TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 6, 2025
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. John P. Murray, Acting Executive Director
Title
Report on Budgetary Revenues and Expenditures for the third quarter of 2025, ended September 30, 2025
Body
Dear Sir:
Attached is a report on revenues and expenditures for the third quarter of 2025, ended September 30, 2025. This report is prepared on an unaudited budgetary basis of accounting.
The third quarter 2025 Corporate Fund actual net tax revenue of $159.8 million is 49.5 percent of the budgeted tax receivable, an increase of $6.3 million since the second quarter of 2025.
The Corporate Fund actual non-tax revenue of $111.6 million includes Tax Increment Financing distributions of $35.8 million, user charge income of $35.3 million, rental and easement income of $26.7 million, earned interest income of $9.8 million, and other miscellaneous revenues totaling $4.0 million.
The third quarter 2025 Corporate Fund expenditures of $328.7 million are 62.8 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 costs are $8.5 million less than the same period in 2024. The current variance in energy expenditures (electricity and gas) is mainly attributable to a lower electricity supply rate and a reduced overall consumption during the current year. Healthcare costs are $10.4 million more than the same period in 2024 due to higher hospitalization claims for the active employee plans and significantly higher pharmacy costs due to substantial increases in specialty and diabetic/weight management drug costs.
The third quarter 2025 Personal Property Replacement Tax (PPRT) receipts total $39.6 million with $18.6 million allocated to the Retirement Fund, $16.6 million allocated to the Construction Fund, and $4.4 million allocated to the Corporate Fund. Compared to PPRT receipts of $57.0 million received in the same period in 2024, this is a decrease of $17.4 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 September 2025, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are up 1.1 percent, while the median sales price has increased 5.7 percent compared to the same period in 2024.
According to the Bureau of Labor Statistics, the all-items index increased 3.0 percent for the 12 months ending in September. The all-items less food and energy index rose 3.0 percent over the last 12 months. The energy index increased 2.8 percent for the 12 months ending in September, while the food index increased 3.1 percent.
According to Bloomberg, while the inflationary impact of tariffs has been much less than many economists feared, several forecasters and policymakers are still wary that the duties will continue to put upward pressure on prices.
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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