-- 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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Trying to draft a balanced budget, what happened they run out of crayons
““Illinois is not interested in bankruptcy,” Harris said. “We have been making a lot of progress. We had paid our debt down from 17 billion in unpaid bills to now just about 7 billion. We’ve made huge progress. We made our pension payment. We increased funding to elementary and secondary education but just like everyone’s business or family, this coronavirus came along and has just caused havoc.”” I could say this about my household, “I had $170,000 in credit card debt, and I refinanced a portion of it into long term bonds, so now I only have $70,000 in credit… Read more »
Yeah, what nonsense. The pension payment they made is the one they set, which is about $3 billion less than tread water. The state has been losing about $10 billion per year si.nce 2001.
Is this a comedy memo?
The only solution is Bankruptcy. But since Illinois lawmakers are wholly owned by Public Sector Union executives then Bankruptcy will be their last resort. They will eliminate firefighters, police and the national guard before they limit pension payments.