Chicago projects shrinking budget gaps in 2017 and 2018CHICAGO (Reuters) - Chicago will continue to shrink its structural budget deficit in 2017 and 2018, but faces new pension funding pressures starting in 2020, according to a financial analysis released by the city on Monday. The nation’s third-largest city projects it will end fiscal 2017 on Dec. 31 with a $137.6 million gap in its $3.73 billion operating budget, down from $232.6 million in fiscal 2016. In fiscal 2018, the deficit is expected to fall by 17 percent to $114.2 million. The city’s budget gaps have been declining since hitting a high of $654.7 million in fiscal 2011. “This decrease is a direct result of sustainable and balanced revenue growth coupled with lasting savings and reforms made in the past six budgets,” the city’s analysis said. Chicago has taken big steps in recent years to shore up its four employee retirement systems by hiking property taxes for its police and fire fighter funds, levying a new tax on water and sewer usage for its municipal workers’ fund, and increasing a telephone surcharge for its laborers’ fund. The city is gradually increasing contributions to the systems until it meets requirements for actuarially funding public safety worker pensions in 2020 and for the other two systems in 2022. As a result, Chicago’s pension payments will jump from $1.18 billion in fiscal 2018 to a projected $1.7 billion in fiscal 2020, topping $2 billion in fiscal 2022 when all four systems will be on an actuarially funded path, according to the analysis. At the same time, the city is weaning itself off of one-time revenue fixes, such as so-called scoop and toss restructurings of outstanding bonds to push off debt payments.  Chicago’s base budget forecast indicates gaps of $212.7  million in fiscal 2019 and $330.3 million in 2020, although the projections do not completely account for escalating pension payments. “The city previously secured ongoing and sustainable funding sources to match these growing contributions, and the funding sources for these increased contributions will be determined through our annual budget process,” the analysis said.  The city’s total unfunded pension liability, which climbed to $35.76 billion in fiscal 2016 from $33.8 billion in fiscal 2015, has been a concern of credit rating agencies that currently rate Chicago at the low investment grade to junk levels. politicsNews
chicago projects shrinking budget gaps reuters chicago continue shrink structural budget deficit faces new pension funding pressures starting according financial analysis released city monday the nation city projects end fiscal million gap billion operating budget million fiscal in fiscal deficit expected fall percent million the city budget gaps declining since hitting high million fiscal this decrease direct result sustainable balanced revenue growth coupled lasting savings reforms made past six budgets city analysis said chicago taken big steps recent years shore four employee retirement systems hiking property taxes police fire fighter funds living new tax water sewer usage municipal workers fund increasing telephone surcharge laborers fund the city gradually increasing contributions systems meets requirements actuarially funding public safety worker pensions two systems as result chicago pension payments jump billion fiscal projected billion fiscal topping billion fiscal four systems actuarially funded path according analysis at time city meaning revenue fixes scoop toss restructuring outstanding bonds push debt payments chicago base budget forecast indicates gaps million fiscal million although projections completely account escalating pension payments the city previously secured ongoing sustainable funding sources match growing contributions funding sources increased contributions determined annual budget process analysis said the city total unfounded pension liability climbed billion fiscal billion fiscal concern credit rating agencies currently rate chicago low investment grade junk levels politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Chicago projects shrinking budget gaps in 2017 and 2018CHICAGO (Reuters) - Chicago will continue to shrink its structural budget deficit in 2017 and 2018, but faces new pension funding pressures starting in 2020, according to a financial analysis released by the city on Monday. The nation’s third-largest city projects it will end fiscal 2017 on Dec. 31 with a $137.6 million gap in its $3.73 billion operating budget, down from $232.6 million in fiscal 2016. In fiscal 2018, the deficit is expected to fall by 17 percent to $114.2 million. The city’s budget gaps have been declining since hitting a high of $654.7 million in fiscal 2011. “This decrease is a direct result of sustainable and balanced revenue growth coupled with lasting savings and reforms made in the past six budgets,” the city’s analysis said. Chicago has taken big steps in recent years to shore up its four employee retirement systems by hiking property taxes for its police and fire fighter funds, levying a new tax on water and sewer usage for its municipal workers’ fund, and increasing a telephone surcharge for its laborers’ fund. The city is gradually increasing contributions to the systems until it meets requirements for actuarially funding public safety worker pensions in 2020 and for the other two systems in 2022. As a result, Chicago’s pension payments will jump from $1.18 billion in fiscal 2018 to a projected $1.7 billion in fiscal 2020, topping $2 billion in fiscal 2022 when all four systems will be on an actuarially funded path, according to the analysis. At the same time, the city is weaning itself off of one-time revenue fixes, such as so-called scoop and toss restructurings of outstanding bonds to push off debt payments.  Chicago’s base budget forecast indicates gaps of $212.7  million in fiscal 2019 and $330.3 million in 2020, although the projections do not completely account for escalating pension payments. “The city previously secured ongoing and sustainable funding sources to match these growing contributions, and the funding sources for these increased contributions will be determined through our annual budget process,” the analysis said.  The city’s total unfunded pension liability, which climbed to $35.76 billion in fiscal 2016 from $33.8 billion in fiscal 2015, has been a concern of credit rating agencies that currently rate Chicago at the low investment grade to junk levels. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: chicago projects shrinking budget gaps reuters chicago continue shrink structural budget deficit faces new pension funding pressures starting according financial analysis released city monday the nation city projects end fiscal million gap billion operating budget million fiscal in fiscal deficit expected fall percent million the city budget gaps declining since hitting high million fiscal this decrease direct result sustainable balanced revenue growth coupled lasting savings reforms made past six budgets city analysis said chicago taken big steps recent years shore four employee retirement systems hiking property taxes police fire fighter funds living new tax water sewer usage municipal workers fund increasing telephone surcharge laborers fund the city gradually increasing contributions systems meets requirements actuarially funding public safety worker pensions two systems as result chicago pension payments jump billion fiscal projected billion fiscal topping billion fiscal four systems actuarially funded path according analysis at time city meaning revenue fixes scoop toss restructuring outstanding bonds push debt payments chicago base budget forecast indicates gaps million fiscal million although projections completely account escalating pension payments the city previously secured ongoing sustainable funding sources match growing contributions funding sources increased contributions determined annual budget process analysis said the city total unfounded pension liability climbed billion fiscal billion fiscal concern credit rating agencies currently rate chicago low investment grade junk levels politicsnews