Thread by @RuizBaldin

Hello! I'm Carolina Baldin, and today I'll be live-tweeting a Chicago City Council's subject matter hearing on the city's Report on Financial and Strategic Reform Options, published in October by Ernest Young in collaboration with the city

Here's a link to the agenda: …storagev1.blob.core.usgovcloudapi.net/meetingattachm…

The city has paid over $3 million to EY for an evaluation of cost-cutting and revenue-raising opportunities
chicago.suntimes.com/city-hall/2025…

Here's a link to the report:
chicago.gov/content/dam/ci…

Budget Chair Jason Ervin (28th) started the meeting at 2:35 pm

Budget Director Annette Guzman, from the Office of Budget and Management (OBM), opened the discussion

Adam Chapnick, who leads EY's national efforts, said EY's work in Chicago was similar to what they did in cities like Houston, Milwaukee, and Detroit. But the scope was more extensive in Chicago, with an analysis of data from over 22 city departments

Chapnick (EY) clarified that the work was done in collaboration with the city, that it was not an audit of the city's finances, and that EY didn't evaluate the proposed FY26 budget

Guzman started a presentation explaining the mayor's order to review the city's opportunities for savings and revenue. It was the "most expansive evaluation of the City's budget ever done," the presentation says

Guzman said EY looked at revenue and efficiency in other cities to help guide conclusions about Chicago

Guzman described that the report projects over $80 million in cost-reduction initiatives in 2026, with 50% of the total suggestions beginning to be implemented in the first year.

Some priorities listed with estimated savings in FY26: real state consolidation and vacant land sales ($12 million); special events cost recovery ($7 million), fleet modernization($3 million), organizational evaluation ($50 million), procurement modernization ($10 million)

28th Ward Alder and Chair of the City Council's Committee on the Budget and Government Jason Ervin, asked about the rationale behind the combined effort and how the report reflects long-term initiatives

Guzman said it was essential to bring an expert and trusted partner to review opportunities for structural reform for the city. She said it was different from an audit, which is more focused on fraud, waste, and abuse. Instead, this report focused on prioritization and phasing

About long-term efforts, Guzman said OBM asked different departments what they would need to implement reforms

Chair Ervin asked about the implementation of suggestions, and Guzman said that, from the 100-plus recommendations, about 70 will be reflected in the next year

Chapnick (EY) said the report reflects a unique, comprehensive and data-driven analysis of the city, and that it integrates lessons from across the country in a coordinated way in 9 different work streams

Guzman called the report a "road map" that gives tools to discuss accountability for 2026 and opportunities for the years to come

Vice Chair Nicole Lee asked about fleet, and Chapnick said he estimates $8 million to $15 million in savings in year 1 (sales of cars and trucks; maintenance optimization). Guzman added OBM will begin to implement changes in 2026, like shifting metrics from mileage to utilization

Ald. Anthony Beale asked what parameters Chapnick (EY) was given to write the report, and also asked if EY was given all the data it requested

Chapnick (EY) and Guzman confirmed EY received all the data it asked for

Ald. Beale asked Chapnick (EY) what the biggest areas for saving opportunities were, and Chapnick listed items like service optimizations, organizational assessment and real estate

Ald. Beale asked about ongoing conversations on personnel and with union partners, and Guzman said those conversations have already started and that she is waiting to receive data from other cities to be able to make more concrete projections

Ald. Nugent asked about the lack of evaluation on fraud, waste and abuse, and Chapnick (EY) said it wasn't the focus of the report

Ald. Mathew Oshea said he felt frustrated that EY "can't answer every other question" and said the report missed opportunities regarding fleet services and vacant lots. Chapnick said the report brings options and it's the city's discretion how to implement them

Ald. Brian Hopkins discussed CPD's civilian/officer ratio, which, in Chicago, shows a civilianization rate lower than in cities such as NY and LA. Guzman said it is necessary to review CPD's organizational structure to try to increase civilianization

Civilianization rates in NY are 35% to 38% and in LA, it is 30%. Making civilians do jobs currently done by sworn personnel will not put Chicago in line with these numbers, but it would be a good start. CPD didn't say it can't be done, but there are issues (like union) to discuss

Ald. David Moore asked what happens if OBM doesn't meet that target, and Guzman explained that the targets for 2026 will be met, and that OBM can "overreach" it by saving more than projected, but that additional steps will be necessary

In case OBM doesn't hit the target, which she believes will not happen, the city would have to "cut something" mid-year of 2026

Ald. Gilbert Villegas said it's important to focus on cost-reduction measures related to technology, such as time and attendance controls. Guzman said he should see concrete savings in 2027

Ald. Daniel La Spata asked about hiring freezes and whether OBM plans to put a freeze on management positions rather than direct reports. Guzman said that's what OBM is doing - trying to optimize levels of management, which takes time

I'm signing off now, but the meeting will continue with a round 2 of questions from Alderpeople to OBM and EY