Lowering Chicago's pension contributions would be seen 'negatively': S&P
A major bond rating agency said Tuesday that “any measure that would lower annual contributions into Chicago’s pension systems” would be seen as a negative — potentially jeopardizing the city’s current BBB+ rating.
In a three-page report released Tuesday by S&P Global Ratings — titled “How Chicago Closes Its Fiscal 2020 Budget Gap Will Be Pivotal To The Rating” — the agency noted that “outside of a massive property tax increase, [the city] has limited options to raise significant, predictable revenues through a single tax or fee increase without state legislation that would expand the city’s revenue-raising authority.”
In her State of the City address last week, Mayor Lori Lightfoot said she wanted to avoid a property tax increase “as much as possible, but if we don’t get the structural changes that our pensions need, we will be presented with very hard and limited options.”
However, S&P praised Lightfoot’s candor in the speech, during which she laid bare the city’s $838 million budget shortfall.
Read more: https://chicago.suntimes.com/city-hall/2019/9/3/20848374/lowering-chicagos-pension-contributions-would-be-seen-negatively-s-p