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3 years ago

1cNYB93

1cNYB93

Executive summaryThe

Executive summaryThe city of Chicago has long been regarded as an economicengine of the Midwest. It is home to some of the country’slargest industries and more than 30 of the nation’s Fortune500 companies. Chicago is accessible by road, rail and water,and is located in a state that boasts an abundance of naturalresources.But decades of fiscal mismanagement by governmentagencies in Chicago have put the metropolis at a crossroads.In July 2013, the city of Chicago released a grim budget reportthat showed that the city owed billions of dollars in debt andunfunded pension and health insurance liabilities.But the city Chicago is not the only government agency thatcity residents pay taxes to – taxpayers also fund the operationsChicago Public Schools, the Chicago Transit Authority, theChicago Park District and a large share of Cook County.This is the first report that adds together all the debts andliabilities of the major government units operating in Chicago– a necessary step in fully understanding how much debtChicago taxpayers are expected to shoulder.All told, Chicago residents are officially on the hook for $63.2billion in government pensions, health insurance and other debt.This staggering figure totals more than $23,000 per Chicagoresident, or more than $61,000 per household.Chicago’s official debt totals $63.2 billion*All debt and obligations in billions Pensions Long-term debtRetiree healthinsuranceTotal debtTotal debt andobligationsper capitaCity of ChicagoCity of Chicago - $12.0* $0.5 $12.4 $4,600Fireman's Annuity and Benefit Fund $3.0 - $0.05 $3.1 $1,100Policemen’s Annuity and Benefit Fund $6.9 - $0.2 $7.1 $2,600Municipal Employees' Annuity and Benefit Fund $8.4 - $0.2 $8.6 $3,200Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund $1.0 - $0.04 $1.1 $400Subtotal $19.4 $12.0 $0.9 $32.2 $11,900City of Chicago’s sister governmentsChicago Public Schools $8.0 $5.6 $3.1 $16.7 $6,200Chicago Transit Authority (pro-rata) $0.8 $4.0 -$0.06 $4.8 $1,800Chicago Park District $0.4 $0.9 $0.04 $1.4 $500Subtotal $9.2 $10.6 $3.1 $22.9 $8,400Chicago’s pro-rata share of Cook County governmentsMWRD $0.6 $1.4 $0.2 $2.1 $800Cook County and Forest Preserve $3.0 $2.1 $1.0 $6.0 $2,200Subtotal $3.5 $3.5 $1.2 $8.1 $3,000Total debt and obligation burden for Chicago taxpayers $32.1 $26.1 $5.2 $63.2 $23,300Source: City of Chicago; Chicago Public Schools; Chicago Transit Authority; Chicago Park District; Cook County; Cook County Forest Preserve;Civic Federation; Metropolitan Water Reclamation District; all associated pension funds; U.S. Census Bureau; Commission on Government Forecastingand Accountability.*Note: 2012 data used where possible, most recent data available used otherwise. Numbers may not add due to rounding. City of Chicago long-term debtexcludes O’Hare and Midway bonds. Long-term debt from all governments is from 2011, with the exception of the city of Chicago, which is from 2012. SeeSources and Methodology for more information.illinoispolicy.org | 3

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