Cities: Chicago
appears to be following Detroit's lead to financial disaster, perhaps
the latest victim of decades of one-party rule by Democrats eager to
redistribute wealth while driving real wealth creators out of cities.
Moody's
Investors Service downgraded the Windy City's credit rating by three
notches last week, partly the result of $19 billion in unfunded pension
debt, leaving Chicago's lower than 90% of Moody's public finance
ratings.
Among
the nation's five largest cities, Chicago has put aside the smallest
portion of its looming pension obligations, according to a study issued
this year by the Pew Charitable Trusts.
The condition of Chicago's four city employee pension funds is growing desperate.
The firefighter
pension fund has assets to cover just 25% of liabilities, followed by
police (31%), municipal employees (38%) and laborers (56%). The city's
four funds for retired city workers are short by $19.5 billion.
Pew
also reports Chicago's retiree health benefits are exactly 0% funded,
with not a single dollar against a $1 billion liability. The city's
retirees could wind up in thrall to ObamaCare.
Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/080713-666734-chicago-to-b...
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