Illinois and its largest city, Chicago, find themselves in the midst of serious financial crises, and local leaders are actively seeking scapegoats – with former President Donald Trump taking center stage in their rhetoric.
Despite receiving substantial financial aid from President Joe Biden during the COVID relief phase, state and city officials are now grappling with considerable budget deficits and the need for accountability.
Illinois received nearly $14 billion in pandemic-related funding for discretionary spending, while Chicago and its institutions, including schools and the transit authority, received close to $6 billion.
However, the leaders are facing a projected shortfall of $1.12 billion for Chicago’s budget in the next fiscal year.
The Chicago Public Schools are expected to handle more than $500 million in deficits, and the transit service anticipates a $600 million shortfall.
On a larger scale, Illinois expects a staggering total of $22 billion in budget shortfalls by 2030, despite a notable rise in state revenues, largely attributed to individual, corporate, and sales taxes, which increased by 50%.
The political landscape has shifted markedly, with Democratic leaders engaging in anti-Trump sentiment to deflect criticism away from their poor financial management.
Governor J.B. Pritzker has made headlines for his inflammatory comments comparing Trump and his supporters to Nazis, while Chicago Mayor Brandon Johnson has labeled Trump a “terrorist.”
For Johnson, attacking Trump is not just an ideological stance but a survival tactic amidst a crumbling budget situation.
Meanwhile, Pritzker appears to be capitalizing on the Trump resistance narrative, possibly positioning himself for future presidential aspirations.
This political discourse, however, serves as a distraction from the pressing financial issues that continue to plague the state and city.
Beyond the immediate budgetary crises, Illinois holds a rather grim economic reputation:
The state ranks seventh in combined state and local taxes according to WalletHub, with Kiplinger placing it third for combined income and sales taxes, trailing only New Jersey and Connecticut.
Notably, Illinois stands third in the nation for business closures, having lost over 14,700 jobs due to mass layoffs in 2024 alone.
Illinois has been rated as the third-worst state for business by Chief Executive magazine, with economic prospects that continue to deteriorate.
The state has experienced a troubling trend, being one of the few locations to see a decrease in private-sector jobs since 2019, while nearby states have enjoyed significant job growth.
As the population has dwindled over the past decade, the state saw only a minor increase last year, which was attributed primarily to international migration.
Financial data reveals that Illinois carries the third-highest debt per capita in the nation alongside the highest pension debt, surpassing the collective pension liabilities of each of its neighboring states.
Chicago’s pension debt is particularly alarming, with the city holding more pension debt than 43 states and all but one neighboring state.
Taxation in Chicago has escalated, with the city claiming the second-highest commercial property taxes in the country, surpassing double the national average for large cities.
Furthermore, property taxes for homeowners in Chicago have surged at a rate ten times higher than property values.
Despite being among the highest-funded public school systems, Illinois consistently ranks poorly in educational outcomes.
The state expends about $21,800 per student on education, more than neighboring Midwestern states, and over $30,000 per student in Chicago alone.
While the low-income population and homeless communities receive insufficient support, Pritzker has committed over $2.8 billion in benefits aimed at illegal migrants, sparking further controversy.
As the federal government appears not to be an option for further bailouts, residents of Illinois and Chicago should brace for potential increases in both state and local taxes moving forward.
With Trump available as a convenient target for criticism, local leaders like Pritzker and Johnson may feel less pressure to confront the systemic issues facing their jurisdictions.
Illinois remains a one-party state, partly due to a heavily gerrymandered legislative map that reinforces the Democrats’ control, allowing them to sideline moderate voices and prolong financial mismanagement.
image source from：https://www.illinoispolicy.org/vallas-pritzker-johnson-keep-playing-trump-card/
