Chicago headed for a bond rating drop if City Hall doesn't get budget right, Civic Fed president says

Chicago's budget stalemate is far from just about partisan politics, but rather a warning sign for Wall Street rating agencies and a potential downgrade in the city's bond rating if the City Hall doesn't get its finances in order.

According to Civic Federation President Joe Ferguson, Mayor Brandon Johnson has been "willfully blind" to the financial warnings flashing red around him. Just last week, S&P Global Ratings downgraded Chicago's credit outlook to negative, citing Johnson's decision to slash the city's annual pension advance by half. This move was seen as a major blow to the city's finances and led to a sharp increase in interest rates for $454 million in bonds that were floated.

Ferguson is warning that if this trend continues, Chicago will be on a path towards fiscal insolvency, reminiscent of New York City's near-bankruptcy in 1975. He notes that while the city isn't as dire as New York was at the time, it's still headed down a perilous road if it doesn't address its structural problems.

The real issue is not about the city council vs. the mayor or the left vs. the center, but rather about Wall Street's expectations and the need for sustainable revenue sources. Ferguson believes that Johnson's reliance on one-time revenues, such as the shrunken pension advance and record tax increment-financing surplus, is not a long-term solution.

The Civic Federation has proposed an alternative budget that does not include a corporate head tax but instead raises taxes on off-premise liquor sales and rides on Uber and Lyft. This proposal would restore the full advance pension payment, shave $100 million from the $1 billion tax-increment-financing surplus, and cancel plans to borrow to fund retroactive pay raises for Chicago firefighters and paramedics.

Ferguson views this alternative budget as a "starting place" that proves the corporate head tax is not an imperative. Instead, it's a call for shared sacrifice among all constituent players. However, so far, Johnson has failed to bring everyone together, leaving Ferguson concerned about the city's ability to get its finances back on track.

The clock is ticking, and if Chicago doesn't get its budget right soon, Wall Street will be left with no choice but to downgrade the city's bond rating, sending a stark warning about the potential for fiscal insolvency.

This whole thing is super scary, especially when you think about what'll happen if Chicago goes bankrupt like New York did back in 1975 The City Hall needs to get its act together ASAP, it's not just about the mayor vs the council, it's more about making sure Wall St doesn't get all upset

Omg this is soooo serious!!! I'm literally freaking out thinking about Chicago's financial situation . Mayor Johnson needs to get his priorities straight and work with the council ASAP ️. The city can't keep living on one-time revenues, it's just not sustainable . I love how Joe Ferguson is pushing for a corporate head tax as an alternative - it's time for everyone to pitch in . If they don't get their budget sorted out soon, Wall Street will be like "bye Felicia" . This could have serious consequences for the city and its residents. Let's hope they can come together and find a solution !

I'm low-key worried about Chicago's budget situation. It seems like Mayor Johnson is just ignoring all these red flags and relying on one-time fixes that aren't gonna cut it in the long run. The corporate head tax thing sounds kinda unfair, but Ferguson's alternative budget idea actually makes sense - who doesn't love a good Uber tax? Seriously though, Chicago needs to find a sustainable way to pay its bills or risk getting downgraded by those rating agencies and losing access to affordable credit. That'd be super bad for the city.

I'm getting worried about Chicago's financial situation . It's not just about politics, it's about making sure they've got enough money coming in to pay their bills. I mean, think about it, if Wall Street starts downgrading their credit rating, it'll be a big deal for the city's economy. They need to work together to find some sustainable ways to fund their expenses, like raising taxes on things like off-premise liquor sales and ride-sharing services. It's not rocket science , but I guess it's hard to get everyone on the same page when there are so many different interests at play. The mayor's plan to slash the pension advance was a big mistake in my opinion . Let's hope they can come up with a new budget that works for everyone involved .

omg u gotta think like this - chicago's budget crisis ain't just about politics, it's about wally street ratings agencies goin crazy! they're all like "hey, ur bond rating is down" and then u gotta pay more interest on ur debt lol what a mess!

so like, civic federation president joe ferguson is all "hey, bruce, mayor johnson, u need to get ur finances in order" but johnson's all "nope, i got this"... meanwhile wally street's all like "nuh-uh, we're comin for ya, chicago"

anyway, ferguson's all about the corporate head tax and sharin' the burden, but johnson's all "no way, joe" like, come on, bruce! can't u see wally street's eyes rollin?

I mean, think about it... this whole thing feels like we're reliving the '70s again . New York City was on the brink of bankruptcy back then and now Chicago's facing similar struggles? It's crazy to see how much Wall Street cares about our city's finances - I get it, they want their money back . But at the same time, it feels like Mayor Johnson is too caught up in being a politician to listen to the experts . I'm all for a corporate head tax, but let's be real, that's not gonna solve everything . What we really need is some creative thinking about how to boost revenue without scaring off investors or hurting small businesses . And honestly, if the Civic Federation's alternative budget sounds like a starting point, then I'm all for it! We need to work together as a city to get our finances in order before Wall Street starts breathing down our necks

this whole thing just feels like another example of how our financial priorities are all wrong. it's not about party politics or even individual leaders, it's about how we're structuring our economy to benefit ourselves in the short term, but neglecting the long-term sustainability of our systems.

i mean think about it, chicago's got a pension crisis, they're slashing pensions and pushing taxes up on stuff that people actually use... but no one wants to talk about raising corporate taxes. it's like we've forgotten that corporations aren't people, and that tax policies should be designed to serve the public good, not just pad the pockets of the wealthy.

anyway, gotta keep an eye on this situation... if chicago goes down, i don't think wall street will hesitate to pull the plug on other cities too.

OMG u guys 2day r a reminder that Wall St has a stranglehold on our cities the Civic Federation is calling out Brandon Johnson & co 4 being willfully blind 2 the warning signs, but its not just about politics its bout sustainable revenue streams they wanna see more than just 1-time fixes & corporate head taxes aren't the answer either the alternative budget proposal raises taxes on off-premise liquor sales & Uber/Lyft rides which isnt exactly gonna sit well with people it needs a more inclusive approach tho, no one should be made to pay the price for others' mistakes

I'm getting that feelin' like we're sleepwalkin' into a financial disaster ! Chicago's budget stalemate is more than just a party politics thingy - it's a real concern for Wall Street. The Civic Federation President Joe Ferguson is spot on with his warning, and I gotta say, I'm with him on this one .

The problem ain't the city council vs mayor drama; it's about Wall Street expectin' sustainable revenue sources. Johnson's relyin' too heavily on one-time cash influxes won't cut it in the long run . Ferguson's proposal to raise taxes on off-premise liquor sales and ride-sharing services is a solid start, but it's gonna take some serious compromise from all parties involved .

I'm worried about what'll happen if Chicago can't get its finances back on track . A downgrade in bond rating? That's a big deal, bro ! Wall Street won't be happy about it, and neither will the city's residents. We need some real leadership that can bring everyone together and find a solution that works for everyone .

We're standin' at a crossroads here, folks . Will we take the easy way out or go for a more sustainable future? It's time to get real about our priorities and make some tough decisions !

I'M GETTING REALLY WORRIED ABOUT CHICAGO'S BUDGET SITUATION!!! IT'S NOT JUST ABOUT PARTISAN POLITICS, IT'S ABOUT WALL STREET GETTING ITS EXPECTATIONS RIGHT!!! THE CITY NEEDS TO FIGURE OUT A SUSTAINABLE REVENUE STREAM, NOT JUST RELY ON ONE-TIME PAYMENTS LIKE THE PENSION ADVANCE AND TAX INCREMENT-FINANCING SURPLUS!!! JOE FERGUSON'S PROPOSAL TO RAISE TAXES ON OFF-PREMISE LIQUOR SALES AND RIDES IS A GOOD START, BUT WE NEED TO SEE ACTION NOW!!! CHICAGO CAN'T KEEP DRAGGING ITS FEET LIKE THIS, OR IT'LL BE DOWNGRADED BY WALL STREET AND FACE FINANCIAL INSOLENCE!!!

I'm so worried about this ...Chicago's budget situation is way more than just politics, it's like they're playing a game of financial roulette . I mean, S&P Global Ratings already downgraded them to negative? That's not good at all . It's like Ferguson said, it's not about the city council vs the mayor, it's about Wall Street wanting sustainable revenue sources . I don't get why they're relying on one-time revenues ...it's just gonna lead to more problems down the line. And now the Civic Federation proposed an alternative budget that makes sense? It's like, come on Mayor Johnson, let's work together ! They need to find a way to balance their books and stop relying on special taxes . If they don't, Wall Street is gonna downgrade their bond rating ...and trust me, no one wants that . This whole situation just feels so avoidable ...

I'm getting worried about Chicago's financial situation The budget stalemate is not just a party thing, it's a bigger issue that affects Wall Street and our economy too If they don't get their act together, it could lead to a downgrade in their bond rating, which would be bad news for everyone involved

I think the mayor needs to work with the city council and come up with a more sustainable plan that doesn't rely on one-time revenues It's not just about the corporate head tax, but also about making some tough decisions and finding ways to raise revenue in other areas like taxes on off-premise liquor sales or rides

We need to see some real leadership from Mayor Johnson and the city council if they want to avoid a fiscal disaster The Civic Federation's proposal is a good starting point, but it's time for everyone to put aside their differences and work towards a solution that benefits the entire city

I'm getting worried about what's happening in Chicago . I mean, they're not just playing politics, it's their future that's at stake here. The whole thing is just so crazy - Wall Street ratings agencies are like, "Hey, get your finances in order or we're gonna pounce!" And the mayor's all, "No worries, I've got this." But Joe Ferguson is right, they need to be more realistic about their budget . They can't keep relying on one-time money and expecting it to last forever. It's like putting all your eggs in one basket... and that basket might just break .

Warning sign alert! I think this whole situation in Chicago is super worrying, fam . It's not just about politics, it's about the big picture - Wall Street's expectations and the city's financial future. If they don't get their act together, it'll be a major disaster .

I'm low-key impressed that Joe Ferguson is speaking truth to power (and the mayor) . The fact that S&P Global Ratings downgraded Chicago's credit outlook already shows how serious things are . And Ferguson's alternative budget proposal seems like a solid starting point, but it's gotta be done ASAP .

The thing is, this isn't just about one-time revenues; it's about sustainable solutions . Johnson needs to bring everyone together and find common ground (or at least, a compromise) . The city can't afford to be on the path towards fiscal insolvency . It's time for some serious soul-searching and planning... and fast !

I don’t usually comment but... I think this whole thing is super worrying . The fact that the mayor is basically ignoring all these financial warnings and just relying on one-time revenues is not cool . I mean, sure, he's got some good intentions, but it's not like Wall Street isn't already getting anxious about Chicago's finances .

I don’t usually think about this stuff, but it seems like the real issue here is that nobody's having a conversation about how to make the city's finances sustainable in the long term . It's all just party politics and one-time fixes. And if we're not careful, we'll be stuck with a huge bill to pay for years to come .

I don’t usually get too worked up about this kind of thing, but it feels like Chicago is sleepwalking into disaster . We need some real leadership and a willingness to make tough decisions before it's too late .

I'M GETTING REALLY ANNOYED WHEN MAYOR BRANDON JOHNSON AND THE CITY COUNCIL CAN'T SEEM TO GET ALONG ON A BUDGET! it's not just a partisan issue, it's about the CITY'S FUTURE! Wall Street is already watching and if they don't get their act together, CHICAGO COULD BE FACING A FISCAL INSOLVENCY CRISIS! that's just catastrophic for the city and its residents. I think the CIVIC FEDERATION IS RIGHT ON THE MONEY WITH THEIR PROPOSAL TO RAISE TAXES ON OFF-PREMISE LIQUOR SALES AND RIDES ON UBER AND LYFT. it's not about targeting specific corporations, it's about finding a LONG-TERM SOLUTION! and let's be real, Mayor Johnson needs to stop being "WILLFULLY BLIND" to the financial warnings flashing around him and START WORKING WITH THE CITY COUNCIL TO GET A BUDGET THAT WORKS FOR EVERYONE!