STATEMENT: Treasurer Summers Statement on Moody’s Downgrade

Chicago City Treasurer Kurt Summers today released the following statement on the City of Chicago’s recent debt grading downgrade by Moody’s Investors Service:

“The recent downgrade from Moody’s is driven primarily by the status of the unfunded liabilities of our local pension plans, which is a clear indication that addressing our pension obligations must be a top priority for Chicago. Mayor Emanuel has made significant progress in addressing the city’s broader pension challenges, and by working with his partners in labor, he has achieved significant reform plans to secure the retirements of municipal workers, laborers, and park district employees – all without unfairly burdening taxpayers. Mayor Emanuel’s strong leadership is critical to continuing the work of putting Chicago’s fiscal house in order and securing our city’s future.

“As Treasurer, I have begun to work with Mayor Emanuel and each of the local plans to identify significant savings which will help lower the financial burden on workers, retirees and taxpayers. While this action will have material impact, it is only one element of a larger need for a permanent remedy to this fiscal challenge.