CHICAGO — Chicago’s reliance on non-recurring revenues over deep spending cuts to balance the proposed $6.2 billion 2011 budget is costly and only delays a financial reckoning that could lead to steep tax increases and-or harsh budget cuts, a fiscal watchdog group warned.

“In the past three months, the city’s debt rating has been downgraded in part because of its use of asset-lease proceeds to prop up the budget,” said Laurence Msall, president of the Civic Federation of Chicago. “The city’s short-sighted budgeting has costly consequences.”

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