The mayor of Chicago, while claiming public policy successes over his past two tenures, during his final budgetary speech Wednesday ignored addressing the future of the second city’s giant pension hole.
Rahm Emanuel’s 2019 fiscal blueprint, dubbed a “feel good” budget in the media, will increase funding for youth investments, public safety reforms, work programs for the previously incarcerated, and other neighborhood services. Although he didn’t give any plans on how to save Chicago’s four pension funds from insolvency, much of his time was dedicated to how he had lowered the deficit by raising fees and taxes over the past several years.
“To those who thought demise and decay were preordained and just around the corner, from the schooling of our children to the strength and size of our police force to the success of our economy, Chicagoans showed the resolve and resilience that define the character of this great city,” he said.
Last month, Emanuel said he will not run for a third term, meaning the city’s $28 billion pension problem is something his successor will have to face when the incumbent steps down in May. Indeed, the gap has shrunk significantly from the $35.7 billion the mayor inherited in 2011, but the unfunded portion is still huge. The city is so strapped it is currently contemplating a $10 billion bond sale to help pay the debt.
Carole Brown, Chicago’s chief financial officer, said that a bond issue would not fully resolve the problem, and that Emanuel will need to conduct a more detailed proposal on the topic by year-end.
Coincidentally, the mayor did hint at addressing the retirement situation in December, but did not say whether this would indicate a full-fledged plan or a simple guideline for the next mayor.
Tags: Chicago, Fiscal Budget 2019, Pension, Rahm Emanuel