Chicago faces a significant financial challenge, with a $41.1 billion gap between available funds and expenses for fiscal year 2024, according to a report by Truth in Accounting. This positions the city as one of the worst financially managed major cities in the U. S.
• Truth in Accounting's report gives Chicago an “F” grade and a taxpayer burden of $42,600 per resident, only worse than New York City.
• Key entities like Chicago Public Schools are not included in the city's financial reports, masking the true financial state.
• Officials claim a balanced budget, but Truth in Accounting's CEO, Sheila Weinberg, argues this is misleading due to selective expense reporting and counting loan proceeds as revenue.
• Chicago's major pension funds are heavily underfunded, only covering about 25% of promised benefits, which raises concerns over future financial stability.
• Comparatively, Los Angeles has a lower taxpayer burden and a better grade due to more responsible funding practices, adhering to actuary recommendations.
• Truth in Accounting plans to work with U. S. Senate members to push for federal legislation requiring full funding of pension and retiree benefits.
The findings highlight the need for fiscal reform to prevent future taxpayer burdens from underfunded public obligations.
https://www.thecentersquare.com/illinois/article_e0a0c880-752f-40b3-9855-571716b4445f.html
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