Budgets are interesting documents they tell a story

June 27, 2024 | John Kugler | Chicago Corruption

In the current Chicago Budget seems there was an expectation to collect money from places and it did not happen … Chicago YTD Budgeted amounts are way higher than the previous years (2023 actuals) was this a miscalculated forecast or was this an on purpose budgeting to justify future cuts … it is no secret that economies are constricting so why would someone in increase a budget line over what was actually collected the previous year … reading the budget document they mention 17% less in revenue and 60% drop in PPRT, yet fail to talk about the 90% drop in Other Revenue … HiHo

Actual revenue collections through April are $934.3 million, $190.9 million or 17.0% below budget.

The PPRT variance represents a 60% year-over-year decline and can be attributed to several reasons including annual reconciliation of final returns along with the $100,000 net operating loss limit expiration that began in 2024. The expiration results in corporate taxpayers applying larger-thannormal losses against positive income, which will reduce estimated tax collections.

Per the Illinois Department of Revenue, Personal property replacement taxes (PPRT) are revenues collected by the state of Illinois from corporations, partnerships, and trusts that are paid to local governments to replace money that was lost by local governments when their powers to impose personal property taxes on these business entities were taken away.

Internal Service Earnings: Reimbursements from other City of Chicago funds to the Corporate Fund for services that are provided to other City funds. Certain internal service earnings are allocated using cost accounting methods, while others are reimbursed using intergovernmental purchase orders.