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Harvey Seeks Financially Distressed Status as Mayor Warns of Imminent Partial Shutdown

State officials must now decide whether the city qualifies for oversight under Illinois law.

Overview

  • The City Council voted unanimously to apply for designation under the Illinois Financially Distressed City Law and sent the request to the state.
  • Mayor Christopher Clark said a partial shutdown is coming soon, though he did not give a timeline or specify which services would pause.
  • Illinois will review whether Harvey meets the statute’s thresholds, including being in the top 5% of tax rates and bottom 5% of tax collection, with municipal bankruptcy not available in the state.
  • Officials said first responders will continue to be paid for now, and additional measures such as worker furloughs remain under consideration after earlier 10% workforce cuts.
  • Aldermen and residents pressed for greater transparency, with critics questioning documentation and one alderperson calling for the mayor’s resignation ahead of the next council meeting on October 27.