In a revealing presentation on Thursday, former Chicago Mayor Lori Lightfoot shared the preliminary findings of her four-month investigation into the financial practices of the village of Dolton and its mayor, Tiffany Henyard. The village hired Lightfoot to conduct an independent probe into Henyard’s spending, and the results were alarming.
Financial Mismanagement and Deficit
Lightfoot’s investigation disclosed that as of May 30, 2024, Dolton’s general fund was in a net deficit of $3.65 million. This starkly contrasts the surplus of more than $5.6 million in April 2022, shortly before Henyard assumed office.
“As of May 30 of this year, the village’s general fund was in a net deficit position,” Lightfoot announced, underscoring the severe financial decline under Henyard’s administration.
The village’s cash reserves have been exhausted, leading to a significant backlog of unpaid bills.
Lightfoot said that, since March 2023, the village has been unable to pay all its monthly expenditures. By June 18, 589 checks totaling over $6 million had been approved and printed but not sent to vendors due to insufficient funds.
Escalating Expenditures and Questionable Spending
Lightfoot’s findings highlighted a troubling increase in the village’s average monthly expenditures, which have risen nearly 30% from $1.9 million to $2.5 million since fiscal year 2022.
General administration and compensation costs have surged by approximately 47%, from $6.4 million in FY 2022 to $9.4 million in FY 2024. Police department expenditures increased by 21%, reaching $9.3 million in FY 2024.
Significant increases in overtime pay for at least two police officers were also noted, with these officers receiving more overtime than their regular pay in FY 2023 and FY 2024.
The investigation uncovered concerning credit card spending practices, with six different cards showing significant charges.
Notable expenses included nine domestic trips, including a controversial trip to Las Vegas, which is now under multiple investigations. Additionally, over $43,000 in Amazon charges were made in a single day, $8,000 was spent on Wayfair purchases, and more than $2,000 was spent at Best Buy.
Detailed Financial Irregularities
As of May 30, 2024, the financial status revealed that while the general fund was in a net deficit, the village’s Special Revenue Fund and Debt Service Fund were in a positive position. However, these funds are restricted and cannot be used for day-to-day operations.
Lightfoot’s report also mentioned the village’s failure to maintain its financial records adequately. The village has not had its financial records audited since FY 2021 and has yet to file the state-mandated annual reports since that year. Furthermore, Dolton has no budget for the current fiscal year, four months in.
Travel Expenditures Under Scrutiny
The report listed several questionable travel expenses, including trips to Birmingham, AL, Washington D.C., Las Vegas, Jackson, MS, Austin, TX, Portland, OR and various locations in Illinois, New York City and Atlanta. These trips involved multiple travelers and significant hotel expenses, raising further questions about the village’s financial management.
Next Steps
Lightfoot emphasized the urgent need for additional financial information to fully understand the village’s expenditures. This includes detailed accounting records, receipts for credit card spending, check registers and an accounting of inter-fund transfers and balances.
She also called for additional information to understand the expenditures for the Las Vegas trips in 2022 and 2023.
As Dolton faces a financial crisis, Lightfoot’s findings cast a long shadow over Mayor Henyard’s administration, calling for immediate action to address the financial mismanagement and restore fiscal stability to the village.
Former Mayor Lightfoot Issues Statement
Lightfoot issued the following statement after providing a preliminary update to the Village of Dolton Board of Trustees and the public concerning the financial condition of the Village of Dolton:
“Today, we provided a preliminary update on the Village of Dolton’s financial status, as requested by the Village Trustees. We are committed to transparency and believe it is important to keep the public informed. The information released provides data that the Trustees and the public have been seeking for some time and will allow the Trustees to make necessary and informed decisions about the expenditure of precious taxpayer dollars.
“We are working diligently to swiftly and thoroughly conclude the investigation. Further substantive updates will not be provided until our work is complete. We continue to seek full cooperation from Mayor Henyard, her staff, Village Trustees, vendors, and all relevant parties. Our team appreciates the community’s patience as we continue the investigation.”
ABC 7 Chicago contributed to this report.
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