(The Center Square) – Chicago Mayor Brandon Johnson says his administration will repurpose $20 million in taxpayer money from a dormant city fund to spur investment in community centers, recreational spaces and other resources.
The city’s Office of Inspector General discovered more than $57 million in the dormant Community Catalyst Fund earlier this year.
After including more than $37 million from the fund in his $17.6 billion budget plan released last week for fiscal year 2027, the mayor on Tuesday said he would repurpose the remaining $20 million into the Building Up Independent Local Developers fund.
The move followed city council approval of City Treasurer Melissa Conyears-Ervin’s request to return catalyst fund assets to general funds.
Conyears-Ervin said her responsibility goes beyond managing public dollars.
“And that means being responsible of taxpayer dollars while also supporting our small businesses and developers and creating opportunities, especially for those that have historically faced barriers,” Conyers-Ervin said at a press conference with the mayor on Tuesday.
Johnson said the BUILD fund would support entrepreneurs, developers and small businesses.
“We will prioritize investments that make a real difference in people’s lives, including community centers, recreational spaces, educational and health facilities, and other resources that help families and neighborhoods,” Johnson said.
Johnson said the catalyst fund was created in 2016 with the promise of bringing private investment to disinvested neighborhoods, but it subverts itself.
“It exists because traditional financing sources refuse to consider projects on the South and West sides to be good investments but requires projects to be selected using those same traditional financing criteria,” Johnson said.
The mayor said the investments would include below-market loans. He said his administration would also work to transfer vacant parcels to responsible developers.
Johnson’s $17.6 billion spending proposal is nearly a billion dollars higher than the current $16.7 billion budget.
The new budget includes a 15-cent tax on non-medical and non-food containers and packages, a $25 per employee monthly tax on businesses with 125 or more full-time employees.
It also raises Personal Property Lease Transaction and sports wagering taxes to 20%.
