Rahm and Chicago Will Pivot or Perish – WP Original

By: Mark Glennon*   Rahm Emmanuel will become Bruce Rauner on steroids — a relentlessly creative and radical turnaround artist — or he and Chicago are finished.   The jig is up. The national press has tuned in. They are starting to say outright that Chicago is heading towards bankruptcy, as Bloomberg did today, even if most of our local media and Chicago voters remain far behind the curve. Denial, delay, extend and pretend won’t fly anymore. The arithmetic of budgets and pensions for Chicago and its overlapping layers of government is now as indisputable as it is terrifying.  

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Pot for Pensions – Huffington Post

Comment: No, the tax revenue would barely dent Illinois’ pension deficits, contrary to what this article says. But legalization did mean significant revenue and enforcement savings for Colorado.

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Nearly 6,000 in IL Teachers’ Pension Made Six-Figure Pensions in 2014 – Pension360

And that number is rising rapidly:  Six-figure pensions for public school teachers are up over 60 percent from 2012, when 3,458 retired teachers received $100,000-plus pensions from the state. Comment: Teachers would rightly point out that many of these pensioners are administrators, not teachers. That gets tricky, however, because many administrators are former teachers, including spikers — teachers moved into high paying administrative positions in their final years, which spikes their pension.  

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Much at stake in local elections – Daily Southtown

Homer Glen and New Lenox will pit challengers against incumbents who are seeking third terms, while voters in Country Club Hills will select a new mayor from a field of five candidates, including four current aldermen, who are trying to replace longtime Mayor Dwight Welch.

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Chicago Votes for Mayor to Run a City Veering Toward Insolvency – Bloomberg

“If you take all the Chicago issuers, we calculate they basically have to double their property taxes” — Guy Davidson, head of munis in New York at AllianceBernstein. Comment: Doubling Chicago’s property tax levy of about 900 million/year wouldn’t even be even cover the annual pension contribution the city should be making, using S&P pension numbers we wrote about here.

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