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Rockford May Repurpose Cannabis Fee to Avert Tax Hike
ROCKFORD, Ill. (WIFR) — The City of Rockford faces a multi-million-dollar budget cliff, as officials work to balance next year's finances without increasing property taxes.
A proposed 2026 budget shows a shortfall of $3,686,447, potentially marking Rockford's first deficit since 2022. On October 20, Finance Director Carrie Hagerty presented a proposal to council members featuring $221.5 million in revenue and $225.2 million in expenses.
Hagerty attributed the deficit to rising pension contributions—expected to increase by $5.3 million, or 15%—and state tax distribution changes. Four days later, Hagerty spoke with WIFR to discuss possible options to eliminate the deficit.
Rather than increasing taxes, Hagerty proposed lifting restrictions on how the city's cannabis sales tax revenue is used. Repurposing it could provide Rockford with $2.6 million in one-time revenue and an additional $850,000 annually for the general fund.
"Our proposal is instead of increasing our property tax levy or cutting services, let's redirect those funds to help pay for current costs," Hagerty explained. She described the next Rockford budget as "status quo," meaning no services or programs would be cut.
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