Inspector finds ‘dormant’ $57 million fund in Chicago

Following an advisory by the Chicago inspector general’s office, the city treasurer has asked the city council to dissolve the Community Catalyst Fund and return its more than $57 million in assets to general funds.The fund was set up 10 years ago to increase access to public and private investment capital for businesses and organizations in economically underserved areas.
Inspector General David Glockner said the city provided half of the $100 million initially proposed by Mayor Rahm Emanuel, but the fund has been been effectively dormant since 2020.
“The total balance is now about $57 million. The fund had fallen off filing its annual reports. There were also quarterly reports that were supposed to be filed with respect to the investments and were not filed,” Glockner told The Center Square.
Chicago Treasurer Melissa Conyears-Ervin is the ex officio chair of the catalyst fund’s board of directors. The fund failed to submit annual reports from 2022 to 2025.
“From my perspective, it’s more an indication of sort of a lack of activity and focus on the fund than anything that is sort of suspicious or nefarious,” Glockner said.
Glockner said there is no indication that the money was misused.
The inspector said the fund only invested about $21 million of the $50 million that it received. No private dollars were ever invested in the fund.
Glockner said the fund’s investments were all made in 2020 and the money was repaid.
In a July 2026 letter, OIG suggested that the city treasurer and catalyst fund board of directors comply with the board’s established ordinance by using the fund for its legislated purpose or, alternatively, the city could terminate the fund and allocate its more than $57 million in assets for other investments or general municipal purposes.
In response to the advisory, through counsel, Conyears-Ervin’s office asked the city council to dissolve the fund and return its assets to general funds.
The next full council meeting is scheduled for Sept. 23.
When asked how quickly the money might be returned to the general fund, Glockner said it’s not his office’s role to tell the city what to do.
“But I would think it’s something the city likely could do pretty quickly,” the inspector said.
Mayor Brandon Johnson’s office has projected a $130 million deficit for the $16.7 billion budget for 2026 passed by city council last December.
Glockner said his office routinely looks at the city’s financial statements and operations.
“I have no reason to think that there are other kind of $57 million pots out there, but our day job is to try to find places where the city can do better. Given the financial challenges the city is facing these days, we’re pretty focused on helping the city do better from a financial perspective,” Glockner said.

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