Anderson Economic Group Work

Emanuel's short-term budget solutions will cost $1 billion in interest

By using bond funds to close its budget gaps, the city can spare residents from further tax increases and avoid more painful cuts to city services in the short term, said Jason Horwitz, the Chicago-based director of public policy and economic analysis for Anderson Economic Group.

But Horwitz said the tactic comes at a high price and essentially guarantees future budget deficits or tax increases, as debt payments pile up for years to come. “Borrowing more and accumulating more debt has been an expensive choice,” he said. “I think the fact the city has drawn out its fiscal problems has made it much more difficult to find remedies.”

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