Harvey is seeking state aid under Illinois’ Financially Distressed City Law, but without pension reform, state oversight offers little hope to fix its $164M crisis.
Last week, the city of Harvey unanimously approved the first step toward seeking state aid under Illinois’ Financially Distressed City Law. This decision comes after years of financial distress resulting in reduced city services and $164 million in debt.
The Financially Distressed City Law allows for the creation of a financial advisory authority for a distressed home rule municipality, which is a city, village or unincorporated township with more than 25,000 residents. The financial advisory authority has the power to reject loans, budgets and…