Chicago Borrowing $220 Million for Pensions
The city of Chicago is borrowing $220 million to show it has enough money for pension payments later this year.
The mayor’s office is banking on Illinois Gov. Bruce Rauner to sign a bill that would reduce this year’s big police and fire pension payment. That payment isn’t due just yet, but the city’s budget office says state law requires them to show there’s enough money. The city decided to draw from a line of credit that has a 3 percent interest rate.
According to financial watchdog Laurence Msall of the Civic Federation, that wasn’t a great idea, and is an indicator of “how desperate” the city’s financial situation is.