Chicago is looking to the $3.9 trillion municipal-bond market for options to close its ballooning budget deficits, according to Chief Financial Officer Jennie Huang Bennett, Bloomberg News reported. Options on the table include selling pension obligation bonds, as well as refinancing general obligation and sales tax-backed bonds, Bennett said in a telephone interview on Wednesday. The refinancing of a yet-to-be-determined amount of debt is targeted for the fourth quarter, she said, adding it could save as much as $100 million in the 2020 budget. Mayor Lori Lightfoot on Monday projected that the 2020 deficit in the corporate fund, which accounts for most services the city offers, would expand to almost $800 million from a June projection of $700 million. The gap would reach $1.2 billion in 2021 with revenue losses connected to the COVID-19 pandemic making up 65 percent of the hole. A complete budget proposal will be released in October.
