Chicago last week released its financial forecast – and not only does it predict a $369 million shortfall in the operating budget by next year, but an estimated $1 billion in the red by 2015.
A number of critics point out that with its mounting bills and now after Moody’s downgraded the city’s debt rating, the Windy City could be the next to see bankruptcy on its horizon.
The National Review points to the city’s pension plans as one reason for an upcoming Chicago debt disaster that it can’t seem offset, even with the second-highest property taxes in the nation.
From the city’s financial report itself:
“[T]he legacy cost of pension obligations more than doubles the size of the City’s projected gap in 2015 and 2016. Substantive pension reform could significantly reduce the impact of these costs on the City’s budget over the coming years…”
Chicago mayor Rahm Emanuel has already made tough school budget slashes to cut into the overall mounting finances, but expenditures in the coming years are still a daunting challenge — especially in an area of the country where ever-growing pension costs are considered by many as untouchable.
A good breakdown of the city’s finances can be found at Breitbart.