Chicago Mayor Richard M. Daley said he “wouldn’t doubt” more U.S. cities would default on their debt as local goverments cope with escalating costs.
“These are serious financial problems for many cities, especially the smaller cities that can’t deal with the day-to- day cost of government,” Daley said today at the U.S. Conference of Mayors meeting in Washington.
Los Angeles Mayor Antonio Villaraigosa echoed Daley’s comments at a press conference.
“There’s no question you’ll see some cities in default,” Villaraigosa said. “The difference between us and the federal government is they can print money. The states balance their budget oftentimes on the backs of cities, counties and school districts. We actually have to balance a budget.”