Overview

• Gov. JB Pritzker signed legislation last Friday extending enhanced pension benefits to police and firefighters hired after 2010.
• The move adds over $11 billion in liabilities to the funds, driving funding levels down from 25 percent to 18 percent of obligations.
• Chicago faces a $1.12 billion deficit for 2026 alongside looming shortfalls at the transit authority and public schools.
• Credit rating agencies are considering downgrades that could increase the city’s borrowing costs.
• Officials and analysts say Chicago may have to raise property taxes or seek state aid to prevent insolvency.