Chicago city government needs more budget brains
The city is unique in how little public finance expertise lives outside the mayor’s office.
Chicago city government is seeing an exodus of financial talent.
City budget director Annette Guzman announced her resignation earlier this month. That followed resignations earlier this summer from the city’s CFO and deputy CFO.1
It’s coming at a bad time. The city just completed a critical investor presentation and is entering a highly contentious budget season ahead of the February 2027 municipal elections, all as its credit rating teeters on the edge of junk status.
Of course, staff turnover is not unique to Chicago city government.
What is unique: How little public finance expertise lives outside the mayor’s office.
A short bench of financial talent
Chicago is not equipped to implement structural changes in its budget, make good budgeting decisions, or even independently analyze budget numbers outside of the mayor’s office.
For starters, Chicago is the largest American city with neither an elected financial watchdog nor a city manager.
San Diego is the next largest American city without an independently elected financial watchdog or city manager — but it has other meaningful guardrails Chicago lacks. The offices of the independent budget analyst and the city auditor both report to the San Diego City Council.
Notably, those offices exist in their current form because of a scandal. The SEC sanctioned San Diego for securities fraud in 2006 after the city failed to fully disclose to investors the scope of a $1 billion shortfall in its pension fund and retiree health care obligations. In response, local voters approved an amendment to San Diego’s city charter that made changes to how the city’s core financial offices were structured and governed.
Chicago is the only major American city lacking a city charter. But leaders don’t need to wait for one to improve our financial IQ. Here are three things City Council could do today:
Expand the responsibilities of the city treasurer to more closely resemble those of a CFO or comptroller, based on similar offices in New York, Los Angeles, and Houston. Or create a new elected office altogether with those responsibilities. (See: Why Chicago’s city treasurer is a waste of an elected office)
Create more budget brains in City Council: Expand and professionalize the existing City Council Office of Financial Analysis, in line with peer cities. And standardize committee staff who too often spend their time on constituent services for committee chairs.
Pass an ordinance that guarantees City Council access to all financial information held in the executive branch, as recommended by the Civic Federation.
The mayor also has a role to play here.
5 steps Chicago’s next mayor can take to fix city finances
As predicted, cracks are already forming in the budget passed by Chicago City Council late last year.
One thing the mayor could do today: Fill the position of city administrator, which could help implement the budget and lead a zero-based budgeting process. Chicago mayors have left this position vacant since 1954, despite the Municipal Code of Chicago demanding the mayor “shall appoint” the officer, who must then be confirmed by City Council.
A few resignations shouldn’t be able to hollow out a big city’s financial IQ.
Building budget brains outside the mayor’s office is the easy fix. And there has never been a better time to start.
In the news
School board slate: I joined ABC7 to discuss the Chicago Teachers Union’s chosen slate of candidates for the November school board elections. Watch here.
Reminder: Chicago’s first fully elected school board is on the ballot this November. Sign up here to request your ballot.
Mincing Rascals: I joined the Mincing Rascals Podcast on WGN Radio to discuss the recent Wisconsin primary elections, the Chicago Air and Water Show, and more (Apple Podcasts, Spotify, YouTube).
School board passes advisory referenda: The Chicago Board of Education passed two non-binding, advisory referenda last week that will appear on your November ballot. This is another example of how Chicago stops voters from deciding what matters.
George Will on the Chicago Teachers Union: The great George Will cited The Last Ward on Frederick Douglass Academy in his column: “Chicagoans are getting fed up with the city’s teachers union.”
On Aug. 10 Johnson appointed Ashlee Gabrysch as the city’s new chief financial officer. Gabrysch is a former senior director and mid-central region manager at Fitch Ratings.
Chicago has some of the best businesses minds in the country. Add to that the academics at the university of Chicago etc. The only reason Chicago is in financial distress is because leadership wants it that way, full stop.
Going to be a pain in the ass about this one:
It doesn't matter if you have the "best budget brains" if none of the people with the final power act as if budgetary numbers are magic, and if you can do "one neat trick" to get what they want.
It's not about knowledge so much as wisdom... and it's completely lacking.
As long as the CTU folks believe they can jawbone $$ into being, as long as they yell loud enough, it doesn't matter how many Big Budget Brains you have.
Brandon Johnson and crew have been in denial that they're in an extremely bad place and cannot get the pony that they want.
It is no wonder that nobody who knows the numbers wants to deal with delusional leadership.