-- 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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Will be interesting to watch in coming months as are dem machine pols spin same old state debt blame game on rauner, trump, etc while are relatively debt/ pension debt free neighboring states like Indiana & Wisconsin will be using fed ARP $funds$ for new &/or expanded services or even tax breaks while Illinois is forced to use funds to payoff old debts (directly or indirectly–PENSION DEBT for are upperincome state worker heros)…and am sure the dullard Illinois voter/taxpayer, abetted by partisan press, will gobble up the spin as usual…all part of systemic social equality Illinois style
Why no mention of the recent criticism of the GASB rules? Why no admonitions to the rating agencies? Who is being alerted or warned here? Might this be a signal to IL and its municipalities to issue-issue-issue?
It really is a puzzle to me how these supposed guardians of the marketplace continue to put lipstick on the pig.