City Treasurer Melissa Conyears-Ervin announced a proposal on August 10 to dissolve the Catalyst Fund and apply its remaining $57 million toward the city’s pressing staffing needs in the police and fire departments. The move is aimed at covering a $90 million shortfall in the municipal mid‑year budget and preventing potential layoffs within the Chicago Police Department and Chicago Fire Department.
The Catalyst Fund, established a decade ago, has accumulated $57 million that has not yet been allocated. Conyears-Ervin’s plan would terminate the fund’s operations and transfer the balance directly into the city’s general budget, where it would be used to bridge the current gap and sustain essential public safety personnel.
Chicago faces a $90 million deficit in its mid‑year financial plan and a projected $1 billion shortfall for the upcoming fiscal year. City officials, including Mayor Brandon Johnson, have highlighted the urgency of addressing these fiscal challenges while maintaining critical services. The treasurer’s proposal is presented as a measure to avoid layoffs that could arise from the budget constraints.
If adopted, the reallocation would provide immediate relief to the police and fire departments, ensuring that staffing levels remain stable while the city explores longer‑term solutions to the broader $1 billion deficit. The proposal underscores the city’s focus on preserving public safety amid a challenging fiscal environment.