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Chicago's Mayor Has a Tough Plan to Fix the City's Pension System
Governing: Mayor Rahm Emanuel is proposing to raise property taxes and cut retirement benefits for some city workers to start digging out of a massive pension debt he inherited.
But the proposal the mayor and his top aides outlined late Monday would not address huge pension shortfalls for Chicago police, firefighters and teachers. Nor would it deal with the city's most immediate, pressing financial problem: a state requirement to pay a whopping $600 million more toward police and fire pensions next year, a provision that could lead to a combination of tax increases, service cuts and borrowing.
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