Here’s Mike Shedlock:
Move over Detroit. The fiscal crisis in Chicago is far bigger.
- Pensions 31% funded
- Moody’s downgraded Chicago Debt 3 Notches (just 4 steps above junk)
- City debt on negative watch
- Pension Liability is $61,000 Per Household ($23,000 Per Capita)
Via email, Ted Dabrowski at the Illinois Policy Center writes …
While all eyes are focused on a solution for Illinois’ state-run pension systems, Chicago’s own debt crisis is looming.
Chicago taxpayers are on the hook for more than $63 billion in pension, health insurance and other debt. That’s the total debt of the city and its sister governments, as well as Chicagoans’ share of Cook County debt.
In total, each Chicago household is on the hook for more than $61,000.
Chicago’s pension crisis isn’t new, but Detroit’s bankruptcy has brought national attention to Chicago’s growing crisis. Just a day after Detroit filed for bankruptcy, Moody’s Investors Service downgraded Chicago’s debt by a rare three notches. Chicago is now just four notches away from junk-bond status — and any further downgrades mean the city could face problems borrowing money.