Mayoral aides explain Chicago's cash flow crunch that triggered partial pension payment

Chicago's Cash Flow Crunch Triggers Partial Pension Payment as Mayoral Aides Reassure Council

A cash flow crunch in Chicago has led Mayor Brandon Johnson to make a partial payment of $260 million towards its pension funds, but top mayoral aides have assured the City Council that the full payment will be made. The decision was driven by several factors, including delayed property tax payments from Cook County, which are tied to a long-stalled computerized overhaul of the system by Tyler Technologies.

Chicago's share of those payments is roughly $135 million behind, and property tax payments to all four city employee pension funds were also delayed, forcing the city to make advance payments by selling off assets. This move was made to prevent the funds from losing investment income down the road.

The problem further worsens due to Johnson's decision to declare a record $1 billion tax increment financing surplus to rescue the Chicago Public Schools and bankroll the new teachers contract. However, it is unclear when the rest of this money will be received by April 1 as promised.

Chief Investment Officer Craig Slack expressed wariness over the system's failure to meet deadlines, stating that "the fact that the money is coming in large chunk amounts tells me the system is still broken." He also mentioned that several previous deadlines have come and gone without resolution.

Despite the challenges, Slack assured the City Council that the delay in the advance payment will not affect the pension funds' investment strategies. However, he noted that if Cook County's problems with the Tyler Technologies contract are not resolved, it could impact the city's finances.

Budget Director Annette Guzman acknowledged her hopes for a swift turnaround in Cook County government, while Finance Chair Pat Dowell pressed mayoral aides for a commitment on when the second half of the pension payment would be made. Interim Chief Financial Officer Steve Mahr refused to provide specifics, stating that it depends on resolving the issues with the Tyler Technologies contract.

The move has been met with mixed reactions from City Council members, with some, like former Finance Chair Scott Waguespack, expressing confidence in the explanations provided by mayoral aides. Others remain concerned about the city's financial stability and the impact of the delayed payments on its bond rating.

man... chicago is facing a major cash flow crunch and it's causing a lot of problems with their pension funds . mayor brandon johnson is trying to reassure everyone that they'll make the full payment, but it's hard not to wonder if they're being totally honest about when that'll happen .

i mean, delayed property tax payments from cook county are like, a huge deal and it's causing them to sell off assets just to cover their bases . and now they've got a billion dollars in tax increment financing surplus that's supposed to be used for the chicago public schools ... but when exactly will that money show up? it feels like there are a lot of moving parts here, and not everyone is on the same page .

anyway, chief investment officer craig slack seems to think the system's still broken , which isn't surprising considering how long this project has been stalled with tyler technologies . but i guess only time will tell if they can get everything sorted out without causing even more financial headaches .

omg u guys i'm so worried bout chicago's pension funds rn they're tryin to make a partial payment cuz of cash flow issues but it's still super sketchy ‍ i mean, chief investment officer craig slack is low-key sayin the system's broken and that's not somethin to brush off and what's with all these delays? it's like, cook county's got a computerized overhaul thing goin on with tyler technologies but no one knows when it'll be done

anyway, i'm just rootin for mayor brandon johnson to get it together and pay that pension funds ASAP . let's keep our fingers crossed that they can get the whole payment made without any more hiccups

Ugh, Chicago is going through a tough time, financially speaking . It's crazy that they're having to make partial payments just because Cook County's property tax system is backed up... like, come on! And now the mayor has declared this huge tax increment financing surplus, but it's unclear when we'll actually get our hands on it .

I mean, I get it, the city's pension funds are in a tight spot, but shouldn't they've been planning for this? It seems like they're just winging it and hoping everything works out . And now Chief Investment Officer Craig Slack is saying that the system's still broken, which doesn't exactly fill me with confidence .

I hope things get sorted out soon, but until then, I'm gonna be keeping a close eye on this situation . It'll be interesting to see how it all plays out in the coming months

I mean, come on, a partial payment of $260 million? That's just delaying the inevitable, right? It's not like they haven't had months to get the property tax payments in order. And don't even get me started on the "record" $1 billion tax increment financing surplus. Like, how can you declare that when it hasn't actually been received yet? It just sounds like Mayor Johnson is trying to spin this mess into something it's not.

And what really gets my goat is that Chief Investment Officer Craig Slack is still worried about the system being "broken". Broken? How many times have we seen these problems arise with the Tyler Technologies contract? It's not like they're just having a bad day, it's a systemic issue. And now they're trying to blame it on Cook County? Give me a break.

I'm all for keeping the pension funds' investment strategies intact, but can't we just get some straight answers from our city officials? It feels like they're hiding something from us, and that's just not okay.

I'm really worried about Chicago's pension funds . It sounds like they're playing catch-up with some major payments from Cook County . How are they gonna make up for that $135 million? And what if the problems with Tyler Technologies don't get sorted out soon? That cash flow crunch is already causing a lot of stress, and I don't want to see them have to resort to selling off more assets . The city's finances are already shaky, so we need to be careful not to overdo it . Can someone please figure out how to get this stuff sorted out ASAP?

I'm not buying the whole "it's just a cash flow thing" excuse . $1 billion tax increment financing surplus should be coming in like clockwork, but nope, it's all tied up in the CPS teachers contract . And then you got this pension payment debacle... it feels like these delays are just symptoms of a bigger problem with how the city's finances are managed . I mean, how can you declare a surplus one day and not have it show up the next? It just don't add up . And what's with the Tyler Technologies contract? It sounds like another fancy system that's more trouble than it's worth . Can we get some real transparency around how this all works instead of just a bunch of assurances and vague timelines?

Umm, so Chicago is having a cash flow crunch? And they're using that as an excuse to not pay all their pension funds at once? But then they say they'll make up for it eventually... I don't get it. If the property tax payments are delayed and causing them financial issues, why not just fix the system instead of waiting for it to get fixed on its own? And now they're worried about their bond rating because of this? It seems like a lot of things are just being put on hold until something else happens... what's going on in Chicago, guys?

I'm getting a bad vibe from this whole thing... I mean, $260 million is still a pretty chunky sum to make in one go, especially when you're dealing with pension funds that are supposed to be super stable. And then they say it's all because of some technical issues with the property tax system? Like, what's going on there?! I'm not buying it.

And don't even get me started on this 'wariness' from the Chief Investment Officer... that sounds like a total cop-out to me. If they're so worried about the system being broken, why aren't they just fixing it already? It's just more of the same old excuses and delay tactics.

I'm not a finance expert or anything, but it seems to me like this whole thing is just a big mess waiting to happen. And I'm pretty sure that's exactly what's gonna happen when all these payments come due...

So, Chicago is having some major cash flow issues . Like, imagine you're trying to pay your bills on time but your bank keeps messing with your transactions because of a super old computer system . Yeah, that's basically what's happening there. Mayor Johnson made the tough decision to make a partial payment, which is like putting off until tomorrow what you can do today . The good news is that he's reassuring everyone it'll get done eventually, but I'm not holding my breath . It's just another example of how complex city budgets are, and how we wish we could just have a magic money tree .

Ugh Chicago is having another major financial crisis... it's not getting any better for the pension funds either. The city just paid $260 million to avoid losing investment income, but they're still behind by $135 million . And let's not forget about that huge tax increment financing surplus that was supposed to be received by April 1st... when is that ever happening again? It's like the system is broken and nobody knows how to fix it . I'm not surprised that Chief Investment Officer Craig Slack is warning that if Cook County's problems with Tyler Technologies aren't resolved, it could impact the city's finances... just another domino falling

I'm telling ya, this reminds me of when I was a kid and my dad had to sell some of our family's old toys to pay the bills... you know? It's like that all over again in Chicago . First, they're delaying payments, then they're selling off assets, it's just like a big ol' financial game of musical chairs! And now they're saying one payment is fine but what about the rest? It's hard to trust these guys when you think about all the times before that their deadlines got pushed back... I'm keeping an eye on this though .

I think it's kinda weird that they're selling off assets to make a partial payment , but at least it's not as bad as it could've been . The whole situation with Cook County and Tyler Technologies is like, super annoying , and I don't know why the deadlines keep getting pushed back . The city needs to get its act together , but it's good that they're looking out for the pension funds . Can't wait to see what happens next

So, it's no surprise that Chicago is feeling the pinch with their pension funds and whatnot... like when Tony Soprano had to make those crazy payments in The Sopranos . But seriously, this whole thing is quite concerning, especially with this "system" thingy with Tyler Technologies... sounds like a real-life episode of Silicon Valley . Anyhow, I hope the city gets its finances sorted out soon or else we might be seeing some crazy tax hikes . And can't help but wonder what's going on with that $1 billion surplus... will it come through by April 1?