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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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I watched the local briefing in Rockford from the mayor and Winnebago county chairman. Someone asked the question about any property tax relief for homeowners since so many businesses are closed and so many out of work. They said None. No tax cuts.Taxes are based on arrears. As far as I know not one public employee was furloughed or staff reduced. Absolutely no sacrifice by public employees. Still getting raises because of contracts. People will have to seriously think of what is expected from government besides being Human ATM machines.
If this doesn’t give people an idea of what to expect if the graduated income tax amendment passes, I don’t see what will. There’s a reason the rates, brackets and deductions are not part of the amendment. If they did that, they’d have to pass another amendment to raise taxes.
Don’t underestimate the stupidity of low information Democrat voters. They’re really stupid, for the most part. The unfair tax will pass. I used to believe it would not, but these days, with the high Democrat turn out (they’re so angry at the Orange Man!), they’d vote for pretty much anything just to virtue signal their hatred for Trump. People complain about property taxes all the time in my community but they showed up in November 2018 to vote for a $300,000,000 (at the time) school bond increase in a nearly 60 for / 40 against. But hey, at least all… Read more »
Remember the Democrat voters include the unionized Government workers as well as the formidable Free Stuff Army here in Illinois. Then add to that the low voter turnout on election day compounding the problem. The only time so many of these voters will wake up is when they lose their homes through foreclosure and when that happens they will say its (insert Presidents name here) fault.
Plenty of other states and big cities have already furloughed tons of workers..but why not bankrupt ill/ chicago?
Imagine all of the money available for essential services now and in the future for Chicago and IL if salaries, pensions, and health care benefits were reduced to reasonable amounts. I think I just solved the problem.
If Chicago and IL won’t make those reductions voluntarily during this severe time of need, it’s clear they will never do so voluntarily. We’re looking at off-the-chart levels of greed.
I like your comment, but if you are just now figuring out the “off-the-chart levels of greed” of public employee unions then…where have you been?
This has been going on for many years, and there is NOTHING that they will give up for anyone else under ANY conditions. These “public servants” do not care about the “public.” For them it has always been the easy route to a low-stress, high-paying job where they didn’t have to save for retirement. Double bonus, there.
They will have to be forced via bankruptcy or insolvency before they give up one red cent.
Agree. For those of us who graduated from highly-rated schools years ago with degrees that required much effort and intellect, taking a government job wasn’t on our radar screens, because we wanted to challenge ourselves in the private sector to see if we were as good as we thought we were.
Are they really considering cutting essential services before reducing salaries, pensions, and health care benefits to reasonable levels? What kind of leaders are these people? (See my previous comment to formulate your response.)
Do you have any idea of what the monthly rental is on an intracoastal boat slip?
If I were union leaders I would be sitting down with Springfield and work there mess out now before it’s to late. Bankruptcy is on the horizon, Illinois you have no choice.
I suspect they are doing that. They got an early start when Pritker back in March gave the order that all those not working still get paid and get pendson accruals.
That would be shortly after JB “negotiated” raises for SEIU home health aides that guarantee 17.00 per hour by 2022, along with removing the OT restrictions such that they can work 60 hours per week without an HSP eligible Medicaid recipient being required to consider employing an additional provider to save taxpayers a little overtime expense. No formal training required (aside from “mandatory” SEIU training that isn’t really “mandatory”), no certification, felony criminal record not a problem, and still earn 55% more than the average CNA working in the private sector. Those public employee union endorsements & votes don’t come… Read more »
What finally will be the death blow to the “kick the can” strategy? Can we at least guess? I thought for sure it would be bond markets, but somehow the governments always threaten Moody’s or S&P when the BBB- is about the go to junk and poof … back to BBB-
After the election, huge tax increases to pay the checks Congress and the President are writing.
““It could be a pretty short period of time where we see draconian cuts in essential services. Number one in the line is education,” Swonk said. “Also things like garbage collectors. You could even see first responders getting hit.””
Only a real scumbag would first make cuts to these vital services when economic hardship hits. There’s a lot of bloat out there.
Anyone who follows her knows Diane Swonk is just as left as Lori Bigfoot and Jabba. She is purveying fear first and foremost.