City Council Leaders Call for Hearing After Administration Makes Partial Pension Payment Despite Adopted Budget

City Council Leaders Call for Hearing After Administration Makes Partial Pension Payment Despite Adopted Budget


Chicago, Illinois – Today, 30 members of the City Council introduced a resolution calling for a Finance Committee hearing after Mayor Brandon Johnson failed to make the full $260 million advance pension payment as required under the FY2026 budget adopted by City Council.


The budget, approved by 30 members of Council, included the advance payment to stabilize the City’s pension systems, protect taxpayers, and avoid further credit downgrades. Despite that clear directive, the administration made only a partial $130 million payment, citing revenue concerns. These concerns are in direct conflict with statements from the City’s own Budget Director that the budget, as passed, included a $15 million surplus.


“Our obligation is to safeguard the City’s long-term financial stability and honor the commitments made in the adopted budget,” said Alderman Pat Dowell, Chairman of the Committee on Finance. “The advance pension payment plays an important role in protecting Chicago’s credit rating. I will be convening this hearing and expect to hold additional revenue-related hearings throughout the year to ensure transparency and that the FY26 budget is fully implemented.”


“Thirty members of City Council voted for a budget that includes a full $260 million advance pension payment. That vote wasn’t symbolic, it was a mandate,” said Alderman Samantha Nugent. “Once a budget is passed, the administration has a responsibility to execute it fully and faithfully. Partial compliance is not compliance.”


The resolution calls on the Committee on Finance to convene a hearing so that Aldermen can receive sworn testimony from the Budget Director, Comptroller, Chief Financial Officer, and other officials regarding the City’s cashflow situation and any plans to meet the advance pension payment requirement.


“This payment is critical to stabilizing our pension systems and protecting Chicago from future credit downgrades,” said Alderman Nicole Lee. “If there is a real cashflow issue, the public deserves a full and transparent explanation, not fear-based messaging and after-the-fact budget changes. The Council passed a responsible budget to protect Chicago’s financial future. Walking away from that decision sends exactly the wrong signal.”


City officials have warned for years that underfunded pensions and short-term budget maneuvers risk further credit rating downgrades, higher borrowing costs, and long-term instability. The FY26 budget’s advance pension payment was designed specifically to address those concerns and reduce the City’s growing pension liability.

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