Budget Outlook for Next Year

As I mentioned last week, City Council members were briefed on the Johnson Administration's mid-year City budget projections and the budget outlook is scary. The City will likely be at about a $1.15 Billion budget gap.

Moody's released a outlook statement a few days ago that dropped Chicago from a positive outlook to stable. This is not a downgrade, but close to it. While we have a diverse and strong economic base, the rating agency warned against any "abandonment of the city's advance pension payments, return to scoop-and-toss debt practices, borrowing for operations or decline in the adjusted available operating fund balance" that could lead us to an actual downgrade.

While I am positive we can get through this in the long run, mismanagement of local government resources and policies that damage the economic base do take their toll. As we get closer to the budget deadlines at the end of the year, I hope the Council as a whole can push back against the compounded policies that we've seen over the past couple years that led to downgrades and higher borrowing costs for taxpayers.