What does the Office of Budget and Management do?

The City of Chicago Office of Budget and Management (OBM) is responsible for preparing and executing the City’s annual budget. OBM evaluates the efficiency and efficacy of all City operations and drives management reforms that improve the City’s fiscal condition and increase taxpayer value.  You can learn more about OBM’s mission here.

What is a budget?

The City budget reflects anticipated income and planned spending over a fiscal year and reflects the choices and priorities of the Mayor and City Council in allocating public resources. It shows how City agencies plan to allocates resources to provide public safety, housing and social services, keep our streets clean and plowed, fund cultural programming, collect revenue, and much more.

How does the budget process work? 

The Budget Information page provides information on the City of Chicago’s budget process. 

Is there anything that would help me understand what documents are published by the Budget Office?

Yes! The Budget Publications page provides information on the annual budget ordinance, grant details book, and more. 

What are the City of Chicago's main funding sources?

The City has six major funds:

1. Corporate Fund: The Corporate Fund is the City’s general operating fund, supporting basic city operations and services, such as public safety, public health, transportation, and small business assistance.
2. Special Revenue Funds: Special Revenue Funds are used to account for revenue from specific taxes and other sources that, by law, are designated to finance particular functions.
3. Enterprise Funds: Enterprise Funds support the operation, maintenance, and capital costs of the City’s water and sewer systems and O’Hare and Midway International Airports. These self-supporting funds operate like commercial enterprises, in that each pays expenses with revenue derived from charges and user fees for the services it supports.
4. Restricted (Grant) Funds: Grant funds are financial awards given to the City by other organizations for a specific use. These financial awards typically come from the federal and state governments but can also come from other local governments, nongovernmental organizations and private corporations. Award uses vary from ongoing operating support for critical public-service programs to one-time investments in capital infrastructure and disaster recovery efforts.
5. Debt Fund: Debt service funds pay principal and interest on bond issues. Long-term debt finances infrastructure projects in City neighborhoods, including street and alley construction and improvements; lighting, sidewalk replacement, curb and gutter repairs and replacement; and transportation improvements, including street resurfacing, bridge rehabilitation, and traffic safety improvements.
6. Pension Fund: The City maintains separate funds to account for its contributions to the four pension funds - the Municipal Employees’ Annuity and Benefit Fund of Chicago (“MEABF”), the Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago (“LABF”), the Policemen’s Annuity and Benefit Fund of Chicago (“PABF”), and the Firemen’s Annuity and Benefit Fund of Chicago (“FABF”) - that provide benefits upon retirement, death or disability to members and their beneficiaries.

Where does the money go? 

The City of Chicago allocates funds towards general financing, infrastructure services, public safety, finance and administration, community services, general development, regulatory purposes, and legislative and elections. 

What is an appropriation?

An appropriation is the amount of money in the budget, authorized by the City Council, for expenditures for specific purposes. Appropriations are made by account group within each department and fund. 

What reports  does OBM publish?

In connection with preparing the City's yearly budget, the Office of Budget and Management (OBM) prepares the annual publications listed below. OBM also publishes additional Budget, Capital, and Grant publications throughout the year

• The annual Budget Forecast provides a review of the City's revenues and expenditures over the past 10 years, a forecast of the City's finances for the next three years, and analyses of the City's reserves, pension contributions, debt obligations, and capital improvement program. The goal of the Budget Forecast is to provide a framework for the development of the City's annual operating budget with an emphasis on planning for future years, and to provide in-depth information on City finances in a format that is approachable for the public.
• The Budget Overview Book provides the policy framework for the City’s proposed budget.  It also provides a summary of the proposed budget and detailed information on the City's anticipated revenues, expenditures, and personnel. Readers can also learn more about the goals and purposes of each City department, a summary of the programs and services provided by each department, and information regarding the cost of and the funding sources supporting each City department.
• The Budget Recommendations contain line-item budget detail for all local funds and an outline of the City's anticipated grant funding for the coming year. Once approved by the City Council, the Budget Recommendations, along with any amendments, become the Annual Appropriation Ordinance.
• The Annual Appropriation Ordinance is the final City Budget as approved by City Council.
• The Grant Details Ordinance contains line-item budget detail for all restricted funds (grants) that the City anticipates receiving in the coming year.