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Few states face a crisis as deep as Illinois, which has more than $7 billion in unpaid bills, about $137 billion in unfunded pension liabilities and only $1.2 million in reserves. Just over a week into the pandemic, initial jobless claims in Illinois jumped more than 10-fold compared with the same period last year.
Chicago, Illinois’s biggest city and the nation’s third largest, is also in a tough spot. It already faced deficits and its pension contributions were to jump this year to $1.7 billion from $1.3 billion after decades of shorting the four retirement funds drove unfunded liabilities to about $30 billion.
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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