Chicago’s teetering debt is stark warning left-wing mayor is fueling ‘pay later’ doom cycle: expert
Chicago Mayor Brandon Johnson and his administration are presiding over a city in serious financial straits.
Chicago, the nation’s third-largest city, is facing a corporate fund budget gap of more than $1 billion, while its 2025 fiscal year is projected to close with a roughly $150 million deficit with about two-fifths of the budget going toward debt service and pension costs.
Johnson said in April the city was “at a crossroads” and had to “essentially do more with less,” while simultaneously slamming the Trump administration for reportedly threatening federal funding, calling it a “different scenario we weren’t under before.”
Austin Berg, executive director of pro-taxpayer research group Illinois Policy Institute, said markets are looking at the true numbers and are “really concerned” about Chicago.
RECORDS REVEAL CHICAGO MAYOR’S ‘GIFT ROOM’ WAS CONSTRUCTED AFTER INVESTIGATORS TURNED AWAY
“And that’s why you see the spreads on Chicago debt getting wider and wider — the structural issues,” he said.
Berg explained that the situation is akin to someone calling financial advisor Dave Ramsey’s radio show to ask what to do while buried in debt.
“The solution set is always the same: Stop making bad decisions, and you have to put a structure in place to make better decisions,” Berg said.
“So, the bad decisions are things like taking one-time revenues from federal COVID spending and putting it into operations. The bad decisions are borrowing for operations, which this latest bond issue just did. That’s a huge no-no and a red flag for investors.”
Chicago also drew scrutiny over former Mayor Richard M. Daley’s 75-year parking meter lease in 2008, a deal critics say has already allowed the private operator to recoup its investment while leaving the city without that revenue stream for decades.
Berg pointed to a recent analysis he authored accusing Johnson of extending the city’s “pay later” culture, arguing that the mayor’s $830 million 2025 bond deal, which delays principal payments for 20 years, is his version of Richard M. Daley’s parking meter boondoggle.
CHICAGO SUES TRUMP DOJ OVER ‘UNLAWFUL’ DEI RESTRICTIONS ON FEDERAL POLICING GRANTS
He also suggested the city take more seriously a plate of $1 billion in potential efficiencies produced in a taxpayer-funded deep-dive by consulting firm EY, formerly Ernst & Young.
While Chicago spends 40% of its money on debt service, actual services suffer, Berg said, adding is also the only city besides New York that doesn’t require voter approval of new general obligation debt.
CHICAGO MAYOR LASHES OUT AT REPORTER OVER ‘ILLEGAL ALIEN’ TERM: ‘RACIST, NASTY LANGUAGE’
The city lacks a “truly independent” chief financial officer, Berg claimed, saying that the treasurer’s office does not have full auditing authority and that another related agency called COFA is understaffed and lacks resources.
“Voters didn’t decide to have all of that debt. And it’s important for voters to be able to decide because those decisions affect Chicagoans 30 years from now. So, shackling them with these political decisions now is just really unfair,” he said.
Chicago has also come under fire for expenditures on social justice and other efforts while city services continue to lack.
Independent journalist William J. Kelly created a viral moment in January when he questioned Johnson on which type of ICE he should be focused on, immigration officers or snow that inundated the city, as he drove through unplowed streets.
“Let me just commend the efforts of the city employees that made sure that our streets were plowed. … I do not personally plow streets. … No one was stuck,” Johnson replied.
Berg suggested one outlet for Chicago would be to demand the state of Illinois allow municipalities to declare Chapter 9 bankruptcy, which he said is a rare restriction nationally. He noted he did not want to see Chicago declare bankruptcy but that, without that lever, the city has much less leverage when negotiating with public sector unions for the very liabilities it is drowning in.
The City Council successfully killed Johnson’s proposed “head tax,” a per-employee levy on large corporations, which critics said would have driven out or prevented future business and, thereby, sources of revenue in the city.
DHS BLASTS CHICAGO MAYOR FOR COMPARING RAID LEADER TO SEGREGATIONISTS, ACCUSING HIM OF ‘TERROR’
The editorial board of the left-leaning Washington Post also slammed Chicago’s straits in a recent op-ed, writing that “it takes a long time to kill a city, and the bigger the city, the longer it takes.”
“Chicago’s ‘public servants’ have done a fine job speeding up the process,” the board wrote, while noting the city had its bond rating downgraded in February by both Kroll and Fitch.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
“The modest tweaks [council] forced [Johnson] to accept in December won’t change the fiscal trajectory,” the paper predicted.
Fox News Digital reached out to Johnson’s office for comment.
Mystery deepens as Nancy Grace questions ‘accidental’ death of Alabama student in Barcelona
“Crime Stories with Nancy Grace” host Nancy Grace questioned what Spanish authorities deemed an “accidental” death of a college student visiting Barcelona for spring break Thursday on Fox News.
University of Alabama junior James “Jimmy” Gracey, 20, was found dead Thursday in the water off a Barcelona beach, roughly 300 feet from the nightclub he vanished from early Tuesday morning.
“Just because you are found in the water does not mean you drowned. That is not necessarily the COD [cause of death],” Grace told “Hannity.” “I’ve got a lot of questions tonight.”
REMAINS OF JIMMY GRACEY RECOVERED, UNIVERSITY OF ALABAMA STUDENT MISSING IN BARCELONA
Gracey traveled to Spain to visit friends studying abroad in Barcelona and was last seen leaving Shoko nightclub around 3 a.m. after becoming separated from his friends, as well as his wallet and phone.
As Spanish authorities moved forward with an autopsy, Grace urged Gracey’s family to hire an independent forensic expert.
“I’m not so sure that I’m going to abide by a Barcelona autopsy, no offense,” Grace said.
Regional Catalan police said they do not suspect foul play, telling Fox News Digital that “everything points to it being an accidental death.”
“His wallet is floating in the water. How did that get disattached from him? And his phone is on another individual — a male with a criminal history?” Grace asked.
“And I’m supposed to believe this was an accident? No, no, I wouldn’t put money on that.”
POLICE CALL JIMMY GRACEY’S DEATH AN ACCIDENT AFTER VANISHING ON SPRING BREAK IN BARCELONA, AUTOPSY PERFORMED
Grace drew parallels to the Alabama student’s disappearance and that of Natalee Holloway, who went missing abroad and was later found murdered in 2005.
“He [Gracey] went to go visit friends in Barcelona that were studying abroad. They all go out to this bar, very reminiscent of Natalee Holloway in Aruba,” Grace said.
“He gets separated for whatever reason from his friends. He is observed in the nightclub… speaking to an American girl described with brown hair,” she explained. “He leaves with an individual — it’s caught on surveillance video. Nobody is telling me who is the individual with whom he left.”
The true crime host demanded a “full and complete” autopsy, while continuing to question the details surrounding what authorities signal as Gracey’s “accidental” drowning.
In a statement to Fox News, Gracey’s family said they are heartbroken by the “unimaginable loss,” expressing gratitude for the outpouring of support they have received.
“We are profoundly grateful for the outpouring of love, support, and prayers from people around the world – so many helped to share Jimmy’s story and bring his life to light so that others may know him,” his family said. “We also sincerely appreciate the continued support and coordination of the local authorities and the U.S. Consulate as we work to better understand the circumstances surrounding this tragedy.”
Cavin McLay, the president of Gracey’s fraternity chapter of Theta Chi, said there are “no words” to describe the pain of losing his friend.
“Jimmy always went out of his way for anyone who needed him, whether that was guidance in their faith, a shoulder to lean on, or simply to share a smile and laugh with,” the statement read in part.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Gracey’s school, the University of Alabama, also issued a statement.
“The University of Alabama community is heartbroken to learn of the death of Jimmy Gracey. Jimmy’s loss is deeply felt across our campus. Our condolences are with the Gracey family during this devastating time,” the statement read in part.
Seahawks GM warns Washington’s new ‘millionaire tax’ could hurt free agent recruiting
Seattle Seahawks general manager John Schneider highlighted a recent decision by Washington state lawmakers that he believes could pose problems as the reigning Super Bowl champions look to add players to sustain long-term success.
Washington’s long-standing status as a largely tax-free state is set to change in 2028 after lawmakers approved a “millionaire tax” that would levy a 9.9% rate on high earners.
The tax will apply to individuals earning more than $1 million annually. Gov. Bob Ferguson has indicated he will sign the bill. It is unclear whether the legislation will face legal challenges. Schneider projected the new tax deduction could hinder the Seahawks’ ability to recruit and ultimately sign free agents.
CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM
Schneider suggested that part of the team’s pitch to free agents over the years has highlighted Washington’s tax exemptions.
“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy,’” Schneider said this week on his Seattle Sports 710-AM radio show.
SEAHAWKS GM JOHN SCHNEIDER GOES VIRAL AFTER AWKWARD KENNETH WALKER III CONTRACT TALK AT SUPER BOWL LX PARADE
“I think it is for all the pro teams here in town. It’s always been a huge attraction, especially competing with the California teams. It’s been a big deal for us. So, it’s going to sting, from a recruiting standpoint and what that looks like. I’m sure Mike Reinfeldt and Mickey Loomis and all the cap guys that have been here before, too, are looking at this like, ‘Dang.’”
As of 2026, the Seahawks are one of eight NFL clubs based in a state that does not impose income tax on personal wages.
Two of those teams, the Texans and Cowboys, are based in Texas, while three of those teams play home games in Florida: the Jaguars, Buccaneers and Dolphins. The Raiders relocated from California to the neighboring tax-free Nevada in 2020, while the Titans are set to open a multibillion-dollar domed stadium in Nashville, Tennessee, in 2027.
“It’s going to be a problem, and hopefully it doesn’t happen,” an unnamed NFL agent told ESPN when asked about thoughts on the potential impact the new taxes could have on the Seahawks.
CLICK HERE TO GET THE FOX NEWS APP
While it remains unclear whether the new taxes will influence NFL players’ decisions about signing with the Seahawks, an MLB player recently cited California’s higher tax rates in his decision to turn down a deal with the San Diego Padres.
Merrill Kelly, who entered the free agent market after pitching in 10 games with the Texas Rangers in 2025, last month agreed to a deal to return to the Arizona Diamondbacks.
Kelly agreed to a two-year contract worth an estimated $40 million with the Diamondbacks, according to ESPN. Although the Padres offered a comparable deal at three years instead of two, California’s 13% tax rate on income above $1 million proved a key difference.
“I don’t think it’s any secret on how much money you get taken out of your pocket when you go to California,” the right-hander told “Foul Territory.”
World Economic Forum faces fresh scrutiny as Epstein ties revive past scandals, criticism
The ghost of convicted sex offender Jeffrey Epstein has struck again.
This time, even though he died in 2019, he is still adding to the stress and criticism of the World Economic Forum.
On Feb. 26, WEF President and CEO Børge Brende resigned after revelations he had three dinners and some emails and SMS communication with Epstein. His ouster followed an independent investigation earlier in February.
Brende said he wasn’t aware of Epstein’s sex crimes.
BILL GATES PULLS OUT OF INDIA AI SUMMIT KEYNOTE ADDRESS AMID EPSTEIN FILES SCRUTINY
“Had I known about his background, I would have declined the initial invitation to join Rod-Larsen and any subsequent dinner invitations or other communications,” he said.
That response hasn’t been well received by observers given that Epstein’s conviction occurred in 2008 and would have been easy to uncover. As Norway’s foreign minister from 2013 to 2017, perhaps he should have been more cautious, some observers say.
“If you are standing on a public stage, you have to know who you are standing with,” said Ben Habib, right-leaning leader of the British political party Advance UK and an entrepreneur.
Alan Mendoza, founder of the U.K.-based Henry Jackson Society, added, “The moral is that people in positions of authority should be very careful with whom they have dinner.”
Mendoza also wonders how many people with a criminal record have attended the WEF.
The news of Brende’s resignation comes hot on the heels of other scandals and bad publicity for the WEF, commonly known as Davos after the Swiss village in the Alps where the annual meeting takes place. Last year, Klaus Schwab, the founder of the WEF, stepped down in July after accusations he had misused WEF funds and treated employees inappropriately.
Both Schwab and his wife were ultimately cleared by the WEF board of any material wrongdoing, though a board of trustees statement noted in part that, “Minor irregularities, stemming from blurred lines between personal contributions and Forum operations, reflect deep commitment rather than intent of misconduct.”
Others have a beef with the WEF. Two years ago, Argentinian President Javier Milei spoke at Davos.
“The Western world is in danger,” Milei said. “It is in danger because those who are supposed to have to defend the values of the West are co-opted by a vision of the world that inexorably leads to socialism and thereby to poverty.”
HOUSE OVERSIGHT COMMITTEE CALLS BILL GATES, LEON BLACK TO TESTIFY OVER JEFFREY EPSTEIN TIES
Milei also noted that many countries have ditched freedom for collectivism, aka socialism.
“We’re here to tell you that collectivist experiments are never the solution to the problems that afflict the citizens of the world; rather, they are the root cause,” he said at Davos in 2024.
Since 2023, when Milei took office as Argentina’s president, inflation has dropped from more than 200% to 32%, according to data from Trading Economics.
Likewise, others have a lot to tell the WEF, most of it not positive.
“Globalization has failed the West and the United States of America,” U.S. Commerce Secretary Howard Lutnick said at this year’s Davos meeting. “It’s a failed policy. It is what the WEF has stood for.”
‘ZERO PERCENT CHANCE’: ENERGY SEC. WRIGHT UNLOADS ON EUROPEAN CLIMATE ALARMISTS IN FIERY PARIS SPEECH
The fact is, America has been left behind in the global economy as the WEF has encouraged the offshoring of manufacturing to places with cheap labor, Lutnick said. He also encouraged other countries to follow the “America First” model, which is that the workers come first.
Lutnick also attacked Europe’s alternative energy push, which includes solar and wind energy.
“Why would Europe agree to be net zero in 2030 when they don’t make a battery?” he wondered at Davos. Achieving net-zero means countries aim to have no increase in overall carbon emissions by 2050.
But if Europe does pursue net zero, then the EU will be subservient to communist China, Lutnick says. China is by far the dominant producer, accounting for approximately one-third of global renewable energy, compared with 11% in the U.S.
“The WEF is the embodiment of power and wealth,” Habib said. “Big money is diverting policy. It’s fascism.” He says the world may have been tricked into believing the economic promises made by globalist organizations.
“The shine is now off. It is failing and not gaining traction,” Habib said.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
The WEF isn’t the only organization that is running roughshod over multiple countries. The European Union is also doing similar work with the countries in its bloc through a multitude of regulations, Habib said.