SPRINGFIELD, Ill. (CAPITOL CITY NOW) – Halfway through the fiscal year, the city‘s financial picture is mostly brighter than expected.
Budget director Ramona Metzger (pictured) said the fund balance shows a $23 million swing between the original Fiscal Year 2026 budget and the final, unaudited numbers. “Our original budgeted estimate ending balance as a percentage of expenditures was 24.3 percent instead of 42.4 percent, percentage of expenditures, with a deficit of $11.8 million,” said Metzger. “So we went from $11.8 million negative to a positive $11.4 million for Fiscal Year 2026.”
Why?
“This improvement’s primarily due to stronger-than-budgeted revenues and conservative spending, as well as there is some timing of multi-year grant activity. The current estimate for FY 27 shows improvement due to better-than-expected property tax and sales tax revenues. FY 27 has included delayed equipment purchases and natural hiring lags.”
But the news is not necessarily all good.
“The property tax revenue is insufficient to cover the annual police and fire pension contributions,” said Metzger.
The fiscal year runs from March 1 to February 28.
