The coronavirus pandemic has led to plunging revenues for states and cities across the U.S., and with the White House and Senate Republicans opposing federal aid to make up budget shortfalls, it seems likely many governments will soon need to make drastic cuts in spending.
These troubles are not limited to governments like Chicago’s and Illinois’, which have struggled for years with high pensions costs and floods of red ink. Even relatively well-off suburbs in strong financial positions, such as Naperville and Schaumburg, now see shrinking revenues and will have to decide what programs to preserve.
Naperville, Illinois’ fourth-largest city, watched its budget gap widen this spring to $18M, though the true picture will not emerge until later in the summer, according to Linda LaCloche, the city’s communications manager. But after spending the last five years building up Naperville’s cash reserve to $45M and paying down $31M in debt, the city can approach this crisis with confidence.
Picture Source: Wikimedia Commons/Johnny Reyes