Municipal bond investors lend at their own risk, and they may want to think long and hard before walking into Illinois’s debt mine after the state comptroller started garnishing the Chicago suburb of Harvey’s tax revenues to pay for pensions.
For years Harvey politicians skimped on pensions to boost worker pay. The city’s $60.8 million unfunded pension liability is now twice its annual operating revenues, and its police and fire funds are at risk of going broke in the next recession.
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