Chicago Ends 2025 With $52 Million Deficit After $166 Million Firefighter Back Pay Charge
Updated
Updated · Chicago Sun-Times · Jul 1
Chicago Ends 2025 With $52 Million Deficit After $166 Million Firefighter Back Pay Charge
1 articles · Updated · Chicago Sun-Times · Jul 1
Summary
$52 million was Chicago’s unassigned year-end balance for 2025, even though the city had effectively climbed back to break-even before an accounting charge for retroactive firefighter raises pushed it negative.
$166 million in back pay for firefighters had to be booked to 2025, while $449.3 million in borrowing also covered that cost and large legal settlements, Acting CFO Steve Mahr said.
$219 million was the city’s budgetary surplus for 2025 — a $381 million improvement from 2024 — helped by 7.5% revenue growth, $199.2 million in departmental savings and stronger airport and investment income.
$700 million remains in reserve funds, down from $1.1 billion before the pandemic, as Chicago keeps making large supplemental pension payments; its four employee pension funds improved to a 28.15% aggregate funding ratio but still face a $35.1 billion crisis.
2027 budget talks are already raising the prospect of new taxes, with City Hall leaving all options open after Mayor Brandon Johnson’s last two budgets ran into City Council resistance.