Chicago Mayor Brandon Johnson’s chief financial officer, Ashlee Gabrysch, resigned after just three months, saying that staying in the job would compromise her financial integrity and professional obligations.

Her departure comes amid a contentious 2027 budget fight, after Johnson’s administration revised its projected gap from $882 million to $662 million by excluding planned borrowing for police settlements; Gabrysch argued the costs still belonged in the gap and that borrowing was a one-time fix.

A majority of the City Council opposes Johnson’s budget as proposed, with 28 alderpeople urging him to reconsider measures including a corporate head tax and an increase to the city’s lease tax.

The City Council must approve a balanced budget by year-end, and Johnson has proposed raising the Personal Property Lease Tax from 15% to 20% to generate about $234 million, while signaling possible changes to that plan and the proposed head tax without providing details.

The dispute also involves a $75 million payment toward Chicago’s underfunded pensions, funded by proceeds from the parking-meter operation: the council approved the payment on November 2, but Gabrysch directed the treasurer to make it on November 6, before the ordinance took effect, and Acting Corporation Counsel Renee Hatcher said she lacked legal authority.

Johnson’s office accepted Gabrysch’s resignation effective immediately and accused her of directing the payment without legal authority or proper procedures, while also saying she was largely absent during key parts of budget preparation.

The mayor’s office said it would refer the matter to the City’s Office of Inspector General for independent review, and Johnson welcomed an investigation while saying his administration had not formally referred Gabrysch’s conduct before.

Ald. Bill Conway called for an immediate inspector general investigation, saying Gabrysch’s letter suggested she may have been asked to present false information; he also urged the inspector general to report findings to the City Council.

Finance chair Ald. Pat Dowell called for an independent audit of city finances, while Ald. Scott Waguespack said Gabrysch’s testimony raised a red flag and expected the council to hold a hearing.

Conway warned that doubts about the accuracy of Chicago’s financial statements could hurt its credit rating and worsen its fiscal position as it borrows and faces the budget deadline.

The warning comes after three rating agencies downgraded Chicago following last year’s budget, citing persistent gaps, rising pension, debt and payroll costs, political conflict, and reliance on one-time measures.

The CFO oversees city debt, long-term financial planning, financial reporting and relations with rating agencies; Gabrysch had also been expected to help manage a proposed $480 million debt issuance for settlements through 2028.