by Spencer DavisSat, March 1st 2025 at 7:52 PM
SPRINGFIELD, Ill. (WICS) — As Springfield’s city council navigates the newly approved budget, concerns loom over the declining corporate fund, which has decreased consecutively since 2023.
Alderpeople, including Ward 9 alderman Jim Donelan, emphasize the need for caution in future financial planning.
Ward 5 alderwoman Lakeisha Purchase highlighted the alarming trend, stating, “You see it dropping from 25.6 percent in FY26 to 15.2 in 27 from 15.2 to 2.2 in 28.” As the fund approaches zero, the city may be forced to make cuts.
Ward 10 alderman Ralph Hanauer stressed the importance of foresight when considering new programs.
“We might really want to start thinking about it this year because if we add any new programs this year that goes into next year, there’s going to have to be some cuts somewhere, so we got to keep that in mind,” he said.
Donelan echoed these sentiments, saying, “We don’t want to be in a position where we have to make dramatic cuts or anything of that nature in the near future, let alone in the long term.” He added, “That’s why we’re always looking at fund balance, that’s why when the fund balance is over a certain amount, we’re making extra pension payments and we’re not just doing it willy-nilly.”
He also noted that budget discussions will continue throughout the year.
“But remember, a lot of the major expenditures, just because the budget authority and the line item is there, we’re still going to be debating these things at the council level,” he said. “And whether it’s buying a new piece of equipment that costs $50,000, $60,000, $100,000, whatever it is, those expenditures come before the council.”
Donelan credited the mayor’s office and departments for preparing materials two months ahead of the deadline, facilitating more discussions between departments.