(Bloomberg) -- The pension-funding crisis undermining thestability of Illinois and Chicago is rippling through hundreds ofsmaller governments, squeezing budgets as officials prop upteetering police and fire retirement funds.

The eastern Illinois border city of Danville has reduced itsfirefighter ranks by 27 percent in five years to lower retirementcosts. The tiny Chicago suburb of Stone Park sold $2 million inbonds last year to bolster the police pension, which had just sixcents for every dollar owed retirees.

“Most communities in this state are in no position tocontinuously meet the pension requirements,” saidTom Weisner, mayor of Aurora, the state’s second-largest city, witha population of almost 200,000.

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