* Sun-Times…
The abrupt resignation on Friday of Mayor Brandon Johnson’s third chief financial officer in a year could trigger another drop in Chicago’s already shaky bond rating and scare investors away from the city’s bonds.
Ashlee Gabrysch’s departure sent shock waves through City Hall and beyond — her resignation comes in the middle of a budget stalemate, after just three months as CFO. Even more damaging than Gabrysch’s sudden exit is what she said on her way out the door.
A former Wall Street executive, Gabrysch issued a statement saying she was unwilling to compromise her financial integrity. She did not reveal what it was she was asked to do that would have damaged her reputation.
* Gabrysch’s full statement…
“As the City of Chicago’s Chief Financial Officer, there is nothing more important than my fiduciary duty to the City and its taxpayers. The Chief Financial Officer’s statements about city finances are not idle chatter: they are relied upon by investors, ratings agencies, City Council, and taxpayers. The CFO must act scrupulously to ensure they are always accurate and complete.
“Throughout my career, I have remained committed to upholding the highest standards of financial integrity and transparency, and in my short time as Chief Financial Officer, I have faithfully discharged this duty. It has become apparent, however, that to continue in this role would be to compromise my integrity and professional obligations. I therefore have concluded that I must step down from my role, and hereby tender my resignation.”
* The response from Johnson’s office. Crain’s…
“The city of Chicago is facing a serious budget crisis following decades of mismanagement. It is concerning that, during her short tenure, Ashlee was largely absent during critical periods of the City’s budget preparation process. Additionally, her decision to direct the City Treasurer to issue a $75 million payment without proper legal authority or following the required processes raises serious concerns,” the statement said.
It was not immediately clear what the payment is in reference to. But the City Council secured $75 million from the transfer of the city’s parking meter concession and directed it towards a one-time pension payment in 2026.
“Our administration made multiple attempts to meet with her to discuss this action and seek an explanation, including shortly before her public resignation,” the statement said.
“Those attempts went unresolved. Given the seriousness of these concerns, we will refer the matter to the City’s Office of Inspector General for independent review. We welcome a full review of the conduct at issue. Our administration takes its responsibility to protect taxpayer dollars, uphold the law, and ensure the responsible management of City finances seriously. We expect every City official to meet that standard,” the statement said.
* Some background from the Tribune…
Johnson’s budget team pegged next year’s budget gap at $882 million during the forecast deficit rollout in September. When Johnson formally introduced his budget last month, that number shrank to $662 million – a figure that the administration attributed to plans to borrow for the cost of police settlements.
With that number removed from the city’s deficit, Johnson claimed 76% of his gap-filling proposals were structural. Gabrysch disputed that figure during the first day of public budget hearings, saying those settlement costs were part of the deficit and that borrowing to cover it should be counted as a one-time gap-filling measure. With both in mind, she said structural solutions made up 56% of the mayor’s proposal.
“The 76% number comes from removing settlements and judgments from the denominator,” she said at the time. “I stick with the $882 (million) forecasted budget… that is my denominator.” […]
Johnson at the time denied any attempts by his administration to hide the ball. “Look, we were obviously incredibly transparent,” Johnson said when asked about the discrepancy.
* CBS Chicago…
A number of Johnson’s top aides have departed in the past year, including chief legal counsel Mary Richardson-Lowry, budget director Annette Guzman, public health commissioner Olusimbo Ige, police superintendent Larry Snelling and both the city’s preview CFO Jill Jaworski and her interim replacement, acting CFO Steven Mahr.
Alderman Bill Conway, who represents the city’s 34th Ward and serves as Finance Committee Vice Chair in the city council, released a statement calling for an immediate investigation into the resignation.
“In her resignation letter, Ms. Gabrysch wrote that the CFO’s statements must be ‘complete and accurate’ and that she is ‘not able to fulfill those obligations under the conditions in which I have been asked to serve,’” Conway’s statement says in part. “This is an obvious indication that she was asked by the Mayor’s Office to present false information.”
* Gabrysch’s response to the mayor’s statement…
Gabrysch: “This effort by the administration to deflect from the serious issues at stake and attack those who attempt to hold them accountable is disappointing but not surprising. I stand by my statement and will continue to operate in accordance with my values and integrity.”
