State and Local Fiscal Recovery 

Funds 

2021 Recovery Plan Performance 

Report

Date: August 31, 2021 
City of Chicago 2021 Recovery Plan Performance Report 1

City of Chicago 

2021 Recovery Plan Performance Report 

Table of Contents

General Overview ..................................................................................................................... 2 

Executive Summary ................................................................................................................ 2 

Uses of Funds ........................................................................................................................ 2 

Promoting equitable outcomes ............................................................................................... 3 

Community Engagement ........................................................................................................ 4 

Labor Practices ...................................................................................................................... 5 

Use of Evidence ..................................................................................................................... 6 

Table of Expenses by Expenditure Category .......................................................................... 6

Project Inventory ...................................................................................................................... 6 
City of Chicago 2021 Recovery Plan Performance Report 2

General Overview 

 

Executive Summary 

 

The City of Chicago is grateful for the funding allocated via the Local Fiscal Recovery Fund 

(“LFRF”) as well as other programs within the American Rescue Plan Act of 2021 (“ARPA”) and 

the opportunity to share the City’s progress in working towards an equitable recovery from the 

coronavirus pandemic. 

The City has yet to introduce the fiscal 2022 budget and accompanying LFRF initiatives to City 

Council for the appropriations process and passage, which are expected to occur in the fourth 

quarter of 2021. Therefore, many sections of the 2021 Recovery Plan contained herein will 

reference that these funds have yet to be appropriated or expended. Given the landmark nature 

and magnitude of the ARPA and its potential to accelerate the City’s equitable recovery from the 

pandemic, the City considers it prudent to plan carefully for use of the funding. As the City 

develops plans for the LFRF funds, the City and its partners continue to execute the response to 

the pandemic, leveraging the Coronavirus Aid, Relief, and Economic Security Act of 2020 

(“CARES”), subsequent relief packages, and other funding streams contained in ARPA. 

Thus, this initial Recovery Plan report focuses on Chicago’s framework for an equitable recovery 

from the pandemic and associated economic hardships, including those underlying systemic 

economic inequalities exacerbated by the pandemic. Where appropriate, it also includes 

reference to existing policies and campaigns relevant to the guidance for this report and spirit of 

the LFRF’s purposes. 

This framework includes three key pillars that will guide the City’s investments via the LFRF, as 

determined as part of the community engagement process: Youth & Families, Hardest-Hit 

Communities and Chicago’s Vitality. 

Uses of Funds 

 

The City of Chicago will provide more details about the planned use of LFRF funds after the City’s 

budget is approved by City Council. Approval is expected in the fourth quarter of 2021. To date, 

as noted, the City has outlined three high-level priorities and principles to guide a strong and 

equitable recovery from the COVID-19 pandemic: 

(1) Youth and Families: The City plans to leverage LFRF funds to invest in meaningful 

opportunities for youth and families to thrive, from the cradle to career and beyond. These 

investments will seek to complement existing programs, including the newly expanded 

child tax credit, additional child-care grants, nutrition programs and student supports such 

as Chicago Connected, which provides students with broadband internet access.

(2) Hardest-Hit Communities: The City plans to invest in communities hardest hit by the 

health, safety, and economic impacts of the pandemic, as well as those that may not have 
City of Chicago 2021 Recovery Plan Performance Report 3

benefited from previous rounds of public support. This could include, for example, support 

for disproportionately impacted neighborhoods across the City, ongoing support to 

residents who cannot afford to pay for basic needs, or those experiencing homelessness. 

(3) Chicago’s Vitality: The City plans to continue to make investments in essential government 

services and operations to meet the needs of residents, and to rebuild a stronger economy 

with a focus on sectors hardest hit by the pandemic. 

While the specific funding items for these priorities are still being finalized, the City is concurrently 

developing metrics for measuring impact. The City expects these investments will drive three 

positive outcomes: (a) broad and inclusive recovery of the City’s economy and residents’ wellbeing; (b) improved access to opportunity for youth, families, and disproportionately impacted 

residents; and (c) a reduction in crime and violence. 

The complete accounting for specific funding items and project-level details will be provided within 

60 days of appropriation, as allowed for by U.S. Department of the Treasury guidance. 

Promoting equitable outcomes 

 

Under the leadership of Mayor Lori E. Lightfoot, the City of Chicago established an Office of Equity 

& Racial Justice (“OERJ”) in 2019 and hired the first Chief Equity Officer. In doing so, Chicago 

became the largest jurisdiction to both name a Chief Equity Officer and to explicitly identify racial 

justice as a key focus area of the Mayor’s Office. 

The Mission Statement of the OERJ is as follows: The Office of Equity and Racial Justice (OERJ) 

seeks to advance institutional change that results in an equitable transformation of how we do 

business across the City of Chicago enterprise. This includes the City’s service delivery, resource 

distribution, policy creation, and decision-making. 

The City of Chicago defines equity as both an outcome and a process. 

As an outcome, equity results in fair and just access to opportunity and resources that provide 

everyone the ability to thrive. Acknowledging the present and historical inequality that persist in 

our society, equity is a future state we strive to create where identity and social status no longer 

predestine life outcomes. 

As a process, equity requires a new way of doing business: one that (1) prioritizes access and 

opportunities for groups who have the greatest need; (2) methodically evaluates benefits and 

burdens produced by seemingly neutral systems and practices; and (3) engages those most 

impacted by the problems we seek to address as experts in their own experiences, strategists in 

co-creating solutions, and evaluators of success. 

The City of Chicago’s planned use of LFRF funds will incorporate the OERJ’s framework and 

existing methodology, as well as new metrics developed for the purpose of an equitable economic 

recovery from the pandemic. 

For further reference, the OERJ drafted Chicago’s Equity Statement of Principles, available on 

the City’s website. 
City of Chicago 2021 Recovery Plan Performance Report 4

Community Engagement 

 

As discussed in prior sections, the City of Chicago has integrated the LFRF project identification 

process with the 2022 budget appropriations process, including community outreach and 

engagement to create a holistic approach to addressing the impacts from the pandemic and 

addressing resident priorities. 

The Mayor’s Office of Community Engagement and Chicago’s Office of Budget and Management 

engaged the University of Illinois at Chicago’s Neighborhoods Initiative (“UICNI”) at the Great 

Cities Institute to assist in designing the internal and external budget engagement activities as 

part of the 2022 budget engagement process. The process was designed to solicit engagement 

regarding the 2022 budget and deployment of LFRF. 

The goal for community engagement was to capture meaningful input from residents and other 

city stakeholders that would result in a data-driven report that documents the process and findings 

from the internal and external engagement. 

One of the main priorities of the 2022 budget engagement was to design a process that allows 

for the incorporation of useful community input and feedback into the internal processes of budget 

decision-making. 

The first phase of the 2022 budget engagement process took place from June to July 2021 and 

included four internal focus groups with City of Chicago Commissioners, four meetings with 

citywide leaders, and six regional roundtables with community-based and neighborhood-based 

organizations. Meetings with citywide leaders included open dialogue with participants that asked 

them to identify priority programs and services for new investments and investments to improve 

the City of Chicago’s effectiveness in the delivery of programs and services. 

Regional roundtables included the far south, south, southwest, west, northwest, and north regions 

of the city. Participants were asked to complete a budget worksheet and specify which programs 

and services they would prioritize for new investment across six budget categories including 

public safety, arts and culture, neighborhood development, community services, infrastructure, 

and regulatory services. Participants were also asked to identify investments that will improve the 

City’s effectiveness in the delivery of programs and services. 

The City also hosted three focus groups in July with labor leaders, faith leaders, and members of 

the City’s advisory and engagement equity councils. These conversations also presented the 

early findings of community engagement efforts to receive additional feedback. 

The second phase of community engagement included three public forums that were held across 

the city in August 2021 on the southside, westside, and northside of Chicago. All meetings were 

physically accessible, provided Spanish translation services, American Sign Language 

interpreters, and live closed captions for the presentations. 

Nearly 400 community-based organizations, labor organizations, faith leaders, equity leaders, 

and other city stakeholders, along with more than 260 residents, both in-person and online, 

participated in engagement efforts between June and August 2021. 
City of Chicago 2021 Recovery Plan Performance Report 5

The full community engagement report and data, as well as a report outlining how the City 

incorporated community engagement into the 2022 budget including LFRF, will be made available 

on the City’s website at chicago.gov/2022budget. 

Labor Practices 

 

As noted in preceding sections of this report, the City of Chicago has yet to appropriate LFRF 

funds for any specific projects or proposals. Once the appropriations process is complete, the City 

will pursue any related infrastructure projects according to existing labor agreements and 

practices that make Chicago a regional leader in strong employment opportunities and worker 

protections. 

City and state policies relevant to any forthcoming infrastructure projects include the following: 

 City of Chicago Local Hiring Ordinance: Chicago’s Local Hiring Ordinance states that 

City construction projects over $100,000 in contract value require at least 50 percent of 

project hours to be worked by City residents and at least 7.5 percent of project hours to 

be worked by Project Area residents. 

 City of Chicago Multi-Project Labor Agreement (PLA): the prevailing PLA dictates that 

any City construction, demolition, rehabilitation, or renovation project over $25,000 in 

contract value will adhere to all relevant, area-wide union labor agreements and 

collective bargaining agreements.

 State of Illinois Prevailing Wage Act: Requires contractor and subcontractor to pay 

laborers, workers, and mechanics employed on public works projects, no less than the 

general prevailing rate of wages (consisting of hourly cash wages plus fringe benefits) 

for work of similar character in the locality where the work is performed. 

The net effect of the above-mentioned city and state prevailing labor practices is to ensure that 

Chicago’s infrastructure projects maximize their collective local impact by promoting strong 

employment opportunities for city workers. Note that federal regulations take precedence over 

city and state policies, which will only be applied to federal contracts as allowable. 

The City is dedicated to fostering a new generation of construction workers that is homegrown 

and diverse, and that City spending is creating sustainable wealth building opportunities for 

historically disadvantaged residents. In order to do this, the City is continuing to work with key 

unions, contractors, training organizations, philanthropic organizations and communities to build 

a comprehensive pipeline to employment that grows union membership and opens doors for 

historically disadvantaged people including those facing barriers to union participation and 

employment. The City is planning to participate in upcoming convenings around this specific topic 

that can inform the City of Chicago’s execution of any forthcoming infrastructure investments 

funded by the ARPA and LFRF. 
City of Chicago 2021 Recovery Plan Performance Report 6

Use of Evidence 

 

Each proposed intervention funded by LFRF expenditures will consider evidence and data to both 

establish the need and further develop funded programs. As part of the proposal consideration 

process, assessments of impact based on available research and strategies from existing 

planning documents will be brought forward. Proposals will also consider stakeholder 

engagement and priorities. 

Once the appropriation of funds is finalized and execution of projects commences, the City will 

periodically review the impact of each project through assessment of performance against 

expected outcomes and through discussion with elected officials, community stakeholders, City 

staff and relevant experts. Through these ongoing performance assessments, the City will foster 

a culture of continuous learning and improvement. 

Table of Expenses by Expenditure Category 

 

The City of Chicago has yet to present the 2022 budget and accompanying LFRF initiatives to 

City Council for the appropriations process and passage, which are expected to occur in the fourth 

quarter of 2021. Therefore, no funds have been expended to date. The City of Chicago will 

populate the Table of Expenses by Expenditure Category after funds have been appropriated, as 

indicated in the U.S. Department of the Treasury Portal Recipient Reporting User Guide. 

Project Inventory 

 

The City of Chicago has yet to present the 2022 budget and accompanying LFRF initiatives to 

City Council for the appropriations process and passage, which are expected to occur in the fourth 

quarter of 2021. Therefore, no funds have been expended to date. The City of Chicago will 

populate the Project Inventory after funds have been appropriated, as indicated in the U.S. 

Department of the Treasury Portal Recipient Reporting User Guide.