-- 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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The city under previous mayors, Daley 2 and Emmanuel pushed the pension issues down the road by failing to make payments into the funds, pension holidays they were called, in return for labor agreements. In addition they made short payments to the funds for many years again promising benefits during contract negotiations. This has led to the problem now. The buck was passed for over 30yrs knowing someday the buck will stop. The parking meters sold for less than half their value, Skyway sold for half its value and all that money was supposed to be used to prop up… Read more »
I doubt that Lightfoot was unaware of the pension problem while running for mayor. Likely she was no more aware of COVID than the rest of us. Now she finds herself challenged by the duties of the office that she sought and won. She recognizes that the pension promises are unsustainable. At least in this article she is not characterized as blaming her predecessors. Presumably she recognizes that is a fruitless undertaking. What she fails to do is to take the political risks associated with calling for the changes that would cut payrolls, reduce salaries and curtail benefits. Courts have… Read more »
I get the impression that Lightfoot at this point deep down truly believes the only way out is amendment to the State Constitution, but of course could never ever say such a thing. This is of course speculation, but in vaguely calling for reform just what alternative does she have in mind?
Willowglen, I have no hard proof but I think that is certain. They all know. They just don’t say it.
“When you’re surrounded by stupidity, self-preservation isn’t a sin.”