CHICAGO – Today, Mayor Brandon Johnson signed Executive Order No. 2025-1, launching a comprehensive initiative to address the City’s fiscal challenges and ensure a financially sustainable future for Chicago. The executive order establishes a working group that will provide key recommendations aimed at streamlining operations, enhancing service delivery, and evaluating potential revenue strategies to address the city’s structural budget gaps. 

A Collaborative Approach to Fiscal Responsibility 

Facing significant challenges—from rising personnel and pension costs to legacy debt obligations—the executive order mandates a thorough review of City operations and programs by the Office of Budget and Management (OBM). In addition, the executive order directs OBM to establish a working group consisting of a diverse group of stakeholders drawn from representatives of the local business community, non-profits, civic organizations, Chicago’s labor community and City Council.  Once established, the working group will be tasked with producing actionable proposals that align with the City’s commitment to equity and fiscal discipline and address the City’s chronic budget gaps.  

“Our city faces two challenges: a structural deficit and a hostile federal administration that has threatened to cut off billions in funding for Chicagoans,” said Mayor Brandon Johnson. “This executive order is about bringing Chicagoans together so that we can continue the critical work of investing in our people. I have confidence in the collective wisdom and expertise of this wide range of stakeholders that will generate sustainable solutions to the challenges in front of us.”  

Looking Ahead  

Under the executive order, the working group will present a preliminary report of its findings and recommendations by August 31, 2025, with a final comprehensive report expected by May 31, 2026. The initiative emphasizes broad-based community engagement and transparency, ensuring that the voices and needs of all Chicagoans are reflected in the proposed reforms.  

“This working group represents a historic opportunity to rethink and recalibrate how we manage public funds,” Budget Director Annette Guzman said. “By collaborating closely with business, civic, labor and community leaders, we are ensuring a diverse set of stakeholders are at the table lending their collective expertise to help solve the fiscal challenges facing our city.”  

Upon receipt of the preliminary report, OBM will work with City departments to implement actionable recommendations as part of the FY2026 budget planning process. The office will also oversee the execution of recommendations incorporated into the final approved budget to ensure meaningful and measurable improvements.  

The launch of this initiative marks a significant milestone in Chicago’s ongoing efforts to create a more resilient, effective, and equitable government. The City looks forward to collaborative efforts that will lay the foundation for sustainable fiscal management.  

Once the Executive Order has processed in the online system, the full text will be made available here under Executive Order No. 2025-1: https://bit.ly/4crxq4z.  

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