TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 10, 2023
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the second quarter of 2023, ended June 30, 2023
Body
Dear Sir:
Attached is a report on revenues and expenditures for the second quarter of 2023, ended June 30, 2023. This report is prepared on an unaudited budgetary basis of accounting.
The second quarter 2023 Corporate Fund actual net tax revenue of $237.3 million consists of $173.4 million in current year tax receipts and $63.9 million in prior year tax receipts. The second installment of 2022 property tax bills have been delayed and are expected to be released by November 1st with the due date of December 1st. The Budget Office and Treasury will monitor the situation. The second quarter 2023 Corporate Fund actual non-tax revenue of $53.7 million includes user charge income of $22.0 million, rental and easement income of $16.0 million, TIF distributions of $7.8 million, investment income of $4.9 million, and other miscellaneous revenues.
The 2023 second quarter expenditures of $166.6 million are 35.1 percent of the 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 $8.1 million lower than the same period in 2022. The decrease is primarily due to the timing of payments. Healthcare costs are $3.2 million lower than the same period in 2022. It is expected that these expenditures will normalize during the third quarter of 2023.
Personal Property Replacement Tax (PPRT) totaled $73.0 million with $29.6 million allocation to the Corporate Fund, $18.4 million allocation to the Retirement Fund, and $25.0 million allocation to the Construction Fund.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through June 2023, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are down 26.7 percent, while the median sales price shows a slight increase of 0.9 percent compared to the same period in 2022. Home sales continue to decrease due to increases in interest rates.
According to the Bureau of Labor Statistics, the all-items index increased 3.0 percent for the 12 months ending June, this was the smallest 12-month increase since the period ending March 2021. The all items less food and energy index rose 4.8 percent over the last 12 months. The energy index decreased 16.7 percent for the 12 months ending June, and the food index increased 5.7 percent over the last year.
According to Reuters, sharply lower energy prices continue to be a major factor pulling down overall inflation. Consumer prices rose modestly in June and reflected the smallest annual increase in more than two years as inflation subsided further.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2023.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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