Chicago Losing AA Rating as Daley Deals Fail to Offset Deficits
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Chicago’s next mayor will take over a city that is almost out of cash after Richard M. Daley spent most of the $3.5 billion gained from leasing parking meters, garages and a 7.8-mile elevated toll road.
The third-biggest U.S. city by population projects a $654.7 million deficit in a $3.39 billion budget for 2011, a July 30 report shows. Daley balanced this year’s $3.12 billion budget partly with reserves. If he uses lease funds to fill the 2011 gap, Chicago will be left with $121 million, enough to run the municipality for two weeks, according to data compiled by Bloomberg.