The Windy City’s bond rating just got hammered making borrowing more expensive. The cash cushion is draining away quickly. Emanuel is looking for more cuts but unionized teachers still get their exorbitant pay and benefits because he caved to their pressure (pay averages over $73K for Chicago teachers, well above the average pay of similarly skilled workers in the private sector). Chicagoland is getting more dysfunctional. The city may have a case of the Detroits.
(From The Chicago Sun-Times)
Last week, Moody’s Investors ordered an unprecedented triple-drop in the city’s bond rating, citing Chicago’s “very large and growing” pension liabilities, “significant” debt service payments, “unrelenting public safety demands” and historic reluctance to raise local taxes that has continued under Emanuel.