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Chicago: The Liberal Utopia

I read in the news yesterday that Chicago Mayor Rahm Emanuel is warning that he may double property taxes in Chicago to fund a $1.07 billion balloon payment on its $19.4 billion pension debt for city employees. The shortfall to the pensions comes to $7,100 per Chicago resident. The municipal workers, police, labour and firefighters’ pension funds are currently sitting at 33 percent funded, far below the 80 percent that is considered healthy, according to Financial Times. The Chicago teachers’ pension fund is also in trouble, currently sitting at 54 percent funded. Chicago’s city council is taking steps to deal with the financial crisis, according to the Wall Street Journal.

Wall Street Journal – Last month, Chicago’s city council approved the issuance of $500 million in commercial paper and $900 million in general-obligation bonds purportedly to refinance existing debt and improve public works. There’s little to stop politicians from pouring the proceeds into pensions – or later reneging on […] → Keep reading