Chicago’s $8.1 Billion IOU Nightmare: Watchdog Says City Lost Track Of Its Bills
Chicago's inspector general reports that the city has at least $8.1 billion in unpaid bills and penalties, but lacks the tools to track and recover the debt. The city's Department of Finance uses outdated, siloed databases and inconsistent definitions of debt, making it hard to determine the true scope of the problem.
Chicago's inspector general has found that the city is owed at least $8.1 billion in unpaid bills and penalties. The Department of Finance lacks a unified system to track and recover the debt, using multiple unintegrated databases and inconsistent definitions. The debt is concentrated in areas such as administrative hearing fines, parking tickets, and ambulance bills. The inspector general's report criticizes the city's current practices and recommends adopting a formal debt-management plan and investing in technology to centralize debt tracking. City officials acknowledge the issue and claim to have made efforts to improve collections, including adding staff and revamping payment plans. The Department of Finance plans to strengthen reporting and consider writing off uncollectible debts.
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