Watchdog finds Chicago owed $8.1 billion in uncollected debt, but can't calculate all the money it's due
Chicago residents, businesses, and city employees altogether owe the city more than $8.1 billion in overdue debt, some of it dating back to the 1990s, according to a report from the city's inspector general.
Inspector General Deborah Witzburg's report notes the bigger problem is that amount is most likely even larger, but the city can't properly account for all of the money it is owed.
The report revealed antiquated systems and policies dating back decades that prevent the city's Department of Finance from tracking and collecting all of the money owed.
No single city department tracks all debt it is owed, different departments use different systems to track debt, and they don't talk to each other.
For example, when people call paramedics and ambulances, they're supposed to pay for the city's emergency medical services. The Department of Finance told the inspector general's office nearly $327 million dollars in EMS debt has not been collected, but investigators found a lot more. The total owed skyrocketed to $1.5 billion.
The Department of Finance said it will work with other departments to make sure all outstanding debt is reported in the future.
The inspector general's office also faulted the city for a lack of policies, strategies, and goals to collect the debt owed.
One challenge noted is that city workers and employees of its sister agencies owe the city $23 million. Chicago Public Schools and Chicago Transit Authority employees owe the most debt.
In January, City Comptroller Michale Belsky said the city was already working to collect some of that money owed by city workers.
"Of the $20 million about $7 million are on payment plans," he said.
The inspector general's office also found that city debt impacts vulnerable communities the most, but the report credited the city with making some changes to address the inequities.
The bottom line is the report determined there's no real way for the city, which faces huge budget deficits every year, to accurately count how much debt is owed, or to sufficiently collect that debt.
The report recommended more investment in improving relevant systems and updating policies.