-- 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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So if I understand this correctly they have effectively already underwritten the proposed graduated tax income! Let’s do what we can to make sure that doesn’t happen.
UPDATE: S&P Rating just put Illinois on notice. The budget they just passed is “structurally misaligned” but yet believes they do have the ability to cut if need be. This is proven to be false. The pols don’t have the political will to cut!!!
““We believe the state has capacity to make cuts to close a gap, as there are no cuts in the current budget.””
Except they said “we will create additional unemployment by cutting government workers.” Now I know politicians lie (where is my beautiful wall, Trump?) but they’ve made it very clear that they have the unions’ back, no matter what.
How I see things playing out: I suspect the cut to junk will happen in next 12 months. There will then be a ripple effect on all related IL debt including Chicago. JB will hope Biden gets elected so he can slide out for cabinet position. Lori will do what Lori does and blame the system. Whoever is left holding the bag from JB will request, hat in hand, further federal assistance. The feds will mandate SOME level of spending reform. The level of spending reform depends on if Trump is elected or Biden. IL pols will then blame the… Read more »
So, if anyone needed evidence of how much of a failure JB is… Our 2021 budget, for our state, one of fifty soverign entities in our federal system, cannot pay for itself without help from the Federal government. Really? JB, resign. You are simply unfit to govern.
cannot pay for itself without help from the Federal government
Its a feature not a bug. JB is far from a failure. Governor Trust-Fund Billionaire is an expert at corporate welfare tax avoidance while feasting at the taxpayer trough. He has no problem loading up the citizens of Illinois with more debt and looting us at the same time.
“Governor Trust-Fund Billionaire is an expert at corporate welfare tax avoidance while feasting at the taxpayer trough.”
He’s not the expert – he’s not even in control of his own trusts. his older brother is in control of the trusts. He just takes the check and spends it. His sister had to donate a few million for an ambassadorship. Jabba, the prodigal son, spends $200,000,000 to buy the worst governorship in America.
And manages to make it even worse, to boot…