Chicago Case Study

Abstract

Chicago, after a significant effort to remake itself into a global city today confronts unprecedented challenges. The city took a serious turn for the worse during the first decade of the new century. The gleaming towers, swank restaurants, and smart shops remain, but Chicago is experiencing a decline different from other large cities. It is a troubled place, one falling behind its large urban brethren and presenting a host of challenges for Mayor Rahm Emanuel. Challenges confronting the city’s fiscal future are: schools, which one commentator cited as “almost insoluble;” police—crime—gangs (also “almost insoluble”); infrastructure (on which the mayor has earned very high marks); pensions, where Chicagoans’ long-term debt and pension obligations per capita rose 185% since 2002—which are inextricably linked to the state; and bringing jobs back to Chicago. These challenges come as state and federal aid are reduced.