When Illinois Governor JB Pritzker secured the 2024 Democratic National Convention (DNC) for Chicago, he made a promise: taxpayers wouldn’t foot the bill, and he wouldn’t bear the entire cost himself.
Recent federal campaign finance disclosures reveal he kept those commitments. However, the Pritzkers emerged as the convention’s largest individual contributors, donating an impressive $5.6 million—nearly 6% of the $97 million raised by the convention’s local host committee, Development Now for Chicago.
The Financial Landscape of the 2024 DNC
The DNC’s spending spree reached approximately $83 million leading up to and during the event held at the United Center, where Vice President Kamala Harris made history as the first Black and Asian American woman to accept a major party’s presidential nomination.
In comparison, the Republican National Convention (RNC) held in Milwaukee just a month prior raised $92 million and spent $88 million.
Pritzker’s Commitment to Chicago
Pritzker’s campaign spokeswoman, Christina Amestoy, stated, “From day one, Gov. Pritzker was fully committed to making sure the 2024 DNC was a success both in the convention hall and across our entire city.”
The convention not only spotlighted the Democratic Party but also showcased Chicago, bringing visitors, investments, and attention across various neighbourhoods.
Economic Impact and Skepticism
The convention boasted an economic impact of $371.4 million, generating $34.9 million in federal tax dollars and $28.7 million in state and local taxes.
However, economists have long viewed claims about the financial benefits of such events with scepticism. They argue that the alleged benefits are often exaggerated.
Sam Toia, president of the Illinois Restaurant Association, noted that the DNC’s short-term benefits didn’t meet expectations for the restaurant industry. Many businesses saw a dip in activity, primarily due to heightened security measures and uncertainty surrounding the event.
Outstanding Debts and Future Donations
As of September 30, the host committee reported over $6 million in outstanding debts, with $14 million in cash on hand. Any remaining funds post-settlement will be donated to local charities, according to spokeswoman Natalie Edelstein Jarvis.
In addition to the Pritzkers’ $5.6 million, Pritzker’s political campaign contributed nearly $127,000 to the DNC.
Major Contributors to the DNC Fund
The Democratic Governors Association, led by Minnesota Gov. Tim Walz, also stepped in, contributing $6 million. Significant union support came from the International Brotherhood of Electrical Workers, which donated $5.2 million, and other labour unions that contributed millions more.
Corporate giants like McDonald’s and United Airlines also threw their weight behind the event, with McDonald’s donating $1.5 million and United more than $1 million.
The largest single corporate contribution of nearly $2.3 million came from Grosvenor Holdings, owned by Michael Sacks, a prominent Democratic fundraiser.
A Broader Coalition of Support
The successful fundraising effort exceeded the host committee’s obligation to raise $85 million. Edelstein Jarvis highlighted this broad coalition as a testament to Chicago’s capability to unite labour, corporate, and individual donors.
Pritzker stated, “The proof of the convention’s success is in the numbers, with millions in tax revenue generated and significant support for jobs.”
Local Economic Engagement
Notably, the convention organisers focused their spending on the city of Chicago itself, with $75.5 million spent within its boundaries. Over 69% of that expenditure was outside the central business district, emphasising an effort to involve all 77 community areas of Chicago.
Vendor Support and Local Impact
A Black-owned business, Show Strategy, received $6.6 million for exposition services, showcasing efforts to engage local minority and women-owned vendors.
The total economic impact of this DNC is reportedly the largest in its history, partially attributed to increased local spending and a larger federal grant for security expenses.
Federal Support and Security Costs
The federal government granted $75 million to both Chicago and Milwaukee for the conventions, up from $50 million in 2016. This funding covered costs related to police, fire, and emergency management workers, as well as a host of city services to ensure a smooth event.
Mixed Reviews from the Business Community
While some local leaders hailed the DNC as a triumph, others expressed disappointment. Toia remarked that the convention didn’t replicate the bustling atmosphere of past events. Many regular downtown workers opted to work from home, impacting local businesses negatively.
Michael Jacobson, CEO of the Illinois Hotel & Lodging Association, noted a 12% increase in hotel occupancy compared to the previous year, which signals some level of success despite not achieving full occupancy.
The Bottom Line on Economic Claims
Despite the enthusiasm from local leaders, economic impact reports from political conventions often paint an inflated picture. Lauren Heller, an economics professor, emphasised that such reports frequently overlook important factors like local spending habits and potential losses from residents staying home.
“There might be other reasons to hold events like this,” Heller concluded, “but economic impact is not necessarily one of them.”
