TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2026
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. John P. Murray, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the third quarter of 2026, ended September 30, 2026
Body
Dear Sir:
Attached is a report on revenues and expenditures for the third quarter of 2026, ended September 30, 2026. This report is prepared on an unaudited budgetary basis of accounting.
Third quarter 2026 Corporate Fund actual net tax revenue of $278.7 million is 81.3 percent of the budgeted tax receivable and includes $185.6 million in property taxes received against the current year and $93.1 million received against the prior year. Following an approximate two-month delay, Cook County second installment property tax bills were mailed on September 1, 2026, and were due on October 1, 2026.
The Corporate Fund actual non-tax revenue of $147.7 million is 116.8 percent of the budgeted non-tax receivable and includes Tax Increment Financing (TIF) distributions totaling $52.0 million, user charge income totaling $39.8 million, rental and easement income totaling $29.3 million, miscellaneous revenues totaling $11.2 million, land sales totaling $10.0 million, and earned interest income totaling $5.4 million.
Third quarter 2026 Corporate Fund expenditures of $327.9 million are 61.5 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 $4.8 million lower than the same period in 2025, mainly attributed to a Carbon-Free Resource Adjustment credit applied in 2026. Healthcare costs are $2.4 million lower than the same period in 2025, primarily driven by a decrease in prescriptions drug costs and a reduction in claims costs for the retiree HMO plan.
Third quarter 2026 Personal Property Replacement Tax (PPRT) receipts total $43.7 million with $19.0 million allocated to the Retirement Fund, $9.7 million allocated to the Construction Fund, and $15.0 million allocated to the Corporate Fund. Compared to PPRT receipts totaling $39.6 million received during the same period in 2025, this is an increase of $4.1 million.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through September 2026, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are down 0.8 percent, while the median sales price has increased 5.2 percent compared to the same period in 2025.
According to the Bureau of Labor Statistics, the all items index increased 3.7 percent for the 12 months ending in September, while the all items less food and energy index increased 2.6 percent. The energy index increased 20.4 percent for the 12 months ending in September, while the food index increased 2.5 percent. According to Reuters, US consumer prices accelerated in September with a surge in gasoline costs, putting an interest rate increase back on the radar. According to Bloomberg, average hourly earnings, adjusted for inflation, fell in September from a year earlier for a sixth consecutive month.
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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