TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 13, 2026
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. John P. Murray, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the second quarter of 2026, ended June 30, 2026
Body
Dear Sir:
Attached is a report on revenues and expenditures for the second quarter of 2026, ended June 30, 2026. This report is prepared on an unaudited budgetary basis of accounting.
Second quarter 2026 Corporate Fund actual net tax revenue of $243.1 million is 70.9 percent of the budgeted tax receivable and includes $153.7 million in property taxes received against the current year and $89.4 million received against the prior year. The first installment of 2025 property tax bills were due on April 1, 2026. Cook County officials announced on June 9, 2026, that the second round of property tax bills will be delayed by approximately two months.
The Corporate Fund actual non-tax revenue of $115.5 million is 91.3 percent of the budgeted non-tax receivable and includes Tax Increment Financing (TIF) distributions of $51.5 million, user charge income of $30.6 million, rental and easement income of $19.1 million, miscellaneous revenues totaling $7.5 million, land sales totaling $3.7 million, and earned interest income totaling $3.1 million. A $51.5 million Cook County distribution on March 6, 2026, originally classified as property tax revenue, was reclassed to TIF revenue based on the correspondence received from Cook County.
Second quarter 2026 Corporate Fund expenditures of $207.4 million are 38.9 percent of the $532.8 million Corporate Fund budget. Two of the primary expenditure drivers, energy and healthcare costs, are monitored closely throughout the year. Energy costs (electricity and gas) are $1.4 million lower than the same period in 2025, mainly attributed to a Carbon-Free Resource Adjustment credit applied in 2026. Healthcare costs are $1.8 million lower than the same period in 2025, driven primarily by lower-than-expected prescription drug costs for both employees and retirees.
Second quarter 2026 Personal Property Replacement Tax (PPRT) receipts total $29.0 million with $19.0 million allocated to the Retirement Fund, $9.7 million allocated to the Construction Fund, and $0.3 million allocated to the Corporate Fund. Compared to PPRT receipts of $28.6 million received in the same period in 2025, this is an increase of $0.4 million.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through June 2026, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are down 0.7 percent, while the median sales price has increased 5.5 percent compared to the same period in 2025.
According to the Bureau of Labor Statistics, the all items index increased 3.5 percent for the 12 months ending in June. The all items less food and energy index rose 2.6 percent over the
year. The energy index increased 15.7 percent for the 12 months ending in June, while the food index increased 3.0 percent. According to Bloomberg, consumer prices declined in June for the first time in six years and a key gauge of underlying inflation was little changed, taking some pressure off the Federal Reserve to raise interest rates.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2026.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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