Chicago Braces for an Austerity Double Whammy

Chicago faces an austerity crisis. In the coming months, decisions at the state and federal government level could profoundly affect social services in this city and others across Illinois. Chicago has little say in what happens next, especially relative to the degree of change that the city faces.

At the state level, budget negotiations have reached a boiling point. Eighteen months in the making, the Illinois budget must address serious revenue problems, including at least $11 billion in unpaid bills. The Senate aims to address its budget shortfall through a “grand bargain” that will rely on new taxes. Illinois Governor Bruce Rauner, a Republican, has a grand bargain of his own, a deficit plan that would implement a freeze on property taxes and other austerity measures.