The City of Chicago’s budget process is a comprehensive and transparent effort that reflects the City’s commitment to fiscal responsibility, equity, and service delivery for its residents. Guided by the policies outlined in the Annual Appropriation Ordinance, the process ensures that public resources are allocated in alignment with the City’s strategic priorities and legal obligations.

The process begins in the spring with internal analyses of the City’s fiscal outlook, incorporating revenue projections, expenditure trends, debt obligations, and pension liabilities. City departments submit budget requests informed by performance metrics, operational needs, and service goals. The Office of Budget and Management (OBM) works closely with these units to review requests and develop a baseline budget, considering both General Fund and Enterprise Fund resources.

Public engagement is a cornerstone of Chicago’s budget process. Each summer, the City hosts community roundtables and public forums—allowing residents, businesses, and community groups to provide input on budget priorities, service delivery, and neighborhood investment. Feedback from these engagements informs the Mayor’s Budget Recommendations, which are presented to City Council in the fall.

Upon delivery of the Mayor’s proposed budget, the City Council conducts committee hearings, where department commissioners and the City’s financial team testify on spending plans, operational efficiency, and program outcomes. These hearings allow Council members to scrutinize the budget in detail, propose amendments, and advocate for constituent priorities.

The budget is required by state law to be balanced, meaning revenues must match or exceed expenditures. Once approved by City Council, the adopted budget becomes the legal spending plan for the upcoming fiscal year, beginning January 1. Throughout the year, OBM monitors budget performance against actual revenues and expenditures, issuing quarterly updates to ensure fiscal discipline and transparency.

The City’s Annual Appropriation Ordinance and financial reports are publicly available online, providing residents and stakeholders with detailed information on revenues, expenses, capital projects, debt service, and reserve levels, further reinforcing Chicago’s commitment to open and accountable governance.