallen by $6.4 million, underscoring improved efficiency amid broader economic challenges.

In addition to reviewing current fiscal trends, the report includes a preliminary economic outlook that will shape the city’s upcoming three-year budget forecast, expected to be published 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 to the public via the Office of Budget and Management at chi.gov/Mid-Year2025.