Posted on 07/25/2025 7:14:39 AM PDT by Pol-92064
Chicago Mayor Brandon Johnson says he will seek progressive revenue solutions to address a budget deficit without raising property taxes.
Bad pronosis for America’ once great cities.
Except the leeches will spread out like lethal radiation after a nuke bomb.
Absolutely correct.
The other major problem they have is massively bloated retirement benefits for municipal workers. A higher and higher percentage of revenues is going to have to go to pay them as the tax base flees, and that's going to mean higher taxes and/or (more likely "and"...) degradation of city services. And that is just going to accelerate the tax base fleeing those cities.
At some point, those cities are going to no longer become financially viable. The death spiral. That's going to mean either reneging on those retirement bailouts, or the beginning of massive subsidies from the state and likely federal government directly to cities.
The politics of that are going to get very, very ugly.
Not bankrupt
Chicago is not bankrupt, as state law does not allow the city to file for bankruptcy. However, it faces significant financial challenges, including a $37 billion unfunded pension liability and other debts, which have raised alarms about its financial health. While some residents express support for bankruptcy as a solution to avoid higher taxes, the city remains in a precarious financial situation without the option of declaring bankruptcy.
I'm not sure municipal bond ratings have a column for that on their ratings formulas?
Why do I hear scant to nothing on the ratings given to these irresponsible muni govs? Bond ratings are where political rhetoric is separated from reality. Or at least used to be.....
Add to that, the mismanagement of these cities by radical Leftist activist mayors.
There's some gentrification going on especially after Rudy Giuliani became the Mayor of NYC. People started to move back to other cities such as DC, Portland, Seattle, etc.
But all that momentum is gone due to "defund the police" movement after the riots in 2020.
“The politics of that are going to get very, very ugly.”
Especially here in Illinois. The Illinois Constitution forbids altering pension plans. I once had a conversation with a soon to be retired public school teacher. She told me that her pension benefits couldn’t be touched.
I replied “And when there is no more money you be sure to try to deposit a copy of the Illinois Constitution in your checking account. Let me know how that goes.”
Ironic thing is she taught math.
L
What happens when he runs out of other people’s money to spend? Will he try to tax Ohio, Florida, etc.?
I replied “And when there is no more money you be sure to try to deposit a copy of the Illinois Constitution in your checking account. Let me know how that goes.” Ironic thing is she taught math.
Heh. I think what it is really going to come down to is the Democrats nationally being held hostage by the teacher's unions, and having to push hard for a massive federal bailouts of city pension obligations. And of course, Republicans rightfully will fight like hell against it.
It's going to be a huge issue by the early 2030's.
Maybe he didn’t get the memo that USAID is no more.
I’d say both.
Chicago is finally going to break down and tax prostitutes and johns.
Fantasy? or Reality?
I cannot believe that is happening in the USA.
Chicagoans: Keep electing idiots. They’re fun to watch by residents of other cities.
I am guessing that all of these democrap controlled States are going to do the same thing, all they need is a complicit democrap Governor and they can suck money out of the rest of the State and funnel it into whatever big democrap city or county where they want it. Soon, ALL of Georgia will be funding Atlanta, ALL of Illinois will be funding the corrupt Cook County, ALL of Texas taxpayers will be funding Dallas and Houston,, etc...
A whitey tax!-)
Just why do the residents of ChiCongo keep electing such nitwits? I guess they be stupid.
Politicians will do both of those actions, though I believe you have the order reversed.
First there will be State level bailouts, because the major cities generally control their State legislatures. When that sinks the State, there will be strident calls for Federal bailouts. If there is a Democrat party in control of the Federal government by that time, the cities will get Federal bailouts too, for a while.
Eventually, the music stops. Those massive pension liabilities will be repudiated either by straight forward default or by massive inflation that makes them worthless.
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