(CBS) — Chicago could have a Lollapalooza every month and still there wouldn’t be enough money to balance City Hall’s budget next year.

The Emanuel administrations’ own new estimate shows a ballooning deficit of $754 million. Half of that is tied to Springfield’s doing nothing about public worker pension reform.

The Civic Federation fears the situation will cause lasting harm to Chicago.

“Now the City Council and now Mayor Emanuel face the very difficult challenge of not raising property taxes so high that it drives the businesses and the residences away from the city,” says Laurence Msall, president of the research organization.

Chicago’s bad news budget and tax plan is due at the end of September.