Cities: The problem with socialism, Margaret Thatcher once noted, is you eventually run out of other people’s money. In progressive Chicago, that’s hit home as Moody’s has cut its credit rating to two grades above “junk.”
Chicago’s finances are staggering under the weight of an unfunded pension liability that Moody’s Investors Service has estimated at $32 billion, eight times the city’s operating revenue.
Chicago has a $300 million structural deficit. And Illinois law requires the city to up its 2016 contributions to its police and fire pension funds by $550 million.