TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2024
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the second quarter of 2024, ended June 30, 2024
Body
Dear Sir:
Attached is a report on revenues and expenditures for the second quarter of 2024, ended June 30, 2024. This report is prepared on an unaudited budgetary basis of accounting.
The second quarter 2024 Corporate Fund actual net tax revenue of $159.1 million is 47.9 percent of the budgeted tax receivable. The second installment of 2023 property taxes is due on August 1, 2024.
The Corporate Fund actual non-tax revenue of $62.8 million is 62.9 percent of the budgeted non-tax receivable and includes user charge income of $24.1 million, rental and easement income of $15.0 million, TIF distributions of $10.6 million, interest income of $8.0 million, and other miscellaneous revenues.
The 2024 second quarter expenditures of $200.9 million are 40.4 percent of the $497.3 million Corporate Fund budget. Two of the primary expenditure drivers, energy and healthcare costs, are monitored closely throughout the year. Energy expenditures (electricity and natural gas) are $4.5 million higher than the same period in 2023 and are mainly attributed to the expiration of Carbon-Free Energy Resource Adjustment (CFRA) credits from ComEd, while healthcare costs are $74,400 less than the same period in 2023.
Personal Property Replacement Tax (PPRT) receipts total $40.8 million with $22.7 million allocation to the Construction Fund and $18.1 million allocation to the Retirement Fund, compared to the $73.0 million received in the same period in 2023. While a decline was anticipated in the 2024 budget, the actual results are lower than expected.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through June 2024, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are down 4.3 percent, while the median sales price has increased 8.1 percent compared to the same period in 2023. Home sales continue to decrease due to elevated interest rates.
According to the Bureau of Labor Statistics, the all-items index rose 3.0 percent for the 12 months ending in June. The all-items less food and energy index rose 3.3 percent over the last 12 months. The energy index increased 1.0 percent for the 12 months ending in June and the food index increased 2.2 percent over the last year. According to Reuters, U.S. consumer prices fell for the first time in four years in June amid cheaper gasoline and moderating rents.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2024.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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