ROCKFORD, Ill. (WIFR) – The City of Rockford’s finance director returned to her spreadsheets following feedback from council members.

“The work of government is building consensus,” she told WIFR. In her initial presentation on the city’s proposed budget for 2026 on October 20, Carrie Hagerty outlined a roughly $3.7 million deficit in the $225 million plan.

To prevent the shortfall, city staff recommended repurposing the cannabis sales tax revenue into the “general fund.” That would require council approval, since lawmakers restricted the fund to support efforts like the REGROW Grant, “an equity-driving, restorative justice and community reinvestment grant program.“

“The budget presentation sparked a number of conversations with aldermen,” said the director.

Some like Ald. Gina Meeks (D-12th Ward) criticized that proposal around that time — arguing cannabis revenue “should not be touched.”

On November 10, Hagerty shared an “amended” budget. It redirects $2.6 million collected from the 3% cannabis tax to plug the deficit. The fund’s future annual revenue of around $850,000 would remain under its original policy.

“We want to make sure that we’re presenting a plan that does the most good for the most people,” described the finance director.

The “compromise” leaves the city’s property taxes flat for the 13th straight year and generates a slight surplus of about $32,000. It also includes further budget cuts primarily impacting education and training for human resources, as well as leaving vacant positions open in city hall.

Monday’s finance and personnel committee started the approval process. Most council members questioning the financial plan didn’t sit on the committee.

Ald. Tamir Bell (D-13th Ward) inquired city staff about depending on the cannabis fund for the deficit. In his questions, the council member confirmed the revenue “was originally established to reinvest in communities disproportionately impacted by the war on drugs.”

Bell also asked for more public participation in the budget process, questioning whether the city could form a task force before making a decision, such as the cannabis repurposing.

During public comment, Dr. Litesa Wallace, founder of LITE Strategies and a former state representative, defended the cannabis revenue as is.

Wallace reflected on her time in Illinois’ General Assembly, where lawmakers legalized weed with the hope of implementing restorative justice in communities.

“That promise should not be one that goes back on,” she warned. “It is one that if you do go back on it, you will lose public trust.”

Some on the finance committee recognized the public debate surrounding the weed fee. Ald. Jonathan Logemann (D-2nd Ward) contended a property tax hike would hurt more people if the budget didn’t include the cannabis fund.

“It’s important that we try not to raise property taxes on everybody because that’s something that affects every resident in the entire city,” asserted Logemann.

The finance committee unanimously approved the budget’s first consideration. It requires an entire council vote for approval.

Hagerty mentioned leaving vacant positions open would impact the Rockford Police Department. An earlier draft of the budget included leaving 19 patrol spots open, following new hires in December.

“I do not want to consider… leaving open police positions available and not hiring those open positions,” held Logemann.

The finance director said a number of patrol spots affected in the amended budget isn’t immediately available.

“The intent is to make sure that those positions get filled,” she clarified.

Hagerty described the process as impacting every department across the city as employees retire or leave their position. Following that, city staff will consider whether their role should be filled or can be left open.

“It gives us a chance to be very intentional and thoughtful about how and when we fill those positions.”

The proposed budget could be voted on at the council meeting set for November 17. State law requires municipalities to pass balanced budgets by March 31, 2026.

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