Miscalculation means City of Chicago is going to have to find an extra $24 million

February 8, 2011

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In 2009, the city imposed furlough days and unpaid holidays. Cutting 24 days from the schedule each year was estimated to save a hundred and $34 million but Chicago's Inspector General Joe Ferguson says that number is wrong. That's because when workers aren't working and being paid they're not contributing to their pensions. Their contributions drop but the pension obligations remain the same.

The city will likely have to make up the difference.  The Inspector General's office says the total shortfall will be $24.5 million but the report notes that the furlough days still saved the city a very substantial amount of money.
 

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