-- 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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Tax Hikes, Yikes.
Higher taxes every year for many years to come.
The pensions are going to take over 50% of the budgets soon.
Population is declining because of high taxes.
Services will go way done (if that is possible).
Government employees with get raises while private sector will take pay cuts.
It is a Death spiral (Debt Spiral).
According to WTTW’s Chicago Tonight there are approx 1,950 vacant jobs at the police dept which will not be filled so those are the cuts that will be made. So anyone working will not be cut plus crossing guards will not be filled by the police dept so the schools will have to fill those positions. Probably would be cheaper? Maybe!. It seems that not hiring are job cuts but everyone still working will continue to get raises because of previous contracts. So people looking for a job are out of luck. Hope I got that right.