TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 1, 2025
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. John P. Murray, Acting Executive Director
Title
Report on Budgetary Revenues and Expenditures for the first quarter of 2025, ended March 31, 2025
Body
Dear Sir:
Attached is a report on revenues and expenditures for the first quarter of 2025, ended March 31, 2025. This report is prepared on an unaudited budgetary basis of accounting.
The first quarter 2025 Corporate Fund actual net tax revenue of $144.2 million is 44.6 percent of the budgeted tax receivable. The first installment of 2024 property taxes was due on March 4, 2025.
The Corporate Fund actual non-tax revenue of $54.5 million includes Tax Increment Financing distributions of $22.5 million, user charge income of $17.5 million, rental and easement income of $8.6 million, earned interest income of $4.5 million, and other miscellaneous revenues totaling $1.4 million. In March 2025, the District contributed $30.0 million, including the $21.6 million surplus resulting from the positive results in 2024 and the $8.4 million from the 2023 Property Tax Levy Adjustment received under Public Act 102-0519, to the Retirement Fund to maintain the funded ratio, as budgeted.
The first quarter 2025 Corporate Fund expenditures of $89.5 million are 17.1 percent of the $523.7 million 2025 Corporate Fund budget. Two of the primary expenditure drivers, energy and healthcare costs, are monitored closely throughout the year. Energy expenditures (electricity and gas) are $1.4 million lower than the same period in 2024 and are mainly attributed to a decrease in electricity rates. Healthcare costs are $3.2 million higher than the same period in 2024 due to significantly higher prescription drugs expenditures for active employees and retirees in the first quarter of 2025.
The first quarter 2025 Personal Property Replacement Tax receipts total $12.2 million, which is allocated first to the Retirement Fund. Compared to $19.2 million received during the same time in 2024, this is a decrease of $7.0 million. The decline in this economically sensitive revenue is due to planned adjustments made by the Illinois Department of Revenue to correct for over-distribution of funds and was anticipated in the 2025 budget.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through February 2025, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are up 4.7 percent, while the median sales price has increased 7.1 percent compared to the same period in 2024.
According to the Bureau of Labor Statistics, the all-items index increased 2.4 percent for the 12 months ending in March. The all-items less food and energy index increased 2.8 percent over the last 12 months, the smallest 12-month increase since March 2021. The energy index decreased 3.3 percent for the 12 months ending in March, while the food index increased 3.0 percent.
According to Bloomberg, the U.S. inflation cooled broadly in March, resulting in a decline in energy costs, used vehicles, motor vehicle insurance, hotel stays, and airfares. The CPI report showed little impact so far from tariffs already in place, although that may change in coming months. Due to uncertainty, the Federal Reserve is maintaining a wait-and-see approach as it looks for more clarity on the impact of increased tariffs that will have on inflation and the economy more broadly.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2025.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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