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The State of Illinois (Illinois or the “State”) has made significant progress in stabilizing its budget in recent years, yet still faces ongoing financial challenges, including a high tax burden, structural budget deficits, and legacy pension obligations, all of which put a strain on the state’s long-term sustainability. Overshadowing these challenges is the unprecedented uncertainty in Washington, D.C., with a new federal administration that threatens to eliminate billions of dollars in federal funding and disrupt the fragile government ecosystem. While the impacts of threatened or looming cuts to core government services and programs, including Medicaid, education funding, environmental protection programs, and medical research, are still unknown, the uncertainty surrounding federal funding of state and local government is a serious concern that must be part of conversations about strengthening Illinois’ fiscal stability and resilience.

The Chicago Public School District (CPS or the “District”) faces a critical financial juncture, highlighted by structural budget imbalances, rising expenditures, declining enrollment, significant near-term infrastructure investment needs, and substantial long-term liabilities. A new 21-member Board of Education (the “Board”), partially elected for the first time, inherits these challenges as it assumes oversight on January 15, 2025. This new report by the Civic Federation is intended to provide the new Board, as well as other officials, advocates, parents, and community members, with a complete picture of the financial landscape of the District. To guide the Board, the report also offers several concrete suggestions rooted in the urgent need for long-term financial planning.

The City of Chicago FY2025 Roadmap outlines the City's urgent financial challenges and provides immediate non-revenue and revenue options for FY2025, along with long-term options and broader recommendations to better position the City in the future.