-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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Reality will set in sometime in Mid-November when Trump wins reelection, the senate is 51-49, and the D’s margin in the house is even slimmer than it is today. Faced with incredible budget shortfalls, no political will for Idaho to bail out Illinois and a fair tax that only narrowly passed, Jabba may actually pull the trigger on BK, and lie to us the entire time, and say that it’s all about protecting the pensions and small businesses with outstanding receivables. When in reality, the state will be toast. Speaking of this, Jabba could certainly make do with less, if… Read more »
Someone commented here yesterday about a statistic I saw maybe roughly a year ago but had forgotten, and it may have some slight bearing upon whether IL government should, or should not, get a large-scale bailout. The statistic in question relates to the amount of taxation dollars IL sends to the federal government as compared to the dollars they send back to all levels of government. While I can’t immediately quote that statistic or even a source for it the basic idea is that we send far, far more money to the feds than they return to us. I’ve you’ve… Read more »
James, a paper mill doesn’t need a lot of roads, but it does need a lot of roads outside the paper mill to get the lumber. Does the fact that the paper mill generates more wealth mean that tax revenues spent more on roads outside the mill than within it was used inefficiently? Of course not. Similarly, just because cities generate the most wealth doesn’t mean it’s efficient to concentrate all your tax revenues in such cities, as they depend on the industry and infrastructure of suburban and rural areas to generate that value. As such, simplistic arguments that where… Read more »
Here’s another writer’s comment from today’s “Chicago Tribune” saying essentially the same concept: “Illinois loses $40B to the feds Regarding the editorial about Illinois’ bailout request (“Illinois’ shameless, dishonest ask for a federal bailout,” April 20): Should Illinois get help? Absolutely! For decades, Illinois taxpayers have subsidized other states with our tax dollars. A letter written by U.S. Rep. Bill Foster, published in the Tribune on March 29, 2017, states that Illinois loses $40 billion every year based on what Illinois taxpayers send to the federal government versus what we get back. We rank 46th in the nation on our… Read more »
I have read that before but how is that determined? Does it include Federal School funding, SNAP and other food benefits, Medicaid, Medicare, and all the other behind the scenes funding’s?
I don’t trust any of the numbers these days.
FL supposedly get more money back than they send in…because…they have a lot of old people on medicare and social security.
And fools run around screaming that IL doesn’t get back from washington what it send.
Illinois residents who make this argument are really arguing to let old people die with no money and no healthcare, and keep the money in IL to pay for the pensions of people who no longer work for the state.
Good job James, good job.
I’m not arguing for either side of it. I simply ask others to ponder the idea. There are arguments on both sides as always.
The argument in your favor is based on the false premise that IL pays more than it’s fair share. And when you break it down, it’s just not true, because the premise is wrong. I hear this fake news argument all the time, as a resentment for red states. But it’s really missing the point entirely.
James, it misses the point entirely. There’s another part that people just don’t even consider, and that is … we have a 23 trillion dollar debt currently. Just like in IL, it isn’t tax money in and tax money out. The entire debt society and structure is illogical, which makes Susan Marshall’s “point” irrelevant. What’s more, Illinois is asking for a solution to their local problem caused by their issues and immorality. The other states that “get federal money” may or may not be jockeying for it, and certainly not in the same way, as IL currently is. And that’s… Read more »
Yep, I agree–apples and oranges. Most things are like that when one tries to simplify things.
Make of it what you will. Here’s one governor’s take on this topic:
https://youtu.be/GDG0qgfaP88
Same idea, irrelevant points. What you promise locally that gets you into trouble has nothing to do with Federal monies. Zero.
Yes, but isn’t the point here that the federal government can shift its set of priorities as to what’s more important as emergencies arise? What Gov. Cuomo wants is for the federal government to shift its budgetary priorities in this time of crisis especially. I don’t see that as unreasonable for him to make that plea. That’s not to say it should be done necessarily, but he’s making his case for it. Another way to say it is that NY has been a net loser in dollars sent to it from the federal govt. for many years As compared to… Read more »
While I disagree with bailing out the self inflicted Illinois public pension problem which could have been addressed by multiple administrations there is still a large disparity in federal funds that goes to states like Kentucky, a poor state, through both stimulous and regular assistance that is not entirely irrelevant to how stimulous gets distributed.
You’ve expressed it better than I. Correct me here if I’m wrong, but my recollection is that the public employee pensions in
NY generally are in a better financial status than those in IL, NJ, CT, KY, and CA. If so, that surely can’t be the primary reason Gov. Cuomo is asking for extra federal help. No, it must be another problem or sets of problems with the Coronavirus the obvious suspect, something not foreseen at all. Doesn’t that merit federal attention more than the routine funding issues faced by IL and KY, for example?
What about the IL towns whose residents send more tax dollars to the state than they receive? Should North Shore residents receive more bailout money than the South Suburbs? Shouldn’t Oak Brook residents get more bailout dollars than Bellwood?
Let’s go international. No foreign aid until states are bailed out first.