Because Chicago doesn't have enough money to pay its bills, it has a $38.7 billion financial hole.
CHICAGO—Mayor Lori E. Lightfoot announced today Standard & Poor's (S&P) Global Ratings has upgraded its outlook to “stable” from “negative” and has assigned its 'BBB+' long-term rating to the City of Chicago.
Chicago's debt grows to $43,700 per taxpayer despite federal COVID-19 aid. Fiscal watchdog Truth in Accounting's July 2021 report showed the Windy City's pension-fueled debt rose by $2.3 billion from 2019 to 2020 despite receiving substantial federal aid during the pandemic.
Report Highlights. Gun violence, racial disparities in health, and racism and discrimination were Chicago adults' top social concerns for youth in the city. Gun violence was the number one social concern for the third straight year.
According to recent census data, 1 in 10 Chicago residents are living in extreme poverty, meaning their income is 50 percent below the federal poverty line. 1 in 4 kids in our city are living in poverty.
The numbers of carjackings, shootings and homicides have risen in Chicago, leaving residents on edge and prompting city officials to generate new solutions to tackle the city's violence epidemic. Chicago has reported 2,600 shootings this year, up 10 percent from the same time last year, according to data from police.
In the fiscal year of 2021, Illinois' state debt stood at about 64.74 billion U.S. dollars. By the fiscal year of 2027, this is expected to increase to about 81.61 billion U.S. dollars. The national debt of the United Stated can be found here.
Why Illinois has a pension crisis. Illinois' massive, growing, government-worker pension debt is a direct result of three major factors: overgenerous pension benefits, political manipulation and inherent flaws of pension plans.
The major reasons Illinoisans have chosen to leave the state are for better housing and employment opportunities, both of which have been made worse by poor public policy in Illinois. Nearly half of Illinoisans have thought about moving away, citing high taxes as their No.
Chicago's financial woes stem largely from out-of-control pension promises. More than 68% of the city's total debt burden stems from unfunded pension liabilities and nearly 2% comes from unfunded liabilities for retiree health insurance, meaning fully 70% of the city's debt is related to retirement benefits.
Chicago Wins Stable Outlook Trio for First Time in Pandemic
Still, the company affirmed its BBB+ rating, which is three notches above junk, largely given rising pension costs.
Since 2000, Chicago is the slowest growing major city in the U.S. Since its peak in 1950, Chicago has lost nearly 1 million residents. Rather than a simple pattern of population “booms” and “busts,” groups have migrated to and away from Chicago at different points in time.
1. Winnetka – Median Household Income of $250,001. Winnetka is one of the wealthiest cities in Illinois with a median income of $250,001.
Debt for the City, excluding that of the New York City Municipal Water Finance Authority, has grown from $39.55 billion in FY 2000 to $94.22 billion in FY 2021, an increase of 138 percent.
Illinois has one of the highest state and local tax burdens in the nation, crushing residents under increasing taxes that are going toward paying pension debts rather than paying for badly needed programs and services.
The system includes two tiers. Tier 1 covers teachers hired before January 1, 2011. They receive lifetime pensions equal to 2.2 percent of their final average salaries multiplied by completed years of service, capped at 75 percent of their final average salaries.
Can you lose your pension? You may lose your pension if the company that sponsors the pension plan terminates the plan. However, in some cases, you may be able to receive benefits from the Pension Benefit Guaranty Corporation (PBGC), a federal agency that insures certain types of pensions.
In 2019, the federal state of California had about 506.66 billion U.S. dollars of debt outstanding, the most out of any state.
In 2019, the federal state of New York had debt of around 18,410.53 U.S. dollars per capita, the most out of any state in the U.S. The total debt accrued by the U.S. annually can be accessed here.
Now, Illinois is keeping its promises by passing real balanced budgets,” he added. “We're cutting costs, paying bills on time, and paying down our debt, saving taxpayers hundreds of millions of dollars. And our credit rating has been upgraded for the first time in 20 years.”
These latest Census trends suggest that there is a growing interest in living in the central sections of the Chicago region. This change follows years of declining automobile use both in the metropolitan area and in the United States as a whole, and significant growth in the Chicago central area.
In the 1950s over two percent of the entire U.S. population lived within Chicago city limits. Over a half century later, while America's population doubled, Chicago's population declined. The 1960, 1970, 1980, and 1990 Census numbers showed Chicago losing population.