TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 7, 2026
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. John P. Murray, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the first quarter of 2026, ended March 31, 2026
Body
Dear Sir:
Attached is a report on revenues and expenditures for the first quarter of 2026, ended March 31, 2026. This report is prepared on an unaudited budgetary basis of accounting.
First quarter 2026 Corporate Fund actual net tax revenue of $153.4 million is 44.7 percent of the budgeted tax receivable with $64.0 million received against the current year and $89.4 million received against the prior year. First installment of 2025 property tax bills were mailed on time with a due date of April 1, 2026, and collections were expected to be distributed by the Cook County Treasurer’s Office within 30 days of receipt.
The Corporate Fund actual non-tax revenue of $35.4 million is 28.0 percent of the budgeted non-tax receivable and includes user charge income of $17.1 million, rental and easement income of $10.5 million, miscellaneous revenues totaling $5.6 million, and earned interest income of $2.2 million. In March 2026, the District contributed $10.0 million from the 2024 Property Tax Levy Adjustment received under Public Act 102-0519 to the Retirement Fund to maintain growth in the funded ratio, as budgeted.
First quarter 2026 Corporate Fund expenditures of $94.1 million are 17.7 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 $0.3 million lower than the same period in 2025, mainly attributed to a Carbon-Free Resource Adjustment credit applied in 2026. Healthcare costs remain flat to the same period in 2025. Additionally, the District did not make an advance funding contribution in 2026 to the Other Post-Employment Benefits Trust Fund as the fund achieved its advanced funding goal of over 100 percent in 2025.
First quarter 2026 Personal Property Replacement Tax receipts total $12.2 million, equaling the $12.2 million received during the same period in 2025. Personal Property Replacement Tax is allocated first to the Retirement Fund, while future 2026 receipts will be allocated to the Construction and Corporate Funds, as budgeted.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through March 2026, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are down 5.1 percent, while the median sales price has increased 3.4 percent compared to the same period in 2025.
According to the Bureau of Labor Statistics, the-all items index increased 3.3 percent for the 12 months ending in March. The all-items less food and energy index increased 2.6 percent over the last 12 months. The energy index increased 12.5 percent for the 12 months ending in March, while the food index increased 2.7 percent. According to Bloomberg, the U.S. inflation surged in March by the most in nearly four years. Economists anticipate higher costs are likely to persist in the near term.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2026.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
Attachment