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It depends on your moral stance about working with the cops in this fashion. In many circles, becoming a CI will get you immediately ostracized and could lead to being physically assaulted. Alternatively you could tell the judge about your financial situation and hopefully work it off via community service. Also, fines can often be reduced by providing documentation demonstrating your income meets specific conditions. But to each their own, I mean based on your citation, what CI work would they have you do? I've only ever heard about CI's in the drug world.
My guess is that OP was caught street racing. They tick a lot of boxes for someone who would street race. My guess is that they’re stationed at Fort Dearborn, in Chicago. That’s an army base. Freshly enlisted army chuds tend to see their first paycheck, get excited that they suddenly have big-boy money, (and aren’t paying rent because they’re living on base) and they impulsively buy a sports car. And this means they’re only one step away from street racing. All it takes is a weekend of off-base shenanigans when he sees some local car enthusiasts, and now OP is hit with street racing charges.
Many areas have begun cracking down on racing, to the point that it can outright get your car seized (not just impounded for pickup later. Completely seized), and your license revoked. Not sure about Chicago/Illinois specifically, but many areas have started implementing harsher and harsher penalties for it on the city/county level.
If this is the case, the cop is basically saying “rat on your street racing buddies so we can bust all of them, or else we’re throwing the book at you.”
OP needs to delete this post and talk to an attorney.