CITY JOURNAL
Bailing Out Chicago Would Send a Dangerous Message
Thomas Savidge
April 3, 2026

…At its core, Chicago’s fiscal problems are straightforward. For decades, the city has committed itself to unsustainable spending levels. While its ridership is declining, the Chicago Transit Authority (CTA) is flush with funds thanks to sales tax and driver fees. Chicago Public Schools (CPS) expenditures keep growing despite declining student enrollment. In addition to structural budget deficits, Chicago has some of the nation’s largest unfunded pension liabilities. Meantime, residents are fleeing both Chicago and the State of Illinois. In the year ending last July 1, Illinois lost over 40,000 residents, many from Chicago and the surrounding suburbs. The Chicagoland area lost more than 35,000 residents either to other counties in Illinois or to other states. Despite an influx of 44,000 international migrants, blunting the effect of net domestic outmigration, government officials can’t conceal the city’s fiscal irresponsibility. READ MORE