Newsletter: What Will The Pandemic Cost Chicago?

City officials estimated a budget gap of $1.187 billion for next year. And that was before the pandemic. Here’s what you need to know today.

Chicago coronavirus
Two pedestrians wait in silhouette for a Chicago Transit Authority bus as several COVID-19 public service messages are projected on screens at the bus stop Thursday, April 30, 2020, in Chicago. Charles Rex Arbogast / AP Photo
Chicago coronavirus
Two pedestrians wait in silhouette for a Chicago Transit Authority bus as several COVID-19 public service messages are projected on screens at the bus stop Thursday, April 30, 2020, in Chicago. Charles Rex Arbogast / AP Photo

Newsletter: What Will The Pandemic Cost Chicago?

City officials estimated a budget gap of $1.187 billion for next year. And that was before the pandemic. Here’s what you need to know today.

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Hey there! It’s Friday! Sarah and I are doing the last Rundown Live show today at 4:30 p.m. on WBEZ’s Facebook page. Tune in if you can! It’s a “no bummers” show. Here’s what you need to know today.

1. A look at how the COVID-19 pandemic could hit Chicago’s already precarious budget

The economic damage from the pandemic has decimated state and local budgets across the U.S., and Chicago will likely be unable to escape the carnage.

Even before the crisis, city officials projected a whopping $1.187 billion for 2021, reports WBEZ’s Becky Vevea.

While City Hall stands to rake in about $1.6 billion in federal stimulus money, that may not be enough. Mayor Lori Lightfoot balanced this year’s budget partly through tax and fee hikes on rideshare trips and restaurant bills, services that have been deeply impacted by the pandemic. [WBEZ]

As the local economy continues to get clobbered, Gov. JB Pritzker’s administration has agreed to pay more than $22 million to fix and expand the state’s troubled unemployment benefits system, reports WBEZ’s Dan Mihalopoulos.

Illinois officials say the new system will go into effect Monday and will allow gig workers and independent contractors to file unemployment claims. [WBEZ]

Meanwhile, state officials today reported 2,887 new cases, bringing the total to 73,760 since the outbreak began. Officials also announced 130 deaths, pushing the state’s death toll to 3,241.

The news comes as Lightfoot unveiled a five-phase plan that sets stricter criteria than Pritzker’s plan for lifting restrictions and reopening businesses. You can find out more about the mayor’s plan in this link. [WBEZ]

About a dozen Illinois children have been hospitalized with a mysterious illness that could be linked to COVID-19. [Chicago Tribune]

And churches in Chicago and Niles have filed a federal lawsuit against Pritzker’s five-phase plan to reopen the state. [Chicago Sun-Times]

2. Jobless rate jumped to 14.7%, the highest since the Great Depression

The U.S. lost 20.5 million jobs last month, according to a Labor Department report released today that underscores how quickly the economy has collapsed during the COVID-19 pandemic.

The unemployment rate, which was 4.4% in March, climbed to 14.7% in April. That’s the highest since the Great Depression, when the jobless rate approached 25%.

Prior to today’s figures, the largest monthly job loss was 2 million in 1945. During the Great Recession, the highest monthly job loss was 800,000 in March 2009. [NPR]

Despite today’s bleak economic report, Wall Street rallied on hopes that the worst is over. [CNBC]

3. California begins to reopen

The nation’s largest state began taking baby steps to reopen its economy today even though new cases and deaths have not dropped. Some retailers, like bookstores and clothing stores, can reopen for curbside pickup today. Warehouses and other industries can have workers return with certain conditions.

But health experts are concerned that the state could see a second surge of cases if the public ditches social distancing too early. [Los Angeles Times]

In New York, Gov. Andrew Cuomo said a 5-year-old died from a mysterious illness linked to the coronavirus. The illness has emerged in recent weeks and causes inflammation in children. [New York Times]

And the White House today said a spokeswoman for Vice President Mike Pence has tested positive for the coronavirus. [NPR]

Across the U.S., more than 1.2 million cases and more than 75,000 deaths have been reported. [NPR]

4. Mexican government underreports COVID-19 deaths

That’s according to an analysis from The New York Times, which found hundreds and possibly thousands of deaths are being ignored in Mexico City. Doctors and city officials believe the death toll is more than 2,500. But the federal government says there are about 700 deaths in Mexico City.

“It’s like we doctors are living in two different worlds,” Dr. Giovanna Avila told the Times. “One is inside of the hospital with patients dying all the time. And the other is when we walk out onto the streets and see people walking around, clueless of what is going on and how bad the situation really is.” [New York Times]

Meanwhile, the World Health Organization says as many as 190,000 people across Africa could die during the first year of the pandemic if efforts to slow the virus’ spread fail. [BBC]

And leaders across Europe mark the 75th anniversary of V-E Day amid coronavirus lockdowns. [BBC]

Worldwide, more than 3.9 million cases and more than 272,000 deaths have been reported. [Johns Hopkins]

5. Ugh, a late-season polar vortex is coming

Looks like we’ll have one more reason to stay at home tonight: A polar vortex is heading for the Chicago area.

Temperatures are expected to plunge into the upper 20s and lower 30s from midnight tonight to 7 a.m. on Saturday, when a freeze warning will be in effect, according to the National Weather Service. The record low for May 9 is 27 degrees, set in 1987.

The polar vortex is expected to hit the Midwest and the Northeast, but don’t worry, it’s not supposed to last long … hopefully. [Chicago Tribune]

Here’s what else is happening

  • President Donald Trump praised Attorney General William Barr for dropping the criminal case against Michael Flynn. [AP]
  • Investigators say more arrests may be possible in the controversial, fatal shooting of Ahmaud Arbery in Georgia. [NPR]
  • Blood thinners showed promising results in treating coronavirus patients, according to a study from New York doctors. [Washington Post]
  • In case you need more things to worry about, here are nine disasters that experts say we are unprepared for. [Politico]

Oh, and one more thing …

An early heads up for a WBEZ event that sounds super cool: Nerdette host Greta Johnsen will interview author N.K. Jemisin about her new book, The City We Became.

This free event takes place on Tuesday, May 12 on WBEZ’s Facebook page. Viewers will have a chance to ask Jemisin questions during the event. Jemisin won three Hugo Awards in a row for her outstanding Broken Earth trilogy, a sci-fi saga about a world that experiences apocalyptic events known as “seasons.”

I got a copy of her new book and hope to tune in! [WBEZ]

Tell me something good …

What do you like the most about WBEZ?

Sarah from Seattle writes:

“I moved away from Chicago in the summer of 2018 and still read the Rundown every day! Though I now also feel connected to my local station (KUOW in Seattle), hearing from WBEZ still always brings a smile to my face. When I’m feeling homesick, it keeps me connected. I also use it to impress my Chicago-based friends and family with my up-to-minute knowledge of the region.”

Thanks to everyone who reached out with very kind messages! It means a lot to us.

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