-- 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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To Rivervbender– a technical correction for you. NO pension contributions were diverted. to the program. The Build Illinois Bonds were 100% paid for by the creation of a sales tax on private sale of used cars, which had not been in place previously. It was a true example of a program where the expense was fully covered by a designated funding mechanism. It stayed that way for many years. It was only after Thompson left office in January 1991 that the funding mechanisms and uses of bond proceeds got broadened, muddied up and abused by the legislature and later governors.
After reading the obituary prose below for poor ole’ “Skim Jim”, I am beginning to think that there may be hope for Illinois after all.
I’m sure his vote is already in the mail.
The man whose Build Illinois Programs diverted pension fund investing into projects with no economic validity other than to buy votes at the pension asset’s expense.
Great man…uh, yeah.
Thompson has died but his 3% annuity increase for pensioners lives on.
Jim Thompson and Jim Edgar were wonderful governors. Illinois really prospered under them.
Dillard and Edgar both reported to the grand avenue crew of the Chicago outfit. Edgar and Dillard through Janis Cellini packed the state payroll with Chicago dems and organized crime associates.
Ironically, Edgar balanced his budgets by borrowing from Rauner’s budgets.
Right!. But remember that since we still are not even paying the tread water number needed to keep the pensions from deteriorating further, all governors then and since have been borrowing fro future ones. Legislators, too, of course.
I have yet to hear any politician calling for paying the “tread water number”. Maybe if we actually had to pay that number more Illinois citizens would be interested in a solution.
Did you mean Ryan’s budgets?
Good riddance to the combine king of the republicrats who brought machine dems and organized crime into state government. And he made the corrupt Cellini family millions. He was the beginning of the downfall of Illinois. Hopefully Edgar and Dillard will soon follow him. May he never rest peacefully.
The man that truly made The Combine work.
Totally corrupt hypocrite