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New Review of Chicago: Still in a Downward Spiral
Chicago just can’t catch a break.
In an earlier article from February 2024, “Chicago Needs a Real Strategic Direction,” the city’s outlook was already bleak. Chicago had its priorities scrambled and showed little interest in a serious strategy to restore its viability after COVID. The City Council was divided over how to set a new course, and more than a year and a half later, that basic political stalemate has barely changed.
Looking at the city again now, the conclusion is largely the same. Chicago has not altered course; it remains in a downward spiral, its problems deepening rather than easing. If anything, it feels as though someone has pressed harder on the accelerator. More commercial buildings downtown have shed market value, more residents are leaving, and the city’s leadership still resists acknowledging the full scale of its challenges, let alone pursuing serious solutions.
The public school system is emblematic of this drift. Large numbers of students are performing below grade level in both math and reading, yet the crisis does not seem to command sustained attention at City Hall. On crime, the city’s refusal to welcome federal help has angered many residents in minority neighborhoods who are living with rising criminal activity on their streets. A growing number of people in these communities are asking for concrete action from the mayor, but so far their demands seem to fall on deaf ears.
Political leaders at both the city and state levels remain focused on keeping federal intervention at arm’s length. That stance may play well with certain constituencies, but it is only one part of what keeps Chicago from getting back on track. The city and state also face looming budget gaps and, instead of tackling structural problems, are choosing the path of least resistance.
Nowhere is this clearer than in regional transportation. For years, officials have floated the idea of consolidating overlapping transit agencies, yet no meaningful action has followed. Four different entities run transportation in the Chicago region: the Chicago Transit Authority (CTA), the Regional Transportation Authority (RTA), PACE (the suburban bus system), and METRA (the regional rail system). In practice, these agencies have become havens for patronage, each with its own chairman, president, and board of directors—layers of political appointments that could be significantly reduced if the agencies were merged into a single, streamlined authority.
The potential gains from consolidation are noticeable: fewer duplicate positions, lower payroll costs, elimination of bureaucratic redundancy, and a more coherent approach to regional transit. Taxpayers could save substantial sums. Instead, policymakers opted for a familiar solution—raising taxes in Illinois and diverting downstate road funds to cover shortfalls at the Regional Transportation Authority.
Not surprisingly, lawmakers from outside Chicago are furious. They are watching millions of dollars earmarked for road and highway projects in their districts disappear from the Illinois Department of Transportation’s plans. One legislator captured the frustration succinctly: “Only in Illinois would we try to fix a $250 million problem with a $2 billion piece of legislation.” It is hard not to wonder how many other states try to patch budget emergencies with outsized, poorly targeted fixes rather than confronting deeper structural flaws.
Chicago, meanwhile, still needs cash to plug its budget holes. Taxes on groceries are climbing. Insurance costs appear poised to rise. There is little talk of cutting services, examining waste, or asking whether existing programs are delivering value. Taken together, these choices do not inspire confidence that the city’s leaders are serious about disciplined budgeting. Illinois is hardly alone in facing fiscal strain, but it offers a vivid example of how leadership failures become visible in the way problems are addressed—or ignored.
This local story is part of a broader national pattern. Across the United States, many major cities are still struggling to recover from COVID and its aftershocks. Independent news and research sites now make it easy to compare metropolitan areas on violent crime, property crime, and even the estimated cost of each crime per resident. None of the big cities stands out as a clear success story. Many seem stuck in a kind of policy quagmire, unable or unwilling to confront the mix of crime, budget pressure, and declining commercial vitality that defines their current moment. In some categories, other cities even rank worse than Chicago.
Beyond crime statistics, there are the everyday frustrations of urban life. In California, many residents are still waiting for building permits to rebuild homes lost in wildfires—including those in places like Palisades. In several California cities, officials are wrestling with plummeting commercial real estate values and the visible disorder of dirty streets and persistent petty crime. New York City is dealing with a glut of under-occupied office towers, trying to anticipate how its landscape will change under a new mayor and what that means for workers, businesses, and neighborhoods.
The common thread is a sense of erosion. For all the rhetoric about resilience and renewal, the quiet exodus from major U.S. cities continues. People continue to leave in search of better schools, safer streets, more predictable budgets, and governments that seem willing to do more than paper over deep structural problems. Chicago is far from alone in this struggle. Still, it remains a particularly stark case study in what happens when a city refuses to rethink its direction even as the warning signs multiply.
James Carlini is a strategist for mission critical networks, technology, and intelligent infrastructure. Since 1986, he has been president of Carlini and Associates. Besides being an author, keynote speaker, and strategic consultant on large mission critical networks including the planning and design for the Chicago 911 center, the Chicago Mercantile Exchange trading floor networks, and the international network for GLOBEX, he has served as an adjunct faculty member at Northwestern University.