Chicago's Next Mayor Could Find City Coffers Almost Empty
The city expects a $654.7 million deficit for 2011, Bloomberg News reported. Daley balanced this year's budget partly with reserves. If he uses funds from leasing parking meters, garages and a toll road to fill the 2011 gap, the city will be left with only $121 million.
"It almost will disappear by the time the mayor leaves office," R. Eden Martin, president of the Commercial Club of Chicago, a civic group, told Bloomberg News. "Cutting $600 million is going to be a catastrophe. It is going to be very, very painful."
Moody's Investors Service cut Chicago's credit rating on $6.8 billion of general-obligation debt to Aa3 from Aa2 before an August bond sale. Moody's cited smaller reserves for the cut. The city's debt burden rose to $5,399 per resident last year.