Chicago CFO's abrupt departure raises concerns in City Council ahead of difficult budget season

CHICAGO (WLS) -- Mayor Brandon Johnson is downplaying concerns about the sudden departure of the city's acting chief financial officer, even as several City Council members warn the timing could complicate an already challenging budget season.

Steven Mahr, one of the top members of Johnson's finance team, will leave his post Friday after taking over the role earlier this year. His exit follows a midyear budget update that showed troubling signs for the city's finances and comes as officials prepare for fall budget negotiations.

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Ald. Samantha Nugent, 39th Ward, said the departure is especially worrisome given the city's projected deficit. "It's particularly disappointing that the CFO is leaving after only eight months on the job, it's no secret that we're entering a horrific budget season with a projected billion-plus dollar deficit. So, very concerning," she said.

Nugent, part of the coalition that last year rejected Johnson's proposed corporate head tax while approving most of his budget plan, said the administration has seen a pattern of turnover that could hinder the city's ability to navigate the upcoming process. "What we're seeing right now is a pattern of people leaving the Johnson administration, and we're looking for folks that can help us navigate through this budget process. And if we have nobody with longevity, that's very problematic," she said.

Johnson dismissed the concerns during an unrelated event at City Hall. "We'll find another one," he said. He added, "The work doesn't stop because one individual moves on. Right? If that was the case, government would never be a continuum. People move on all the time, but here's the thing that's most stead. I'm still here."

Chicago is set to host a gathering of investors next month, and the Civic Federation says the CFO's departure could send the wrong signal at a sensitive moment. The city is hovering near junk bond status.

Joe Ferguson, president of the Civic Federation, said the move mirrors what would be a major red flag in the private sector. "If this were the private sector and a CFO of a major corporation, publicly traded, suddenly left, the stock price would take a dive, 10, 20% almost immediately," he said. "The investment community has to think about government in those terms, and that's why there's cause for concern."

The city's debt manager will serve as interim CFO while the administration searches for a permanent replacement. With a mayoral election seven months away, it remains unclear whether the shortened timeline will affect the pool of applicants.