CITY HALL — Chicago’s city finance director abruptly resigned Friday after saying she was unable to provide accurate information to the public about the city’s budget and finances.
In a statement first reported by the Chicago Tribune, Ashlee Gabrysch said that “to continue in this role would compromise my integrity and my professional obligations.”
Gabrysch was the third person to serve as CFO in less than a year, and her resignation Friday comes amid another contentious budget season that puts Mayor Brandon Johnson at odds with a majority of the City Council intending to block key provisions of his proposed 2027 spending plan.
In a letter earlier this week, 28 aldermen urged Johnson to “go back to the drawing board” with his budget proposal, citing their continued opposition to a corporate head tax, increasing the municipal lease tax and other measures supported by the mayor.
Gabrysch’s resignation, which sent shockwaves through Chicago City Hall and political circles Friday, is now sparking calls for investigations from aldermen and Johnson himself.
The mayor’s press office said in a statement Friday that Gabrysch had been “largely absent” during the preparation of the 2027 budget proposal, and that she recently attempted to make a $75 million payment without “proper legal authorization.”
“Given the seriousness of these concerns, we will refer the matter to the city’s Office of Inspector General for an independent review. We support a full review of the conduct at issue,” said the statement from the mayor’s office, which confirmed that his resignation had been accepted.
In a new statement Friday, Gabrysch said she stands by her initial statement “and will continue to operate in accordance with my values and integrity.”
“This effort by the administration to distract from the serious issues at hand and attack those who try to hold it accountable is disappointing but not surprising,” Gabrysch said.
Earlier this month, the City Council approved a plan to deliver a $75 million payment negotiated during the city’s recent transfer of ownership of parking meters to support the city’s pension funds.
Meanwhile, aldermen who criticize Johnson are also calling for an investigation into the circumstances of Gabrysch’s resignation — and the city’s broader financial situation.
In a statement Friday morning, Ald. Bill Conway (34th) urged the city’s inspector general to immediately open an investigation into the matter.
“This is a clear indication that (Gabrysch) was asked by the mayor’s office to present false information,” the Downtown and West Loop alderman said. “If Mayor Johnson were to direct his CFO to act or speak dishonestly, it would be a shocking act against taxpayers and potentially criminal fraud.”
The council’s finance chairman, Ald. Rep. Pat Dowell (3rd) is also calling for an “independent audit” of the city’s finances, Crain’s reported.
Gabrysch will be replaced temporarily by City Comptroller Michael Belsky, who will serve as interim CFO “effective immediately,” the mayor’s office said.
In a statement, Belsky said he was “disappointed” to learn of Gabrysch’s resignation and defended Johnson’s handling of the budget and the overall financial situation.
“As is sometimes the case in any workplace, some professional relationships and work arrangements don’t work out,” Belsky said. “That said, in my time with the city, the Mayor and his team have been extremely transparent, open and honest with the public and the City Council about the city’s financial situation. Any suggestion to the contrary is simply incorrect.”
Johnson’s political rivals sharply criticized the mayor and his administration over the resignation on Friday.
“This is a five-alarm fire,” the council bloc that opposed Johnson’s budget proposals said in a statement. “For years, Chicagoans have had good reason to question whether this administration was capable of managing the city’s finances. Now they must ask whether this has resulted in fiscal malfeasance.”
And Illinois Secretary of State Alexi Giannoulias, one of Johnson’s challengers in February’s mayoral race, said Johnson “owes the taxpayers an immediate explanation.”
“This resignation is the latest round of the revolving door of an administration incapable of retaining competent staff,” Giannoulias said in a statement.
Outgoing State Comptroller Susana Mendoza, who is also running for mayor, echoed calls for an investigation in a social media post Friday.
“The pace of financial professionals fleeing this city administration, the lack of transparency about the city’s finances, and the smear campaign against Ms. Gabrysch are alarming signs for all Chicagoans,” Mendoza wrote.
Whatever the circumstances of Gabrysch’s departure, time is running out: The City Council must approve a balanced spending plan by the end of the year.
Johnson’s proposed head tax and the city’s increased personal land lease tax, or PPLT, emerged as two major sticking points in negotiations this fall.
The mayor has proposed increasing the LTPP rate from 15 to 20 percent, which could raise about $234 million if approved.
The rental tax applies to transactions such as cloud computing, but also to construction machines and other rented equipment. Under Johnson’s proposal, the tax would remain at 15 percent for vehicle rentals and be reduced to 11 percent for film and television productions.
The mayor announced this week that he plans to change aspects of both proposals, although details have not been released.
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